An empirical study on impact of corporate social responsibility on financial performance of select companies in it sector

The present study aims to investigate the impact of corporate social responsibility on financial performance of the selected firms. The study is conducted by four objectives which seeks to know the effectiveness of CSR as per new companies act, 2013 by analysing CSR spending of select companies, To study the impact of CSR on financial performance of select companies through financial parameters like Net Profit Margin, Earnings per share, Return on Assets, and Return on Capital Employed.  CSR has been considered as the proxy for CSR spending. Secondary data is sourced from the Annual reports and NSE websites. Sample size consists of 20 companies in IT industry.  The data is collected for the five years from 2018 – 2022 and analysed using correlation and regression analysis. The study reveals that corporate social responsibility has significant impact on Net profit margin, return on capital employed whereas there is no significant relation of corporate social responsibility on  financial performance  of firms  in terms of ROA and EPS. It is because the companies diversified their investments in later years which reveal that corporate social responsibility does not affect the some of the independent variables.