The Impact of Commitment to Corporate Social Responsibility Dimensions on Maximizing the Financial Performance of Libyan Companies: A Field Study on the Libyan Iron and Steel Company (LISCO) – Misrata)

Abstract

This study aimed to highlight the impact of commitment to Corporate Social Responsibility (CSR) practices on maximizing the financial performance of Libyan companies، by examining its four dimensions: environmental، social، employee welfare، and the economic dimension. To achieve the study’s objectives، the researcher adopted a descriptive-analytical approach. A questionnaire was designed as the primary data collection tool and distributed to a purposive sample of (43) financial managers، administrative managers، and internal auditors across several Libyan companies. The collected data were statistically processed using the SPSS software، utilizing tests such as Pearson Correlation، Simple Linear Regression، and One-Way ANOVA.
The study reached several core results، most notably a high level of awareness and commitment to CSR practices among the surveyed companies، with the economic and ethical dimensions being the most implemented. Furthermore، the results revealed a strong and statistically significant positive correlation between CSR and financial performance. Regression analysis confirmed that CSR has a fundamental impact، explaining (61.5%) of the variance in financial performance. This indicates that a company's commitment to its responsibilities towards society، the environment، and employees reflects directly on improving its financial indicators، market value، and earnings quality in the long term.
In light of these findings، the study recommended the necessity of integrating CSR as an inherent part of the financial strategy of Libyan companies rather than a secondary voluntary activity. It also emphasized developing national standards for accounting disclosure of social and environmental activities within annual reports. Additionally، regulatory and operational authorities should provide incentives and preferential advantages to companies demonstrating an outstanding commitment to sustainable development، thereby enhancing corporate competitiveness and supporting the national economy.