IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v3y2023i7d10.1007_s43546-023-00492-7.html
   My bibliography  Save this article

Corporate social responsibility: a way of enhancing financial performance—evidence from select NSE listed companies

Author

Listed:
  • N. V. V. Satyanaryana Puchakayala

    (Aditya Global Business School
    Adikavi Nannay University)

  • Udaya Bhaskar Nallamalli

    (Adikavi Nannay University)

  • Visalakshi Narapareddi

    (Aditya Global Business School)

Abstract

Corporate social responsibility is an obligation of business to solve some of the problems of the society from which it gets everything to have its operations in the society. The present study is of quantitative design of descriptive nature using multi-level sampling of Top 500 NSE/Nifty, 50 Companies, and Five Select Companies viz., Glaxo Smithkline Beecham (GSK) Ltd., Emami Ltd., Sun Pharmaceuticals Ltd., Reddy Labs Ltd., and Aurobindo Pharmaceuticals Ltd. The purpose of the study is to analyse the relationship between social performance and financial performance of select companies; and to analyse the impact of social performance on financial performance of select companies, and vice versa. The secondary source of data is considered for the purpose of study. Both NSE and Nifty Companies have a very significant and a very high positive correlation between social and financial performance. Moderate and low degree correlations of both positive and negative nature were found amongst the five select companies. CSR has an impact on the improvement of financial performance of companies under study.

Suggested Citation

  • N. V. V. Satyanaryana Puchakayala & Udaya Bhaskar Nallamalli & Visalakshi Narapareddi, 2023. "Corporate social responsibility: a way of enhancing financial performance—evidence from select NSE listed companies," SN Business & Economics, Springer, vol. 3(7), pages 1-31, July.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:7:d:10.1007_s43546-023-00492-7
    DOI: 10.1007/s43546-023-00492-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-023-00492-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-023-00492-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    2. Supriti Mishra & Damodar Suar, 2010. "Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?," Journal of Business Ethics, Springer, vol. 95(4), pages 571-601, September.
    3. Sun, Xian & Gunia, Brian C., 2018. "Economic resources and corporate social responsibility," Journal of Corporate Finance, Elsevier, vol. 51(C), pages 332-351.
    4. Caroline Flammer, 2015. "Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach," Management Science, INFORMS, vol. 61(11), pages 2549-2568, November.
    5. Joseph UGOCHUKWU MADUGBA & Michah C. OKAFOR, 2016. "Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria," Expert Journal of Finance, Sprint Investify, vol. 4, pages 1-9.
    6. Sukanya Chetty & Rebekah Naidoo & Yudhvir Seetharam, 2015. "The Impact of Corporate Social Responsibility on Firms’ Financial Performance in South Africa," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(2), June.
    7. Lis, Bettina, 2012. "The Relevance of Corporate Social Responsibility for a Sustainable Human Resource Management: An Analysis of Organizational Attractiveness as a Determinant in Employees’ Selection of a (Potential) Emp," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 23(3), pages 279-295.
    8. Gérard Hirigoyen & Thierry Poulain-Rehm, 2015. "Relationships between Corporate Social Responsibility and Financial Performance: What is the Causality?," Post-Print hal-01382072, HAL.
    9. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    10. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.
    11. Joseph UGOCHUKWU MADUGBA & Michah C. OKAFOR, 2016. "Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria," Expert Journal of Finance, Sprint Investify, vol. 4(1), pages 1-9.
    12. Gerard Hirigoyen & Thierry Poulain-Rehm, 2015. "Relationships between Corporate Social Responsibility and financial performance: What is the Causality?," Post-Print hal-01430986, HAL.
    13. Lis, Bettina, 2012. "The Relevance of Corporate Social Responsibility for a Sustainable Human Resource Management: An Analysis of Organizational Attractiveness as a Determinant in Employees’ Selection of a (Potential) Emp," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(3), pages 279-295.
    14. Truscott, Rachael A. & Bartlett, Jennifer L. & Tywoniak, Stephane A., 2009. "The reputation of the corporate social responsibility industry in Australia," Australasian marketing journal, Elsevier, vol. 17(2), pages 84-91.
    15. Hamed Taherdoost, 2016. "Sampling Methods in Research Methodology; How to Choose a Sampling Technique for Research," Post-Print hal-02546796, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mariem Bouzguenda & Anis Jarboui, 2024. "The role of the psychological and behavioral profile of the CEO in assessing the dimensions of the corporate social responsibility," SN Business & Economics, Springer, vol. 4(10), pages 1-27, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.
    2. Mariusz Zielinski & Izabela Jonek-Kowalska, 2020. "Profitability of Corporate Social Responsibility Activities from the Perspective of Corporate Social Managers," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 264-280.
    3. Jia Xu & Jiuchang Wei & Liangdong Lu, 2019. "Strategic stakeholder management, environmental corporate social responsibility engagement, and financial performance of stigmatized firms derived from Chinese special environmental policy," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1027-1044, September.
    4. Mariusz Zieliński & Izabela Jonek-Kowalska, 2021. "Does CSR Affect the Profitability and Valuation of Energy Companies? An Example from Poland," Energies, MDPI, vol. 14(12), pages 1-24, June.
    5. Mohamed Chakib Kolsi & Osama F Attayah, 2018. "Environmental policy disclosures and sustainable development: Determinants, measure and impact on firm value for ADX listed companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 807-818, September.
    6. Maria Victoria Uribe Bohorquez & Isabel María García Sánchez, 2023. "Sustainability in times of crisis: Female employment during COVID‐19," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3124-3139, November.
    7. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    8. Daeheon Choi & Chune Young Chung & Jason Young, 2019. "An Economic Analysis of Corporate Social Responsibility in Korea," Sustainability, MDPI, vol. 11(9), pages 1-18, May.
    9. Marian Siminica & Mirela Cristea & Mirela Sichigea & Gratiela Georgiana Noja & Ion Anghel, 2019. "Well-Governed Sustainability and Financial Performance: A New Integrative Approach," Sustainability, MDPI, vol. 11(17), pages 1-21, August.
    10. Rizwan Ahmed & Fatima Yusuf & Maria Ishaque, 2024. "Green bonds as a bridge to the UN sustainable development goals on environment: A climate change empirical investigation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2428-2451, April.
    11. Aruna Jha & Vijita Singh Aggrawal, 2019. "Institutional pressures for corporate social responsibility implementation: a study of Indian executives," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(4), pages 555-577, June.
    12. Hunjra, Ahmed Imran & Boubaker, Sabri & Arunachalam, Murugesh & Mehmood, Asad, 2021. "How does CSR mediate the relationship between culture, religiosity and firm performance?," Finance Research Letters, Elsevier, vol. 39(C).
    13. Ma Ying & Gashaw Awoke Tikuye & He Shan, 2021. "Impacts of Firm Performance on Corporate Social Responsibility Practices: The Mediation Role of Corporate Governance in Ethiopia Corporate Business," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    14. Saridakis, Charalampos & Angelidou, Sofia & Woodside, Arch G., 2023. "How historical and social aspirations reshape the relationship between corporate financial performance and corporate social responsibility," Journal of Business Research, Elsevier, vol. 157(C).
    15. Jennifer Kunz, 2020. "Corporate Social Responsibility and Employees Motivation—Broadening the Perspective," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(2), pages 159-191, April.
    16. Petitjean, Mikael, 2019. "Eco-friendly policies and financial performance: Was the financial crisis a game changer for large US companies?," Energy Economics, Elsevier, vol. 80(C), pages 502-511.
    17. Mariana Vu?ã & Sorin-Iulian Cioacã & Mihai Vuþã & Adrian Enciu, 2019. "An Empirical Analysis of Corporate Social Responsibility Effects on Financial Performance for Romanian Listed Companies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(52), pages 607-607, August.
    18. Jongmoo Jay Choi & Hoje Jo & Jimi Kim & Moo Sung Kim, 2018. "Business Groups and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 153(4), pages 931-954, December.
    19. Richa Chaudhary, 2019. "Green human resource management and job pursuit intention: Examining the underlying processes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 929-937, July.
    20. Alexandra ZBUCHEA & Florina PÎNZARU, 2017. "Tailoring CSR Strategy to Company Size?," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(3), pages 415-437, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:3:y:2023:i:7:d:10.1007_s43546-023-00492-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.