ADVANCING SDG 12: CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE OF LISTED FIRMS IN THE PHILIPPINES

This study investigates the link between corporate social responsibility (CSR) and the financial performance of listed firms in the Philippines in alignment with SDG 12. The methodology adopted for this research comprises a longitudinal approach to investigate firm data of the Philippine Stock Exchange Index (PSEi) from 2019 to 2022. The environmental, social, and governance (ESG) framework assessed CSR performance, while financial performance was measured using return on equity and stock return.  Firm profiles such as industry type, firm size, firm age, and auditor type were used as control variables. Data collection was carried out through firms' sustainability, annual, and governance reports as the data source. Governance performance significantly affects ROE (β = 0.434, p < 0.01), while environmental and social dimensions, as well as overall CSR performance, show no significant effect on either ROE or stock return. It extends the current literature on CSR performance and its link to financial performance in an emerging economy setting, while also providing empirical insight into the early implementation of SDG 12.6 in the Philippine context. This study provides preliminary data on the link between CSR and financial performance in the Philippine context, where mandatory sustainability reporting was recently adopted.