An Empirical Study on the Impact of the Corporate Social Responsibility of the Indian Corporate Sectors

Abstract

India, has traditionally been involved in various corporate socially responsible (CSR) activities. This paper presents an empirical analysis of CSR activities of some selected public and private organization in India. The key objective of this analysis is to review the companies' CSR investment in sustainability, disclosure, governance, and CSR stakeholders. The Hypotheses development explains the positive significant relationship between CSR and firm performance. Then the methodology section explains sample selection and data source. Using these data, the CSR practices in selected public and private companies are evaluated based on the Global Reporting Initiative guidelines, and a comparative study of the impact of CSR practices on companies' profitability is conducted. The study also focuses on how CSR influences these companies' gross margins, as well as the correlation between environmental concerns and return on investment. The result of this study are appropriate for India's present scenario demonstrating that all companies are conducting CSR operations, but there is a substantial difference in the CSR disclosure practices of the selected firms. The private companies in India invests more in CSR but spend less on the environmental aspects whereas the public companies invest less in CSR but almost spend their entire CSR expenditure on the social and environmental aspects.

Comparative Research Implementation of CSR (Corporate Social Responsibility) in Various Sectors of the Indonesian Stock Exchange

“…Research by (Pandey & Das, 2022;Songhe, Hui, Yuxuan, & Minmin, 2023) demonstrates this. Additionally, though from distinct angles, (Vásquez-Ordóñez, Lassala, Ulrich, & Ribeiro-Navarrete, 2023) look at a variety of CSR-related topics.…”

“…For businesses that are listed on the Indonesia Stock Exchange (IDX), corporate social responsibility (CSR) implementation is crucial. Companies now have to be accountable for more than just making a profit because social and environmental issues are becoming more complex (Pandey & Das, 2022;Ripoll Concepción, Briones-Peñalver, de Nieves-Nieto, & Bernal-Conesa, 2023). The goal of this review of the literature is to give a thorough overview of the CSR implementation across the board on the Indonesian Stock Exchange.…”

“…The CSR practices are a major focus of these three studies. (Songhe, Hui, Yuxuan, & Minmin, 2023) Identify factors that influence the effectiveness of CSR reporting; (Pandey & Das, 2022) explore CSR initiatives within both public and private companies in India; and (Vásquez-Ordóñez, Lassala, Ulrich, & Ribeiro-Navarrete, 2023) quantify how CSR impacts workers' quality of life. All in all, three studies offer a complementary perspective on comprehending corporate social responsibility (CSR), emphasizing differences in practices, variables affecting disclosure, and the effects on different areas.…”

“…Investors are increasingly considering the sustainable performance of a company when making decisions, including its implications on the environmental and social sectors (Vásquez-Ordóñez, Lassala, Ulrich, & Ribeiro-Navarrete, 2023) as belief in businesses solely focusing on profits has dwindled (Sari, 2010). Thus, businesses across a range of industries use CSR to enhance their performance, collaboration, and competitiveness in order to draw in investors (Pandey & Das, 2022). Additionally, investors must take into account any violations of their corporate social responsibility (CSR) obligations, comply with legally binding human rights obligations (Francis Maïnkade, 2023), and offer direct redress to impacted communities (Zhao, et al, 2022).…”

“…These strategies include satisfying societal demands (Chavan, Gowan, & Vogeley, 2023), Encouraging stakeholder involvement in local projects, and providing detailed reports on social and environmental activities. Consequently, CSR has become a significant activity that affects financial performance across all corporate sectors (Pandey & Das, 2022).…”