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AN EMPIRICAL STUDY OF CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY
The word of corporate social responsibility stems from a commitment to the society in which a business operates. In India, it has been traditionally linked to spirituality, while respect in the corporate world has been treated at par with the bottom line. From a long time several research studies ha...
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| Format: | Journal Article |
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Abhigyan
2010
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| LEADER | 02737nam a22001337a 4500 | ||
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| 999 | |c 119799 |d 119799 | ||
| 100 | |a Swati Goyal; Amarjit Saini and Inderpal Singh |9 46712 | ||
| 245 | |a AN EMPIRICAL STUDY OF CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY | ||
| 260 | |b Abhigyan |c 2010 | ||
| 300 | |b Vol 28 No. 3 (October – December 2010) | ||
| 520 | |a The word of corporate social responsibility stems from a commitment to the society in which a business operates. In India, it has been traditionally linked to spirituality, while respect in the corporate world has been treated at par with the bottom line. From a long time several research studies have conducted to examine corporate social responsibility (CSR) and its effects on business performance. Inversely, the present study examines the relationship between financial performance of the Indian companies and their relative spending on corporate social responsibility. The objective of this study is to examine the causal relation between corporate social responsibility (CSR) and financial performance. For the financial year 2007-08, top 1000 firms are examined, which are rated by karmyog (A Non- Government Organization), out of which 37 companies found associated with social programs and parted some part of their revenue for society in the financial year under study. Based on theoretical assertions and empirical evidence in the literature the research identified a positive relationship between CSR and financial performance. Moving further, categorization has made on the basis of index based (Nifty) and non-index based companies. On the basis, an attempt has been made to find which one is showing more interest in this area as far as their recommended budget and actual expenditure on social projects are concerned and level of responsiveness among both categories. With the help of descriptive and inferential measures, it has found that financial performance does not have much positive impact on CSR. Finally, the paper concluded that corporate social responsibility is driven more by unobservable firm characteristics than by financial performance and the level of commitment of Indian firms towards social programs is not up to mark. As the need for CSR finds wider recognition in India, it would be worth to examine the contribution by Indian corporates. It is concluded that Indian companies are not very sincere towards social projects as far as their annual spending are concerned and finally found only descriptive statements and commitments in their annual reports than the concrete actions on annual basis. | ||
| 650 | |a FINANCIAL PERFORMANCES; |a SOCIAL PROGRAMMES |9 46713 | ||
| 942 | |c JA | ||
| 952 | |0 0 |1 0 |4 0 |7 0 |9 116554 |a MGUL |b MGUL |c JA |d 2016-11-26 |l 0 |r 2016-11-26 |w 2016-11-26 |y JA | ||