An Analytical Study for Comparing the Relationship Between Corporate Social Responsibility and Financial Performance

Abstract

Globally, the notion of CSR incorporates all the associated concepts such as corporate citizenship, the triple bottom line, corporate sustainability, business responsibility, etc., and has its roots in the philanthropic acts of firms such charity, contributions, etc. The purpose of this article is to use three organizational variables—return on capital employed (ROCE), net profits, and net sales—to examine the connection between CSR and financial success of a corporation. It is made up of five years' worth of secondary panel data obtained from the top 10 Indian corporations (from 2015 to 2020). Researching how CSR initiatives affect bottom-line results requires the use of panel data analysis. A favorable effect on financial success is indicated by the data, which show that CSR has a statistically significant link with Net Profits and Net Sales.