Title: Impact of corporate social responsibility on financial performance of energy firms in India
Authors: Akanksha Shukla; Geetika
Addresses: National Institute of Technology Jamshedpur, Jharkhand 831014, India ' Motilal Nehru National Institute of Technology Allahabad, Uttar Pradesh 211004, India
Abstract: Corporate social responsibility (CSR) is the obligation of firms towards society in which they exist. The research studies the relationship between the expenditure made on social responsibility activities and the profitability of the energy firms, which are highly polluting in nature. The study also examines the mediating effect of disclosure of CSR activities on the relationship between the two. The study is based on secondary data collected from the annual reports of 38 energy firms listed on Bombay Stock Exchange for the time period from 2010-2011 to 2016-2017. The mediating effect is tested using Preacher and Hayes (2004) approach through process macro of SPSS. The study found a positive and significant relationship between expenditure made on social responsibility activities and financial performance of the firms. The research also demonstrate that the disclosure of CSR activities partially mediate the relationship.
Keywords: corporate social responsibility; CSR; CSR expenditure; mediation; CSR disclosure; energy firms; India.
International Journal of Business Governance and Ethics, 2022 Vol.16 No.1, pp.88 - 105
Received: 14 Apr 2020
Accepted: 13 Oct 2020
Published online: 01 Dec 2021 *