Effect of financial variables on the decision of colombian companies to involve social responsibility
DOI:
https://doi.org/10.24054/face.v24i3.3322Keywords:
Social Responsibility, Companies, Performance, Financial Indicators, Probabilistic ModelsAbstract
Corporate social responsibility and their commitments to sustainable development arise from the desire to carry out actions that positively affect the social and natural environment, while ensuring the economic sustainability of the organizations themselves. In this scenario, the Global Compact must be understood as a tool to guarantee the reporting of such actions. Under this understanding, this article seeks to determine the impact that the financial variables have: net profit margin and operating income, on the probability that a company is socially responsible, a variable defined as whether or not it adheres to the Global Compact. The methodology is quantitative and is based on the use of the logit and probit models. The data analyzed are from the thousand largest companies in Colombia published by the Superintendency of Companies for the years 2018 to 2020. The results show that the size of the company and operating income have a positive influence on the probability that a company is socially responsible, but the other financial variables are not good predictors of said probability.
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