dc.description.abstract | The promotion of Corporate Social Responsibility (CSR) has been around the world for
decades, and Taiwan, given its prominence in the global supply chain, is of no exception to
the formation of sustainable business environment. Using CSR data from 2010 to 2019 from
the Global Reporting Initiative (GRI), we use fixed effect model to analyze the relationship
between CSR and financial performance in electronic and other industries. Our results show
that non-electronic industries exhibit an inverted U-shape relationship and attain the peak in
the second year, while electronic industries turn from non-significantly negative to positive
relationship. Further classifying the CSR behavior, we find that in non-electronic industries,
the effect of corporate governance (sustainable environment) is negatively (positively)
significant, while social welfare poses the maximum positive effect in the second year. In
electronic industries, corporate governance and sustainable environment are positively
insignificant in the third year, and social welfare is negatively insignificant in all three years.
Our results indicate that it takes longer period of time for electronic industries in Taiwan to
obtain financial rewards from investments in CSR, while for non-electronic industries,
investments in sustainable development and social welfare pay off in the second year. Our
paper thus calls for strengthening regulatory directives to promote cooperate governance, such
as broadening the board of directors and supervisors and inaugurating a scoring system
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verified with on-site studies. In addition, to advance environmental protection, offering tax
breaks for investments in sustainable environment, incentives for energy transformation, and
subsidies for carbon neutralization and the installation of pollution abatement devices can be
considered. Finally, media recognition of cooperate CSR efforts and the establishment of nongovernmental organizations and foundations can maximize the returns from social welfare,
furthering the virtuous circle of win-win situation between cooperate and social development | en_US |