Abstract:

Corporate social and environmental responsibility initiatives provide benefits and competitive advantages to a company. It is still not clear, however, whether corporate social and environmental responsibility could ultimately improve a company's financial performance. The hypothesis of this paper is that there is a direct correlation between the environmental disclosure and financial performance of the Russian retailers. The authors analyzed the relationship between the environmental disclosure index and EBIT (earnings before interest and taxes), ROS (return on sales), ROE (return on equity), and ROA (return on assets) of the Russian retailers. The hypothesis was disproved for all the indicators as a result.