Assessing the impact of the global financial crisis on CSR expenditure in India

Samy Belaid, Ratikant Bhaskar, Faten Moussa and Dharen Kumar Pandey

International Journal of Business Governance and Ethics, 2026, vol. 20, issue 3/4, 291-307

Abstract: We analysed the impact of the global financial crisis on the corporate social responsibility (CSR) expenditure of Indian firms using a difference-in-differences regression design. Our study drew on 11,816 firm-year observations from the National Stock Exchange from 2004 to 2012. Our findings indicate that the most affected firms (financial and infrastructure firms) were engaged in higher CSR spending pre-crisis, which sharply decreased post-crisis. More specifically, our analysis reveals that the CSR expenditure post-GFC has decreased by 15.55%. Our results indicate that GFC significantly impacted the CSR activities in India, and highly leveraged firms face significant constraints. Additionally, older and large firms spend more on CSR. These findings highlight the need for policymakers to create a supportive environment for firms to engage in CSR activities, especially for highly leveraged and small and medium enterprises. Furthermore, companies should prioritise CSR activities as a long-term investment rather than a short-term cost.

Keywords: corporate social responsibility; CSR; global financial crisis; GFC; difference-in-differences; DiD; crisis; CSR expenditure; India. (search for similar items in EconPapers)
Date: 2026
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