Impact of Corporate Social Responsibility on Corporate Financial Performance: A Review of Literature

Abstract

The concept of ‘corporate social responsibility’ has become popular in recent years particularly in the developing countries. The present paper is aimed to examine the relationship between Corporate Social Responsibility and financial performance of companies in India. This paper is based on the analysis and findings of 27 empirical studies conducted by various researchers and related literature in India. The paper seeks to answer the question how financial performance is affected by the corporate social responsibility. An attempt has been made to find out whether corporate social responsibility has either a positive impact, a negative impact or no impact on financial performance of a corporate. It has been observed that there is positive relationship between the corporate social responsibility and financial performance of companies.