THE IMPACT OF INVESTMENT IN CORPORATE SOCIAL RESPONSIBILITY ON THE COMPANIES’ FINANCIAL PERFORMANCE

It is important to understand the impact of corporate social responsibility on investment decisions and raising ethical standards to encourage responsible business behaviour. The aim of this research is to study the relationship between corporate social responsibility and investment performance, assess its role in commercial financial indicators and compliance with legislation in various industries. The study employs the following methods: econometric analysis, the Baron and Kenny method, panel data regression, structural equation modelling (SEM). The results show that organisations that adhere to effective corporate social responsibility practices increase investment performance, improving financial performance and ethical behaviour. The study also emphasises the importance of stakeholder participation in CSR reporting, which ensures transparency and accountability. The academic novelty is the combination of different analysis methods to verify the relationships between CSR and financial performance. Further research prospects include studying the impact of CSR on the long-term sustainability of companies in different economic conditions.