A Study on Linkage between Corporate Social Responsibility and Return on Net Worth (RONW) of 5 Public Companies

The purpose of the present paper is to study the linkage of CSR initiatives taken by the companies and its impact on their RONW. For this purpose, various financial parameters have been used like Return on net worth, profit before tax and earnings per share. Researchers have taken a sample of 5 public companies namely Tata Steel RIL, Mahindra & Mahindra, ITC and Larsen and Toubro to examine the relationship between corporate social responsibility and RONW by considering their financial statement of five years (from March 2013 to March 2017). The logic behind to take such samples is that these are big public key players with respect to Indian business. After getting all the data, an analysis on the relationship between CSR and other financial parameters like EPS, PBT and RONW are tested by Regression analysis and ANOVA. Irrespective of this general outcome, the current study depicts evidence that there is a relationship between CSR and Return on Net Worth (RONW) in case of these companies.

Traditionally, corporate social responsibility has more definitions in the charity model. Over time, the concept of corporate social responsibility has undergone tremendous changes. This paper focuses on the CSR activities of these Indian listed companies, and how they relate to profitability and their desire to participate in these CSR activities. In the modern era of the business world, corporate social responsibility is the company's constant commitment to ethical behavior and contributes to economic development while improving the quality of life of workforce and its families, as well as local communities and society as a whole.
With the increasing global awareness of environmental, social and ethical issues, corporate social responsibility is now considered an integral part of the corporate sector in each c understand the benefits of corporate social responsibility in corporate social responsibility, a of research has been conducted. Although many countries, including India, believe that social responsibility is a means of and it is not conducive to the profitability of enterprises. In addition, many companies believe that corporate improves image and contributes to the long sustainability of the business. Corpora Responsibility (CSR) is a concept that suggests that it is the responsibility of the corporations operating within society to contribute towards economic, social and environmental development that creates positive impact on society at large. It refers to the changes. This paper focuses on the CSR activities of these Indian listed relate to profitability and articipate in these CSR activities. In the business world, corporate social responsibility is the company's constant commitment ethical behavior and contributes to economic development while improving the quality of life of the ce and its families, as well as local communities and society as a whole.
With the increasing global awareness of environmental, social and ethical issues, corporate responsibility is now considered an integral part of the corporate sector in each country. In order to understand the benefits of corporate social responsibility in corporate social responsibility, a lot of research has been conducted. Although many countries, including India, believe that corporate social responsibility is a means of window decoration, and it is not conducive to the development and profitability of enterprises. In addition, many companies believe that corporate social responsibility improves image and contributes to the long-term business. Corporate Social Responsibility (CSR) is a concept that suggests that it responsibility of the corporations operating within society to contribute towards economic, social and environmental development that creates positive efers to the In today's highly competitive world, corporate social responsibility has become the soul of every company, and it has competitive advantages and ensures sustainable growth. The impact of corporate activities on the environment and society increases the importance of sustainable practices and corporate social responsibility. The increasing pressure on agents has prompted companies to implement corporate social responsibility activities to disclose their behavior and achievements.
The government's action has become a mandatory measure that is mandatory for public disclosure because the government can force private entities to disclose information, and the legislation transparently expresses and formulates disclosure requirements based on the legitimacy of democratic procedures.
Profitability is a measure of financial gains as measured by price-to-income ratios. It is considered as a test of efficiency because high-profit companies or companies are more efficient than low-profit companies. Profit is the yardstick for economic efficiency, management efficiency, and social goals. As Weston and Brigham rightly pointed out: "The profit on financial management is a test of efficiency and control measures, a measure of the value of their investment for the owner, giving the creditor a safe margin to the government. On the basis of taxable scale capabilities and legislative actions, state profits are indicators of economic progress, national income and living standards, and profits are the result of profits. In other words, there is no profit-driven profit. Every company hopes to be better today than today and tomorrow will be better. This is why they are profitable.

Why is CSR important?
For the benefit of the company -Corporate Social Responsibility provides the company with important benefits in risk management, cost savings, capital acquisition, customer relations, and human resource management and innovation capabilities.
For the benefit of the EU economy -Corporate social responsibility makes the company more sustainable and innovative, which helps to achieve a more sustainable economy.
For the benefit of society -Corporate Social Responsibility provides a series of values through which we can build a more cohesive society and transform it into a sustainable economic system.
Overview of CSR activities of TSC, RIL, L&T, M&M and ITC Tata Steel has been committed to the advancement and development of society in Jharkhand State for the past 100 years. It has always been committed to improving the quality of life in its communities. Social development and community welfare in the Jharkhand community have been internalized since its establishment and have been used up to now, making Tata Steel a leader in the region. Social commitment... In the half-century of industrial innovation, the wealth created by Justegita Tata and his sons formed a small part of their rich country. All these wealth's are trusted by the people and are dedicated to their interests. The cycle is thus completed: People happen to return to the people many times. For Jamsetji Tata, the progress of the enterprise, the welfare of the people and the health of the enterprise are inseparable. The Indian Times stated in 1912 that Tata's said that the generation of wealth and wealth had never "disappeared on its own, but rather a means to end India's growing prosperity." Successive generations of Tata Group leaders have always believed that the success of material conditions is not worthwhile unless it is in the national interest and is achieved through fair and honest methods. departments to provide comprehensive health services. Prevent, promote and provide curative health services to communities from neighboring villages.
Larsen and Toubro: L&T believes that true and full growth, success and operational measures are not limited to the balance sheet or any economic indicators. This is best reflected in the difference between business and industry in people's lives. Through its social investment, it solves the needs of communities living near its facilities and takes sustainable initiatives in the areas of health, education, environmental protection, and infrastructure and community development.
M&M defines CSR as creating products that are socially responsible, participating in socially responsible employee relations, and committing to the communities around them. At the Mahindra Group, corporate social responsibility is more than just an obligation; it is a way of life. In 2005, the Group celebrated its sixtieth anniversary by renewing its commitment to corporate social responsibility. It promises to continue to invest mandatory amounts to achieve social benefits. Launched a unique ESOPs to enable Mahindra employees to participate in their chosen social responsibility activities. The organization also announced a special gift for 60 hearing impaired, unidentified children to provide free cochlear implantation.
ITC -inspired by the overall vision of contributing to the achievement of national goals for sustainable development and inclusive growth, ITC has innovatively developed a unique business model that combines long-term shareholder value creation with enhanced social capital.
ITC not only measured achievements in terms of financial performance, but also reflected this commitment through ITC's conscious increase in the transformation of the country's social capital. It contributes to the country's economic, environmental and social capital in ITC's "triple bottom line" approach. Assuming a bigger social goal has always been the hallmark of ITC. The company believes there is no conflict between the dual goals of shareholder value enhancement and social value creation. The challenge is to develop a corporate strategy to achieve these goals in a mutually reinforcing and collaborative manner.
As a corporate citizen with a lasting relationship in rural India, ITC works with communities and government agencies to improve agricultural productivity and rural resource base. ITC's commitment to agricultural R&D and knowledge sharing covers important aspects of competitivenesseffective agricultural practices, soil and water management.
ITC is committed to the national agenda of increasing agricultural productivity and making rural economies more socially inclusive. ITC believes that the urgency and scale of these tasks make market-related solutions and innovations more effective and sustainable than capital-intensive methods Premlata and Anshika Agarwal (2013) analyzed several aspects of the new CSR law in the context of modern corporate philosophy, and also drew the attention of government authorities to the practical difficulties of implementing the new regulations.

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Chen Hongming and Xiao Xiaoqin (2012) discuss the applicability of factor analysis in corporate social responsibility assessment. This paper illustrates the rationality of the application of SPSS factor analysis in thermal power enterprise social responsibility assessment through SPSS factor analysis application examples.
Sanjay Pradhan, Akhilesh Ranjan (2010) tried to explore CSR practices, especially in the context of rural development. The practice of CSR for selected private and listed companies shows that corporate social responsibility actions gave a positive impact on rural communities and other business development.
Supriti Mishra, Damodar S. (2010) empirically examined the impact of corporate social responsibility on the financial and non-financial performance of Indian companies and concluded that compared with non-listed companies, listed companies show responsible business practices and Better financial performance. The results of the survey show that the business conducts of the major stakeholders may be beneficial to Indian companies in controlling the mixed effects of stock listing, ownership, and the size of the company. Managers' views on corporate social responsibility are considered to be related to corporate financial performance. This is related to the increase in non-financial performance. HYPOTHESIS H1: There is a positive correlation between CSR and Earnings per share.
H1: Corporate social responsibility is positively correlated with pre-tax profits.
H3: Companies with higher corporate social responsibility spending behavior will show higher net return.

RESEARCH DESIGN
The study is based on second-hand data collected by Tata   In the selected companies, the mean EPS is 51.60. Except ITC Ltd, all other companies achieved more than the mean score of EPS. The mean score of CSR is 246.72 crores. With respect to CSR, Reliance Industries Ltd. achieved higher score than Mean CSR score. When it comes talking about, profit before tax (PBT), and the mean score of is 12879.24 crores. ITC Ltd. and Reliance Industries Ltd. achieved greater PBT than average level of PBT. The average score of Considering all the conditions, it has been observed that Reliance Industries Ltd. achieved more score than the mean level.

CONCLUSION
Based on the analysis and interpretation of the design studies in this study, to answer whether corporate social responsibility expenditures affect the above companies' RONW. The study concluded that there is a negligible relationship between corporate social responsibility and corporate social responsibility, because there is a positive relationship between corporate social responsibility and corporate social responsibility. This means that corporate social responsibility expenditure has little impact on the company's EPS and PBT, and it has a great influence on RONW. Increased corporate social responsibility expenditures lead to an increase in EPS.
Corporate social responsibility helps innovation to satisfy consumers, seize market opportunities and differentiate them from others so that they can be more competent in selected companies. The following arguments address some of the limitations of the study and how to overcome them. The first limitation is that the results obtained using various financial parameters are inconsistent. This problem can be measured through the future research more concerned with the choice of corporate financial parameters to measure the profitability of corporate social responsibility research. Second, the sample size in this study comes from five Indian companies that do not reflect the entire public sector. Finally, as the study only considers a five-year assessment, these findings should be interpreted with caution. Future research in this area must consider the need to extend the number of research phases to assess recent legal requirements.