Sustainability committee effectiveness and corporate social responsibility performance: investigating the mediating effect of corporate social responsibility strategy

Abstract

PurposeThe present work aimed to investigate the impact of sustainability committees’ (SC) effectiveness in the Indian context in light of the Companies Act 2013. Particularly, we examined the direct and indirect links between SC effectiveness and corporate social responsibility (CSR) performance through the mediating role of CSR strategy.Design/methodology/approachThis research analyzed the effect of SC effectiveness on CSR performance and the mediating effect of CSR strategy on the link between SC effectiveness and CSR performance of Indian listed companies following the Indian Companies Act 2013. Accordingly, we analyzed 480 observations in eight years (2014–2021) using panel regression analysis to test our hypotheses.FindingsRegulatory mechanisms, such as the Companies Act 2013, enhance corporate governance efficiency. In this context, we confirm prior findings of a positive relationship between SC effectiveness and a firm’s CSR performance. Moreover, SC effectiveness enhances CSR performance through CSR strategy implementation.Originality/valueThe originality of this study lies in establishing direct and indirect links between SC effectiveness and CSR performance in light of the Companies Act 2013. Therefore, this paper enriches the literature on corporate governance, CSR strategies, and sustainability performance.