IMPACT OF STRATEGIC CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE THE MEDIATING ROLE OF SUSTAINABILITY BALANCED SCORECARD EMPIRICAL ANALYSIS ON EGYPTIAN TOP 30 EGX-ESG, INDEX

Abstract

This paper aims to substantiate the mechanism through which strategic corporate social responsibility (SCSR) based on (social commitment, operational excellence, and social formalization) affects directly and indirectly on financial performance (FP). Specifically, this paper focuses on the mediating effect of sustainability balanced scorecard in the relationship. The paper investigates Egyptian top 30 enterprises that have been listed in the Egyptian EGX-ESG, index according to their compliance with new EGX regulations regarding social responsibility, corporate governance and sustainability governance. Data have been collected through closed questionnaires from a sample of top managers. The hypotheses have been tested using the path analysis technique .The statistical results initially demonstrate that SBSC mediate the relation between SCSR and financial performance. SCSR based on social commitment, social operational excellence, and social formalization has positive indirect effect on the FP through SBSC. Also based on the statistical results, only one dimension of SCSR (social formalization) has direct effect on financial performance, whereas the direct effect of the other two dimensions (social commitment and operational excellence is rejected. The paper argues for the importance of SBSC in enhancing the effects of SCSR on firm performance and particularly on financial performance.