Corporate Social Responsibility and Financial Performance: A Study on selected Indian public sector companies

Abstract

There is one and only one responsibility of business to remain and stays within games rule is to utilize the limited available resource in such a way that business profit should get increase (Milton Friedman). In April 2014 India become the first country to make corporate social responsibility compulsory for the companies with the amendment in the company’s act 2013. The main objective of the study is to understand the impact of corporate social responsibility on the financial performance of selected Indian PSU according to companies act 2013. Secondary data has been collected for the 10 public sector CSR companies in India for a period of five year from 2014-15 to 2018-19. The study shows that most of the selected public sector companies have average contribution of CSR is more or equal to 2% of the company’s average profit also it is found that all the companies are adhere to the rules and norms as prescribed on company act 2013 towards CSR contribution. The study shows positive impact of CSR contribution on financial performance of the selected public sector companies, it depicts that the financial performance of the company increases with the increased CSR contribution. The finding of this study provides the perception toward CSR so that it can be helpful to integrate, reroute the business philosophy with strategic intention to regenerate profit-oriented traditional approach to responsibility towards approach.