Corporate Social Responsibility and Financial Performance: Evidence from the Logistics and Distribution Industries in Korea

Purpose: This study aims to empirically investigate the impact of corporate social responsibility (CSR) on financial performance among firms in the logistics and distribution industries. Research design, data and methodology: The empirical analysis is based on panel data from 1,145 firm-year observations of logistics and distribution companies listed on the Korean stock exchange between 2011 and 2022. CSR performance is measured using two variables: (1) CSRD, a dummy variable indicating whether a firm is included in the top CSR group selected by the Korea Economic Justice Institute (KEJI); and (2) CSRS, a continuous score assigned by KEJI reflecting the intensity and quality of CSR activities. Multiple regression analyses were conducted to test the relationship between CSR engagement and ROA. Results: The analysis reveals that both CSRD and CSRS are positively associated with ROA. The CSRS variable also shows a positive effect at the 10% significance level. Conclusions: These findings provide empirical support for the view that CSR contributes to superior financial outcomes in industries where stakeholder trust, public reputation, and consumer loyalty are critical. The results align with stakeholder theory and the resource-based view, suggesting that CSR is not merely a reputational tool but a value-creating activity