The Causal Relationship between Social Responsibility and Financial Performance in the Ministry of Sports and Youth with the Mediating Role of Adherence to Professional Ethics and Presentation of a Model

Abstract

The aim of this research is to determine the impact of social responsibility on financial performance with the mediating role of adherence to professional ethics in the Ministry of Sports and Youth and selected sports federations. The statistical population includes all employees of the Ministry of Sports and Youth and the sports federations of football, basketball, volleyball, swimming, wrestling, and archery, with 368 individuals selected as the sample size using the sample size determination software for structural equations (GPower). The research tools were standardized questionnaires on social responsibility, professional ethics, and financial performance in organizations, which were validated using face and construct validity. For data analysis, SPSS version 28 was used for descriptive analysis, and Smart PLS version 4 was utilized for inferential analysis. The results of the structural model indicated that social responsibility and its components (ethical, economic, humanitarian, legal, and environmental responsibilities) have an effect on the financial performance of employees in the Ministry of Sports and Youth and selected sports federations (β = 0.416, T.value = 8.475). Additionally, the results showed that professional ethics impact financial performance (β = 0.522, T.value = 11.655), and that professional ethics fully mediate the causal relationship between social responsibility and financial performance. Professional ethics among employees in sports organizations serve as a mediator between social responsibility and financial performance. This professional ethics leads to community trust, the attraction of top talents, resource retention, alignment with community expectations, and the establishment of positive relationships with stakeholders. Focusing on professional ethics among employees in sports organizations can facilitate and enhance the financial performance of these organizations.