Published Online:April 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP080425
DOI:10.71329/IUPJARAP/2025.24.2.156-172
Author Name:Divya Verma and Yashika Chakarwarty
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:156-172
The paper studies the corporate social responsibility (CSR) disclosure practices in India and Europe and examines the impact of CSR on the financial performance of companies, selected based on their respective ESG index. The paper also studies the contribution of each company to achieving SDGs. The results show that there is a significant difference in the SDG score, ESG risk and financial performance of companies from India and Europe. The Indian companies are more diversified when it comes to the number of SDGs they are focusing on, whereas European companies follow a more concentrated approach. The model also shows that the overall performance of Indian companies is positively related to sales revenue and SDG score and inversely related to ESG risk, whereas in the case of European companies, it is positively related to price earnings ratio and net worth and negatively related to ESG risk.
In the past few decades, governments acrosss the world have become increasingly proactive in promoting corporate social responsibility (CSR) through public policies.