THE ASSOCIATION BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE: A JSE PERSPECTIVE

Abstract

Corporate Social Responsibility (CSR) has become an increasingly important component of contemporary corporate strategy, reflecting the growing understanding that organisations’ environmental and social initiatives can shape their financial success. This study investigates the association between CSR practices and the financial performance of leading firms listed on the Johannesburg Stock Exchange. Using Pearson correlation analysis and multiple regression techniques, the findings indicate a significant positive relationship between CSR and financial outcomes, with the regression model accounting for 52.2% of the variation in Environmental, Social, and Governance (ESG) scores. Based on these results, the study suggests that JSE-listed organisations integrate CSR reporting into their strategic governance and management systems, while policymakers and regulatory authorities should consider measures that encourage ESG disclosure to support long-term sustainable financial performance.