Title: Mediation effect of reputation on the stakeholders' centric CSR and financial performance relationship

Authors: Neha Kumar; Parul Kumar; Devesh Nigam

Addresses: The NorthCap University, Near Rotary Public School Cartarpuri Alias, Huda, Sector 23A, Gurugram, Haryana 122017, India ' Delhi Skill & Entrepreneurship University, Delhi, India ' Institute of Tourism and Hotel Management, Bundelkhand University, Jhansi, India

Abstract: This paper aims to investigate the relation between stakeholder led CSR, reputation and the financial performance. The stakeholders considered in the research were employees, environment, community, customers and investors. The reputation of the company has been taken as the mediator to analyse the change in CSR and financial performance relationship. A questionnaire was designed having 30 items enumerating the seven constructs. The structured equation modelling has been used to analyse the conceptual model of the impact of CSR on reputation and then on financial performance. The results concluded that all the stakeholders were significant in influencing the CSR decision making, with employees and investors being the most significant ones. It was also concluded that CSR positively impacts the reputation and reputation fully mediates the relationship between CSR and financial performance. Thus, major implication of the study is that managers can adopt the stakeholders' centric CSR activities so as generate the positive reputation which in turn would positively impact the company's sales revenue and profit.

Keywords: company's act; corporate social responsibility; CSR; employees; women director; structured equation modelling; investors.

DOI: 10.1504/IJBGE.2021.118581

International Journal of Business Governance and Ethics, 2021 Vol.15 No.4, pp.397 - 416

Received: 10 Dec 2019
Accepted: 12 Jun 2020

Published online: 08 Oct 2021 *

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