The impact of Environmental and Community Responsibility on the Financial Performance of Selected Retail Industries in the United Kingdom
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This study investigates the relationship between environmental and community responsibility and financial performance of retail companies in the United Kingdom. The study employed quantitative research methods. The study's population consists of retail companies that are listed on the London Stock Exchange throughout a ten-year period (2013-2022). A simple random sampling technique was used to choose a sample size of ten (10) companies during a ten-year period (2013-2022). Data was collected from secondary data, specifically sourced from audited annual reports of the firms involved. Data was analyzed using both a simple linear regression model in SPSS and regression analysis. The result shows that their Environmental responsibility exhibits a positive correlation with financial performance, community responsibility also holds a significant positive correlation with financial performance. In view of the foregoing, the study recommended that ethical considerations should be prioritized in areas such as sourcing, manufacturing practices, product quality, and safety. By doing so, businesses can gain consumer trust, boost sales, foster customer loyalty, and consequently enhance financial performance. Also, another avenue to explore is the need to promote environmentally friendly practices within operations.
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