A Survey on the Relation between Changes in Level of Social and Environmental Issues Disclosure and Profitability Indexes by Using KLD Index

Nowadays, In addition to provided financial information, different groups of users are demanders of extra non-financial information; these groups of users are more favor about various kinds of information about work force and issues related to environment. In spite of having cost for corporations in order to disclosure and performing issues related to social responsibility, they find some benefits. This research has been done with purpose of assessing the relation between changes in the level of social and environmental issues disclosure and profitability indexes. This study has been done by using quasi-experimental method and extracted data from financial statements for the years 2001 to 2014. To analyze data multiple regression model, panel data and fixed effect method were used. In this research to assess social and environmental issues disclosure KLD index. The results have showed that there is a significant relation among social and environmental responsibility disclosure and aspects of corporate financial performance, the ratio of operating income to sell ratio and the rate of return on used capital and rate of return on net wealth used.