The Impact of Corporate Social Responsibility on Firm’s Performance: Evidence from Textile and Apparel Manufacturing Companies in Sri Lanka

Abstract

Purpose: The purpose of this study is to determine the impact of Corporate Social Responsibility on firm’s performance of Apparel manufacturing companies in Sri Lanka. Design/Methodology/Approach: This study focused on how Corporate Social Responsibility like Economic Responsibility, Legal Responsibility, Ethical Responsibility, Philanthropic Responsibility are effect on the firm’s performance of apparel manufacturing companies in Sri Lanka. The research has used the quantitative approach to investigate the research and gathered data from 150 apparel manufacturing companies in Sri Lanka in order to achieve the research objectives. This research used a simple random sampling technique. In this study, the main source of data gathering approach is questionnaires. For data analysis, descriptive statistics, multicollinearity test, independent sample T-test, ANOVA test, and multiple regression were used, and SPSS statistical software has been to analyze the survey data. Findings: Based on the study's findings the hypotheses test demonstrates that the Economic Responsibility, Legal Responsibility, Ethical Responsibility, Philanthropic Responsibility are significantly impact to the firm’s performance of the apparel manufacturing companies in Sri Lanka. The study's adjusted R square is 51.9 percent, according to the multiple regression model, which indicates that the Corporate Social Responsibility elements in this study explain 51.9 percent of Corporate Social Responsibility on firm’s performance of apparel manufacturing companies in Sri Lanka. Apparel Manufacturing Companies are the major income source to the economy. Originality: According to the research findings, Corporate Social Responsibility has a bigger impact on performance of apparel manufacturing companies in Sri Lanka.