ABSTRACT. This study examines whether corporate social responsibility (CSR) towards primary stakeholders influences the financial and the non-financial performance (NFP) of Indian firms. Perceptual data on CSR and NFP were collected from 150 senior-level Indian managers including CEOs through questionnaire survey. Hard data on financial performance (FP) of the companies were obtained from secondary sources. A questionnaire for assessing CSR was developed with respect to six stakeholder groups -employees, customers, investors, community, natural environment, and suppliers. A composite measure of CSR was obtained by aggregating the six dimensions. Findings indicate that stock-listed firms show responsible business practices and better FP than the non-stock-listed firms. Controlling confounding effects of stock-listing, ownership, and firm size, a favorable perception of managers towards CSR is found to be associated with increase in FP and NFP of firms. Such findings hold good when CSR is assessed for the six stakeholder groups in aggregate and for each stakeholder group in segregate. Findings suggest that responsible business practices towards primary stakeholders can be profitable and beneficial to Indian firms.

Purpose – The study aims to examine corporate governance issues in India and establish the relationship between corporate governance and financial performance. Design/methodology/approach – The sample comprises 141 companies belonging to the “A” group stocks listed in the Mumbai Stock Exchange of India. Considering the institutional uniqueness in India, a composite measure of corporate governance is developed comprising three indicators – legal, board and proactive indicators. Data on the three indicators and financial performance were procured from secondary sources. In the step-wise multiple regression analysis, the influence of these three indicators and the composite measure of corporate governance was examined on firm performance after controlling the confounding effects of firm size. Findings – The board and the proactive indicators influence the firm performance significantly whereas legal compliance indicator does not do so. The composite corporate governance measure is a good predictor of firm performance. Originality/value – This study has two contributions: one, it proposes a composite measure of corporate governance considering the unique institutional characteristics of the Indian economy. Two, the study establishes the predictability of the new measure of corporate governance on firm performance as a tool to boost investors' confidence and financial health of firms.

Purpose-This study aims to examine whether strategy towards primary stakeholders and their salience influence corporate social responsibility towards the corresponding stakeholders. Design/methodology/approach-Data were collected through a questionnaire from 150 senior level managers including CEOs. The stakeholder management strategy, salience, and corporate social responsibility were assessed in the context of employees, customers, investors, community, natural environment, and suppliers. Findings-The favorable strategy towards stakeholders increases the corresponding corporate social responsibility towards them. The salience of all stakeholder groups also enhances the corresponding corporate social responsibility. When salience and strategy are considered, the salience of a particular stakeholder group suppresses the effect of strategy fully or partially on corporate social responsibility. Research limitations/implications-The salience of a stakeholder is a potent antecedent of corporate social responsibility compared with strategy towards that stakeholder. Originality/value-A questionnaire is developed to assess corporate social responsibility in the Indian context, and the link between strategy, salience, and corporate social responsibility is established.

PurposeThis study aims to examine whether salience towards natural environment influences the corporate responsibility towards natural environment. It further aims to test whether the corporate responsibility towards environment impacts the financial performance of firms.Design/methodology/approachThe sample comprises 150 listed and non‐listed Indian manufacturing companies. Salience and corporate responsibility towards environment were assessed with the help of standard instruments and the data on financial performance of companies were procured from secondary sources. The study used hybrid models to analyze the data. In the measurement model, the convergent validity of salience and corporate responsibility towards natural environment were ascertained through confirmatory factor analysis. In the structural model, the hypotheses were tested.FindingsControlling the confounding effects of listing status of companies in stock exchanges, findings suggest that higher the salience of the environment, the more favorable is the corporate responsibility towards the environment. The favorable corporate responsibility towards environment increases the financial performance of firms.Practical implicationsBy according salience to the natural environment and adopting responsible environment practices, Indian companies can improve their financial performance.Originality/valueThis study is the first of its kind in India to establish the link among salience of natural environment, corporate responsibility towards natural environment, and financial performance of firms. It reveals that salience accorded to natural environment leads to responsible business practices with respect to the environment that boosts the bottom line of firms.

With increase in the number of corporate frauds, shareholders, analysts and the general public look forward to IndDirs as the saviours who can help prevent such corporate misdoings. This study attempts to find out if having more IndDirs in the board influences firm profitability. Using panel data consisting of all listed Indian companies in the sample period of 2003–2019, it finds that proportion of IndDirs is negatively related to firm profitability. Control variables—board size, firm size (firmSize), leverage, type of industry (IndType), firm age, ownership, and year 2014—are included in the analysis. Even after arresting their confounding effects on firm performance, negative impact of proportion of IndDirs on firm performance continues. Plausible reasons for this negative relationship are offered. This study has relevance in the wake of mandatory provisions in the Companies Act, 2013 , for presence of IndDirs in the board of Indian firms.