Mapping the linkage between corporate social responsibility and organizational performance along with examining the moderating effect of ownership

Abstract

Environmental and social initiatives taken by organizations under corporate social responsibility (CSR) have attracted stakeholder's attention and global resonance in the recent times. Alike Western countries, the concept of corporate social responsibility is not new in India rather it has been imbibed in the tradition of Indian society to donate voluntarily for social causes. As a result, a paradigm shift has been noticed where “voluntarism” in CSR has got replaced with a mandatory obligation. This has been made mandatory through an amendment of new Companies Act, 2013. The current study through empirical observations emphases on examining the impact of CSR related activities on the organizational performance with the moderating effect of organizational ownership. A model is proposed and tested using SEM through AMOS. Data were collected from 265 respondents including senior CSR managers and other working professionals of select organizations. The results show a significant and positive relationship between CSR activities and organizational performance. It is also found that organizational ownership has no moderating effect on the relationship between activities conducted under CSR and the performance of the organizations. The analytical finding of the study has a practical implication for the managers of various organizations in the Sonbhadra district of Uttar Pradesh, India.