Affiliation:
1. Amity University; University of Delhi
2. Amity College of Commerce and Finance
3. MIT University
Abstract
The sceptical attitude towards linking corporate social responsibility (CSR) and corporate financial performance (CFP) forms the basis of this study. The available literature concentrates only on the positive side of CSR activities and benefits derived from them. The Companies Act, 2013, has made it mandatory for Indian companies of a certain turnover and profit to use 2% of their profits from the past three years on CSR activities. Given this background, this study examines the impact of CSR on the financial performance of the business itself. The economic legitimacy of CSR is also probed, that is, does CSR have a positive economic impact? For this examination, the Pearson Fixed effects panel regression analysis was performed on Nifty 50 companies during the period 2010–2018. Data regarding financial performance variables was obtained from Prowess IQ database. The CSR data was collected from the companies’ annual reports and content analysis was done using NVIVO software. The results of the study provide insights into the corporate response to the mandatory requirement of CSR activities and their impact on the company’s financial performance. The results of the study conclude that there is no significant influence of CSR on the financial performance of Indian companies.
Publisher
Financial University under the Government of the Russian Federation
Subject
Management of Technology and Innovation,Economics, Econometrics and Finance (miscellaneous),Finance,Business, Management and Accounting (miscellaneous)
Reference40 articles.
1. Markovits C. Indian merchant networks and the British Empire: Instrumentality and agency in a global imperial context. In: Choi C.-c., Oishi T., Shiroyama T., eds. Chinese and Indian merchants in Modern Asia: Networking businesses and formation of regional economy. Leiden: E. J. Brill; 2019:137–154. (Brill’s Series on Modern East Asia in a Global Historical Perspective. Vol. 8). DOI: 10.1163/9789004408609_007
2. Alvaredo F., Atkinson A.B., Bauluz L. et al. Distributional national accounts guidelines: Methods and concepts used in the World Inequality Database. Paris: World Inequality Lab; 2021. 186 p. URL: https://wid.world/document/distributional-national-accounts-guidelines‑2020-concepts-and-methodsused-in-the-world-inequality-database/
3. Kena G., Musu-Gillette L., Robinson J. et al. The condition of education 2015. Washington, DC: National Center for Education Statistics; 2015. 320 p. URL: https://files.eric.ed.gov/fulltext/ED 556901.pdf
4. Soares R. A. De Abreu M. C. et al. Corporate social responsibility as a dynamic process: Implicitisation and explicitisation of CSR practices in developed and developing countries. In: 33rd Annual Meeting. SASE. 2021.
5. Wong A. K.F., Kim S., Lee S. The evolution, progress, and the future of corporate social responsibility: Comprehensive review of hospitality and tourism articles. International Journal of Hospitality & Tourism Administration. 2022;23(1):1–33. DOI: 10.1080/15256480.2019.1692753