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The purpose of this study is to examine whether the choice of a firm to spend resources on corporate social responsibility (CSR) activities is associated with its actual social impacts as measured by its energy consumption and the quality of its financial reporting. Based on legitimacy theory, the authors argue firms in India use CSR expenditures as mere smoke screens to build a positive public image.

By using energy consumption per unit of sale as a measure of real environmental impact, the authors model firms' CSR investment behavior. Additionally, the authors use earnings management measures to examine whether CSR spenders engage in manipulating reported earnings, a practice socially responsible firms would not engage in. These hypotheses are tested using a panel data set of Indian firms for the period 2012–2014.

Consistent with legitimacy theory, the authors show firms that participate in socially undesirable activities such as heavy energy consumption and accounting manipulation are more likely to pursue CSR voluntarily. Additionally, the authors find evidence suggesting firms that voluntarily engage in CSR tend to have lower firm values.

This study examines the social and environmental concerns of firms that invest in CSR, especially in an emerging market context. The findings help understand the motivation for CSR behavior of corporate firms and may well explain the observed negative relationship between firm value and voluntary CSR spending observed in many emerging market contexts, especially in India.

Energy efficiency is critical for global sustainability (International Energy Agency, 2019). The purpose of this paper is to examine how agency conflicts arising from pyramidal ownership structures impact the energy intensity (EI) of group-affiliated Indian firms. Group-affiliated firms face unique governance challenges. For instance, parent owners (promoters) may transfer profits from one group-affiliated firm to another firm in which they have greater ownership. The authors hypothesize that such governance issues will lead to underinvestment in energy-saving projects among group firms in which promoters have a low ownership stake, resulting in their greater EI.

The authors measure EI as the ratio of total energy expense to total sales revenue (EI) and as the industry-adjusted version of this ratio. Group-affiliated Indian firms are divided into high- and low-stake firms based on the sample’s median promoter ownership.

Results support the authors’ prediction: group firms in which promoters have low ownership are more energy intensive, consistent with these firms being exposed to greater governance challenges and agency conflicts that result in operating inefficiencies and/or underinvestment in energy-saving projects.

Given energy efficiency will be key in addressing climate change, this study could raise awareness among activists, motivate regulators to consider agency problems among group-affiliated firms in emerging markets and may underscore the importance of environmental-related corporate disclosures.

To the best of the authors’ knowledge, this study is the first to identify the significant impact that firm ownership structure and associated governance challenges have on corporate EI.

Agriculture innovation systems (AIS) examine the complex socio-technical and institutional aspects affecting sustainable agriculture. However, it is predominantly constrained to the formal sector activities in the high-income countries (HICs). The informal sector actors play a major role in the agricultural sector of low- and middle-income countries (LMICs), such as India, by innovating and disseminating grassroots innovations (GI). This study aims to explore the role of different GI, both by the informal and formal sectors, within an emerging AIS focused on seabuckthorn in Ladakh, India.

This study used a qualitative methodology, using semi-structured interviews and focused group discussions to gather data from the stakeholders involved in seabuckthorn value chain. The data was analysed using the AIS framework’sa priori themes and was validated through data triangulation with secondary sources.

This study reveals the existence of GI, by both the formal and informal sector actors, and their complex interaction within the seabuckthorn value chain. It highlights the importance of co-existence of these GI to make it a sustainable seabuckthorn AIS.

This study offers noteworthy perspectives for governments, policymakers and agricultural practitioners with respect to the assimilation of GI into AIS. These insights could help improve agricultural sustainability and viability, particularly in LMICs where the informal sector plays a significant role.

To the best of the authors’ knowledge, this study is one of the first to explore the role of GI within AIS and opens up research avenues for further inquiry in both LMICs and HICs.