Corporate Social Responsibility and Profitability in Indian Prospective: A Study on Top Five IT Companies

Author:Reshma Fulara*, Anuj Kumar

Abstract:
This study aims to examine the influence of CSR expenditure on the financial performance of these leading IT companies. Through studying key financial ratios and CSR initiatives, the research seeks to shed light on how socially responsible practices affect profitability. Additionally, this paper also examines the wider implications of CSR for corporate reputation, stakeholder engagement and long-term business sustainability. This study explores the association between mandatory Corporate Social Responsibility (CSR) expenditures and profitability in India’s top 5 IT firms for 2022. The data was collected from top five IT Companies that included; Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra. These were statistics directly related to CSR spending, Profitability metrics: Net Profit (Reflects the company's profitability), CSR Spending (Expenditure on Corporate Social Responsibility), Total Assets (The total value of all assets owned by a company) and Revenue (Total income). The pearson’s correlation was applied for the data analysis and determine relationship among variables.

Keywords:Corporate Social Responsibility (CSR), Profitability, Total Revenue, Pearson’s Correlation, IT Companies, India.

DOI:10.46333/ijtc/13/1/11

International Journal of Trade & Commerce (Vol: 13 Issue:1)