An Empirical Research on Corporate Social Responsibility and Financial Performance in the Automobile Industry in the UK

Abstract

Corporate social responsibility performed by the companies to develop strategies that are economically profitable, support the social causes, improves ethics and maintain the stakeholder relationship in the country (Awaysheh, et al., 2020). Hence, the corporate social responsibilities are the concept that demonstrates the linkage between the social development as well as the corporate growth. The UK’s automobile industry is dynamic and have renowned automobile companies that are adopting CSR activities that gives positive impact on the company’s profit and enhance financial performance by maintaining goodwill of the company. However, there are some issues faced by the organisations like the CSR performs by the organisations in the automobile industry will give lower return on rates in the industry as it affects the future stocks of the company negatively. The automobile industry made innovative changes in the organisation to achieve the sustainability goals which also contribute for the societal benefits. Moreover, the automobile organisations in the UK made environmental friendly design which will release less CO2 and create less air pollution in the country. There are automobile organisations in the UK those adopt sustainable supply chain management in the country for the automobile industry (Nyame-Asiamah & Ghulam, 2019). Therefore, it helps the automobile industry to make sustainable decisions which is beneficial for the organisations, and made contribution to improve social environment.