An Emperical Analysis of the Association Between Corporate Social Responsibility and Financial Performance

The study aims at investigating the relationship between Corporate Social Responsibility (CSR) and company profitability using panel data from 93 companies in the CMIE database spanning 2015 to 2024. Employing Pooled Ordinary Least Squares (OLS) regression on 752 observations, the analysis explores the influence of key predictors such as CSR spending, firm size, earnings per share (EPS), price-to-earnings ratio (PE), and return on capital (ROC). The results reveal that CSR spending and return on capital have significant positive effects on profitability, while firm size negatively impacts financial outcomes. EPS exhibits a marginally positive influence, and PE remains statistically insignificant. R-squared value of <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">$\mathbf{8 3. 8 8 \%}$</tex>, the model demonstrates strong explanatory power, emphasizing the strategic role of CSR in sustainable financial success. The findings highlighted the very vital interrelationship between ethical business practices and profitability, leading to a set of actionable insights for companies pursuing an approach aimed at bridging their goals with the objectives of sustainable initiatives.