The relationship between corporate social responsibility and corporate financial performance: reflections on the US technology industry

The objective of this study is to analyse the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in the leading technology companies listed in Nasdaq, USA. Specifically, the main relationship between CSR and CFP was analysed through accounting and market performance of corporations and the individual impact of environmental, social, and governance categories. The relevant data was obtained from Refinitiv Asset 4 Database and applied OLS regression technique. Annual panel data of 89 technology companies from 2012 to 2022 was analysed. The findings reveal that there was a significant positive relationship between CSR and accounting performance and negative relationship between market performance. When it comes to CSR pillars, environmental pillar did not have significant relationship with accounting performance but there was a positive relationship with governance and negative with social pillar and accounting performance, while market performance had negative relationship with all three pillars. The study findings have implications for defining investment and CSR strategies for corporations in the technology industry, policy makers, governments, and financial regulators. Further implications for corporations are discussed.