CSR and Financial Performance:Evidence from Indian FMCG Companies

Abstract

Today, the businesses worldwide are looking beyondprofitability and coming forward to address critical social and environmental issues. Companies' decisions have to be well-adjusted between corporate sustainability and corporate responsibility in order to ensure their endurance. This paper tries to explore the relationship between CSR and Financial Performance Indicators such as Net profit, ROA, ROE and EPS of 10 FMCG Companies. Correlation and Regression analysis have been used in this study to find the relationship and the impact on the variables. The results reveal that CSR and Net Profit are highly significant, whereas CSR and Return on Assets are slightly significant and EPS and Return on Equity are negatively correlated with CSR.