Corporate Social Responsibility as a Strategic Tool: It’s Effect on Financial Performance in Selected Corporate Sector in India

Corporate social responsibility is a very important part of the business. According to the Companies Act 2013 in India, companies that meet particular standards need to allocate funds to fulfil their corporate social responsibility. This paper showcases the impact of CSR on the financial performance of selected Indian oil and natural gas companies. For this, three companies act as samples, and previous three years of secondary data were collected. The study found that CSR spending and the net profit of the company have a positive relationship, and CSR spending positively affects the net profit of the company. On the other hand, ROA and ROE of the selected companies are found to be negatively related to CSR spending. The impact of CSR may differ based on the nature, characteristics, and type of the company. How well the company implements CSR activities may affect the financial performance of the company.