Corporate Social Responsibility (CSR) is a much debated and ever changing topic. From a South African context, one of the most recent means of measuring CSR has been through the use of the Johannesburg Stock Exchange (JSE) socially responsible investment index (SRII). The JSE SRII was first introduced in 2004 and has grown in popularity and effectiveness since. Included amongst the criteria for inclusion in this index is compliance with black economic empowerment (BEE). The index measures companies against the triple bottom line (environment, society&economy). Companies included in the index are deemed to have good CSR practices. This study evaluates the effects of CSR on the corporate financial performance (CFP) of the top 100 listed companies on the JSE over a 10 year period (2002-2011). The findings of the study suggest that companies not included in the SRII, on average, perform better than SRII companies. The basis of this conclusion is on the analysis of the results of the total return index (TRI), return on assets ratio (ROA) and the net profit margin percentage (NPM). / Dissertation (MCom)--University of Pretoria, 2013. / Financial Management / unrestricted

Corporate Social Responsibility (CSR) is a widely disputed and constantly evolving topic. One of the most recent methods of assessing CSR in South Africa has been through the usage of the Financial Times Stock Exchange/Johannesburg Stock Exchange (FTSE/JSE) Responsible Investment Index. The Johannesburg Stock Exchange (JSE) Socially Responsible Investment Index (SRI Index) was founded in 2004 and was replaced by the FTSE/JSE Responsible Investment Index in 2015. The index evaluates listed firms based on their triple bottom line performance i.e., environment, society, and economy. The index includes companies that are thought to have good CSR policies. This study assesses the effects of CSR on the Corporate Financial Performance (CFP) of firms listed on the JSE that were included in the FTSE/JSE All Share Index (ALSI) as of the 31st of January 2021. This it does by analyzing the stock's financial performance over a five-year period between the 2015 and 2019 financial years. The requirements for stocks to be included in this study is that they must have had an average market capitalization between R2 billion and R100 billion between the 2015 and 2019 financial years and are not part of the real estate sector. The results of the nonparametric (Mann-Whitney) tests show that companies that are part of the FTSE/JSE Responsible Investment Index perform better on average than those that are not included in the index. This conclusion is based on a review of the total return index (TRI), return on equity ratio (ROE), price-earnings ratio (PE), and the market-to-book ratio (MB). The analysis conducted using the net profit margin (NPM) as a measure of financial performance show that there is no relationship between CSR and financial performance. The Mann-Whitney test results where the return on assets (ROA) ratio was used showed a negative relationship between CSR and financial performance.