The effect of corporate social responsibility and product diversification on performance evaluation

Authors
Mohammad Ali Aghaei 1
mortoza Kazempour 2
1 Associated professor of accounting , management&economic faculty of Tarbiat Modares University (Aghaeim@modares.ac.ir)
2 , management&economic faculty of Tarbiat Modares University(Corresponding author)
10.18869/acadpub.aapc.1.1.99
Abstract
Companies resort to diversity in order to meet multiple needs of their customers so that by preserving their customers they would be able to improve performance and productivity. in the other hand, to experience a successful presence in the society, companies are trying to implement the concept of social responsiveness in the best way possible so that by doing this and in the process of increasing social satisfaction, performance of the company would be improved too. Therefore, The aim of this study is to evaluate the effect of corporate social responsibility and product diversification on performance evaluation of companies member of the Tehran Stock Exchange. in order to measure the variability of products the criteria of entropy was used and social responsibility was also used in applying the presented model in the appendix of the current article that has 6 dimensions of environmental and energy issues, products and services, human resources, customers, social reponsibilities and energy. return on asset ratio was used to measure and asses performance. the statistical population of the current research included 80 companies in the period of 2010 to 2015 (480 year/company). after statistical analysis, results showed that there is a positive and meaningful relationship between social responsibility and company performance and there is a negative and meaningful relationship between diversification and firm performance.
Keywords
Corporate social responsibility
Diversification
Firm performance
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Value and Behavioral Accounting
Volume 1, Issue 1
Summer 2016
Pages 99-121