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VOL. 5, ISSUE 2 (2023)
Impact of corporate social responsibility on the financial performance in India
Authors
Dr. Umesh Sharma
Abstract
Corporate social responsibility helps to maintain the sustainability of
a business firm by meeting the requirements of a society. The main objective of
the present study is to examine the impact of corporate social responsibility
(CSR) on financial performance (FP) in India. It is an empirical study using
secondary data of NIFTY 50 Index companies for a period of seven years starting
from April 2014 to March 2021 collected from and national portal of CSR, annual
reports and official websites of the companies. The regression analysis has
been conducted to examine the impact of CSR on FP. The study results reveal a
significant positive relationship between CSR and financial performance of
listed firms in India for the period of study in terms of ROA, ROCE and ROE. It
makes clear from the findings that CSR, as valuable and rare resource, can be
exploited to create a competitive advantage for the firm. Therefore, the
underlying premise of financial performance will be quite useful in the long
run, to move business organization beyond legislative compliance. In other
words, the financial outcome of social activities gives it legitimacy from
stakeholders.
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Pages:60-64
How to cite this article:
Dr. Umesh Sharma "Impact of corporate social responsibility on the financial performance in India ". International Journal of Finance and Commerce, Vol 5, Issue 2, 2023, Pages 60-64
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