Impact of Corporate Social Responsibility on Profitability in Corporate World in India An Empirical Study

Corporate Social Responsibility has gained much applaud in the last decade in the corporate world. CSR is a concept which has become dominant in business reporting as per the provisions of Companies Act, 2013. It is no longer acceptable for a corporation to enjoy economic prosperity in isolation from those agents impacted by its actions. International data has shown the significant relation between CSR and profitability of the firms. CSR is considered as a profit motivating decision. This paper tries to test the impact of CSR on profitability, using correlation technique, of 10 companies listed on NSE India. CSR demonstrates the reciprocal activity towards society where it works. The social responsibility discharged by the organization puts the positive impact not only on the goodwill of the firm but on the profitability as well. CSR also gives the competitive advantage to the firms. This fact has been explained in this paper that there is a positive impact of corporate social responsibility on the profitability of the firms.