Corporate social responsibility and financial performance: The case of the Saudi companies

This research examines the effects of Corporate Social Responsibility (CSR) on financial performance in the Saudi companies' context. In this context measuring, CSR is a necessary condition for knowledge of their own social responsibility and thus to control environmental and social impacts. Assessing the social and environmental performance, the establishment of a steering system for the performance and accountability on these external dimensions imply the existence of metrics to assess the quality of management of the business-related non-financial. The CSR and the financial performance are measured using two accounting variables: Return on assets (ROA) and return on equity (ROE). The financial data are collected from the last ten years (2007-2017). The results show the absence of a relationship between the CSR and the financial performance measured by ROA, whereas there is a positive relationship if the financial performance is measured by the ROE. (C) 2019 The Authors. Published by IASE.