Driving Sustainability: Exploring the Impact of Corporate Social Responsibility Disclosure on the Financial Performance of Selected Indian Automobile Companies

Abstract

The goal of this study is to inspect the association between the corporate social responsibility (CSR) disclosure level with the corporate attributes of selected automobile companies. The CSRD level was calculated using content analysis technique based on Global Reporting Initiatives/ Business Responsibility Report (BRR). The CSRD Index is based on seven themes namely, environment, energy, employee, community, product safety/ Customer, green initiative and investor. The sample consists of top 20 listed automobile companies over a period of 2013-14-2016-17. Regression analysis was used to determine the impact of corporate attributes on CSRD. The results indicate the negative and insignificant impact of market performance and leverage on CSRD. There is negative and significant impact of Return on Asset (ROA) on CSRD. Further, ROE, ROCE and Foreign institutional investors (FIIs) indicates positive and insignificant impact on CSRD. Thus, the relative impact of corporate attributes is found insignificant in the selected automobile companies.