IMPACT OF CSR ON FINANCIAL

PERFORMANCE OF THE COMPANY

– A REVIEW OF CTS

BY

CATHERINE FAUSTINA R
1NZ18MBA16
 INTRODUCTION

• Corporate social responsibility (CSR) is a business approach that

contributes to sustainable development by delivering economic, social
and environmental benefits for all stakeholders.
• CSR covers the relationship between corporations or other large
organizations and the societies with which they interact.
• Contribution to the society has an impact on financial performance of the
company like increase in total assets, value of share.
• Impact on financial performance will decide effort to finance social
activities.
 SCOPE

The scope of the study is to analyze the service of cognizant

technology solutions to the society by their corporate social
responsibility activities and to find the impact of corporate social
responsibility on their market share price, total income and total
asset of the company.
 HISTORICAL BACKGROUND

• Social responsibility should not be taken as competition among

companies.

• Purpose is to concentrate on environmental and social factors

• From literature review I understood that there is positive significant

relationship between csr and financial performance.

• Regression, SPSS, interview guide are used as analysis techniques in

literatures.
 CURRENT TRENDS

• They have allocated 5% more than 2017/18 revised estimate to public

health and 4% for education.

• They have strengthened committee by including talented specialist in

philanthropic work.

• Extension of work.

• Providing activities in areas of healthcare, education, livelihood

 CSR AND SUSTAINABILITY
• CSR is derived from sustainable development.
• CSR and sustainability seems to be converging.
• It is due to CSR clause within companies Act, 2013 which constitute Tripple
Bottom Line Approach.

ADVANTAGES OF CSR PROGRAMME

• Communities provide license to operate.
• Attracting and Retaining Employees.
• Communities as suppliers.
• Enhancing Corporate Reputation.
 CLAUSE 135 OF COMPANIES
ACT 2013
• CSR provisions within this act are applicable only to certain companies.
• CSR committee.
• Job of CSR committee.
• Job of the board.

CSR MODELS
• Pyramid model
• Intersecting model
• Concentric circle model
 MEASUREMENT OF CSR
• Past measures were criticized for not considering stakeholder issues.

• Prowers database of centre for monitoring Indian Economies.

• India Business Insight database of Informatics Limited.

MEASREMENT OF FIRM PERFORMANCE

• Mostly it is measured from Financial performance(FP).

• Non financial performance(NFP) measures are not considered.

• FP along with NFP must be utilized.

 RELATIONSHIP BETWEEN CSR
AND FIRM PERFORMANCE
• Consumer inference theory.

• Signaling theory

• Social identity theory

Therefore CSR has impact on financial performance, net profit and total
assets.
ANALYSIS
 CONCLUSION

• From analysis of Sustainability reports and financial reports of

CTS, it can be evidently concluded that CSR has positive
impact on financial performance of the companies.

• Thus CSR initiatives should be strictly followed by all those

companies that wish to get financial advantage over other
firms.
THANK YOU