Impact of Corporate Social Responsibility on firms financial performance with a special reference of few premier manufacturing firms in Northen Odisha

Abstract

The purpose of this thesis is to conduct an in-depth investigation into the complex relationship that exists between corporate social responsibility (CSR) and financial performance in the context of leading manufacturing companies in Northern Odisha. This study makes use of a mixed-methods research strategy. The variables like financial performance, Corporate Social Responsibility, Long term Perspectives and Stakeholders engagement are used to draw the intricate relationship among the four factors. Structural Equation Modelling (SEM) is used to examine the relationships among multiple variables simultaneously, providing a comprehensive understanding of how factors like financial performance, CSR, long-term perspectives, and stakeholder engagement interact with each other. Further, the study utilizes a pooled regression model, data spanning from 2014-15 to 2021-22 is used to examine how CSR activities undertaken by manufacturing companies over this period have influenced their financial performance. By utilizing both SEM and pooled regression modelling, the study ensures robustness and reliability in its findings, contributing to the advancement of knowledge in the field of CSR research. The findings of the research indicate that there is a predominantly favourable association between comprehensive corporate social responsibility (CSR) engagement and increased financial performance. This suggests that investments in socially and ecologically responsible activities can coincide with large economic advantages. Findings from qualitative research that uncover the strategic motivations behind corporate social responsibility investments, the expectations of stakeholders, and the complex socio-economic impacts of these initiatives add a layer of complexity to this relationship. Based on the findings of the study, it is clear that effective corporate social responsibility engagement has the potential to improve brand reputation, cultivate stakeholder loyalty, and drive competitive advantage, ultimately leading to superio