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Research Article

JCR. 2020; 7(16): 3785-3795


Acharya Supriya Pavithran, Dr. Baby Niviya Feston, Dr. C. Nagadeepa.

Environmental responsibility is the reason for the survival of many species in the world. The humans are not apart from this, as they are the ones who have to take this responsibility to the full extent. What we learn from our mistakes, help us to evolve and respect the decisions we make. The same applies to the firms, whose sole responsibility is not restricted to earning profit but also to give its share of that profit towards serving the environment. This attempt has resulted in sanctioning by the Government, the Section 135 of the Companies Act, 2013 clearly stating to set aside up to 2% of its capital investment for Corporate Environmental Responsibility (CER). While brownfield projects would be required to earmark 0.125% to 1% of additional capital investment for CER purposes, the slab for green-field projects ranges from 0.25% to 2% of the capital investment ([17]). This study thus attempts to unravel the theories, variables adopted and adapted by the researcher in their study toward environmental performance in the nature of firms‟ financial performance. The previous studies have resulted in multiple relationships that the environmental performance has with the firms‟ financial performance. They had emerged with positive, negative, mixed, or no relationship between them. The study also gives the review on the varied relationship that exists between the corporate environmental responsibility and corporate financial performance of the firm. This study provides an insight on the past studies which will help to build further research with more prominent results

Key words: Environmental performance, firms, relationship, financial performance.

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