Article Details
  • Published Online:
    January  2026
  • Product Name:
    The IUP Journal of Accounting Research & Audit Practices
  • Product Type:
    Article
  • Product Code:
    IJARAP180126
  • DOI:
    10.71329/IUPJARAP/2026.25.1.392-405
  • Author Name:
    K Padmasree
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    392-405
Volume 25, Issue 1, January-March 2026
Corporate Governance as a Mediator Between Firm Performance and CSR Practices: Evidence from Indian Companies Before and During the Pandemic
Abstract

The Covid-19 pandemic drew attention to the importance of Corporate Social Responsibility (CSR), as companies were urged to go beyond compliance and actively support society. In this context, the role of Corporate Governance (CG) in mediating the relationship between firm performance (FP) and CSR performance becomes critical. The paper explores the impact of CG on CSR in India, particularly in light of the mandatory CSR spending law implemented in 2014. The analysis focuses on Nifty-100 companies, with data from the pre-pandemic period (2015-2018) and the pandemic period (2019- 2021). Using Partial Least Squares-Structural Equation Modeling (PLS-SEM) and Smart-PLS software, the study investigates the mediating role of CG in the relationship between FP (independent variable) and CSR performance (dependent variable). The results indicate that while CG played a mediating role in both periods, its effect was not statistically significant. These findings suggest that while CG influences CSR practices, its role as a mediator between FP and CSR is weak. The pandemic period saw an increase in CSR performance, suggesting that external pressures and mandatory regulations may drive greater CSR engagement. Policymakers and companies should focus on strengthening governance structures to enhance CSR outcomes, ensuring that CSR initiatives are not only compliance-driven but also meaningful and impactful.

Introduction

India is known for its rich traditional, cultural, and religious values. The idea of Corporate Social Responsibility (CSR) has existed in India since ancient times. It began during the Mauryan period. The Indian philosopher Chandragupta Maurya spoke about ethical practices and principles in business and governance.