South Africa: CSR as a Driver of Financial Performance

A new study in the Journal of Risk and Financial Management reveals that firms listed on the Johannesburg Stock Exchange (JSE) that prioritize Corporate Social Responsibility (CSR) tend to achieve better financial performance. Analyzing data from 104 companies between 2017 and 2022, the research links high CSR scores to improved metrics such as return on assets and market value added. It also highlights the positive role of board gender diversity while noting that excessive independence or frequent meetings may hinder performance. The findings affirm that CSR can be both a moral and financial asset in emerging markets like South Africa.