Impact of CSR Activities Towards Different Stakeholders on Indian Firms’ Performance

Ansita Aggarwal () and Nisarg A. Joshi ()
Additional contact information
Ansita Aggarwal: Nirma University
Nisarg A. Joshi: Nirma University

Corporate Reputation Review, 2025, vol. 28, issue 1, No 1, 13 pages

Abstract: Abstract This article investigates the subtle interplay between Corporate Social Responsibility (CSR) activities aimed at distinct stakeholders and their detectable impacts on both financial and non-financial components of organisational performance. This study leverages the sophisticated analytical framework of Structural Equation Modelling to clarify a comprehensive model using a robust dataset covering 600 Indian enterprises. The empirical findings of this study provide crucial insights with significant significance for managerial decision-making and regulatory issues. Notably, the findings highlight the strategic importance of adapting CSR initiatives to specific stakeholder groups. A strong positive link develops between CSR efforts directed at suppliers and investors and the achievement of improved overall organisational performance, spanning both financial and non-financial domains. Furthermore, the study identifies a compelling possibility for enterprises to improve their financial performance by implementing customer-focussed CSR efforts. This discovery reveals a previously unknown option for increasing financial prowess. Concurrently, the study advises caution, demonstrating a varied trend in terms of CSR targeting of employees and the community. While such programmes initially have good connections, there is a threshold beyond which the proclivity for negative effects on financial performance becomes obvious. Notably, by diving into the deep fabric of stakeholder-targeted CSR activities and their numerous repercussions on both financial and non-financial dimensions of organisational performance, this study makes a pioneering contribution.

Keywords: CSR; Stakeholders; Financial performance; Non-financial performance; Indian firms (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41299-023-00174-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:crepre:v:28:y:2025:i:1:d:10.1057_s41299-023-00174-y

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41299

DOI: 10.1057/s41299-023-00174-y

Access Statistics for this article

Corporate Reputation Review is currently edited by Guido Berens

More articles in Corporate Reputation Review from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().