SHOULD ORGANIZATIONS BE SOCIALLY INVOLVED?

 

 It’s important that,  whether social involvement affects a company’s economic performance, to answer this question various studies have done. But the results are not so fruitful. Most of them found a little positive relationship, no generalizable deductions can be made because the studies haven’t used standardized measures of socio responsibility and relation between economic performance. There is another concern in these studies that have been alarms: for example, If a study showed that socio relationship and economic relationship were positively related, this didn’t necessarily mean that social indulgence and economic involvement cause more economic progress. It could simply result that high profits afforded companies the bounty of being socially involved. So such methodological concerns can’t be taken frequently. In such a case, one study response that if the flawed empirical analyses in these studies were “corrected” social responsibility had a neutral impact on a company’s financial performance