Clarify the order of research proposal following topic "The Impact of Corporate Social Responsibility on Corporate Financial Performance".

1. INDIVIDUAL RESEARCH
AHSS Jayathunga
Reg No: MGT/2013/2014119
Index No : MGT/3393
Research Proposal.

2. Title
The impact of Corporate Social Responsibility as
Risk Management on Corporate Financial
Performance in Apparel Industry.

3. Content
1. Background of the study
2. Literature Review
3. Significance of the study
4. Problem statement
5. Research Questions
6. Objectives of the study
7. Hypothesis
8. Research Methodology
9. Limitations of the Study

4. 01.Background of the Study
• Corporate Social Responsibility (CSR) is a most popular concept
around the world.
• The concept of CSR has been developing since before World War
II.
• Most of business institutions publish their CSR reports for use of
public interest.
• Another trend of CSR is its practice as risk management Strategy.
Therefore CSR practice help to recover from threats that create
in business environment.
• Every business organization should consider about the influence
of CSR on their Corporate Financial Performance (CFP).
• The perception about inter- behavior of CSR and CFP helps
companies to balance their operations under the low risk.

5. 02. Literature Review
Source Findings Relevance
Laan,2008
;Salzmann,2005;
Preston &
O’Bannon,1997
Assumptions of the
conceptual relationships
between CSR and CFP.
The theoretical approaches of CSR
and CFP (Conflict or Coincident)
Zhang, 2008
Freeman, 1984
Corporate Governance &
Stakeholders’ Theory
CSR from the Stakeholders’
perspective
Udayasankar
,2008; Perrini,
2007
Environmental Management
practices of large firms &
SMEs.
The Key factors behind the CSR
implementation
Beth Kytle, John
Gerard Ruggie,
2005
Dynamic interactions in
business environment
CSR as Risk Management

6. 03. Significance of the Study
• Popular concept all over the world.
• Very important practice to industrial sector in developing
countries.
• There is growing trend of social risks in business environment.
• To survive and to achieve better performances, companies
should balance those social risk through appropriate strategies
with efficient manner on their financial performance.
• Therefore it is very important knowing about relationship
between CSR and CFP.
The following parties will be benefited,
• Manufacturing companies
• Future Researchers
• Students

7. 04. Problem Statement
• In the present scenario it can be seen that there is an ongoing
debate regarding the impact of CSR on CFP.
• Every organization expects enough benefits on CSR allocations
and those benefits may be financial or nonfinancial.
• To survive and achieve better performance, it is very
important play the strategic perspective of CSR with the
perception of financial performance.
• But there is lack of studies available in Sri Lankan context that
shown the Impact of CSR on financial performance.
• On the other hand companies follow different ways and
methods of CSR activities in same industry. There are specific
factors behind their CSR practice that this to this difference.

8. 05. Research Questions
• How CSR impact on corporate financial
performance of the apparel industry?
• What are the reasons that influence to differ
the implementation of CSR in same industry?

9. 06. Objectives of the study
Primary Objective
• To recognize the impact of Corporate Social
Responsibility as risk management on corporate financial
performance in apparel industry.
Secondary Objective
• To identify factors that influence to differ the
implementation of CSR from organization to organization
in apparel industry.

10. 07. Hypothesis
• H1 : There is a significant relationship between Corporate Social
Responsibility and Corporate Financial Performance (CFP).
• H2 : There is a significant relationship between Employee
Relations & CFP.
• H3 : There is a significant relationship between Community
Involvement & CFP.
• H4 : There is a significant relationship between Product
Dimension and CFP.
• H5 : There is a significant relationship between Environment
Disclosure and CFP.

11. 08. Research Methodology
• Research Strategy - Quantitative Methodology
• Population is the Apparel manufactures in Sri Lanka and Sample is well
reputed 20 Companies in Western province.
• Simple Random Sampling method is used to select that 20 companies.
• To collect data from this sample use most of secondary data and some
kind of primary data for qualitative data requirements.
• Secondary data through recently issued annual reports for five years of
selected sample companies and primary data from interviews with
financial managers of few companies.
• Data analyze: Correlation test Regression and Descriptive Statistic with
SPSS software package.

12. Conceptual Framework
Employee Relation Dimensions
Community Involvement
Dimensions
Environment Dimensions
Corporate Social Responsibility
Product Dimensions
Corporate
Financial
Performance
Dependent
Variable
Independent
Variable

13. Operationalization
Dimensions Of CSR
(Corporate Social
Responsibility Disclosures)
Measurements of
Financial Performance
Control Variables
• Employee Relation
Dimensions
• Community Involvement
Dimensions
• Environment Dimensions
• Government
Accountability Dimensions
• Product Dimensions
• Return on Assets (ROA)
• Return on equity
(ROE)
• Return on sales (ROS)
• Growth rate of sales
(GRS)
•systematic risk
• Financial leverage
• firm’s size
• asset turnover
• earnings per share.

14. 09.Limitations of the Study
• Difficult to define an accurate measurement through sample.
• Practical issues in field study such as refusing to give
information.
• Lack of time allowed for the research