ENHANCING CORPORATE FINANCIAL PERFORMANCE THROUGH CORPORATE SOCIAL RESPONSIBILITY: AN EMPIRICAL ANALYSIS OF SELECTED INDIAN COMPANIES

Interest and involvement in corporate social responsibility (CSR) have surged among several stakeholders such as investors and corporations, notwithstanding the ambiguity surrounding how CSR participation translates into financial gains. Consequently, numerous research studies have scrutinized integration between social responsibility and financial performance, yielding inconclusive findings. There is insufficient empirical documentation for a direct interconnection between CSR and financial results. Consequently, the aim of this investigation is to examine, whether engagement in corporate social responsibility directly influences financial results. In this study, a sample of 10 prominent Indian companies spanning various sectors was randomly chosen from the list of top CSR spending companies. Corporate social responsibility expenditure was designated as the independent variable, while several indicators such as Return on Assets, return on Equity and Net Profit were selected for gauging financial performance. Additionally, control variables including Firm Size, Firm Age, Ownership Type, and Leverage were incorporated. Employing a regression model for examination, the results indicated a positive correlation between social initiatives and financial outcomes spanning from 2017-18 to 2024-25.