Publication Type : Conference Paper
Publisher : Proceedings of the 27th International Business Information Management Association Conference - Innovation Management and Education Excellence Vision 2020: From Regional Development Sustainability to Global Economic Growth, IBIMA 2016, International Business Information Management Association.
Source : Proceedings of the 27th International Business Information Management Association Conference - Innovation Management and Education Excellence Vision 2020: From Regional Development Sustainability to Global Economic Growth, IBIMA 2016, International Business Information Management Association, IBIMA, p.2025-2037 (2016)
ISBN : 9780986041969
Keywords : Bi-directional, Control variable, Corporate financial performance, Corporate social performance, Corporate social responsibilities (CSR), Economic and social effects, economics, Finance, Indian firms, Information management, Innovation, Management theory, planning, Regional planning, Resource availability, Sustainable development
Year : 2016
Abstract : Corporate Social Responsibility has multiple facets and has been practiced and implemented for several years in the Indian context. The new Companies Act India, formulated in 2014 includes mandatory expenditure requirement on Corporate Social Responsibility. This is designed to encourage firms to contribute towards some of the most critical societal needs. This paper attempts to assess the type and strength of the bi-directional relationship between corporate social performance and corporate financial performance in the Indian context by looking at the Top 141 Indian companies across 15 industries over the years 2013, 2014 and 2015. The relationship between CSP and prior-CFP for the applicability of the theory of slack resource availability is gauged. The theory of good management is validated by assessing CSP contribution to future-CFP of firms. Also, assessed are the effects of control variables such as industry and RD on the relationship. The result shows a strong positive relationship between CSP and CFP and validates both slack resources theory and good management theory. The slack resources theory and good management theory provided mixed results when the control variables were industry and RD. Copyright © 2016 International Business Information Management Association
Cite this Research Publication : S. Shetty and Sundaram, R., “Linkage between Corporate Social Performance and corporate financial performance in Indian firms”, in Proceedings of the 27th International Business Information Management Association Conference - Innovation Management and Education Excellence Vision 2020: From Regional Development Sustainability to Global Economic Growth, IBIMA 2016, 2016, pp. 2025-2037.