Corporate Social Responsibility and the Profitability of Companies Listed on the S&P/BMV Total México ESG index

Abstract

The objective of this research is to evaluate the effect of the social and environmental dimensions of CSR on the net income of companies listed on the S&P/BMV Total Mexico ESG index. The methodology adopted a quantitative approach, an explanatory scope, and a non-experimental, cross-sectional design. The data collection process consisted of documentary observation of sustainability ports and annual reports of companies listed on the S&P/BMV Total Mexico ESG index. The results of the correlation analysis show a positive and significant relationship between the social dimension of CSR and profitability. The environmental dimension yielded a non-significant result. Subsequently, a simple linear regression was applied between profitability (dependent variable) and corporate social responsibility with a social dimension (independent variable). The results of the econometric model revealed a low incidence of corporate social responsibility on profitability. This study falls within the field of research on social responsibility and contributes to existing academic literature on the relationship between CSR and profitability. It also makes these findings available to the business sector by confirming a statistically significant relationship between both variables and suggesting potential benefits in the financial performance of companies when implementing these responsible social behaviors.