Journal
| Title | CSR, Green Practices and Profitability of Corporate Sector in India: A Study based on Forbes’ India’s Top 100 Units | |
| Author's Name | Faize Nabi, Saif Azam and Azmat Ali Khan | |
| ISSN | 0974-7281 | |
| Page(s) | 9-16 | |
| Volume No. | 6 | |
| Issue Month | January 2014 | |
| Keywords | CFP, CSP, CSR Index, CSR Rank, ESP, GreeEx Rank, Profitability. | |
| Abstract | The paper aims to explore the association between Corporate Financial Performance (CFP), Environmental Sustainability Performance (ESP) and Corporate Social Performance (CSP) of corporate units in India. The data of the units have been adopted from the Forbes’ India’s Top 100 Firms list. To measure the CSP, a CSR Index has been generated, on the basis of ratio of unit’s actual spending to meet CSR and stipulated 2% of average profit after tax (as per CSR Clause 135 in the Companies Act 2013). For ESP, the data have been adopted from BSE GreenEx rankings for 2012. To measure CFP, the profitability data have been adopted from Business Today’s India’s Best 500 units for the year 2012-13. Further, on the basis of CSR Index, top 12 ranks were allotted to different corporate units. Using Spearman’s rank correlation method, ranks in CSP, ESP and Profitability were mutually analyzed in pairs for their association for the top ranking corporate units. The findings suggest strong association between GreenEx ranks and CSR ranks, strong association between GreenEx ranks and profitability, and not so strong association between profitability and CSR ranks. The findings indicate that the corporate units which are highly eco-friendly are also highly CSR active. Secondly, the units which are highly eco-friendly are also high in profitability. Lastly, the profitability and CSR rankings are found to be weakly correlated. |
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