A Relational Study of Firm's Characteristics and CSR Expenditure

The role of companies and firms has been understood in terms of a commercial business paradigm of perspective that aims on economic profitability and success. However, in the past few years, as a consequence of rising globalisation and critical ecological issues, the perception of the role of companies in the broader societal context in which it operates, has been altered, by redefining the responsibilities of firms towards society and environment along with financial goals. The study proposed to analyse the impact of Firm characteristics toward Corporate Social Responsibility expenditure. The variables used in this research are size of firm, firm profitability, firm leverage, and sales of the firm. The populations are all firm BSE 30 index in 2007-2012 periods. The analysis methods are using multiple regression analysis. The research found that firm size, firm profitability, firm sales, have an influence toward the Corporate Social Responsibility expenditure, while firm leverage have no influence toward the Corporate Social Responsibility expenditure.