CSR And Cg Case Study

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Abstract The aim of the study is to check the relationship between corporate social responsibility (CSR) and the corporate governance (CG) of the company. A company considers its accountability, transparency, credibility through corporate governance. Performance of the company depend on corporate governance. A company also follows the business code of conduct (ethics), are the moral values which company needs to follow to maintain the discipline. This study tells the relationship between CSR and CG and measure how company is performing? To check the performance of variables includes ROA, ROE and Price to book value whereas the variables used to measure the Corporate Governance through size, independence and duality of the BOD. The main variable…show more content…
Company is act as artificial person and have a legal entity. Company can be of any type, it can be Sole, partnership, joint, etc. Each company have different characteristics. Every company requires some rules and regulations to manage the operations. Governance Governance is basically defining rules, compliance procedures, regulations, methods, control and authority that every company needs to manage everything that is happens in the company. Company needs structure to run the long-term business. Corporate governance affects the business internally and externally. Corporate governance is the mechanism that company follows and reduce the agency conflict. Agency conflict is the conflict between principal and agent. Due to their own interests. Agents always used to eat the large piece of cake because they always enjoy the perks and the profits or benefits. Whereas the principal used to invest in the business and they enjoy the dividend amount at the end of the year and they are the owner of the company. • A company who strongly focuses on the corporate governance will face less risk. • Corporate governance helps in improving the position of the…show more content…
Company raise their finance through debt and equity. Therefore, Company can also measure its performance through ROE return on equity. Price to book value also shows the company performance as it tells about the market price. Dependent variable • CSR corporate social responsibility CSR is the important variable for the company. Most of the companies working on many CSR programs as they think it’s an essential part to serve the society as well as the maximization of the profit. CSR has many components that companies considers i.e. environmental, social and economic. • Corporate governance This variable plays an important part to judge the company performance as well. As shareholders are the owners of the company like BOD also plays an important role to run the company. BOD has right to take decisions. It’s necessary to learn about the structure of the company. Firstly, size of the BOD how many BODS are in the company. Secondly, the independence of the board tells how many directors are executive and how many are non-executive in the company. Thirdly, the CEO and Chairman of the Company are same or not. These elements demonstrates the firm
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