Corporate Social Responsibility and Financial Performance - A Literature Review

Abstract

Companies must not only pursue their main goal—maximizing profits—but also contribute to society's well- being through voluntary efforts, according to the definition of corporate social responsibility (CSR). CSR is becoming increasingly important in today's global world. Companies are increasingly required to engage in socially responsible activities in order to support their success. Some authors suggest that corporations that pursue CSR projects acquire a competitive edge over their competitors by establishing a positive public image or reputation and generating higher revenues and returns on investment, whereas others disagree. The purpose of this paper is to examine the advantages and disadvantages of CSR using a systematic literature review and to establish a conceptual framework. Keywords: Corporate Social Responsibility, Financial Performance, Brand, Cement and Steel Industries, India.