The importance of corporate social responsibility for companies: The developing market study

Abstract

The purpose of this paper is to determine whether and to what extent companies in Kosovo practice the concept of corporate social responsibility (CSR) in their operations and what are their benefits from the application of this concept. This paper uses primary data obtained through a survey of managers of 40 companies in Kosovo. To prove that the practice of the concept of CSR is of great importance for all aspects of the operation of companies, a cross-tabular analysis of certain questions was performed, where the simple linear regression and the coefficient of correlation were calculated. Based on the obtained results it can be concluded that the largest percentage of the analyzed companies in Kosovo (87.50%) practice the concept of CSR in their operations. Managers in Kosovo introduce the concept of CSR for a variety of reasons. However, they agree with the fact that practicing this method leads to better long-term financial performance, greater market share, competitive advantage, better reputation of the company, increase of the working climate in the company, the productivity and motivation of employees, their loyalty, and contributes to retaining high-quality staff.