The purpose of this study is to analyse CSR practices implemented by Spanish companies and the relationship between such practices and corporate financial performance.
The empirical analysis carried out was performed in two phases or stages: analysis of the data obtained through content analysis; and analysis of the motivations behind CSR practices using a dependency model, multiple linear regression, enabling their effect on corporate performance to be explained. Several control variables were introduced to represent the size of the companies, expressed in terms of total assets, and the industry in which the firm operates.
The paper underpins the fact that in Spain there has been a significant increase in practices favouring the reduction of environmental impact, as well as the creation of comfortable workplaces, especially promoting workers' rights. Several of these corporate practices associated with social responsibility in Spanish firms show a positive and significant impact on the rate of sales growth but there is a lack of impact on productivity or market value. Moreover, other responsible practices are not related to short‐run improvements in companies' performance.
The findings allow the authors to conclude that CSR practices in Spanish firms are geared towards social welfare, and that they are mainly associated with differentiation with regard to competitors and improving the company image, which lead to performance‐linked economic advantages (such as sales increases).
The paper has analysed corporate practices in a specific country separately (Spain) and has determined the relationship between CSR and firm performance.
