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CSR and the quest for profitability: using Economic Value Added to trace profitability
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
2012 (English)In: International Journal of Economics and Management Sciences, ISSN 2162-6359, Vol. 2, no 3, 43-54 p.Article in journal (Refereed) Published
Abstract [en]

Management scholars have for a long time disagreed on whether or not there is a correlation betweenCorporate Social Responsibility (CSR) and profitability. One of the reasons behind the disagreement is thecomplexity in measuring CSR. Some scholars however claim that Economic Value Added (EVA) is an indicatorthat can be used to measure the correlation between CSR and profitability. The goal of our study is to find out ifthere is any correlation between CSR and profitability. The empirical data consists of interviews withrespondents from five companies and the calculation of the selected companies EVA-value from historicalfinancial statements. The EVA shows a low positive correlation between profitability and CSR. But previousresearch and the practical examples from the selected companies show a strong positive correlation betweenCSR and profitability.

Place, publisher, year, edition, pages
OMICS , 2012. Vol. 2, no 3, 43-54 p.
Keyword [en]
CSR, EVA, Profitability, Management control
National Category
Business Administration
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-60386OAI: oai:DiVA.org:lnu-60386DiVA: diva2:1070154
Available from: 2017-01-31 Created: 2017-01-31 Last updated: 2017-01-31Bibliographically approved

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Citation style
  • apa
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  • nn-NB
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  • Other locale
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Output format
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  • asciidoc
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