We examine the cost implications of using corporate social responsibility (CSR) as a vehicle to build sustainable corporate ethical identity (CEI). CSR investment is recognized as one of the effective channels to promote a firm's CEI. However, excessive CSR could divert resources from other strategic projects, and shareholder may not favor such initiatives. We address this managerial dilemma with a unique Indian CSR regulatory environment. Our results show that firms with greater reputational concerns have a higher proclivity to meet the mandatory CSR investment level but are reluctant to exceed the mandatory CSR limit due to absence of incremental financial benefits.

中文翻译：

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企业社会责任支出作为可持续企业道德认同的基石：印度商业团体的经验教训

我们研究了使用企业社会责任 (CSR) 作为建立可持续企业道德身份 (CEI) 的工具的成本影响。企业社会责任投资被公认为是提升企业CEI的有效渠道之一。然而，过度的企业社会责任可能会转移其他战略项目的资源，股东可能不赞成此类举措。我们通过独特的印度企业社会责任监管环境来解决这一管理困境。我们的研究结果表明，具有更大声誉问题的公司更倾向于满足强制性 CSR 投资水平，但由于缺乏增量财务收益，他们不愿超过强制性 CSR 限制。