Title:
REVISITING THE ROLE OF CORPORATE GOVERNANCEON THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE

Authors:
Muhammad Aldaas and Suresh Ramakrishnan

Abstract:
The notion that organizations have to serve the community to achieve sustainability have received opposing views of the role of firms in society and disagreements as to whether corporations should predominantly wealth maximize wealthation should be the sole goal of a corporation. The argument, however, remains significant. This paper takes into account the four dimensions of economic, legal, ethical, and philanthropic responsibility which represented a more nuanced approach to corporate social responsibility and that a firm has an economic obligation to operate efficiently and profitably while maximizing the stakeholders’ values. The researchers explore the relationship between CSR disclosure and the financial performance of selected companies listed on the Saudi stock market and investigates the role of corporate governance in the relationship. Saudi Arabia remains a green site for research on the topic. The hypotheses consider the relationship of corporate social responsibility (CSR) and corporate financial performance (CFP), and how this relationship will get effecting through corporate governance. The authors propose a framework as well as a methodology for the study in which data from 10-year annual reports (2009-2019) of selected companies in Saudi Arabia service industry will be used for the analysis.

Keywords:
Corporate Social Responsibility, Sustainability, Governance, and Financial Performance.