RELATIONSHIP OF CORPORATE SOCIAL RESPONSIBILITY WITH THE CORPORATE PERFORMANCE OF THE INDIAN FIRMS

Yıl 2019, Cilt: 3 Sayı: 1, 95 - 112, 21.07.2019

Dipanita Deb Anupam De

Öz

Purpose: Corporate Social Responsibility (CSR) has gained attention in recent years among the scholars globally. CSR plays a vital role in the sustainability of the corporates. For instance, CSR equips firms to build corporate image, gain legitimacy, adapt to opportunities, gain protection against external challenges and threats and maximize profits. The paper focuses on the contribution of the CSR activities made by the Indian Corporates and it also emphasizes the perfor-mance of the Indian corporates.

Design/Methodology/Approach: In the paper 30 companies has been selected from BSE30 Sensex. In the paper a comparative study was done on the CSR ac-tivities performed by the Indian Firms with the help of secondary data i.e. annual report and the data was also compared with moneycontrol.com. Further, the Corporate Social Responsibility Report or Business Responsibility Report or Business sustainability reports of the corporate were also collected, and the CSR spending was taken into consideration in a tabular format. It was further ana-lyzed, and a comparative observation was made regarding the CSR contribution of the corporate for the last 4 financial years, i.e., 2014-2015, 2015-2016, 2016 – 2017 and 2017 -2018. Further, the Corporate Social Responsibility spending and advertisement was extracted from the Annual Reports and it was compared with the Financial Performance of the corporates’ i.e., ROA (Return on Assets) and with the help of correlation and regression analysis, it was observed that CSR has positive impact on the financial Performance of the corporates as com-pared to the impact of advertisement.

Findings: It was observed from the study that the companies investing in CSR activities can improve their financial performance. The impact of CSR contribu-tion has a better and positive impact on the Financial Performance of the corpo-rates as compared to the contribution towards advertisement.

Anahtar Kelimeler

Corporate Social Responsibility, Corporate Performance, Indian Firms

Kaynakça

• ARAS, G., AYBARS, A. & KUTLU, O. 2010. Managing corporate performance. International Journal of Productivity and Performance Management, 59, 229-254.
• CARROLL, A. B. 1999 Corporate Social Responsibility Evolution of a Definitional Construct. Business & Society, 38, 268-295.
• CHERIAN, J., UMAR, M., THU, P., NGUYEN-TRANG, T., SIAL, M. & KHUONG, N. 2019. Does Corporate Social Responsibility Affect the Financial Performance of the Manufacturing Sector? Evidence from an Emerging Economy. Sustainability, 11, 1182.
• FAMIYEH, S. 2017. Corporate social responsibility and firm’s performance: empirical evidence. Social Responsibility Journal, 13, 390-406.
• FAUZI, H. Corporate Social and Financial Performance: Empirical Evidence from American Companies. Globsyn Management Journal, Forthcoming . Available at SSRN: https://ssrn.com/abstract=1489494.
• FIORI, G., DI DONATO, F. & IZZO, M. F. 2007. Corporate Social Responsibility and Firms Performance - An Analysis on Italian Listed Companies. SSRN Electronic Journal.
• FIORI, G. A. D. D., FRANCESCA AND IZZO, MARIA FEDERICA 2007. Corporate social responsibility and firms performance. An analysis on italian listed companies. Available at SSRN: https://ssrn.com/abstract=1032851 or http://dx.doi.org/10.2139/ssrn.1032851.
• GARG, P. 2016. CSR and corporate performance: evidence from India. Decision, 43, 333-349.
• GRIFFIN, J. J. & MAHON, J. F. 2016. The Corporate Social Performance and Corporate Financial Performance Debate. Business & Society, 36, 5-31.
• HARRY HUMMELS, D. T. 2004. Investors in Need of Social, Ethical, and Environmental Information. Journal of Business Ethics June, 52, 73–84
• IQBAL, N., AHMAD, N., BASHEER, N. A. & NADEEM, M. 2012. Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan. International Journal of Learning and Development, 2.
• ISLAM, M. T. & KOKUBU, K. 2018. Corporate social reporting and legitimacy in banking: a longitudinal study in the developing country. Social Responsibility Journal, 14, 159-179.
• KAPADIA, J. M. 2017. International Journal of Business and Management Invention. 6, 10, 2319 – 8028.
• KARAGIORGOS, T. 2010. Corporate Social Responsibility and Financial Performance: An Empirical Analysis on Greek Companies. European Research Studies, 13.
• LASKAR, N. & MAJI, S. G. 2017. Disclosure of Corporate Social Responsibility and Firm Performance: Evidence from India. Asia-Pacific Journal of Management Research and Innovation, 12, 145-154.
• LEONARDO BECCHETTI , S. D. G. D. P. 2008. Corporate Social Responsibility and corporate performance: evidence from a panel of US listed companies. Applied Economics, 40.
• LIMA CRISÓSTOMO, V., DE SOUZA FREIRE, F. & CORTES DE VASCONCELLOS, F. 2011. Corporate social responsibility, firm value and financial performance in Brazil. Social Responsibility Journal, 7, 295-309.
• LÓPEZ, M. V., GARCIA, A. & RODRIGUEZ, L. 2007. Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index. Journal of Business Ethics, 75, 285-300.
• MOURA‐LEITE, R. C. & PADGETT, R. C. 2011. Historical background of corporate social responsibility. Social Responsibility Journal, 7, 528-539.
• NYEADI, J. D., IBRAHIM, M. & SARE, Y. A. 2018. Corporate social responsibility and financial performance nexus. Journal of Global Responsibility, 9, 301-328.
• PAVELIN, S. B. C. B. S. 2006. Corporate Social Performance and Stock Returns: UK Evidence from Disaggregate Measures. Financial Management 35, 97-116.
• PENEDA SARAIVA, P. & SILVA SERRASQUEIRO, Z. M. 2007. Corporate Sustainability in the Portuguese Financial Institutions. Social Responsibility Journal, 3, 82-94.
• PRAVEEN BHAGAWAN M, J. P. M. 2018. Does Mandatory Expenditure on CSR Affect Firm Value? Empirical Evidence from Indian Firms. https://www.ideasforindia.in/topics/productivity-innovation/does-mandatory-csr-expenditure-affect-firm-value-evidence-from-indian-firms.html.
• SOAN, M.-G. 2011. The Relationship Between Corporate Social Performance and Corporate Financial Performance in the Banking Sector. Journal of Business Ethics, 104, 104-133.
• SOANA, M.-G. 2011. The Relationship Between Corporate Social Performance and Corporate Financial Performance in the Banking Sector. Journal of Business Ethics, 104, 133-148.
• USMAN, A. B. & AMRAN, N. A. B. 2015. Corporate social responsibility practice and corporate financial performance: evidence from Nigeria companies. Social Responsibility Journal, 11, 749-763.