Abstract. This study investigates the relationship between Corporate Social Responsibility (CSR) initiatives and financial performance among environmentally friendly businesses. Despite growing interest in CSR, the specific impact of various CSR activities on financial outcomes remains unclear, highlighting a critical research gap. The study aims to assess how specific CSR initiatives—such as environmental sustainability, employee welfare, and community engagement—affect key financial performance indicators. A quantitative approach was employed, utilizing survey data from 150 eco-friendly firms and analyzing financial metrics over three years. The results demonstrate a positive correlation between targeted CSR efforts and enhanced financial performance, with an average ROI of 9.83% and notable improvements in profit margins and return on assets. These findings suggest that strategic CSR investments can drive financial success, though causation remains uncertain due to potential influencing factors such as market conditions and regulatory changes. Future research should explore the underlying mechanisms driving this relationship, particularly the role of stakeholder engagement and operational efficiency.

Keywords: Corporate Social Responsibility; Eco-tourism; Financial performance; Profitability; Sustainability.