Does CSR Spending Really Matters – A Case Study of 250 BSE Listed Companies

Abstract

There is a great debate over CSR spending by the organizations. Today organizations have to cater the needs of present generation without hampering the security of resources for the future generation. Every organization is now closely watched regarding its operations and its impact on the society and environment.Corporations are expected to demonstrate inclusion of socio – environmental concerns in business operations and in interaction with the society.All though different studies had established relationship between CSR spending and financial performance of the organization, we do not find any positive relationship between the CSR and profits of the organization. Maybe these companies are not reporting their profits intelligently enough or have been facing some contingent times due to which negative correlation is appearing in the study. Furthermore the study shows there is no significant difference between the change in profits of companies spending more than prescribed limit and the companies spending less than the prescribed limit.