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Taking cues from the fact that there remains a dearth in the establishment of theoretical and empirical relationship between executive compensation and corporate social responsibility (CSR) performance of the firms, this study attempts to explore the non-linear relationship between the said variables.

The study utilizes a strongly balanced panel data set of 179 non-financial National Stock Exchange (NSE) 500 listed firms for the study period of 2015–2020. The study further employs both static as well as Arellano-Bond dynamic panel model under generalized method of moments (GMM) framework to establish the relationship between executive compensation and CSR performance of the sampled firms.

The study acknowledges an inverted U-shaped relationship between executive compensation and environmental, social and governance (ESG) score of the firms. According to the robust estimator, an increase in the level of executive compensation is said to affect CSR performance positively until it surpasses a threshold level of 18.7 percent.

One of the major takeaways that the study provides for the corporate policymakers is that the level of compensation can only motivate the executives to take up socially responsible work up to a certain level surpassing which the executives becomes resistant towards any benefits provided by the CSR performance and get inclined towards economical performances of the firm. At the later stage, the economical expansionary investment benefits overweigh the personal career benefit gained by the executives from the CSR performances of the firm.

The nonlinearity relationship between executive compensation and CSR performance and the threshold level providing the two-fold effect of compensation on the CSR performance of the firms attempted by this study is a rare attempt in an emerging economy like India.

The study aims to explore and establish the relationship that exists between board independence and corporate social responsibility (CSR) practices of Indian firms.

A sample of 76 non-financial companies listed on the National Stock Exchange has been considered for a period of seven years (from 2013 to 2019). The study has used several statistical tools such as the static panel data model and the Arellano–Bond dynamic panel data model based on generalized method of moments approach.

The results of the analysis have indicated board independence to have a significant positive relationship with the firms’ CSR performance. However, board size and number of board meetings have been found to have a negative relationship with CSR. Further, outcomes have also revealed that variables such as companies’ size and liquidity have a positive effect on the extent of CSR activities performed.

The firms which have the intention to engage in impactful CSR activities should support the independent directors’ participation in companies’ boards. The study’s findings suggest the companies to appoint independent directors strategically, keeping in mind the requirements of their board. Also, the independent directors selected should be independent in true sense, i.e. they should not be acquaintances of the company’s chief executive officer. This would ensure unbiased decision-making and would enhance the company’s CSR performance.

In India, CSR has gained great importance. So much so that it was made mandatory by the Companies Act, 2013. However, research studies that may assist in understanding the influence of board independence on Indian firms’ CSR performance are still scarce. The present study would foster value to the existing set of limited literature. Besides, the study has considered the dynamic nature of the relationship and has also controlled the endogeneity bias which has been examined by few studies in the past.