Do firm attributes impact CSR participation? Evidence from a developing economy

Purpose - Amidst the growing awareness regarding the social accountability of corporates, the study has attempted to investigate how firm characteristics like size and performance influence corporate social responsibility (CSR) activities in India. Design/methodology/approach - 236 Indian firms listed on the National Stock Exchange (Nifty 500 index) have been selected for the empirical analysis. The independent variable firm size has been defined through total assets, operation scale and resource access. Another important factor, firm's performance, is also considered as the independent variable. CSR, the dependent variable, has been measured using Bloomberg's Environmental, Social and Governance (ESG) disclosure scores. Findings - Findings of the dynamic panel data analysis have revealed an inversed U-shape relationship between companies' size and CSR, i.e. CSR participation is positively related with small-sized firms, but as the firms become larger in size, their relationship with CSR becomes negative. A negative relationship has also been found between firm performance and CSR, while the age of the firm exhibits a positive association with CSR participation. Originality/value - Poor performance of the larger firms suggests that government regulatory bodies need to take strict steps to enhance supervision. Clear regulations are required to be framed and enforced upon large companies to promote consistent participation in CSR. The present study has endeavoured to offer a distinct viewpoint by considering firm size and CSR to be related in a non-linear manner and has brought forward relevant information from the perspective of an emerging economy like India.