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Driving Profitability Through Social Responsibility: Unveiling The Success Story Of Automotive Plant Stellantis Slovakia

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Date
2024
Author
Cincalova, Simona
Mataruka, Leo
Masarova, Kamila
Muzurura, Joe
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Abstract
This study examines the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) in Slovakia's unique context of the Stellantis automobile plant. Driven by the growing focus on mitigating business impacts and delivering value to stakeholders, the research explores CSR as a strategic tool to enhance competitiveness. The analysis utilises Stellantis Slovakia's financial reports from 2017 to 2021, incorporating horizontal and vertical analysis of assets. A questionnaire has also been administered to gauge employee perception of the company's CSR initiatives. The survey findings reveal a positive correlation between stakeholder engagement and CSR. Stellantis Slovakia's car plant showcases a commendable CSR commitment, with the potential to set more precise, measurable objectives to drive sustainability efforts. The company's robust financial performance, characterised by significant net profit growth, is in line with industry trends, suggesting that CSR-oriented firms enjoy enhanced CFP. The survey underscores the highly positive employee perception of CSR, related to moral commitment, thereby supporting previous research on CSR-driven employee engagement and productivity. This study deepens our understanding of CSR's impact on financial performance, offering practical recommendations for Stellantis Slovakia. Integrating CSR can improve the company's image, enhance employee motivation, reduce costs and drive revenue growth, thereby highlighting the strategic value of socially responsible practices and encouraging optimism about the potential benefits of these practices.
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http://hdl.handle.net/10610/5018
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