Drivers of superior social performance: An empirical investigation of Indian Companies with special reference to responsible business rankings

Abstract

Purpose: CSR expenditure is mandatory, still many companies outperform in social upfront by going beyond legislation. Therefore, the study aims at investigating certain determinants influencing superior sustainability performance as proxied by their presence in Futurescape’s top companies for sustainability and CSR. Design/Methodology/Approach: Different specifications of panel probit model are applied to determine the characteristics of firms which makes a company more likely to be ranked amongst top 100 ESG performer. The dataset of companies in Nifty 200 index are divided into two cohorts of high and low CSP firms using dummy variables. Futurescape Responsible Business Rankings are used for this purpose over a period of 2015-2024. Findings: Companies which are larger in size, have lower financial risk and belonging to manufacturing sector are more likely to be in top sustainability ranking in all different specifications. Age, advertisement intensity and public sector companies also have positive significant influence in at least one specification. Originality Value: It is a unique study which highlights the key determinants of superior social performance in an emerging economy like India by incorporating Futurescape Rankings. The findings indicates that younger and small scale companies needs more push for assuming ESG parameters.