Impact of Corporate Social Responsibility on Financial Performance of Public Sector Banks of India

Impact of Corporate Social Responsibility on Financial Performance of Public Sector Banks of India

Pradeep Kumar, Rahul

UNDER THE GUIDANCE OF PROF. DR. MOHD   SHAMSHAD

School of Finance and Commerce

Galgotias University

Abstract

The concept of Corporate Social Responsibility (CSR) has garnered global prominence, encompassing various dimensions. In the revised edition of the textbook "Corporate Social Responsibility," Readings and Cases in a Global Context,” authored by Andrew Crane, Dirk Matten, and Laura J. Spence, Chapter One provides a comprehensive introduction to CSR. Corporate Social Responsibility (CSR) in Indian banking sector is focus on improving financial vision and provide financial services to country and focusing on activities like poverty eradication, health and medical care, rural development, financial literacy, education and environment protection. Main Focus to examine the impact of CSR on financial performance of the banks the impact of Let’s delve into its key aspects: 1.Definition and Rise to Prominence: In the updated version of the textbook on "Corporate Social Responsibility" It has evolved significantly over time and is now a critical consideration for businesses worldwide. 2. Manifestation in Different Contexts: CSR takes various forms across organizations and nations. It involves actions such as philanthropy, sustainable practices, employee well-being, and community engagement. The objective of Corporate Social Responsibility (CSR) within the Indian banking sector is to enhance financial inclusion and provide services to untapped areas of the country. Activities such as this study investigates how CSR practices, such as poverty eradication, healthcare, rural development, financial literacy, education, and environmental protection, contribute to India's socio-economic development and their influence on banks' financial performance.. Employing a causal and cross-sectional model, the study uncovers that banks give priority to community welfare and the well-being of farmers. Programs However, efforts related to environmental practices, financial literacy, and education are not substantial. Notably, there is a significant difference in CSR practices between public sector and private sector banks. The fundamental aim of CSR today is to optimize a company's broader influence on society and its stakeholders. Companies, Incorporate CSR policies, practices, and programs seamlessly into their business operations. often guided by clear objectives aligned with mainstream business goals. The term “CSR” was coined by Bowen in the 1950s, emphasizing corporations’ obligations to society due to their significant influence on people’s livelihoods. 5 Keywords— CSR performance , Financial performance, Community welfare, Financial literacy, Environmental protection, Education, Farmer Welfare.