Unveiling the Financial Nexus: Exploring the Impact of CSR on Firm Performance in Mumbai-based Companies

Abstract

“This research investigates the symbiotic relationship between Corporate Social Responsibility (CSR) practices and the financial performance of firms, focusing on a sample of 77 companies located in Mumbai, India. Employing statistical tools such as Smart PLS and SPSS, the study aims to unravel the intricate dynamics that link CSR initiatives to financial outcomes within the unique business landscape of Mumbai. Through a meticulous selection process, this research identifies and analyzes CSR practices across a diverse array of sectors in Mumbai, offering a nuanced understanding of how these initiatives translate into tangible financial benefits. The study employs Smart PLS and SPSS for a rigorous quantitative analysis, enabling a robust examination of the correlations between specific CSR activities and key financial performance indicators. By pinpointing the impact of CSR on profitability, shareholder value, and other financial metrics, this research provides actionable insights for firms seeking to align social responsibility with financial success. The Mumbai-centric focus offers a localized perspective on CSR, considering the socio-economic context of the region and its implications for corporate sustainability. The integration of Smart PLS and SPSS ensures a methodologically sound approach, enhancing the reliability and validity of the findings. The outcomes of this research contribute to the broader CSR literature while offering practical implications for businesses, policymakers, and investors in Mumbai and beyond. As the importance of CSR continues to grow, understanding its specific impact on financial performance becomes crucial for companies striving to thrive in a socially conscious business environment.”