A Study Analyzing the Impact of Corporate Social Responsibility on Sales of Selected Indian Companies

Abstract

World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” Nearly all leading corporate in India are involved in CSR programmes in areas like education, health, livelihood creation, skill development, and empowerment of weaker sections of the society. In recent years, changing market scenario, globalization, ethical consumerism all are adding heat to the CSR concept. Making profit and is the primary goal of all organizations; thus the companies target to increase their sales every year. In this CSR driven business scenario, it becomes vital to analyse the effect of CSR investments on the sales of the company. This paper gives an theoretical overview of the legal framework of CSR in India, discusses the trends of CSR in India that how CSR once considered as charity by a company has now transformed as a responsibility of the company towards society. This paper also analyzes whether there is any significant relationship between CSR investment and sales and finally, the possible impact of CSR investments on the sales of few companies selected at random for 3 years 2012 to 2015.