The Impact of Strategic Corporate Social Responsibility on Financial Performance: The Mediating Role of Sustainability Balanced Scorecard: Empirical Study on Egyptian Top 30 EGX- index Strategic management area

Document Type : Original Article

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Business administration deptrment Faculty of economic and business Misr University for Science and Technology Cairo Egypt

Abstract

The purpose of this paper is to investigate whether strategic corporate social responsibility (SCSR) based on social commitment, operational excellence, and social formalization has a positive impact on financial performance (FP). Particularly this paper focuses on the mediating effect of sustainability balanced scorecard (SBSC) in the relationship between the strategic corporate social responsibility and financial performance. The paper investigated Egyptian top 30 enterprises that have been listed in the Egyptian EGX-ESG, index (2017) according to their compliance with the new EGX index regulations regarding social responsibility, corporate governance and sustainability governance. A self-administered questionnaire used to collect data from the top managers in the participating enterprises. The hypotheses have been tested using the path analysis technique. The statistical results initially demonstratethat (SCSR) based on social commitment, operational excellence, and social formalization has a positive impact on the FP through the SBSC, thus (SBSC) mediate the relation between SCSR and financial performance. Also based on the statistical results, only one dimension of SCSR (social formalization) has a positive direct impact on financial performance, whereas the direct impact of the other two dimensions (social commitment and operational excellence) is rejected. The paper argues for the importance of SBSC in enhancing the effect of SCSR on financial performance.

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