AN EMPIRICAL STUDY ON CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL REGULATION AND FINANCIAL PERFORMANCE - BASED ON HEAVY POLLUTION INDUSTRY

The Corporate role in handling corporate social responsibilities （CSR） to follow environmental regulation (ER) is not considered a good financial strategy in the industry. Since big corporations only care about financial performance over environmental regulation, they carelessly do not perform their social responsibilities as a corporate entity. Multiple studies have been done on CSR and Financial Performance (FP) relationships. In this research study, It was focused on measuring the beneficial side effect of ER on FP when a company performs all its social regulations as a corporation. Direct and indirect studies called empirical studies have been performed in this area. By comparing the Environmental social and governance (ESG) performance score to the firm's Financial Performance (FP), this article investigates the link between Corporate Social Responsibility (CSR) and corporate profit. The ESG responsibility performance disclosure ratings (measures of environmental, social, and governance responsibility performance) in Korean firms exhibit a wide range of outcomes, according to our findings. By establishing that the environmental responsibility performance score has a negative (or U curve) relationship with FP, whereas the governance responsibility performance score has a positive (or inverse U curve) relationship with FP, no statistically significant evidence of a link between social responsibility performance and FP was discovered. This article also discovered a relationship between Environmental Regulation (ER) as an intermediate linkage variable between CSR (Corporate social responsibility) and FP (Financial Performance).