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Impact of CSR on Corporate Sustainable: a Quantitative Analysis
Dr. Sneha Suman1 Abstract
Corporate Social Responsibility is considered a commercial practice that can impact the society, employees, and stakeholders of the company. CSR strategy is one of the most needed features for a company to minimize harm and practice fair business norms. Corporate Social Responsibility is connected with the four most valuable features: operative attraction and loyalty, organizational reputation, Customer retention, and social capital availability.
In order to do that, the company must identify the relation of the social impact with the core strategies, products and services, and operation of the company.
The relationship with the stakeholders will be helpful to increase the sustainability in corporate sustainability. The communication process within the corporate work field will have to be deepened to develop the connection between the workplace.
Keywords: Corporate Social Responsibility, Corporate sustainability, Environmental sustainability
Introduction
This research piece is founded on the Impact of CSR on Corporate Sustainability. Many companies focus on treating environmental measures as well as corporate measures.
It is essential to balance environmental and corporate terms to gain profit overall and create sustainable effects. Corporate Social responsibility is the representation that helps in self-regulation. It benefits any business to be accountable socially to itself, its shareholders and the customers.
This study will be beneficial in showing the influence of CSR in the corporate sector and how it helps to sustain it. The literature review of this study will mainly focus on the concept underlying corporate sustainability. The impact of CSR on this particular sector can measure the trust and loyalty of the stakeholders who are deeply related to this sector. Stakeholder engagement is another perspective that can be enhanced by CSR and the companies must sustain this feature within the company.
Improving profit margins is crucial for a company to keep its position high in the market; CSR helps build this improvement and corporate sustainability. The research aims and objectives of this study will mainly focus on these two measures, while the research methodology will be based on these objectives. The demographic and non- demographic analysis will both show the impact of CSR effectively. The number of respondents taken to complete the analysis is 100. The analysis will also help to extract the concluding remarks and some recommendations based on the extraction.
Literature review
Concept of CSR on Corporate Sustainability
Corporate Social Responsibility is a commercial exercise that can influence the society, employees, and stakeholders of the company. CSR strategy is one of the most needed features for a company to minimize harm and practice fair business norms. The company must be responsible for the worldwide supply chain. It should generate a
1 Ph.D(Eco), MA(Eco&Edu), MBA(HR), Research Consultant & Post Doctoral Fellow, MICHR Mediterranea University Reggio Calabria (Italy)
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self-oriented Management of Human resources that helps the company grow financially and environmentally (Lyon et al., 2018). Business of corporate sustainability is one of the unique approaches for a company that works for long-term goals in specific fields such as economic, social, and environmental values.
Sustainability and CSR complement each other. In order to run a company, the higher authority must understand that both these factors are much needed to build a company as successful.
The company can be ethically profitable as well with the help of these measures.
Sustainability helps to maintain a specific level and responsibility helps to keep accountability. CSR has the vision to look for what type of contribution the company has to society. At the same time, corporate sustainability thinks ahead of time and develops future strategies. CSR has primary targets to balance the current stakeholder interests, such as media, politicians, and pressure groups (Ashrafi et al., 2020).
Alternatively, corporate sustainability takes holistic approaches and considers social impacts from the business along with the economy and environment. Multiple stakeholders and long-term effects are addressed by corporate sustainability. A company must feature itself as a moral citizen in civilization, and corporate sustainability helps to build this image as it functions with the staff, local communities, families, and overall society. Large human life quality has been improved by corporate sustainability.
Impact of CSR on Corporate Sustainability to measure trust and loyalty of stakeholder engagement
Stakeholder engagement with trust and loyalty is an essential aspect of CSR, and the companies must watch out for the steps they take to meet those trust and loyalty issues.
According to the evaluation of World Bank, the pledge of commercial operation to influence to supportable economic expansion acting with employees, their relatives, the local societies and society to advance the excellence of lifestyle in a means that both are upright for commercial progress" (Scirp.org, 2022).
Figure 1: Corporate Social Responsibility relation with Customer loyalty and trust (Source: Frontiersin.org, 2022)
According to the graph above, Corporate Social Responsibility is connected with the four most useful features: operative attraction and faithfulness, enterprise reputation, customer retention, and social capital availability (Diez-Cañamero et al., 2020). It is obvious that all these groups are equally essential for a company to flourish, and if one of them is absent, then the other three will get affected and affect the overall structure
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of the company. The impact of CSR on corporate sustainability helps to increase a viable competitive advantage and produce environmentally sustainable goods and services. If the company can implement CSR, it will create positive customer satisfaction and stakeholder commitment. In this way, the company can get enhanced relationships with the stakeholders, and the repetition of the products and services boosts.
Impact of CSR on Corporate Sustainability to analyze the improvement of the profit margin
Fully integrated CSR on Corporate sustainability can achieve healthy financial returns.
To do that, the company must identify the social impacts related to the core strategies, products and services, and operations (Sheehy and Farneti, 2021). If the company is well maintained and dedicated to its resources, it can manage and measure the Key Performance Indicators. In this way, the CSR policies help to reach the maximized engagement with the stakeholder and gain profits.
Figure 2: CSR relation with Profit Margin (Source: Researchgate.net, 2022)
The above figure shows the connection between "Corporate Social Responsibility" and the economic enactment of the company. If the CSR is good enough in the company, then it has a chance to get more customers and retain them effectively. As the customer retention rate increases, the profit margin will naturally increase (Weston and Nnadi, 2021). Socially responsible companies can gain more profits than other companies that have not implemented CSR as it has a higher chance of attracting more consumers.
Research aims and questions Aim
According to the research analysis, the major purpose of the study is to show and understand the impact of "Corporate Social Responsibility" on corporate sustainability. This research will be based on the economy of India to show the result.
So, the chief aim of the analytical study is to find the key points of the effects on corporate sustainability. The role of stakeholders and profit margin in corporate sustainability must be known. So, this is another aim of the research. Therefore, these research aims are related to the Indian economy, which will help to define the
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connection between corporate sustainability and "Corporate Social Responsibility".
Besides, the research questions are also made with the aims given below.
Research question
1. How to quantity the Impact of CSR on Corporate Sustainability on trust and loyalty of stakeholder engagement
2. What is the influence of CSR on Corporate Sustainability on improving the profit margin?
Research objectives
1. To quantity the Impact of CSR on Corporate Sustainability on trust and loyalty of stakeholder engagement
2. To analyze the influence of CSR on Corporate Sustainability on the improvement of the profit margin
Research Methodology
This research methodology will be based on the research objectives, which will be helpful in connecting them with the research result. The research result will follow the primary research method. The data will be collected based on questions that will be set in the questionnaire. The questions will be asked to the respondents, who will provide their true and actuarial opinion on the research topic. The interview process will be followed to collect the respondents' answers (Feng and Ngai, 2020). These respondents will be related to corporate life, and the interview will be taken by site visiting. Random and genuine respondents will be responsible for the research data, as their opinion and answers will be collected as the research data to help bring out the actual result. The number of respondents will be 100, which will be enough for the research to collect the reviews of the respondents.
According to the research, true and authentic data will be collected for the research result. Limited respondents will be taken to prove the research valid. Therefore, the result will be brought out in two ways (García‐Sánchez et al., 2019). The demographic result will be based on the interview created from the questionnaire. The questionnaire will be created through "MS Excel". The non-demographic result will be based on the statistical research data, and the result will be made by the statistical tool "SPSS". The result of non-demographic will be brought out in some tables like descriptive analysis, ANOVA, Regression, Correlation, Chi-square, and Reliability. Therefore, the data collection process will be accomplished by following some methods. Sampling will be the first step to do (Bae et al., 2018). This sample will be the combination of the raw research data, which will be the responses of the people who are related to the corporate sectors and have some knowledge of the control of CSR on "corporate sustainability". The identity of the respondents will be secured by ethical consideration so that they can freely provide their opinion on the research.
Importance of the study
This research is important to understand the effect of corporate social responsibility in the corporate sectors. The impact of CSR on "corporate sustainability" is measured here. The research study is essential to know the importance of corporate sustainability factors in India's economy. The research will be based on the survey, which will convey the actual thinking and condition of "corporate social responsibility"
in "corporate sustainability" (Taliento et al., 2019). It is crucial to know the importance of stakeholders who are directly connected to corporate sustainability. Basically, CSR has the power to control corporate sustainability and maintains the company's social performance. The research will be helpful in figuring out the process of maintaining social sustainability in the corporate sectors in India.
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Therefore, it will be helpful to know about the self-managing business model in the corporate sectors of India (Ludwig and Sassen, 2022). The business models of the corporate sectors are connected with the company's social sustainability, which helps to control environmental sustainability in the workplace. The process is different in various nations. As India is a developing country economically, the importance of
"corporate social responsibility" has some rules and regulations that help control corporate sustainability in the corporate sectors. According to the research study, the economic condition is connected with India's corporate sectors as the organizations' profit is also associated with the economy of India (Pazienza et al., 2022). This research will help find out the odd factors or the negative impact of CSR, which will also help understand the facts that need to be developed.
Figure 3: what is your age (Source: self-created)
As per the above figure, the graphical representation is constructed on the group of age determination of these respondents. From the above pie chart, it is mentioned that the age group of 20 to 30 years old mostly believes in the notion of the effect of CSR on Corporate Sustainability to measure the stakeholder management and improvement of the profit margin scale within the organization and the percentage of the respondent in this age group remains at 77. In contrast, the age group between 31 to 45 also agreed with this concept, with a remaining percentage of 23%. From the same point of view, people over 46 years are not agreed with this idea. For this reason, the percentage value of this group is 0.
Figure 4: what is your gender
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(Source: self-created)
Within the above figure, the graphical representation of the gender analysis is also an important part of the demographic interpretation of the concept of the Impact of CSR on Corporate Sustainability to measure the stakeholder management and improvement of the profit margin scale within the organization. The percentage of male respondents who believe in this concept remains at 77%, which is the highest value. On the other hand, the female respondents also agreed with this concept, but the percentage value remains at 23%. The other respondent value is 0, which is the lowest value.
Table 1: Descriptive Analysis Descriptive Statistics N Minim
um Maxim
um Mean Std.
Deviation
Role of CSR 115 1 4 1.44 .797
CSR improves SCM 115 1 3 1.31 .536
CSR impact on the
corporate economy 115 1 4 1.44 .752
Effective Social
contribution 115 1 3 1.37 .599
Attract employees and
develop the economy 115 1 4 1.43 .727
Development in the
corporate economy 115 1 3 1.31 .583
CSR consume a stable
policy 115 1 4 1.33 .685
Social responsibility conflicts with economic objectives
115 1 4 1.36 .728
Valid N (listwise) 115
As per the descriptive analysis of the effect of CSR on Corporate Sustainability to measure the stakeholder management and improvement of the profit margin scale within the organization, it can clearly be stated that the value of the height remains at the role of CSR and its impact of the CSR in corporate economy. The highest value is 1.44, and the lowest value is 1.31. CSR improves the SCM in the organization.
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Table 2: ANOVA
Sum of
Squares df Mean
Square F Sig.
Role of CSR Between
Groups 62.381 2 31.191 349.
281 .00 0 Within
Groups 10.002 112 .089
Total 72.383 114
CSR improves SCM Between
Groups 28.121 2 14.060 341.
625 .00 0 Within
Groups 4.610 112 .041
Total 32.730 114
Development in the corporate
economy Between
Groups 52.600 2 26.300 249.
993 .00 0 Within
Groups 11.783 112 .105
Total 64.383 114
Effective Social contribution Between
Groups 34.492 2 17.246 300.
382 .00 0 Within
Groups 6.430 112 .057
Total 40.922 114
Attract employees and develop the
economy Between
Groups 48.538 2 24.269 231.
876 .00 0 Within
Groups 11.722 112 .105
Total 60.261 114
CSR consume a stable policy Between
Groups 46.015 2 23.007 346.
882 .00 0 Within
Groups 7.429 112 .066
Total 53.443 114
Social responsibility conflict with
economic objectives Between
Groups 50.363 2 25.182 281.
485 .00 0 Within
Groups 10.019 112 .089
Total 60.383 114
As per the ANOVA analysis of the impact of CSR on Corporate Sustainability to measure the stakeholder management and improvement of the profit margin scale
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within the organization, it can clearly be stated that the value of the height remains at the role of CSR. The highest value is 349.281, and the lowest value is 231.876 in attracting employees and developing the economy in the organization.
Table 3: Correlations
Rol
e of CSR
CSR impro ves SCM
CSR impa ct on India n econo my
Effectiv e Social contrib ution
Attract emplo yees and develo p the econo my
Social responsi bility conflict with economi c objective s
Develop ment in the corporat e econom y
CSR consu me a stable policy
Role of CSR
Pearso n Correla tion
1 .925** .958** .936** .966** .920** .926** .919**
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
CSR improve s SCM
Pearso n Correla tion
.925** 1 .916** .916** .909** .858** .919** .863*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
CSR impact on corporat e economy
Pearso n Correla tion
.958** .916** 1 .934** .977** .927** .902** .906*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Effective Social contribu tion
Pearso n Correla tion
.936** .916** .934** 1 .953** .838** .918** .851**
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Attract employe es and develop the economy
Pearso n Correla tion
.966** .909*
* .977** .953** 1 .915** .897** .907*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Social responsi bility conflict with economi c
Pearso n Correla tion
.920** .858** .927** .838** .915** 1 .913** .976*
*
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objective
s Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Develop ment in the corporat e economy
Pearso n Correla tion
.926** .919** .902** .918** .897** .913** 1 .925*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
CSR consume a stable policy
Pearso n Correla tion
.919** .863** .906** .851** .907** .976** .925** 1
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
**. Correlation is significant at the 0.01 level (2-tailed).
As per the Correlation analysis of the impact of CSR on Corporate Sustainability to measure the stakeholder management and improvement of the profit margin scale within the organization, it can be clearly stated that the value remains at 860 to 690 as per the calculation of 115 respondents. The result of the correlation analyses defines that the Correlation is substantial at the "0.01 level", which indicates the positive relationship between the dependent and independent variables.
Table 4: Regression ANOVA
Model Sum of
Squares df Mean Square F Sig.
1 Regression 61.965 1 61.965 672.113 .000b
Residual 10.418 113 .092
Total 72.383 114
a. Dependent Variable: Role of CSR
b. Predictors: (Constant), CSR improves SCM
As per the analyses over the Regression, it can be stated the regression value remains at 61.965, and the residual value is 10.418. The total remains at 72.383. The regression analysis determines the positive connection between the dependent and independent variables for measuring the effect of CSR on Corporate Sustainability to measure the stakeholder management and improvement of the profit margin scale within the organization.
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Table 3: Correlations
Rol
e of CSR
CSR impro ves SCM
CSR impa ct on India n econo my
Effectiv e Social contrib ution
Attract emplo yees and develo p the econo my
Social responsi bility conflict with economi c objective s
Develop ment in the corporat e econom y
CSR consu me a stable policy
Role of CSR
Pearso n Correla tion
1 .925** .958** .936** .966** .920** .926** .919**
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
CSR improve s SCM
Pearso n Correla tion
.925** 1 .916** .916** .909** .858** .919** .863*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
CSR impact on corporat e economy
Pearso n Correla tion
.958** .916** 1 .934** .977** .927** .902** .906*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Effective Social contribu tion
Pearso n Correla tion
.936** .916** .934** 1 .953** .838** .918** .851**
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Attract employe es and develop the economy
Pearso n Correla tion
.966** .909*
* .977** .953** 1 .915** .897** .907*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
Social responsi bility conflict with economi c objective s
Pearso n Correla tion
.920** .858** .927** .838** .915** 1 .913** .976*
*
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
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Develop ment in the corporat e economy
Pearso n Correla tion
.926** .919** .902** .918** .897** .913** 1 .925*
* Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
CSR consume a stable policy
Pearso n Correla tion
.919** .863** .906** .851** .907** .976** .925** 1
Sig. (2-
tailed) 0 0 0 0 0 0 0
N 115 115 115 115 115 115 115 115
**. Correlation is significant at the 0.01 level (2-tailed).
Table 5: Reliability Reliability Statistics
Cronbach's Alpha N of Items
.987 8
The Statistics of "Reliability" table indicates the value of .987 as per the calculation over the 1158 respondents based on the 8 specific points which are related to the stimulus of CSR on "Corporate Sustainability" in order to measure the stakeholder management and improvement of the profit margin scale within the corporation.
Table 6: Chi-square tests
Chi-Square Tests
Value Df Asymptotic Significance (2-sided)
Pearson Chi-Square 193.728a 6 .000
Likelihood Ratio 141.705 6 .000
Linear-by-Linear Association 97.592 1 .000
N of Valid Cases 115
a. 7 cells (58.3%) are expected to count less than 5. The minimum expected count is .17.
The Chi Chi-Square Tests define that the estimation of Pearson Chi-Square is 193.728, the value; use of Likelihood Ratio is 141.705, and the estimation of Linear-by-Linear Association is 97.592 as per the analyses over 115 respondents.
Conclusion and recommendations Conclusion
This exploration study is helpful to know the importance of CSR in corporate sustainability in India (Oncioiu et al.). The survey has been conducted to understand the actual condition of corporate sectors that impacts the social environment in the corporate sectors and maintain it. The relationship with the stakeholders in corporate sustainability is as important as the self-managing business model in the corporate workplace (Gnanaweera and Kunori, 2018). The respondents have been provided with the reviews as the data of the research, which help to measure the condition. One
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hundred respondents have been taken, and all types of gender have provided their answers.
Recommendations
According to the research paper, some recommendations are needed for developing Corporate Social Responsibility in India. Asking tough questions will help develop CSR in India. The relationship with the stakeholders will be beneficial to increase the sustainability in corporate sustainability. The communication process within the corporate work field will have to be deepened so that it can develop the connection between the workplace. Therefore, the managers and the leaders need to encourage the workers and the employees to build creativity in the work so that the profit can be increased and impact the economy of India.
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