A Study of Relationship between Corporate Social Responsibility and Financial Performance

The present applied- analytical research explores and tests the sign of relationship between corporate social responsibility and financial performance of pharmaceutical companies. Statistical population and sample of this study constitute affiliated pharmaceutical companies in Tehran stock exchange that are located in East Azarbayjan and Tehran Provinces. Corporate social responsibility variable includes five dimensions: work conditions, environment, business behavior, society, local community and corporate governance.In order to gather information about corporate social responsibility and its dimensions,questionaires are used and about financial performance variable, financial documents of firms are used. There are two moderating variables in this study; organization size and organization risk. Firm financial performance has been measured by “return on assets”. For analyzing the collected data, statistical technique spearman`s rho is applied. The results of this thesis indicate that there is not a positive relationship between corporate social responsibility dimensions and firm financial performance but there is a positive relationship between size of firm and financial performance. There is also a strong relationship between risk of firm and financial performance.