A Corporate Social Responsibility multidimensional indicator to evaluate the effects on financial performance of the chemical industry

The purpose of the paper is to analyse the relationship between Corporate Social Responsibility (CSR) initiatives and financial performance, i.e. the so-called business case of CSR. After a literature review of the main issues affecting empirical papers about the study of the relationship between CSR - and CSR performance - and financial results, the research was articulated into two main phases. The first was aimed at detecting all possible CSR initiatives in order to build a multidimensional indicator, according to three main dimensions of CSR. The second stage of the analysis was devoted to evaluate the relationship between the above-mentioned CSR actions and corporate financial performance. The study focused on a sample of chemical companies selected among those associated to Cefic, and with a turnover more than 1 euro billion. An econometric analysis, and, in particular, OLS regression, has been performed in order to process data. Findings show that environmental initiatives implemented by chemical companies effectively improve economic results by allowing an efficient allocation of resources and assets. However, a statistical sample of companies and an extended period of analysis could strengthen the results of this study. On the other hand, the research may have positive implications for managers and practitioners because findings support the planning of efficiently sustainability strategies.