Final answer:
The relationship between social responsibility and financial performance is positive.
Step-by-step explanation:
The relationship between social responsibility and financial performance has been shown to be positive. Many studies have found that companies that engage in socially responsible practices tend to have better financial performance. This is because customers are more likely to support businesses that are socially responsible, leading to increased sales and profits. Additionally, socially responsible companies may also attract and retain talented employees, further contributing to their financial success.
For example, a study published in the Journal of Business Ethics found that companies with higher levels of corporate social responsibility had higher financial performance measures such as return on assets and return on equity. Another study by Harvard Business School showed that companies that invest in social and environmental initiatives outperform their peers financially.