Impact of corporate social responsibility on firm’s financial performance with a special reference of RIL

Abstract

From the last decade corporate firms are more interested with social responsibility which is popularly known as Corporate Social Responsibility (CSR). To perform the CSR firms have to incur some expenses which may impact on firm’s profitability. In India there was no legal obligation to perform CSR before 2014. Reliance Industries Ltd. (RIM) was the highest CSR contributor in India in 2013 – 2014 financial year as per Ministry of Corporate Affairs. The main objectives of the study are to know the relationship among CSR, firm’s profitability, shareholders’ value, firm’s value and the impact of CSR on firm’s profitability. I used correlation to know the nature of relationship among the variables and regression to measure the impact of CSR on firm’s profitability. The study showed that there was no significant positive relationship among the variables and the CSR has no impact on firm’s profitability.