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1. INTRODUCTION
Corporate Social Responsibility CSR in India has traditionally been seen as a philanthropic
activity. And in keeping with the Indian tradition, it was an activity that was performed but not
deliberated. As a result, there is limited documentation on specific activities related to this
concept. However, what was clearly evident that much of this had a national character
encapsulated within it, whether it was endowing institutions to actively participating in India’s
freedom movement, and embedded in the idea of trusteeship. As some observers have pointed
out, the practice of CSR in India still remains within the philanthropic space, but has moved
from institutional building (educational, research and cultural) to community development
through various projects. Also, with global influences and with communities becoming more
active and demanding, there appears to be a discernible trend, that while CSR remains largely
restricted to community development, it is getting more strategic in nature (that is, getting
linked with business) than philanthropic, and a large number of companies are reporting the
activities they are undertaking in this space in their official websites, annual reports,
sustainability reports and even publishing CSR reports.
The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its
disclose-or-explain mandate, is promoting greater transparency and disclosure. Schedule VII
of the Act, which lists out the CSR activities, suggests communities to be the focal point. On
the other hand, by discussing a company’s relationship to its stakeholders and integrating CSR
into its core operations, the draft rules suggest that CSR needs to go beyond communities and
beyond the concept of philanthropy. It will be interesting to observe the ways in which this will
translate into action at the ground level, and how the understanding of CSR is set to undergo a
change.
Financial Performance of the company Financial performance exists at different levels of
the organization. Traditionally, financial performance measures are split into the following
categories:
 Profitability
 Liquidity / working capital
 Activity Analysis Ratios
 Capital Market Analysis Ratios

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Need for the study
The key components of CSR include the following:
Corporate Governance: Within the ambit of corporate governance, major issues are the
accountability, transparency and conduct in conformity with the laws. Good corporate
governance policy would enable the company to realize its corporate objectives, protect
shareholder rights, meet legal requirements and create transparency for all stakeholders.
Business Ethics: Relates to value-based and ethical business practices. ‘Business ethics
defines how a company integrates core values – such as honesty, trust, respect, and fairness –
into its policies, practices, and decision making. Business ethics also involves a company’s
compliance with legal standards and adherence to internal rules and regulations.’1
Workplace and labor relations: Human resources are most important and critical to a
company. Good CSR practices relating to workplace and labor relations can help in improving
the workplace in terms of health and safety, employee relations as well as result in a healthy
balance between work and non-work aspects of employees’ life. It can also make it easier to
recruit employees and make them stay longer, thereby reducing the costs and disruption of
recruitment and retraining.
Affirmative action/good practices: Equal opportunity employer, diversity of workforce that
includes people with disability, people from the local community etc., gender policy, code of
conduct/guidelines on prevention of sexual harassment at workplace, prevention of HIV/AIDS
at workplace, employee volunteering etc. are some of the good practices which reflect CSR
practices of the company.
Supply Chain: The business process of the company is not just limited to the operations
internal to the company but to the entire supply chain involved in goods and services. If anyone
from the supply chain neglects social, environmental, human rights or other aspects, it may
reflect badly on the company and may ultimately affect business heavily. Thus, company
should use its strategic position to influence the entire supply chain to positively impact the
stakeholders.
Customers: The products and services of a company are ultimately aimed at the customers.
The cost and quality of products may be of greatest concern to the customers but these are not
the only aspects that the customers are concerned with. With increased awareness and means
of communication, customer satisfaction and loyalty would depend on how the company has
produced the goods and services, considering the social, environmental, supply-chain aspects.

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Environment: Merely meeting legal requirements in itself does not comprise CSR but it
requires company to engage in such a way that goes beyond mandatory requirements and
delivers environmental benefits. It would include, but not limited to, finding sustainable
solutions for natural resources, reducing adverse impacts on environment, reducing
environment-risky pollutants/emissions as well as producing environment-friendly goods.
Community: A major stakeholder to the business is the community in which the company
operates. The involvement of a company with the community would depend upon its direct
interaction with the community and assessment of issues/risks faced by those living in the
company surrounding areas. This helps in delivering a community-focused CSR strategy –
making positive changes to the lives of the people and improving the brand-image of the
company. Involvement with the community could be both direct & indirect – through funding
and other support for community projects implemented by local agencies.
Does adopting a CSR policy is benefitting the Company?
Is the financial performance of the company increased?

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2. LITERATURE REVIEW
International Journal of Social Science & Interdisciplinary Research ISSN 2277 3630
IJSSIR, Vol. 2 (6), JUNE (2013)
The pace of increase in knowledge moves towards rapid changes. It grows more and more than
the passage of time. Therefore, a researcher has to be conscious about the changes and
developments in the field of his/her study. For this purpose, the researcher has to survey the
available literature like novels, reports, researches, books, articles, newspapers and journals in
order to add knowledge in its study. Over the past decades, the concept of CSR has become an
important concept in the study of researchers, scholars and industrialists etc. So, the present
researchers have made an effort with this review paper for those researchers, analysts and
industrialists who are connected with CSR (whether social responsibility, social accounting,
social reporting or any other area related to CSR). Windsor (2001), article examined the future
of Corporate Social Responsibility or the relationship between business and society in long
run. The researcher tried to find out that whether the organization and society will come closer
to each other in future or not and what will be the changing phase of CSR. With the help of
history or past trend of CSR, Caroll’s model analysis and in global context, the researcher
found three emerging alternatives of CSR i.e. conception of responsibility, global corporate
citizenship, stakeholder management practices. Nigel Sarbutts (2003), the paper explored the
way of doing CSR by small and medium sized companies. The research depicted that a
structured approach to managing corporate reputation and profit maximization of SME‟s
through CSR. The societal activities of small and medium sized companies is based on their
cost is Benefit Analysis. Small Corporation always struggle for more reputation and
minimization of risk. In such a situation, CSR comes as hope for these companies. Large
companies have so many resources for implementing CSR activities but SME‟s have less
resources. It can be a barrier for them to stay in the market. So, in that situation by imparting
much information, proper utilization of resources, doing well for businesses, SME‟s can
minimize their risk and manage CSR. A speech delivered by Mr. Fredrick Ma, secretary for
financial services, based on Corporate Social Responsibility (2004) organized by the British
consulate. The speaker explored the concept of CSR on the basis of survey of 1500 business
leader attending the world economic forum in bevos. In which 5% leaders said that CSR is
important for the success of business, while 24% said CSR is not important but the
shareholder’s interest is most important for the businesses. But for the speaker, CSR and

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corporate governance are complementary to each other. Corporate governance is a medium of
driving CSR among corporate. Further the speaker also talked about the role of government in
CSR, SME‟s as well as for unlisted companies. It was also included in their views that CSR
should be a part of company’s objective. Moon (2004), paper examined the role of government
in driving corporate social responsibility among the corporate. The study explained that the
drivers of CSR are related with business and society. Business includes its reputation,
corporation itself, employee’s relation knowledge, goals etc. further, the study cleared that
government is driver of CSR by making this relationship true and fair through making through
making policies and regulations. The study also embarked other’s country’s situation that how
their government entered into businesses for driving CSR. Samuel O. Idowu (2007), with their
study of twenty companies in U.K., propounded that the U.K. companies has now become
ethical in the content of social responsibility as companies disclose its CSR with a view of
public benefits, government request and issue information to stakeholders because the
companies think that stakeholders of twenty first century are better educated them past.
Vaaland, Heide (2008), paper based on a case study methodology. The paper purpose was to
handle the CSR critical incidents and utilize this experience in enforcing the CSR activities.
The study concluded that CSR should be managed by handling unexpected incidents, long term
reduction of gap between stakeholders and their expectations and company performance and
finally maintaining relationship with society through interplay between actor, resources and
activities. Gond, Crane (2008), made an analysis on the distortion of corporate social
performance concept. The research analyzed that the past researches and found some reason of
emerging fall in the interest of corporate social performance research among the scholars. The
paper also suggested models on the basis of which the researcher explained that why the CSP
concept has lost its importance and development. Further, the researcher depicted some model
which the researcher can used in their research related to corporate social performance. The
paper argued that tensions and contradictions are the starting point to develop the CSP concept.
CSP has an umbrella of activities which need to measure differently in order to move the
researches from a simple concept to development. Truscott, Bartlett, Trwoniak (2009), paper
“The reputation of Corporate Social Responsibility industry in Australia” in Australian
marketing journal, based on case study methodology. On the basis of the interview of key
persons of industries in Australia, the term CSR has been explained. The industrialist revealed
that CSR increasingly has become significant. They shared their views of CSR in economic,
legal and ethical roles of business in society. Beside this, the industrialist viewed CSR as a

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model of corporate reputation. Shah, Bhaskar (2010), has taken a case study of public sector
undertaking i.e. Bharat Petroleum Corporation Ltd. in their research work. The research has
discussed that there is a broad relationship between the organization and society. Organization
has its existence only with the society. Organization used the resources/inputs of the society
like material and human etc. In reverse, the organization provides services to the society. From
the case study of the BPCL, it was found that company has taken a lot of initiatives in order to
serve the society. Mc William & S. Seigal (2010) provided the importance of CSR as a strategy
of enhancing reputation of companies. The study indicated that firms selling convincing goods
which comes under the umbrella of CSR activities, leads to consumer loyalty and increased
revenue. Further the study also indicated the importance of advertising for providing
information to consumers about the social welfare activities of the firm. Beside this the study
also included the importance of media and T.V etc. in order to aware the consumers about
firm’s activities and increasing as well damaging the reputation. In this way the study
concluded about the reputation of firm through CSR. Hartman (2011), article “Corporate social
Responsibility in the food sector” in European review of agriculture economics journal,
analyzed the importance of CSR in food sector, particularly those companies which have high
brand. CSR is an important part of these companies. But SME’s are less capable in discharging
their obligation towards society. Further, the research found that food sector always tries to
improve the controlling and discharging its services towards consumers. Consumers also prefer
those brands or food firms which give preference to CSR activities and provide good product
and services. Borogonovi, Veronica (2011), article in knowledge@ Wharton, stated that today,
CSR has different meaning for different companies. Some termed CSR in the sense of social
issues while other for environmental issues. But there are not any mandatory guidelines for
CSR so that the problem of areas of CSR can be sort out. In addition to this, the researcher
discussed about various views and plans of government and other authorized institution like
union corporate minister like Mr. Murli Deora, Companies act 1956, Companies bill 2008 and
2009, Dhaval udani (CEO of non-governmental organization), FICCI etc. All these institution
and persons presented their ideas and bills about CSR requirement. The paper also
differentiates the term CSR from other one like Corporate Philanthropy, CSV (creating Share
Value) etc. CSR has defined in such a way that how the businesses are conducting their
activities in society marked at the place. Brammer, Jcakson & Matten (2012), study entitled as
“Corporate Social Responsibility and institutional theory: new perspective on private
governance” in Social economic review depicted that CSR is not only a voluntary action but

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beyond that. In this study, CSR had defined under institutional theory. The institutional theory
stated that corporate social activities are not only voluntary activities but it is a part of interface
between business and society. Regulation/ governance are necessary for enhancing the
corporate performance of businesses through CSR. The theory also suggested that in what form
companies should take its social responsibilities whether historical, political or legal form.
Agunis, glovas (2012), Paper entitled “what we know and don’t know about corporate social
responsibility: A review and research agenda” in Journal of management, based on 588 journal
articles and 102 books. The study provided a framework of CSR actions which affects external
as well as internal stakeholders and outcomes of such actions. The paper also enhanced the
knowledge regarding levels, forms of CSR; need to understand CSR with outcomes etc. further
the researcher also suggested a framework of research design, data analysis and measurement
for future research of CSR. Mallen (2012), In this article the researcher depicted that how the
trends of CSR have changed from last so many years. This change has affected both the society
and business. The researcher explained three basic things about the changes in trend. These
are:  Firstly, the relationship between business and society has changed. This is happening
because of social and environmental problem around the world. Because of these conditions,
business and society came closer.  Second, the businessman’s strategy of developing business
also affected society a lot. Businesses new ideas, concept, developments also came with CSR
management that reflects in their product and services.  Third, the other parties like outside
agencies and firm’s own goals also interfere the firm’s activity. An article published at
knowledge @ Wharton on 23 may 2012, recommended that according to changing generation
CSR importance are also changing. The researcher said that the next generation of business
will give undue importance to the CSR activities while past researchers like Milton Friedman
referred CSR as window dressing for businesses. Further, in this article, with the help of several
examples it has discussed that companies engaged in CSR are more profitable in terms of
money, human capital and other resources. Some companies and researchers termed CSR as
cost saver while some taken it as reputation building activities. Lastly, it was concluded that
CSR is beneficial for the society as well as business. An article published in Tripple Bottom
Line Magazine entitled “Initializing CSR: The top three essential elements” presented CSR
according to changing time period. It has revealed through the article that CSR should be at the
core of business goals. Sometimes, companies escaped because of social activities in which
they engaged but in reality they suffered from financial problem at that time, or may be fraud.
The paper has taken an example of Lehman brothers. The article also suggested some variables

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for initializing CSR. In these variables, it was firstly discussed that CSR can drive through
efficient corporate governance. Secondly, through savings and increase in operating profits, so
that investment in CSR can be upgraded. Thirdly, according to article, corporate volunteers
believe to be an important variable to ensure that corporate responsibility can be fulfilled
through the volunteers strategy. The economic Times (2012), news highlighted the views of
former president Dr. APJ Abdul Kalam in a CSR award function organized by industry body
Assocham. Kalam said that companies should devote some part of its goal to corporate
services. It should make mandatory for all the companies to spend a percentage of its profit on
corporate social responsibility. Kalam also discussed about the proposed bill on corporate
spending on CSR. They assumed greater importance of CSR in building the lives of the
country’s citizens. An article published in The Economic Times named as “CSR: A cloak for
crooks” on 21 Oct. 2012 explored that there are so many companies which have engaged in
Corporate Social Responsibility yet they are suffering from financial crisis , fraud and other
unsocial causes. In this article, an example has been taken about the company Satyam
Computer Services. the company has won several awards in the area of CSR which includes
rural communities commitment and services like healthcare, education and water.
Bhattacharyya & Chaturvedi (2012), article entitled “CSR looks set to emerge as an
independent stream with measurable output” on India CSR site, stated about the proposed bill
of CSR that how the bill will affect the company’s policies. The researchers presented their
views and said that due to this bill, company’s activities will change a lot the companies who
has not engaged in CSR activities till now, will start investing on society. Further, who has
already engaged in these areas will get a strong foundation or bond with the society. An article
presented on IndiaCSR entitled “Is CSR all Bullshit?” depicted that companies neither have a
strong will power to invest in social activities nor they aware about the areas in which comes
under CSR. The reason of this problem is ignorance about the concept of CSR and not any
legal framework. The researcher also presented the solution of this problem that knowledge
should provide in the institutions through training, induction programmes and through other
teaching programmes. If needed, foreign experiences should be used in India for Indian society
welfare. Bibhu Parshed (2012), article presented that CSR is the face of industry face of doing
trade. Bibhu said that today, corporate houses took CSR as a medium fulfillment of profit greed
of corporate houses. Further the article explored that companies today invests in a lot of areas
like child labour, ground water, food, education, employment etc. but nobody is aware about
the essential need of world’s poor. The article suggested that profit earning is a natural fact of

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companies but CSR is beyond the natural and statutory obligation of the companies. At last it
was concluded in the article that sustainable development is the development of society as well
as the company in a balanced way. Bansal, Parida, Kumar (2012), paper entitled “Emerging
trends of Corporate Social Responsibility in India” in KAIM Journal of Management and
Research analyzed 30 companies of 11 sectors listed in the Bombay Stock Exchange with the
help of their annual reports. Some of these sectors were Transport Equipment sector, Finance
and Metal Mining sector, IT & Power, Capital goods, Telecom, Housing, FMCG, Oil & Gas
and Cipla. The paper considered the nature and areas of society in which the companies are
investing. By considering all those areas it was concluded in the paper that today companies
are not working only to earn profit but also have realized the importance of being social
friendly. So, on the basis of the paper it can be said that social responsibility has now started
taking a turn in the new direction. The Economic Times (11 Jan.2013), news highlighted about
the company Dell’s strategy of motivating its employees in initializing CSR. The news
discussed that company’s employees are the power that forced the company to do more for the
society. Company with its employees has engaged in social responsibility activities in the areas
of education, environment and employee’s welfare. Beside Dell Company, the news also
discussed about other companies like Maruti and Gogrej that these companies also provide
induction training to its employees for preparing them for community services. Maruti
Company run a program named e- parivartan for a group of employees to make them aware
about community problem and their solution.

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3. RESEARCH DESIGN AND CONCEPTUAL MODEL
3.1.CONCEPTUAL MODEL
Independent Variable Dependent Variable
CSR Financial Performance
3.2.RESEARCH DESIGN
In view of the objectives of the study an exploratory research is one which largely interprets
the already available information and it lays particulars emphasis on analysis and interpretation
of the existing and available information. It makes use of secondary data.
3.3.SOURCES OF DATA
Generally, we can collect data from two sources, primary sources and secondary sources. Data
collected from primary sources are known as primary data and data collected from secondary
sources are called secondary data.
3.3.1. PRIMARY DATA
Primary data are also known as raw data. Data are collected from the original source in a
controlled or an uncontrolled environment. Example of a controlled environment is
experimental research where certain variables are being controlled by the researcher. On the
other hand, data collected through observation or questionnaire survey in a natural setting are
examples data obtained in an uncontrolled environment.
3.3.2. SECONDARY DATA
The secondary data are those which have already collected and stored. The information has
been collected from namely
 https://www.futurescape.in/india-best-companies-for-csr-2015/
 http://www.bseindia.com/
 http://www.moneycontrol.com/
A team of dedicated professionals from IIM Udaipur, Futurescape and Economic Times have
worked on the CSR study of 2015 and has listed India’s top 100 companies for CSR in the
year. The top 5 companies and the bottom top 4 companies of the list i.e. 95-99 companies will

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be considered. The financial data of those companies will be taken and ratios will be performed,
so that we come to know whether CSR policy has benefited the companies financially or not.
The companies list is as follows.
 Mahindra & Mahindra Ltd. (1)
 Tata Power Company Ltd. (2)
 Tata Steel Ltd. (3)
 Larsen & Toubro Ltd. (4)
 Tata Chemicals Ltd. (5)
 Punjab National Bank (96)
 Cadila Healthcare Ltd. (97)
 Jain Irrigation Systems Ltd. (98)
 Reliance Power Ltd. (99)

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4. DATA ANALYSIS
4.1.Financial performance can be measured using following ratios
4.1.1. Profitability
Profitability ratios compare income statement accounts and categories to show a company's
ability to generate profits from its operations. Profitability ratios focus on a company's return
on investment in inventory and other assets. These ratios basically show how well companies
can achieve profits from their operations.
Return on Assets (ROA)
Net Income
Return on Assets (ROA) = ----------------------------------
Average Total Assets
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
Return on Equity (ROE)
Net Income
Return on Equity (ROE) = --------------------------------------------
Average Stockholders' Equity
Average Stockholders' Equity
= (Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2
Return on Common Equity (ROCE)
Net Income
Return on Common Equity = --------------------------------------------
Average Common Stockholders' Equity
Average Common Stockholders' Equity
= (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity) / 2
Profit Margin
Net Income
Profit Margin = -----------------
Sales
Earnings Per Share (EPS)
Net Income
Earnings Per Share = ---------------------------------------------
Number of Common Shares Outstanding

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4.1.2. Liquidity / working capital
Liquidity ratios analyze the ability of a company to pay off both its current liabilities as they
become due as well as their long-term liabilities as they become current. In other words, these
ratios show the cash levels of a company and the ability to turn other assets into cash to pay off
liabilities and other current obligations.
Current Ratio
Current Assets
Current Ratio = ------------------------
Current Liabilities
Quick Ratio
Quick Assets
Quick Ratio = ----------------------
Current Liabilities
Quick Assets = Current Assets – Inventories
Net Working Capital Ratio
Net Working Capital
Net Working Capital Ratio = --------------------------
Total Assets
Net Working Capital = Current Assets - Current Liabilities
4.1.3. Activity Analysis Ratios
Activity ratios measure company sales per another asset account—the most common asset
accounts used are accounts receivable, inventory, and total assets. Activity ratios measure the
efficiency of the company in using its resources. Since most companies invest heavily in
accounts receivable or inventory, these accounts are used in the denominator of the most
popular activity ratios.
Assets Turnover Ratio
Sales
Assets Turnover Ratio = ----------------------------
Average Total Assets
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
Accounts Receivable Turnover Ratio
Sales
Accounts Receivable Turnover Ratio = -----------------------------------
Average Accounts Receivable

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Average Accounts Receivable
= (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Inventory Turnover Ratio
Cost of Goods Sold
Inventory Turnover Ratio = ---------------------------
Average Inventories
Average Inventories = (Beginning Inventories + Ending Inventories) / 2
4.1.4. Capital Market Analysis Ratios
Capital market analysis ratios indicate a company's ability to win to the confidence of the
stock market.
Price Earnings (PE) Ratio
Market Price of Common Stock Per Share
Price Earnings Ratio = ------------------------------------------------------
Earnings Per Share
Market to Book Ratio
Market Price of Common Stock Per Share
Market to Book Ratio = -------------------------------------------------------
Book Value of Equity Per Common Share
Book Value of Equity Per Common Share
= Book Value of Equity for Common Stock / Number of Common Shares
Dividend Yield
Annual Dividends Per Common Share
Dividend Yield = ------------------------------------------------
Market Price of Common Stock Per Share
Book Value of Equity Per Common Share
= Book Value of Equity for Common Stock / Number of Common Shares
Dividend Payout Ratio
Cash Dividends
Dividend Payout Ratio = --------------------
Net Income

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4.2.Financial Ratios and indicators of the considered companies
Ratios M&M TP TS L&T TC PNB CHL JIS RP
Liquidity
Current Ratio 1.05 1.33 0.62 1.34 1.29 0.02 1.19 0.94 0.57
Ranking 5 8 3 9 7 1 6 4 2
Quick Ratio 0.84 1.64 0.27 1.43 1.20 24.23 1.41 1.78 17.89
Ranking 2 6 1 5 3 9 4 7 8
Profitability
Ratios
Return On
Capital
Employed
18.51 9.22 9.25 15.72 11.88 - 26.04 9.38 1.01
Ranking 8 3 4 7 6 1 9 5 2
Return On
Net Worth
17.25 6.42 9.65 13.63 10.55 8.12 28.08 2.09 0.14
Ranking 8 3 5 7 6 4 9 2 1
Profit Before
Interest And
Tax Margin
8.03 15.85 18.90 9.24 8.23 24.17 10.55 -4.07
Ranking 3 7 8 5 4 1 9 6 1
Management
Efficiency
Ratios
Asset
Turnover
Ratio
1.84 0.34 0.46 1.21 1.15 0.08 0.98 0.82 0.01
Ranking 9 3 4 8 7 2 6 5 1
Debtors
Turnover
Ratio
15.37 5.99 66.21 2.56 4.13 - 5.94 2.63 4.65

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Ranking 8 7 9 2 4 1 6 3 5
Inventory
Turnover
Ratio
16.87 12.97 5.79 26.07 5.71 - 6.67 3.80 -
Ranking 8 7 5 9 4 1 6 3 2
Capital
Market
Analysis
Ratios
Dividend
Payout Ratio
Net Profit
22.44 34.84 12.06 29.87 49.91 20.51 19.32 46.81 -
Ranking 5 7 2 6 9 4 3 8 1
Share price 1206.70 64.95 317.65 1212 378.50 84.50 320.75 60 49.70
Ranking 8 3 5 9 7 4 6 2 1
Pat (Cr.) 3,321.11 1010.29 6439.12 5056.18 637.97 3061.58 1027.10 49.39 25.10
Ranking 7 4 9 8 3 6 5 2 1
Total assets 32944.87 27788.40 1,15677.12 86,903 11868.64 603,333.60 7337.40 7057.45 21594.49
Ranking 6 5 8 7 3 9 2 1 4
Table No.1 Financial Ratios and indicators of the considered companies
The financial ratios of the companies are taken that is the top 5 and the bottom 4 of the CSR
2015 list and rankings are given.
On a scale of 1 to 9
Where 1 indicates Least
And 9 is the best.

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Total 12 parameters are considered and 9 companies. So it equals to total of 108 score.
4.3.Ranks allotted based on the ratios.
Table No.2 Ranks allotted based on the ratios.
Based on table no.1, sorting is done used excel and likewise the ranks are allotted where 1
means the least and the 9 is best. Each ratio of a company with comparison to other gets any
number from 1 to 9. All the parameters are added and the score of each company is decided.
Ratios M&M TP TS L&T TC PNB CHL JIS RP
CR 5 8 3 9 7 1 6 4 2
QR 2 6 1 5 3 9 4 7 8
ROCE 8 3 4 7 6 1 9 5 2
RONW 8 3 5 7 6 4 9 2 1
PBIT 3 7 8 5 4 1 9 6 1
ATR 9 3 4 8 7 2 6 5 1
DTR 8 7 9 2 4 1 6 3 5
ITR 8 7 5 9 4 1 6 3 2
DIV.PAYOUT 5 7 2 6 9 4 3 8 1
SHARE
PRICE
8 3 5 9 7 4 6 2 1
PAT 7 4 9 8 3 6 5 2 1
TOTAL
ASSETS
6 5 8 7 3 9 2 1 4
SUM 77 63 63 82 63 43 71 48 29
Rank 2 4 5 1 6 8 3 7 9

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From the above table Larsen& Toubro Limited has got the highest score in financial
performance and Reliance power limited the least.
4.4.CSR rank and Financial Performance Rank
Name of the Company CSR rank Financial Performance Rank
Mahindra & Mahindra Ltd. 1 2
Tata Power Company Ltd. 2 4
Tata Steel Ltd. 3 5
Larsen & Toubro Ltd. 4 1
Tata Chemicals Ltd. 5 6
Punjab National Bank 96 8
Cadila Healthcare Ltd. 97 3
Jain Irrigation Systems Ltd. 98 7
Reliance Power Ltd. 99 9
Table No.3 CSR rank and Financial Performance Rank

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5. IMPLICATIONS AND MANAGERIAL FINDINGS
The study of Impact of Corporate Social Responsibility On Financial Performance of the
Company has been done.
From the data above we come to know that the companies which have topped in the list of
CSR 2015 are doing well in their financials too.
Larsen & Toubro Ltd. Which is at the 4th
place in the CSR list 2015 has got the highest score
of 82, and the one which is at the bottom at a position of 99 Reliance power limited has got
the least Score of 29.
Of the above, only Cadila Healthcare Limited which is at 97th
position in CSR list is doing at
financials, remaining all companies are performing bad than that of the Companies which
topped the CSR list.

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6. CONCLUSION
It is clear that the companies which are spending lot on CSR are not really wasting the
shareholder’s wealth but in turn creating value to not only its shareholders but stakeholders
too.
It can be evidently concluded that CSR has positive impact on the financial performance of the
companies.
The companies that enthusiastically engage themselves in CSR practices, definitely have
advantage over other companies in financial perspectives, lenient taxation provisions, ratings
and rankings, brand reputation and last but not the least, customer loyalty and stakeholder trust.
Thus, the CSR initiatives should be strictly followed by all those companies that wish to get a
financial advantage over other firms in the long run.