Title: Evaluating the impact of corporate social responsibility expenditure on profitability of energy sector firms in India

Authors: Akanksha Shukla; Geetika Goel; Nimesh Shukla

Addresses: Department of Humanities, Social Sciences and Management, National Institute of Technology Jamshedpur, Jamshedpur, Jharkhand, 831014, India ' School of Management Studies, Motilal Nehru National Institute of Technology Allahabad, Allahabad, Uttar Pradesh, 211004, India ' Department of Management Studies, National Institute of Technology Silchar, Silchar, Assam, India

Abstract: The study examines the impact of corporate social responsibility expenditure (CSRE) on financial performance of energy sector firms in India. The research is based on the cost benefit approach to determine whether the expenditure made by the firms on CSR activities can accrue financial benefits to them or not. As a case study energy sector of India has been studied using the sample of 38 firms listed on Bombay Stock Exchange (BSE) of India. The study found that CSR expenditure and financial performance of the firms have positive and significant relationship which implies that social responsibility taken up by energy firms yields them financial benefits. Hence, it is recommended that it is beneficial for the firms to engage in CSR activities in order to sustain and grow. The major contribution of the study is a validated model of relationship between CSR expenditure and financial performance of the firm.

Keywords: CSR expenditure; profitability; energy firms; cost benefit; India.

DOI: 10.1504/IJSSOC.2019.103695

International Journal of Sustainable Society, 2019 Vol.11 No.3, pp.220 - 234

Received: 12 Jun 2018
Accepted: 29 May 2019

Published online: 22 Nov 2019 *

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