Corporate Social Performance and Corporate Financial Performance: A Link for the Indian Firms

Abstract

The present study addresses the issue of the relationship between Corporate Social 
performance and corporate Financial Performance in Indian context under good management 
theory. The study used S&P ESG India Index as a proxy of CSP/ CSR (Corporate social 
performance or Corporate Social Responsibility) of Indian firms for the first time over the 
2005–2011 periods. We designed econometric models and controlled industry specific 
attributes and performed Weighted Least Square method for the analysis. Overall results show 
neutral though modest negative relationship between the CSP and CFP which eventually 
informs that if there would be any relationship, it would be negative.