CSR Investments and Financial Performance of Maharatna Companies in India

Purpose: The research is made to know the relationship between CSR expenditure made by the Maharatna Companies of India and their financial performance. It is done to understand the pattern of CSR investment of these companies. Methodology: The author uses CSR expenditure and financial performance indicators including return on assets, return on sales, asset turnover ratio, and return on equity for five years from 2019-20 to 2023-24 extracted from the annual report of 14 Maharatna companies to study the relationship of financial performance and CSR expenditure. It uses descriptive statistics, correlation, and regression to study the relation. Findings: The study finds a weak correlation between CSR expenditure and financial metrics of the fourteen Maharatna companies taken as a sample. It contributes to the ongoing research on CSR effectiveness and strengthens long-term strategy on corporate sustainability. Practical Implications: This study helps business executives to consider CSR expenditure as a long-term investment rather than a short-term profit-generating strategy. It helps in earning reputation and goodwill. Social implications: The investment made by Maharatna Companies in CSR creates a significant change in society. It helps in achieving social responsibilities and changing stakeholders' perspective towards the company. Originality: The research is the original work of the writer. The writing encourages future research on understanding the qualitative dimensions of CSR expenditure like brand equity-enhancing effects, employee satisfaction and durability of the business.