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 Indian 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 Company, 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 insignificant relationship between CSR and Return on Net Worth (RONW) in case of these companies. Ms Kunika Bhargava | Dr. Ritu Wadhwa"A Study on Linkage between Corporate Social Responsibility and Return on Net Worth (RONW) of 5 Public Companies" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-4 , June 2018, URL: http://www.ijtsrd.com/papers/ijtsrd12984.pdf http://www.ijtsrd.com/management/accounting-and-finance/12984/a-study-on-linkage-between-corporate-social-responsibility-and-return-on-net-worth-ronw-of-5-public-companies/ms-kunika-bhargava