The study contributed to the debate on the link between CSR and financial performance of the corporate sector on the basis of information on CSR and financial performance indicators (CFP) for top 100 listed companies in India between 2005 and 2020. Structural equation modelling tools were used to assess the relationship between the composite variables CSR and CFP. The companies were also classified into two groups namely, mineral-based and non-mineral-based.
The study found a significant and positive effect of CSR on CFP. However, the study found interesting differences in the route of such effect for mineral and non-mineral groups of companies. While the positive CSR-CFP relationship in non-mineral-based companies was primarily due to enhancement in their internal resource management efficiency and increase in productivity, for mineral-based companies, it was more driven by legitimacy and community reputation concerns.
AbbottW., & MonsenR. (1979). On the measurement of corporate social responsibility: Self-reported disclosures as a method of measuring corporate social involvement. The Academy of Management Journal, 22(3), 501–515.
2.
AcharyaS., BasaK. K., RathN., MohantyS. S., & RathS. (2020). CSR and community development: A study of project villages of NALCO foundation in Damanjodi mining area of Koraput. The Orissa Journal of Commerce, 41(4), 135–150.
3.
AlamS. M., & IslamK. M. (2021). Examining the role of environmental corporate social responsibility in building green corporate image and green competitive advantage. International Journal of Corporate Social Responsibility, 6(8), 1–16. https://doi.org/10.1186/s40991–021-00062-w
4.
Al-HiyariA., & KolsiM. C. (2021). How do stock market participants value ESG performance? Evidence from Middle Eastern and North African countries. Global Business Review, 1–23. https://doi.org/10.1177/09721509211001511
5.
AliH., DanishR., & Asrar-ul-HaqM. (2020). How corporate social responsibility boosts firm financial performance: The mediating role of corporate image and customer satisfaction. Corporate Social Responsibility and Environmental Management, 27(1), 166–177.
6.
AtaniyazovaZ., FriedmanB. A., & KiranP. (2022). New corporate social responsibility brand evaluation in a developing country: Uzbekistan. International Journal of Corporate Social Responsibility, 7(3), 1–15.
7.
AupperleK.,CarrollA., & HatfieldJ. (1985). An empirical examination of the relationship between corporate social responsibility and profitability. The Academy of Management Journal, 28(2), 446–463.
8.
BaruahL., & PandaN. M. (2021). The impact of corporate social responsibility on reputation: A study on top 100 companies operating in India. Metamorphosis: A Journal of Management Research, 20(2), 99–105.
9.
BSE. (2014). S&P BSE CARBONEX Index methodology. BSE India. https://www.bseindia.com/downloads/about/abindices/file/S&P%20BSE%20CARBONEX%20METHODOLOGY.PDF
10.
CarrollA. (1979). A three-dimensional conceptual model of corporate performance. The Academy of Management Journal, 4(4), 497–505.
11.
CarrollA. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.
12.
CarrollA., & ShabanaK. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85–105.
13.
ChenR., & LeeC. H. (2017a). The influence of CSR on firm value: An application of panel smooth transition regression on Taiwan. Applied Economics, 49(34), 3422–3434.
14.
ChenR., & LeeC. H. (2017b). Assessing whether corporate social responsibility influence corporate value. Applied Economics, 49(54), 5547–5557.
15.
FryF., & HockR. (1976). Who claims corporate responsibility? The biggest and the worst. Business and Society Review, 18(18), 62–65.
16.
GalbreathJ., & ShumP. (2012). Do customer satisfaction and reputation mediate the CSR–FP link? Evidence from Australia. Australian Journal of Management, 37(2), 211–229. https://doi.org/10.1177/0312896211432941
17.
Govt. of India. (2014, April21). The companies (corporate social responsibility policy) rules, 2014. Ministry of Corporate Affairs, Government of India. http://mca.gov.in/Ministry/pdf/CompaniesActNotification2_2014.pdf
18.
GriffinJ. J., & MahonJ. F. (1997). The corporate social performance and corporate financial performance debate: Twentyfive years of incomparable research. Business & Society, 36(1), 5–31. https://doi.org/10.1177/000765039703600102
19.
GuoH., & LuW. (2021). The inverse U-shaped relationship between corporate social responsibility and competitiveness: Evidence from Chinese construction companies. Journal of Cleaner Production, 295. https://doi.org/10.1016/j.jclepro.2021.126374
20.
HasanI., KobeissiN., LiuL., & WangH. (2016). Corporate social responsibility and firm financial performance: The mediating role of productivity. Journal of Business Ethics, 149(3), 671–688.
21.
IacobucciD., SaldanhaN., & DengX. (2007). A meditation on mediation: Evidence that structural equations models perform better than regressions. Journal of Consumer Psychology, 17(2), 139–153. https://doi.org/10.1016/S1057-7408(07)70020-7
22.
IngramR. W., & FrazierK. B. (1983). Narrative disclosure in annual reports. Journal of Business Research, 11(1), 49–60.
23.
KimW., & OhS. (2019). Corporate social responsibility, business groups and financial performance: A study of listed indian firms. Economic Research-Ekonomska Istraživanja, 32(1), 1777–1793.
24.
KumarR., SujitK. S., WaheedK. A., & FernandezM. (2021). Are brand value and firm value related? An empirical examination. Global Business Review, 1–12. https://doi.org/10.1177/0972150921995479
LopezM., GraciaA., & RodriguezL. (2007). Sustainable development and corporate performance: A study based on the Dow Jones sustainability index. Journal of Business Ethics, 75(3), 285–300.
27.
McGuireJ., DowS., & ArgheydK. (2003). CEO incentives and corporate social performance. Journal of Business Ethics, 45(4), 341–359.
28.
McWilliamsA., & SiegelD. (2001). Corporate social responsibility: A theory of the firm perspective. The Academy of Management Journal, 26(1), 117–127.
29.
MezaC. S. R., BashirS., JainV., AzizS., Raza ShahS. A.,ShabbirM. S., & AgustinD. (2021). The economic consequences of the loan guarantees and firm’s performance: A moderate role of corporate social responsibility. Global Business Review. https://doi.org/10.1177/09721509211039674
30.
MohantyS. (2014). Suppressor variable in determining targeted catch of exportable marine species in India. Asian Journal of Research in Business Economics and Management, 4(4), 77–88.
31.
MoonJ. (2004). Government as a driver of corporate social responsibility. Nottingham University Business School.
32.
NolletJ., FilisG., & MitrokostasE. (2016). Corporate social responsibility and financial performance: A nonlinear and disaggregated approach. Economic Modelling, 52, 400–407.
33.
OrlitzkyM., SchmidtF., & RynesS. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403–441.
34.
PanjaS. (2022). Does risk propensity of investors affect the heuristic choice of SRI portfolio selection?—A comparison between a market portfolio and SRI portfolio. Global Business Review. https://doi.org/10.1177/09721509221120795
35.
PavaM., & KrauszJ. (1996). The association between corporate social-responsibility and financial performance: The Paradox of social cost. Journal of Business Ethics, 15(3), 321–357.
36.
RanganV., ChaseL., & KarimS. (2015). The truth about CSR. Harvard Business Review, 40–49.
37.
RIL. (2018). Making life better for everyone. Sustainability report 2017–18. Reliance Industries Limited.
38.
RomanR., HayiborS., & AgleB. (1999). The relationship between social and financial performance: Repainting a portrait. Business & Society, 38(1), 109–125.
39.
SalehM., MuhamadR., & ZulkifliN. (2010). Corporate social responsibility, corporate financial performance and institutional ownership: Evidence from Malaysia. Asian Journal of Accounting Perspectives, 3(1), 1–13.
40.
SangM., ZhangY., YeK., & JiangW. (2022). Moderating effects of internationalization between corporate social responsibility and financial performance: The case of construction firms. Buildings, 12(185), 1–15.
41.
SenS., & BhattacharyaC. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225–243. https://doi.org/10.1509/jmkr.38.2.225.18838
42.
UllmannA. (1985). Data in search of a theory: A critical examination of the relationships among social performance, social disclosure, and economic performance of U.S. firms. The Academy of Management Journal, 10(3), 540–557.
43.
VanceS. (1975). Are socially responsible corporations good investment risks. Management Review, 64(8), 19–24.
44.
WaddockS., & GravesS. (1997). The corporate social performance–financial performance link. Strategic Management Journal, 18(4), 303–319.
45.
WilliamsJ., & MacKinnonD. P. (2008). Resampling and distribution of the product methods for testing indirect effects in complex models. Structural Equation Modeling: A Multidisciplinary Journal, 15(1), 23–51. https://doi.org/10.1080/10705510701758166
46.
WokutchR. E. (2001). Nike and its critics: Beginning a dialogue. Organization & Environment, 14(2), 207–237. https://doi.org/10.1177/1086026601142007
47.
XiaY., & YangY. (2019). RMSEA, CFI, and TLI in structural equation modeling with ordered categorical data: The story they tell depends on the estimation methods. Behavior Research Methods, 51, 409–428. https://doi.org/10.3758/s13428–018-1055–2
48.
YadavM. P., & SinhaN. (2022). Investigating the impact of corporate social responsibility on competitive performance: An empirical study based on panel data analysis. FIIB Business Review, 11(2), 165–173. https://doi.org/10.1177/23197145211015443
