CSR Expenditure Research Articles

CSR Spending Deviation from Mandate in India

A clause in the Companies Act of 2013, mandates that companies allocate two percent of their revenues to the CSR initiatives. The goal of this research is to examine the reasons behind the CSR expenditure gap in India. Following our directions, the sample consisted of 200 respondents who filled out the survey. The survey concluded with a question designed to collect data on the proportion of a company's budget allocated to CSR initiatives. Colleagues participated in the pilot research, and their input was utilized to refine the questionnaire. One of the most significant markers of a company's connection with society is its level of (CSR), even though the CSR effect operations cannot always be quantified in terms of financial allocations. The results suggest that the inclusion of this provision is a sensible move on the part of regulators aiming to increase the social responsibility of businesses.

BOARD CHARACTERISTICS AND CORPORATE SOCIAL RESPONSIBILITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA

This research investigated the influence of board characteristics on corporate social responsibility of listed oil and gas companies in Nigerian Exchange. Variables examined are bord size, independence, gender diversity, activity, professionalism and equity ownership of board members. While corporate social responsibility was proxy by CSR expenditure. The population consists of twelve (12) listed oil and gas firms from which five (5) firms have consistently published their annual reports within the period covered and extracted data from their respective annual reports. Panel corrected standard error was used for analysis. Findings revealed both board size and board activity have no significant impacts on CSR while in contrast, board independence, female gender, board professionalism and board equity ownership have a significant effect on CSR. It was recommended that the management of listed oil and gas companies need to have more independent outside directors on the board to enhance monitoring and CSR performance. Also, higher participation of female on the board will improve CSR performance because of their concern for environmental issues. In addition, having more members with professional expertise will improve the decision making of the board and equally shape CSR performance. Board members with equity stake will align the interest of the managers with those of shareholders and likewise, focus more on long-term goals of the firm. Listed oil and gas firm should maintain appropriate board size and required number of board meetings as stipulated by code of corporate governance.

Pengaruh Financial Slack, Free Cash Flow, dan Firm Size Terhadap Corporate Social Responsibility Expenditure (CSRE) Pada Perusahaan LQ 45

This study aims to determine the relationship between financial slack, free cash flow, and firm size on corporate social responsibility expenditure. This study uses data from companies listed on the LQ 45 index on the Indonesia Stock Exchange. The sampling technique in this study used a purposive sampling technique with predetermined criteria. The research method used in this research is a linear regression analysis technique using Eviews 10 software. The results of this study show that simultaneously financial slack, free cash flow and firm size have a significant effect on CSR expenditure. Partially, financial slack has no effect on CSR expenditure, free cash flow has a positive effect on CSR expenditure, and company size has a negative effect on CSR expenditure. Meanwhile, firm age as a control variable in this study has no effect on CSR expenditure.

Corporate governance and corporate sustainability performance: the mediating role of CSR expenditure

PurposeThis study investigates the effect of corporate governance (CG) characteristics on corporate sustainability performance (CSP) and whether the magnitude of CSR expenditure mediates such a relationship in the context of an emerging and developing economy-Bangladesh.Design/methodology/approachThis study collects data from the annual reports of 30 private commercial banks listed with the Dhaka Stock Exchange for the period starting from 2013 to 2022, giving 300 firm-year observations. To test the hypotheses formulated, this study uses Baron and Kenny’s (1986) four-step model. Data have been analyzed using AMOS 23 to examine the direct and indirect effect of CG on sustainability performance.FindingsThis study finds that several CG variables (board size, board independence, sustainable finance committee) significantly affect several facets of sustainability performance (environmental, social, and financial performance). However, the mediating role of the magnitude of CSR expenditure in the relationship between CG mechanisms and sustainability performance is found to be limited.Research limitations/implicationsThe list of CG and ownership structure variables studied is not exhaustive, and the presence of a wide variation in the measurement of sustainability performance makes its measurement subjective to some extent.Originality/valueThis study uses the magnitude of CSR expenditure as a mediator in the relationship between CG and sustainability performance, which is rarely addressed by the extant literature in this field.

Pengaruh Tingkat Kesehatan Bank Terhadap Firm Value Dengan CSR Expenditure Sebagai Variabel Moderasi

This research investigates the influence of various financial variables on Bank Health Level on Company Value (PBV) with CSR Expenditure as a moderating variable in the context of the banking industry in Indonesia. The research method used in this research is descriptive and verification research, while the sampling technique used is non-probability sampling with a purposive sampling method, the sample for this research is 26 companies. This research identifies Non-Performing Loans (NPL) and Return on Assets (ROA) as factors that influence Price to Book Value (PBV). Then CSR Expenditure can moderate the Non-Performing Loan (NPL), Loan Deposit Ratio (LDR), and Good Corporate Government (GCG) variables on price-to-book value (PBV). Simultaneously, the results of the F test show that collectively these variables have a significant effect on Price to Book Value (PBV), and CSR Expenditure is an important factor that contributes positively to Price to Book Value (PBV), which can be concluded that CSR policy is very capable strengthening company performance in increasing stakeholder perception and trust which is reflected in increasing company value.

A Case Study of CSR Practices by Select Agri Companies in Andhra Pradesh

Society and business go hand – in – hand. One cannot thrive without other. Business has its responsibility towards all the stakeholders apart from revenue generation for larger social good. Hence, business has a moral obligation to contribute to the betterment of society. In this light, Corporate Social Responsibility is a channel through which corporations address the issues of different stakeholders by integrating social, economic and environment aspects into business operations. Corporate social responsibility has intensely changed the way corporate entities conduct their business activities in the social environment in the 21st century.India is the only country which has regulated and mandated CSR. Andhra Pradesh stands in sixth place among 10 states getting Agri CSR expenditure in India. Andhra Pradesh with a good amount of rise in industries creates a societal responsibility towards society and environment by the industries. Corporate Social Responsibility activity brings a change in the lives of deprived people in rural India. Deprived people in India are mostly based on agriculture for their livelihood and CSR also plays a significant role in the agriculture sector. Business Corporate social responsibility has a positive correlation with the financial performance of the business. This paper provides an insight on the initiatives taken and future initiatives being planned by select companies of Andhra Pradesh with regard to Corporate Social Responsibility. The selected companies are namely ITC Ltd., JSW Steel Limited, Pedillite Industries Ltd., Cummins IndiaLt., HindustanZinc ltd. The data related to CSR practices of select companies of AP is collected from the websites of the industries, annual reports, newspapers, magazines, financial statements of the industries and the like. This research study explores about the contribution by the companies towards CSR practices and efforts made for the development of society.

Influence of Corporate Social Responsibility on Financial Performance of Listed Private Commercial Banks in Bangladesh: An Econometric Analysis

Key objective of this study was to measure the role of CSR on corporate financial performance in Bangladesh. It has measured the performance of all (30 in 2015) listed private commercial banks (PCBs) of Bangladesh. Those organizations were studied for a ten-year period ranging 2011-2020. The statistical techniques of analyzing panel data especially OLS, random effect, fixed effect, GMM and dynamic GMM methods have been used. The econometric model has been developed where CSR expenditure is a dependent variable and financial performance indicators of the firm (e.g. ROA, ROE, TobinQ, EPS and market price of share) are considered as independent variables. Data analyses show that CSR has a positive effect on the corporate financial performance in Bangladesh.

CSR Expenditure and Company Performance: Financial Evidence from NIFTY 500 Companies

CSR Expenditure and Company Performance: Financial Evidence from NIFTY 500 Companies

CSR Expenditure on Indian Aerospace and Defence Comapnies - An Analytical Paradigm

CSR Expenditure on Indian Aerospace and Defence Comapnies - An Analytical Paradigm

CSR expenditure and company performance: financial evidence from NIFTY 500 companies

CSR expenditure and company performance: financial evidence from NIFTY 500 companies

Does CSR expenditure reward the financial performance of Nigerian quoted oil and gas companies: A pooled panel regression model?

Does CSR expenditure reward the financial performance of Nigerian quoted oil and gas companies: A pooled panel regression model?

Corporate Social Responsibility Practices and its Impact on Corporate Profitability: A Comparative Analysis Between Public and Private Sector Companies in Odisha

Purpose: Corporate social responsibility is commonly called social responsibility of business. CSR acts as corporate driver through which business organization makes sustainable development of the society. This study aims to investigate a comparative study on CSR practice and its impact on profitability performance between selected public and private companies operating in Odisha region.
 
 Theoretical framework: The study is based on comparative analysis on CSR practice undertaken by public and private sector companies operating in Odisha after introduction of new Companies Act 2013. Researcher aims to analyze the co-variance between CSR practices and corporate profitability performance in regard to evaluating the impact of stakeholders’ perception.
 
 Design/Methodology/Approach: Researchers have selected this theme of research after extensive study of review of literature. For achievement of objective of research, researcher has adopted purposive sampling method for selecting corporate sectors who are involved in CSR obligations. Twenty companies were selected (10 from public sector and 10 from private sector) whose commercial operation in state of Odisha region. These companies are engaged in power, steel, oil, metal, coal, cement, paper, fertilizers, etc. The investigation is based on secondary data. Data have been collected from the annual reports and business responsibility reports of selected corporate entities. Descriptive statistical tools (Mean, S.D, Variance, Standard error of mean, Skewness, Co-efficient of variation, etc) have been used.
 
 Findings: The end outcome of this research study reveals that CSR expenditure of private sector companies is more than public sector in odisha while public sector are more stable and consistent towards CSR expenditure over private sector companies. It is also observed that CSR practice of private sector companies extremely significant over the public sector companies towards socio economic development of the state. There is no association between budgeted and actual CSR expenditure.
 
 Research, Practical and Social implications: The study of CSR practice is a vibrant issue since many years back for sustainable development. This research is of value to the researcher and practitioners of corporate social responsibility. The research study I hope immensely helpful in guiding, regulating, and adapting CSR practice of both public and private sector companies as per new provision of Companies Act of Government of India.
 
 Originality/Value: The present research study CSR practices and its impact on corporate profitability have a notable global importance for the well being of society. Adequate integration between the corporate entities and the society is essential for the development and growth which enables the society to be sustainable.

Corporate Social Responsibility and Financial Performance in Commercial Banks of Nepal

In this study, the effect of corporate social responsibility on financial performance proxied by return on assets with a mediating variable size of the banks proxied by number of employees in Nepalese commercial banks, has been examined to fulfill the objective of identifying the size, status and trend of corporate social responsibility and analyzing the effect of CSR with a mediating variable number of employees on return on assets. An aggregate level of CSR with a mediating variable number of employees have been applied as the independent variable and return on assets have undertaken as the dependent variable in the research framework. Panel data sets of ten years from seventeen Nepalese commercial banks have been observed and tested using correlation coefficients and regression analysis under the approach of deductive, descriptive and analytical research design, to analyze the effect of CSR with a mediating variable number of employees of the organization on return on assets. The findings depicts that the increasing trend of CSR expenditure and return on assets have a significant positive relationship. From the analysis, it has concluded that there is a positive relationship between the variables and the impact of CSR on return on assets, symbolizes increasing in CSR leads to an increase in the financial performance of the banks. Furthermore, it raises the public image of the firm and attracts more investors, customers and well-wishers which supports to increase the business and sustainable growth over the competition. This study demands the implication of CSR practices for all the business organization even if not mandatory from the concerned authority.

The Effect of Corporate Social Responsibility Expenditure and Board National Diversity on Firm Value with the Availability of Sustainability Report as a Moderation Variable

This study is to provide evidence on the effect of corporate social responsibility expenditure and board national diversity on corporate value. We also test the role of the availability of sustainability reports as a moderating variable on this relationship. Our samples are Indonesian-listed companies on the Indonesia Stock Exchange from 2011 to 2020. Tobin's Q is used to measure firm value. The CSR expenditure is measured by the amount of CSR expenditures reported in the annual report. In contrast, the board’s national diversity is measured by the company’s ratio of foreign board members. The availability of sustainability reports is a dummy variable. The results suggest that CSR expenditure and board diversity do not affect firm value. Moreover, the results indicate that the availability of sustainability reports has a negative moderating effect on the relationship between the ratio of foreign commissioners and firm value, and, on the contrary, has a positive impact on the relationship between the ratio of foreign members of the board of commissioners and firm value. We may imply that companies with a high proportion of foreign member boards of commissioners and provide sustainability reports have higher firm value than companies that do not provide sustainability reports. Our study suffers from some limitations. First, most of our samples do not have foreign commissioners on their board. Second, the Indonesian authority does not strictly regulate the disclosure practices of CSR-related expenditures. Third, future researcher may use another measure of sustainability report, like the quality of the report.

Corporate Social Responsibility and Financial Performance in Nepalese Commercial Banks

In this study, the effect of corporate social responsibility on total assets, proxy of financial performance with a mediating variable number of employees in Nepalese commercial banks, has been examined to fulfill the objective of identifying the size, trend and status of corporate social responsibility and analyzing the effect of CSR with a mediating variable number of employees on total assets. An aggregate level of CSR with a mediating variable number of employees have been applied as the independent variable and total assets have undertaken as the dependent variable in the research framework. Panel data sets from seventeen Nepalese commercial banks for ten years have been observed and tested using correlation coefficients and regression models under the approach of descriptive and analytical research design, to determine the effect of CSR with a mediating variable number of employees of the organization on the total assets. The findings postulate that the increasing trend of CSR expenditure made by the banks and total assets have a significant positive relationship. From the analysis, it has concluded that there is a positive relationship between the variables and the impact of CSR on total assets, symbolizes increasing in CSR leads to an increase in the financial performance of the organization. Furthermore, it raises the public image of the firm and attracts more investors which creates sustainable growth over the competition. This study demands the implication of CSR practices for all the business organization even if not mandatory from the concerned department.

A Study on Impact Corporate Social Responsibility on Profitability of Companies Listed in National Stock Exchange

The goal of this research is to investigate the various developments of CSR in India and to investigate the implementation of current CSR practises in India. This paper investigates how India's 30 largest corporations view, conduct, and identify the key CSR practises and financial performance. As stated in clause 135, there is still room for giving reasons if a company does not spend the required amount of CSR. Most companies can benefit from this, and they may also use CSR as a tool to increase their profit volume. As a result, it must be investigated. The current paper examines the practices and impact of CSR on profit given by companies in their annual reports & to meet the minimum ground of CSR expenditure. It is also intended to investigate the before-and-after effect of CSR provisions on sales volume, and in this respect, first correlation was sought and then correlation was used. For this study, a sample of 30 mid-cap companies listed on the NSE that are involved in the oil and gas, banking/finance, and automobile industries was chosen. The research is analytical in nature and is based on secondary data. Correlation and regression technique had been used to examine the relationship of CSR spent and the financial parameters like ROE and ROA.

Does mandatory corporate social responsibility expenditure by businesses help their stakeholders?

AbstractThis study examines the role of financial performance and board characteristics on corporate social responsibility expenditure (CSR expenditure hereafter). The study is based on a natural experimental design where the Government of India made it legally mandatory for companies meeting certain criteria to spend at least 2% of their average profits in the preceding three financial years towards corporate social responsibility in the companies Act 2013. It examines the propensity of companies to spend towards corporate social responsibility over and above the legal mandate. This study analyze two different schools of thought in the field of corporate social responsibility varying in their assertions. The first school of thought asserts that firms engaged aggressively in CSR expenditure would be viewed positively by the customers/prospective customers. The second school of thought asserts that CSR expenditure reduces the profit of the firm that could have been used productively for asset acquisition, and business expansion. The first school of thought focuses on the good corporate citizenship hypothesis whereas the second school of thought focuses on the efficient utilization of scarce resources hypothesis. Using a dataset of companies listed on NSE 500 index, we found a positive and statistically significant relationship between CSR expenditure and accounting‐based firm performance but a negative relationship with market based firm performance. Size of the firm has a positive relationship with firm performance, alluding to the presence of “size” effect. Board size, board independence and cumulative attendance in board meetings exhibit mixed results with firm performance. Note: A slightly different version of this paper was presented in the 15th ICBF‐2022 conference held at IBS Hyderabad in the online mode. We would like to extend our heartfelt gratitude to all the reviewers and participants whose suggestions helped improve this article.

The effect of CSR disclosure on tax avoidance through earnings management: Indonesian evidence

This study aims to explain the effect of CSR disclosure on tax avoidance and analyze that effect through earnings management. Companies use CSR expenditure as an earning management strategy. CSR expenditure is assessed as a deductible expense to obtain low taxes. This strategy, called earnings management, is the first step of tax avoidance. The population was taken from companies listed on the Indonesia Stock Exchange (IDX) in the Consumer Non-Cyclicals sector from 2018-2020. Sampling uses a purposive sampling technique with 25 companies. The analysis used is multiple linear regression with the intervening variable testing using the Sobel test. The results of this study explain that CSR disclosure has a negative effect on tax avoidance. Wide CSR disclosure means the company is far from tax avoidance practices. Testing using the intervening variable results in earnings management being unable to mediate the effect of CSR disclosure on tax avoidance.

CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE DAN KINERJA PERUSAHAAN

This study aims to analyze the effect of Corporate Social Responsibility Expenditure on company performance and the effect of firm-specific economic variables on Corporate Social Responsibility Expenditure. The research population is all companies listed on the Indonesia Stock Exchange (IDX) except for the banking sector and other financial institutions from 2016 to 2019. Based on the purposive sampling method, 372 samples were obtained. The data is taken from the company's financial statements and tested using the multiple linear regression method. The results of this study indicate that CSR expenditure has a significant effect on ROA, but has no significant effect on CFO. Other findings show that CFO, size, and PM have a significant effect on CSR expenditure. Meanwhile, cash, ATO, and leverage have no significant effect on CSR expenditure.

Corporate Social Responsibility and Financial Performance of Deposit Money Banks in Nigeria

This study examines the effect of CSR on financial performance in the Nigerian banking industry. Thirteen banks were studied. Annual reports and financial statements of the banks for the period of ten years after recapitalisation (2005-2014) were analysed. The banks’ financial performance indices—ROA, ROE, ROD—and PAT as well as CSR expenditure were measured and analysed. The data were analysed using regression analyses of STATA version 13. The results of the overall model of the multiple regression, indicating the simultaneous effect of Banks’ financial performance on CSR expenditure, the findings indicated that previous financial performance had significant positive effect on current CSR expenditure at p-value=0.0000. However, when the financial performance indices were individually analysed, the results were mixed. For example, previous ROA and ROD reveals negative effect at -4.0535(0.080) -3.655622(0.090) and -2.990002(0.169) and -9.7102(0.000), - 7.648551(0.000) and -8.77916(0.001), respectively. However, previous ROE and PAT revealed regression coefficients and p-values of 0.083(0.022), 0.062(0.070) and 0.038(0.281) and 0.258(0.000), 0.213(0.000), and 0.162(0.004) respectively, both indicated significant positive effect on CSR expenditure. In the second model of simple linear regression, the results revealed the existence of strong positive effects between the investigated variables, the p-values were thus, 0.002, 0.000, 0.023 and 0.000 for ROA, ROE, ROD and PAT, respectively, indicating that previous CSR expenditure has a significant positive effect on current financial performance in the Nigerian banking sector. Based on these results, the study, therefore, concluded that there is positive relationship between banks’ CSR activities and their financial performance. Thus, banks should be more committed to CSR for better financial performance and for social benefit of the society and; should diversify CSR programs.