CSR and Financial Performance:Evidence from Indian FMCG Companies
Today, the businesses worldwide are looking beyond profitability and coming forward to address critical social and environmental issues. Companies' decisions have to be well-adjusted between corporate sustainability and corporate responsibility in order to ensure their endurance. This paper tries to explore the relationship between CSR and Financial Performance Indicators such as Net profit, ROA, ROE and EPS of 10 FMCG Companies.
Correlation and Regression analysis have been used in this study to find the relationship and the impact on the variables. The results reveal that CSR and Net Profit are highly significant, whereas CSR and Return on Assets are slightly significant and EPS and Return on Equity are negatively correlated with CSR.
- Bowen, H.R. (1953,), "Social responsibilities of businessman ", New York: Harper & Row
- Bhunia, A., & Das, L. (2015). The Impact of Corporate Social Responsibility on Firm's Profitability- a Case Study on Maharatna Companies in India. American Research Journal of Humanities and Social Sciences.
- Cochran, P. L. & Wood, R. A., 1984. Corporate social responsibility and financial performance. Academy of Management Journal, 27(1), pp. 4256.
- Commission of the European Communities (2001). "Green Paper for Promotion of European Framework for CSR" available at: http://www.btplc.com/societyandenvironment/reports/greenpaperonCSR.pdf
- Davis, K. (1973), "The case for and against business assumption of social responsibilities", Academy of Management Journal, Vol. 16, pp.312-322.
- Eom, K.; Nam, G. Effect of Entry into Socially Responsible Investment Index on Cost of Equity and Firm Value. Sustainability 2017, P, 717.
- Fernandez-Kranz, D., & Santalo, J. (2010). When necessity becomes a virtue: The effect of product market competition on corporate social responsibility. Journal of Economics and Management Strategy, 19(2), 453^187.
- Frederick, W.C. (1960), "The growing concern over business responsibility", California Management Review, Vol.2, pp. 54-61.
- George Balabanis, Hugh C. Phillips and Jonathan LyallBrown (1998). Corporate social responsibility and economic performance in the top British companies: are they linked?. European Business Review Volume98 ■ Number 1 ■ 1998 pp. 25-44.
- Graves, S. B. & Waddock, S. A., 1999. Look at the financial-social performance nexus when quality of management is held constant. International Journal of Value-Based Management, 12(1), pp. 87-99.
- Hawn, O., & Ioannou, I. (2016). Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility. Strategic Management Journal, 37(13), 2569-2588
- Kamatra, N., & Kartikaningdyah, £. (2015). Effect Corporate Social Responsibility on Financial Performance. InternationalJournal ofEconomics and Financial Issues, 157-164.
- Kanwal, M., Khanam, F., Nasreen, S., & Hameed, S. (2013). Impact of corporate social responsibility on the firm's financial performance. IOSR Journal of Business and Management, 61-1 A.
- M'arquez, A. and Fombrun, C, 2005. Measuring corporate social responsibility. Corporate Reputation Review, 7(4), pp.304~308.
- McWilliams, A. & Siegel, D., 2000. Corporate social responsibility and financial performance: correlation or misspecification?. Strategic Management Journal,, 21 (5), pp. 603-609.
- Moser, Donald V., & Martin, P. R. (2012). A broader perspective on corporate social responsibility research in accounting. The Accounting Review, 87,797-806. doi:10.2308/accr-10257
- Nigel Sarbutts (2003). Can SMEs "do" CSR? Apractitioner'snview of the ways small- and medium-sized enterprises are able to manage reputation through corporate social responsibility. Journal of Communication Management, ISSN: 1363- 254.
- Orlitzky, M., Schmidt, F. L. & Rynes, S. L., 2003. Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, 24(3), pp. 403-441
- Siegel, D., & Vitaliano, D. F. (2007). An empirical analysis of the strategic use of corporate social responsibility. Journal of Economics & Management Strategy, 16(3), 773-792.
Abstract Views: 527
PDF Views: 655