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CSR and corporate performance: evidence from India

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  • Priyanka Garg

    (Panjab University)

Abstract

CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (WBCSD in corporate social responsibility: meeting changing expectations. BCSD Publications, Geneva, 1998, p 3). There is ample research done on CSR and corporate performance. CSR has proven beneficial in increasing the business profile and reputation of companies at local, national, and international level. Some contrary findings are also present which might be due to different economic conditions, different time periods, and different sample sizes. The present study has made an attempt to investigate the impact of CSR on performance of Indian corporate sector. The analysis has been confined to all those companies which are included in the S&P BSE CARBONEX Index (as on March 31, 2014) for ten financial years from 2004–2005 to 2013–2014. Data have been collected with the help of annual reports of selected companies and PROWESS database. Result of panel data regression analysis reveals that CSR impacts the value of Indian corporate sector highly and significantly. Further, the results suggest that CSR performance of companies impacts corporate performance not only for current year, but also for the following years. Trend of CSR performance has also been analyzed to assess whether the companies have improved over the period of time or not. Results of paired t test and Wilcoxon signed rank test disclose that CSR performance of sample firms has significantly improved over the period of study. Further, the present study has tried to analyze CSR on the basis of ownership (public vis-à-vis private companies) which confirms that CSR performance of public sector companies is better than private sector. The results further reveal that CSR performance of companies differs significantly across industries.

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  • Priyanka Garg, 2016. "CSR and corporate performance: evidence from India," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(4), pages 333-349, December.
    • Handle: RePEc:spr:decisn:v:43:y:2016:i:4:d:10.1007_s40622-016-0131-7
    DOI: 10.1007/s40622-016-0131-7
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    Cited by:

    1. Jayasree Mangalagiri & Malla Praveen Bhasa, 2022. "Corporate social responsibility and firm performance: evidence from India’s national stock exchange listed companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(2), pages 144-152, June.
    2. Sarfaraz Javed & Uvesh Husain, 2021. "Corporate CSR practices and corporate performance: managerial implications for sustainable development," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(2), pages 153-164, June.
    3. Ruy de Castro Sobrosa Neto & Carlos Rogério Montenegro de Lima & Daniel Goulart Bazil & Manoela de Oliveira Veras & José Baltazar Salgueirinho Osório de Andrade Guerra, 2020. "Sustainable development and corporate financial performance: A study based on the Brazilian Corporate Sustainability Index (ISE)," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 960-977, July.
    4. Shafat Maqbool, 2019. "Does corporate social responsibility lead to superior financial performance? Evidence from BSE 100 index," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(3), pages 219-231, September.
    5. Boban Melovic & Nikola Milovic & Tamara Backovic-Vulic & Branislav Dudic & Peter Bajzik, 2019. "Attitudes and Perceptions of Employees toward Corporate Social Responsibility in Western Balkan Countries: Importance and Relevance for Sustainable Development," Sustainability, MDPI, vol. 11(23), pages 1-37, November.
    6. Mingzhe Qiao & Shiwei Xu & Guangdong Wu, 2018. "Corporate Social Responsibility and the Long-Term Performance of Mergers and Acquisitions: Do Regions and Related-Party Transactions Matter?," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    7. Deepak Subba & Sanjeev Kumar, 2018. "Employees’ responses to corporate social responsibility: a study among the employees of banking industry in India," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 45(4), pages 301-312, December.
    8. Ritika Gupta & Pankaj Kumar, 2022. "Corporate social responsibility disclosure: a study on NIFTY 100 companies," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 27(4), pages 492-515.

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