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Measuring Corporate Social Responsibility in India: A Composite Indicator Model

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  • Francis Kuriakose

Abstract

This article proposes a composite indicator model called CSR index to measure corporate social responsibility practices of Indian companies. The proposed CSR index comprises three dimensions of CSR implementation, stakeholder management and sustainability, which are measured using 39 indicators. Data is collected from annual reports and business responsibility reports for top 100 companies ranked according to market capitalisation in March 2019. The final ranking using the CSR index highlights how Indian companies perform in their CSR practices beyond the legally mandated expenditure recommended by the Companies Act 2013. Robustness analysis shows that the ranking is robust with respect to input factors, data selection and data transformation. Regression modelling of select dimension scores of CSR index with exogenous variables of firm performance such as internal complaint resolution, turnover and profit shows positive correlation. The CSR index helps managers and policy makers to channelise a given company’s efforts at CSR into targeted programmes through resource allocation and monitoring, while comparing its relative performance within and across dimensions and industries.

Suggested Citation

  • Francis Kuriakose, 2022. "Measuring Corporate Social Responsibility in India: A Composite Indicator Model," Indian Journal of Corporate Governance, , vol. 15(2), pages 295-320, December.
    • Handle: RePEc:sae:ijcgvn:v:15:y:2022:i:2:p:295-320
    DOI: 10.1177/09746862221129334
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    References listed on IDEAS

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    1. Davis, Keith, 1975. "Five propositions for social responsibility," Business Horizons, Elsevier, vol. 18(3), pages 19-24, June.
    2. Weber, Manuela, 2008. "The business case for corporate social responsibility: A company-level measurement approach for CSR," European Management Journal, Elsevier, vol. 26(4), pages 247-261, August.
    3. M. Saisana & A. Saltelli & S. Tarantola, 2005. "Uncertainty and sensitivity analysis techniques as tools for the quality assessment of composite indicators," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(2), pages 307-323, March.
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    Cited by:

    1. Varun Garg & Sakshi Agarwal, 2021. "An Empirical Study on the Corporate Social Responsibility Regime in India: Pre-COVID and COVID Times," Review of Market Integration, India Development Foundation, vol. 13(2-3), pages 124-153, December.

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    More about this item

    Keywords

    Corporate social responsibility; sustainability; corporate governance; business ethics; corporate citizenship;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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