Sai, A K; Devi, S L T and Azad, S (2026) Do good, do well? A comparative study of CSR engagement and financial metrics in Indian construction firms and other sectors. Journal of Financial Management of Property and Construction, 31(1), pp. 1-27. ISSN 1366-4387
Abstract
Purpose – This study aims to investigate the disparity in corporate social responsibility (CSR) engagement between construction firms and other sectors in India. This paper explores the financial implications of CSR activities on company performance. Design/methodology/approach – A literature review was first conducted to identify six key financial metrics (net profit, total assets, equity, income, share capital and R&D expenditure), which were used to assess the relationship between financial performance and CSR investment. After that, this paper analysed financial data from FY22 for construction and non-construction firms in India. Regression analysis is used to further explore these relationships. Findings – The study reveals significant differences in CSR engagement. Non-construction firms exhibit higher net profits and a more substantial investment in CSR initiatives. Regression analysis confirms a positive association between net profit and CSR spending. Interestingly, other financial metrics have minimal impact on CSR activities. Furthermore, non-construction firms exhibit a stronger commitment to CSR across all thematic areas. Originality/value – This research contributes to a deeper understanding of CSR practices and financial dynamics in the Indian business landscape, particularly within the construction sector. The findings on the connection between financial performance and CSR engagement offer valuable insights for policymakers and stakeholders. This knowledge can be used to develop strategies that promote sustainable practices and corporate responsibility in construction and other industries.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction sector; corporate social responsibility; environmental responsibility; financial metrics; financial performance |
| Index terms: | construction sector, financial performance, methodology, literature review, strategy, commitment, profit, construction firm, corporate responsibility, disparity, India, corporate social responsibility, regression analysis, income, dynamics, comparative study, sustainable practice |
| Subjects: | data analysis and analytics, research design and methodology, business, industry analysis, statistical analysis, systems engineering, sustainable practices, management, economic analysis, psychology, organization, social justice, Geography, health safety and environment, research methods, business analysis |
| Topics: | Organizational Design, Research Practice, Business Strategy, Governance, Ethics, Engineering Principles, Geographical Context, Health and Safety, Sustainability |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here