<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The concept of Corporate Social Responsibility (CSR) has become popular among organizations, the public, and external stakeholders. Recently, it has been appreciated by capital markets the indexes of which are constructed in such a way as to account for companies’ CSR. One of these indexes is the Respect Index of the Warsaw Stock Exchange. This paper analyses the financial condition of Respect Index companies in Poland using the desk research method. The analysis utilizes indicators of the so-called Du Pont’s pyramid (for all companies under consideration) and stock market indices such as a book value per share (BVPS) and a price-to-earnings ratio (P/E) (for the banking and insurance sectors and all other sectors, respectively). The analysis shows that the financial condition of the studied Respect Index companies in the years 2013 – 2015 was stable in the period of analysis, despite the not-so-optimistic financial situation of their industries. Socially responsible management can often result in good financial position and increase in the company’s rate, which may be indicated by the fact that the Respect Index increased by 40% in 2009-2015 compared to a lower increase WIG (18%) or WIG20 (-20%) decline. To find out more about the relationship between the stability of companies’ financial results and their CSR, more investigations and analyses of companies included in the Respect Index as well as other companies dedicated to CSR issues need to be conducted.</p></abstract>

The concept of Corporate Social Responsibility (CSR) has become popular among organizations, the public, and external stakeholders. Recently, it has been appreciated by capital markets the indexes of which are constructed in such a way as to account for companies’ CSR. One of these indexes is the Respect Index of the Warsaw Stock Exchange. This paper analyses the financial condition of Respect Index companies in Poland using the desk research method. The analysis utilizes indicators of the so-called Du Pont’s pyramid (for all companies under consideration) and stock market indices such as a book value per share (BVPS) and a price-to-earnings ratio (P/E) (for the banking and insurance sectors and all other sectors, respectively). The analysis shows that the financial condition of the studied Respect Index companies in the years 2013 – 2015 was stable in the period of analysis, despite the not-so-optimistic financial situation of their industries. Socially responsible management can often result in good financial position and increase in the company’s rate, which may be indicated by the fact that the Respect Index increased by 40% in 2009-2015 compared to a lower increase WIG (18%) or WIG20 (-20%) decline. To find out more about the relationship between the stability of companies’ financial results and their CSR, more investigations and analyses of companies included in the Respect Index as well as other companies dedicated to CSR issues need to be conducted.

Analysis of the Financial Situation of Selected Respect Index Companies

Department of Central Banking and Financial Intermediation, Finance Institute, Economics and Sociology Faculty

Accounting Department, Management Faculty

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Analysis of the Financial Situation of Selected Respect Index Companies"}

The concept of Corporate Social Responsibility (CSR) has become popular among organizations, the public, and external stakeholders. Recently, it has been...

Analysis of the Financial Situation of Selected Respect Index Companies

Published Online: Feb 14, 2019

Page range: 39 - 48

Received: Nov 24, 2016

Accepted: Mar 10, 2018

DOI: https://doi.org/10.2478/fiqf-2018-0004

Keywords
Respect Index, Corporate Social Responsibility (CSR), financial analysis

© 2018 Joanna Stawska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Analysis of the Financial Situation of Selected Respect Index Companies

Published Online: Feb 14, 2019

Page range: 39 - 48

Received: Nov 24, 2016

Accepted: Mar 10, 2018

DOI: https://doi.org/10.2478/fiqf-2018-0004

KeywordsRespect Index, Corporate Social Responsibility (CSR), financial analysis

© 2018 Joanna Stawska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Respect Index, Corporate Social Responsibility (CSR), financial analysis