Corporate Social Performance and Firm Location: Empirical Evidence

Abstract

The study addresses the relationship between firm location and the corporate social performance (CSP) of manufacturing enterprises in India. The study argues that a higher number of multinational corporations (MNCs) at a location leads to higher social performance. An environment and social involvement (ESI) index, based on ISO26000 and National Voluntary Guidelines, has been used to measure the corporate social performance of manufacturing enterprises. The data are obtained through questionnaires from a survey of 121 medium-sized manufacturing enterprises in the national capital region in India and analyzed through one-way ANOVA and linear regression. Results reveal that the presence of MNCs at the location of enterprises is significant to their CSP. The findings of the study aggregate to make original and substantive contributions to the CSP literature on the geography of strategic management. This research is valuable for social responsibility practitioners in developing countries for start-ups and small and medium enterprises who are seeking to enhance their understanding to formulate pragmatic and effective strategies to improve CSP.