Environmental Endeavors of Corporate Social Responsibility and Firms Performance in Nepalese Companies

Abstract

Purpose: This study explores how corporate social responsibility (CSR) environmental concerns influence firm performance after it became mandatory in Nepal. Methodology: This study employed descriptive and causal research design, utilizing empirical data through a comprehensive questionnaire survey. Of the 186 companies, only 127 contributed. Both descriptive and inferential statistical tools were used to conclude the results. Findings: The results showed that CSR environmental endeavours, such as keeping the environment greener (CSR-KEG) and promoting paperless service/product operations (CSR-PPS), positively and significantly influence firm performance. However, the results showed a negative relationship between producing/preferring eco-friendly products, using low-polluting technologies (CSR-PEF), and firm performance, although this was statistically insignificant. Practical Implications: Unlike prior research on corporate social responsibility, these outcomes encourage firm executives to be more concerned with their environmentally friendly products, processes, and management in the future. Originality: This study presents a model for firm executives by exploring how the environmental endeavours of corporate social responsibility enrich firm performance, mainly in the context of Nepal, where limited research has been conducted. Future Research Direction: It is recommended on cross-sections of listed and non-listed companies to ascertain whether analogous results would be reported.