Influence of social responsibility on the financial performance of the chemicalpharmaceutical sector

Abstract

This study addresses new evidence on the relationship between social responsibility (SR) practices and the financial performance of Ecuadorian companies from the chemical-pharmaceutical sector. The research has a mixed component, in which experiences and opinions were collected from experts in the sector through focus groups; similarly, surveys were conducted to managers of 88 companies in the cities of Quito and Guayaquil, Ecuador. Weighting methods were used to determine an SR index based on three pillars: a) economic, b) social and c) environmental dimensions, in order to explain the implementation level of socially responsible practices. Descriptive statistics and correlation techniques were used as well. The results highlight a positive relationship between the economic and environmental dimensions of SR and return on capital (ROC), as well as between the social dimension of SR and return on sales (ROS).