What is an impact of corporate social responsibility on performance of companies? – A survey of selected firms in Gujarat

CSR has been major component for the welfare of society. This study examines whether corporate social responsibility (CSR) towards primary stakeholders influences the financial and the non-financial performance (NFP)of Indian firms. Data on CSR were collected from 25 senior-level managers including CEOs through questionnaire survey. Hard data on financial performance (FP) of the companies were obtained from secondary sources. A questionnaire for assessing CSR was developed with respect to six stake holder groups – employees, suppliers, customers, society at large. A composite measure of CSR was obtained by aggregating the six dimensions. This study aims to obtain information about the impact of CSR activities on performance of an organization. In today's society, there is a growing interest in, and demand for Corporate Social Responsibility (CSR). Reasons for this can be multinational corporations’ increasing influence on world economy as well as scandals revealing horrible working conditions indifferent industries. In spite of the fact that the demand for CSR is growing, there has always been critics.