Corporate social responsibility: a way of enhancing financial performance—evidence from select NSE listed companies

Corporate social responsibility is an obligation of business to solve some of the problems of the society from which it gets everything to have its operations in the society. The present study is of quantitative design of descriptive nature using multi-level sampling of Top 500 NSE/Nifty, 50 Companies, and Five Select Companies viz., Glaxo Smithkline Beecham (GSK) Ltd., Emami Ltd., Sun Pharmaceuticals Ltd., Reddy Labs Ltd., and Aurobindo Pharmaceuticals Ltd. The purpose of the study is to analyse the relationship between social performance and financial performance of select companies; and to analyse the impact of social performance on financial performance of select companies, and vice versa. The secondary source of data is considered for the purpose of study. Both NSE and Nifty Companies have a very significant and a very high positive correlation between social and financial performance. Moderate and low degree correlations of both positive and negative nature were found amongst the five select companies. CSR has an impact on the improvement of financial performance of companies under study.