The Effect of Corporate Social Responsibility on Financial Outcomes: An Analysis of Selected NSE and BSE Listed Companies (2016-2022)

Abstract

This study examined the impact of Corporate Social Responsibility (CSR) initiatives on the financial performance of selected companies listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) from 2016-2022. Using financial performance metrics such as Return on Equity (ROE), Return on Assets (ROA), net profit margin, and earnings per share (EPS), the analysis leveraged multiple regression to ascertain correlations. CSR initiatives data were extracted from company CSR reports and disclosures under the Companies Act, 2013. The results indicated a statistically significant relationship between the extent of CSR initiatives and financial outcomes. These findings contribute to our understanding of the potential interplay between CSR activities and financial performance, suggesting that strategic CSR initiatives can positively influence a firm's financial health. This insight can assist businesses in aligning their social responsibility objectives with their financial goals.