CSR Spending Research Articles

The impact of mandatory CSR regulation on corporate financial policy: Evidence from India

This study examines how mandatory CSR spending regulation implemented in India in 2014 impacted the financial policy of corporate firms in a quasi-natural experiment setup. The analysis shows that the debt level of treated firms decreased significantly following the CSR regulation; however, no corresponding change was observed in control firms. We attribute this decrease to the greater value that the equity of such firms commanded in capital markets following the regulation. Further, we show that this positive change in the relative importance of equity compared to debt in the post-regulation period helped firms move toward their target capital structure faster. These results remain robust for various model specifications, estimators, and sample selection procedures. Overall, these results conform to the predictions of the stakeholder and legitimacy based theories on CSR.

Navigating the Intersection of Input Tax Credit Restrictions and Corporate Social Responsibility in India

CSR is an important dimension of ethical and sustainable business practices, recent restrictions in the input tax credit under the GST regime pose important issues in the implementation of CSR. The article estimates the financial, operational, and reputational implications of the restrictions on ITC for the CSRs, calling on firms to adapt and innovate. They are strategies crucial for dealing with challenges concerning financial planning, prioritizing of only those initiatives with the best impact, collaboration, and advocacy can be done. Several strategic approaches can be applied by business to operate with the ITC provision on restrictions for CSR spending such as, enhanced financial planning, collaborative efforts, Innovating on CSR Approaches, Advocacy and Policy Engagement, Stakeholder Engagement and Communication, Business Strategy Integration with CSR, Diversification of Alternative Revenue Streams. Despite constraints in the regulatory environment, the commitment to CSR is very high, and it therefore brings about a positive influence on Indian society and sustainable development. The finding demonstrates that business implementing strategies for navigating ITC restrictions not only mitigate the financial strain due to ITC restrictions but also enhance operational efficacy to maintain competitive edge, improve financial health and strategic position.

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.

CASE STUDY OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES OF STATE BANK OF INDIA

Corporate Social Responsibility is the term with present century lives, this paper contains the various aspects of CSR policy followed by State bank of India. this study presents CSR practices of State bank of India, secondary source of data has been used for the study. The present study describes fund allocation and analysis of sector wise CSR spending. SBI foundation also plays important role in SBI corporate social responsibility practices.

How CSR Performance and Financial Report Quality Affect Corporate Share Prices? Case of Indonesia

Purpose: This research intends to investigate the impact of financial report quality and CSR performance on the firm share prices. Methodology/approach: The 78 firms-years observation of LQ-45 public listed companies in Indonesia from 2019 to 2020 is used in this study. The financial report quality is measured by the accrual-based model of earning management, while CSR performance is measured by the amount of CSR spending. The OLS regression is applied to test the hypotheses. Findings: The findings show that there is no effect of financial report quality on the share prices. On the other hand, CSR performance plays an important role in influencing a company’s share prices. CSR performance has a positive effect on share prices. The financial report failed to ensure that there is no existing information asymmetry within the organization. While CSR performance is a form of social-engaged activities in order to achieve social benefits and legitimation. Practical implications: In the context of legitimacy and agency theory, these findings provide fruitful insight into how the firm performance is valued by investors, which is not only based on financial performance but also based on non-financial performance. Originality/value: By providing a new measurement of CSR performance, this study is different to most existing CSR kinds of literature.

Assessing the impact of corporate social responsibility spending on performance of water supply and sanitation authorities in Tanzania

This paper assesses the impact of corporate social responsibility spending on the performance of water supply and sanitation authorities in Tanzania. Revenue collection efficiency and non-revenue water were used as performance proxies. The study employed a retrospective longitudinal research design with a quantitative approach, utilizing secondary data from 114 water supply and sanitation authorities over five years (2015–2019). Both random and fixed effect estimation techniques were applied to determine the impact of CSR spending on performance. The results indicate a significant positive effect of CSR spending, notably enhancing revenue collection efficiency and reducing non-revenue water. Additionally, control variables such as organization size, age, number of employees, and customer complaints significantly impact performance. This study provides a nuanced understanding of how CSR spending in the public sector, specifically within water supply and sanitation authorities, can improve revenue collection efficiency and minimize non-revenue water. It emphasizes the importance of CSR activities in the water sector and advocates for policies promoting CSR to enhance organizational performance.

Propounding an integrated solution ecosystem to effectuate CSR in India: an alternate framework

PurposeCorporate social responsibility (CSR) was mandated and institutionalised in India through the Companies Act (2013), a decade ago. It is critical to understand the priorities of the models used by the companies to effectuate their CSR policy. This paper aims to understand the skewing of interest towards Education and Health interventions. The paper then proposes a framework to cross-level and effectuate CSR programme implementation.Design/methodology/approachThe qualitative study conducted in-depth interviews of the stakeholders from the CSR environment. The findings are used to derive a model to effectuate CSR in India.FindingsThe findings may be divided into two sub-themes – (a) observations from the field study and (b) integrated solution ecosystem (ISE) framework. The qualitative study and the insights form the first component. The proposed framework which can enhance the efficiency of CSR practices may be found in the second sub-theme.Research limitations/implicationsOperationalisation of the proposed model, if adopted would require integrated efforts from multiple functional departments which could lead to an extended timeframe for implementation. This may eventually lead to a need to revise the model in the making. The research could also include perspectives from governmental stakeholders which is missing here.Practical implicationsThe emerging model can present an opportunity for corporates and policymakers to revisit the CSR structure and frameworks. It can also be used to evaluate and audit the CSR practices of companies.Social implicationsThe ISE posits a bunch of actionable themes which can deliver an impactful transition from the existing approach to CSR to a more far reaching one. While the ground rules are revisited, the approach also allows a critical departure from a corporate-driven model of engagement with the community. The modifications or corrections in this model would also mean a more inclusive layering of developmental interventions. The diversity which could potentially be brought in to designing interventions can be another key impact.Originality/valueThis paper presents insights for some of the pivotal stakeholders of CSR in countries like India. It presents a possible model of effective and optimal utilisation of CSR spending.

Opportunity costs and the value of corporate social responsibility: evidence from firm dividend policy

ABSTRACT Theories of CSR value under a real-option framework suggest that the payment of dividends serves as an opportunity cost. One of the resulting predictions is that the value of CSR spending is lower for dividend paying firms. We examine this prediction empirically. While we find that CSR is positively related to firm value for both dividend payers and non-payers, CSR is roughly 50% less valuable to dividend payers than non-dividend payers.

Addressing employee turnover in retail through CSR and transformational leadership

PurposeEmployee turnover, a reality that Indian retail organizations cannot ignore, is the central theme of this paper. The authors have aimed to empirically establish corporate social responsibility initiatives (CSRI) and transformational leadership (TL) as rather unconventional predictors that can potentially influence retail employees’ intention to stay (ITS) through sequential mediation by employer branding (EB) and organizational identification (OI).Design/methodology/approachData collected using a structured questionnaire from three hundred and five frontline employees working with twenty-nine Indian retail outlets in the Delhi-National Capital Region (NCR) region was tested using structural equation modelling.FindingsFindings confirmed the impact of both CSRI and TL on ITS, with sequential mediation by EB and OI. While OI partially mediated the effect of EB on ITS, TL exerted more influence than CSRI in enhancing EB.Originality/valueThis study enhances retail literature by empirically testing a unique fusion of organization and individual-level predictors that influence ITS as an individual-level outcome. Having TL and a firm corporate philosophy of CSR spending can enhance a retailer’s image as a preferred employer brand and generate OI to successfully address employee turnover

INDIA'S TOP TEN CSR CONTRIBUTING COMPANIES AND THEIR CONTRIBUTIONS TOWARDS ENVIRONMENTAL SUSTAINABILITY

This research paper explores the top ten CSR-contributing companies in India and their contributions toward environmental sustainability. The study analyzes the CSR spending patterns of these companies and the percentage of their CSR funds directed toward environmental sustainability. The results indicate a significant variation in CSR spending and contribution towards environmental sustainability among the top ten companies. Companies like Wipro Ltd, ITC Ltd, and Infosys Ltd have directed a considerable percentage of their CSR funds toward environmental sustainability. On the other hand, companies like Tata Consultancy Services Ltd, Tata Sons Private Ltd, and Indian Oil Corporation Ltd did not contribute to environmental sustainability, despite significant CSR spending. The findings suggest that there is a need for companies to prioritize environmental sustainability in their CSR activities, given the current environmental challenges faced by the country. The study recommends that companies should adopt sustainable practices and invests more in environmentally sustainable CSR initiatives to achieve a balance between economic development and environmental conservation.

CSR SPENDING IN INDIA: EXPLORING THE LINKAGES WITH BUSINESS GROUP AFFILIATION AND PRODUCT PORTFOLIO DIVERSIFICATION

The present study aims to examine the influences of group affiliations status on the CSR spending of a firm and also to test how the group size and interaction of group size and product portfolio diversification influences the CSR spending. The sample of the present study covers 1,513 Indian firms coming under the ambit of CSR reporting, represented through the unbalanced panel data set of 4,459 firm-years from the year 2014 to 2019. The baseline model regresses CSR spending on the group affiliation status and set of controlling variables which are having the impact on CSR spending by using panel least squares regression model. The baseline model is extended to test the impact of group size and interaction of group size and product portfolio diversification on the CSR spending. Industry variations with regard to CSR spending are controlled by introducing industry fixed effects into the regression model. The findings of the study reveal significant positive impact of group affiliation status on CSR spending. The results are also robust to the group size effect and the interaction effect of group size and product portfolio diversification. The findings are supporting stewardship theory and socio—emotional wealth creation view of the group affiliated firm which asserts that group affirms experience variety of stakeholder demands and social issues. Building social reputation through CSR activities will be helpful in handling such situations. The findings also proved that larger group firms with wider product diversification are more encouraged towards CSR spending. This is the first study which tests the impact of group size and also the interaction of group size and product portfolio diversification on CSR spending. The study contributes to the literature on how the ownership style, especially, group affiliation status, influences the social engagement of a firm

Corporate social responsibility: An analysis of CSR spending by Indian automobile companies

Corporate social responsibility: An analysis of CSR spending by Indian automobile companies

HUBUNGAN UKURAN PERUSAHAAN, PROFITABILITAS, INTERNASIONALISASI, PENGELUARAN CSR DENGAN KINERJA PERUSAHAAN

This study has two objectives. The first objective is to provide empirical evidence whether company size, profitability, and internationalization relate to its CSR expenditure. The second one is to test whether company’s CSR expenditure correlate with company’s performance. Samples are manufacturing companies listed in Indonesian Stock Exchange. Sampled companies are those listed from 2010 to 2019 and report their CSR expenditure in the annual report. In total 341 samples are used. The findings suggest that firm size and profitability positively and statistically significant relate to CSR expenditure while, on the contrary, internalization negatively correlate with the CSR spending. Second, CSR expenditure positively and statistically significant relate to firm’s future performance. The practical implication of these findings is that CSR expenditure is related to firm’s financial performance and that current expenditure may signal future performance. Keywords; firm size; profitability; internasionalization; CSR expenditure; firm performance

Institutional cross‐ownership and firm social performance

AbstractResearch Question/IssueThis paper examines the relation between institutional cross‐ownership from the same industry (hereafter, INSTCO) and corporate social responsibility (hereafter, CSR) for Chinese publicly traded firms. We also investigate whether the relation between INSTCO and CSR depends on the strength of the internal and external corporate governance.Research Findings/InsightsBased on a sample of Chinese listed firms from 2009 to 2017, we find that INSTCO is significantly positively associated with firm CSR performance. We interpret our results under the signaling theory of strategic CSR spending, according to which CSR spending is a valuable signal that distinguishes firms from peers, particularly in an environment with severe information asymmetry. The effective monitoring of INSTCO drives managers to engage in the CSR signaling more actively. Furthermore, this positive association between INSTCO and CSR signaling is only found among firms with strong internal and/or external corporate governance.Theoretical/Academic ImplicationsThe findings in this paper indicate that the well‐documented monitoring role of INSTCO also has important implications on firms' social performance. Moreover, our findings contribute to the literature on strategic CSR spending by highlighting the role of CSR spending as a signaling device in China as the largest emerging market. Lastly, both internal and external corporate governance significantly moderate the impact of INSTCO on firms' social performance.Practitioner/Policy ImplicationsCSR initiatives are valuable signals. Policy makers should be aware that common ownership may enhance stakeholders' welfare due to INSTCO's monitoring effect, since this study documents a significantly positive effect of INSTCO on corporate social performance. Investors in the Chinese market should also be aware of the nontrivial signaling function of CSR activities, especially in a strong internal governance and/or an investor‐friendly external governance environment.

Impact of Covid-19 on Corporate Social Responsibility: A Study of Indian IT Sector

Corporate social responsibility has come to the limelight with the outbreak of Covid- 19 pandemic. The aim of this paper is to study and analyze the impact of Covid- 19 on corporate social responsibility with a special focus on Indian IT sector, to make a comparison of CSR obligation and CSR spending between pre and post pandemic period. It also study the activity wise spending of CSR of select sample companies for the years 2019-20 and 2020-21. Paired sample t test was used to test the formulated hypotheses. Findings of the study reveals that Indian IT companies played a pivotal role in fight against the pandemic and devoted much of its CSR funds towards healthcare and disaster relief. Statistical analysis reveals that there is a significant improvement in the CSR obligation of select companies in the post pandemic period (2020-21) as compared to pre pandemic period (2019-20).

Corporate Social Responsibility and SME Value Creation

Despite small and medium-sized enterprises (SMEs) ability to contribute in achieving sustainable economic growth, to reduce unemployment, value creation ability of SMEs through CSR remains unexplored. We examine the impact of CSR on SME value in manufacturing and service industries context, the industries ignored by existing research. We also explore the interactive relationship of CSR and access to finance and their impact on CSR-Value relationship. Our key finding is that SMEs value is positively associated with the CSR expenditure and access to finance. The results indicate that current year CSR expenditure creates value for SMEs through improving their access to finance and ultimately improving their sales in the next year but do not moderate the CSR-Value relationship . Our results are robust and reliable because we employed both 2SLS and generalised method of moments (GMM) approaches to address possible endogeneity. Moreover, we use actual CSR spending data from developing country instead of CSR scores as a proxy for CSR expenditures usually used by prior studies concentrating only on large firms. Our results could be used by the policy makers and regulators in other emerging countries to justify the introduction of schemes to improve CSR and access to finance for SMEs.

The Emerging Need for Corporate Social Responsibility and Sustainable Investment in the Healthcare Sector during Covid 19

The present study is a descriptive analysis of the emerging need for CSR and Sustainable Investment during COVID 19. The information has been gathered from unswerving and trustworthy secondary sources including journals, magazines, and newspapers. CSR spending of the top 10 companies in the Healthcare Sector in FY 2018-19 and 2019-20 have been statistically evaluated. The present study also accompanies the implications for sustainable investment in the pandemic period. In the study, it was found that the companies usually contribute to building hospitals, organizing camps for rural people, and giving donations in the hospitals which seems to work as short-term orientation, there is a lot more which a company can offer to enrich the lives of people with proper health and well-being. It was found in the learning that ONGC company have spent all earmarked CSR funds on the healthcare sector in FY 2019-20 which shows the impact of COVID 19 pandemic whereas spending by TCS was the lowest among 10 companies on the Healthcare Sector.

Impact of CSR spending on Corporate Financial Performance -An Empirical Evidence from the Indian Manufacturing Sector

Impact of CSR spending on Corporate Financial Performance -An Empirical Evidence from the Indian Manufacturing Sector

ANALISIS PENGARUH TANGGUNG JAWAB SOSIAL PERUSAHAAN TERHADAP KINERJA KEUANGAN PADA INDUSTRI MAKANAN DAN MINUMAN INDONESIA

This research was conducted to demonstrate the effectiveness of the implementation of corporate social responsibility by including it as an independent variable in terms of CSR spending, CSR activities, and the acquisition of CSR awards. The dependent variables in the study were financial performance, and the size of the company, the company's risk, and the age of the company were control variables. The sample size of the survey includes 18 food and beverage companies listed on the Indonesia Stock Exchange between 2015 and 2020. Data analysis methods use regular regression analysis tools. The results of this survey show that CSR awards and the age of the company affect business performance. The implications of this research are improving financial performance, building reputations, gaining a competitive advantage, and as a matter of investment consideration should investors need to consider how well the company performs in generating many awards that drive the company's productivity, as well as how long the company has been operating in order to measure the company's ability and experience in disclosing all information, including CSR disclosures.

Role of Private Sector in Developing Employment through Skill Development Programme: A Case Study of Odisha

तत्कर्म यन्न बन्धाय सा विद्या या विमुक्तये । आयासायापरं कर्म विद्यान्या शिल्पनैपुणम् ॥ The above mentioned slokas are derived from VISHNU PURANA a great mythological and is one of the eighteen Mahapuranas, a genre of ancient and medieval texts of Hinduism. It means Action is that, which does not promote attachment; that is knowledge which liberates. All other action is mere effort/hardship; all other knowledge is merely another skill/craftsmanship. Present day skill refers to knowledge which can be applied in executing/solving a particular task. This also provides a person to earn his day to day livelihoods’. The skill development programme initiated at different level such as local bodies, corporatehouses, state government, central government and other authorities has the objective to empower the unemployed youth to increase their employability or engagement opportunities, so that they can be useful in contributing their individual income as well as in the national income. The corporate houses have launched massive skill development programmes through their CSR spending. They ensure to train and develop skill at the ground level and facilitate in the employment/engagement after successful completion of training. The present research paper is undertaken to study how the corporate houses impacting skill development programme in the society through their CSR programmes.