Journal of Marketing and Sales Management

Authors : Tanoj Mondal

Abstract: Corporate Social Responsibility (CSR) has grown attention over the past few decades because a company's long-term survival and growth depend on how well it benefits society. This study uses appropriate parameters to evaluate how actual CSR spending affects the firm's financial performance. For this study, three variables are considered- dependent variables are Return on Capital (ROC) & Profit after Tax (PAT) and an independent variable is Actual Corporate Social Responsibility (ACSR) spending. The results of Panel Regression (Fixed Effect Model for the First Hypothesis and Random Effect Model for the Second Hypothesis) indicate that in a mandatory CSR regime, actual CSR spending has a positive impact on current ROC and PAT. The study's results also indicate that they play a significant influence in positively impacting financial performance, even in a mandatory setting.

Keywords:  Return on Capital, Corporate Social Responsibility, Profit after Tax, FEM, REM.