Title: The impact of corporate social responsibility on corporate financial performance in India: an investigation using data envelopment analysis

Authors: Dipanita Deb; Philippe Gillet; Anupam De

Addresses: Department of Management Studies, National Institute of Technology, Durgapur Mahatma Gandhi Rd., Bardhaman, 713209, West Bengal, India; Réseaux Innovation Territoires et Mondialisation (RITM), Faculté Jean Monnet, Université Paris-Saclay, 54 Blvd. Desgranges, 92330, Sceaux, France ' Réseaux Innovation Territoires et Mondialisation (RITM), Faculté Jean Monnet, Université Paris-Saclay, 54 Blvd. Desgranges, 92330, Sceaux, France ' Department of Management Studies, National Institute of Technology, Durgapur Mahatma Gandhi Rd., Bardhaman, 713209, West Bengal, India

Abstract: The paper emphasised the technical efficiency of Indian corporates and explored the drivers of high efficiency. This study applies multiple methods, i.e., data envelopment analysis and free disposal hull, to observe the efficiency rankings of the Indian companies. In the second stage, we perform a truncated regression analysis to validate our results on the association between corporate social responsibility and corporate financial performance. The findings suggest that 20 corporates from 87 corporates are technical efficient (TE = 1) in all frontier approaches. Further, it has been observed that the three pillars of corporate social responsibility (i.e., environment, social, and governance) positively correlate with efficiency. Furthermore, it has also been observed that all three pillars of corporate social responsibility are positively related to return on assets. The findings can be helpful for the stakeholders, policymakers, and management as a guideline for implementing corporate social responsibility practices.

Keywords: corporate social responsibility; CSR; environment; social; governance; ESG; financial performance; India.

DOI: 10.1504/IJEBR.2025.144681

International Journal of Economics and Business Research, 2025 Vol.29 No.2, pp.184 - 211

Received: 08 Mar 2022
Accepted: 12 Dec 2022
Published online: 27 Feb 2025 *

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