How Corporate Social Responsibility and Sustainable Development Practices Affect the Economic Performance of Indian Businesses: A Critical Analysis

Abstract

Abstract This research paper explores the relationship between corporate social responsibility (CSR) and sustainable development (SD) and its impact on the economic outcomes of businesses. It investigates how the CSR activities of the top 10 contributing firms align with sustainable development and evaluates the influence of these activities on their financial performance. The study draws on existing literature and empirical studies that have examined the role of CSR in achieving sustainable development objectives. The significance of absorptive capacity in corporate sustainability, the perspectives of managers in developing countries, and the relationship between CSR and sustainability in developing countries are among the areas explored. The paper hypothesizes that there is significant impact of sustainable financing on the financial performance of companies. It employs secondary data sources to assess the effects of CSR on key financial indicators, namely profit before tax (PBT), market value (MV), and revenue. PBT measures a company's earnings from operations before tax payments, while MV reflects investors' expectations about the company's future performance. Revenue represents the income generated from regular business activities. By examining these indicators, the study aims to provide insights for organizations, decision-makers, and researchers to assess the impact of CSR practices on sustainable development outcomes across different industries.