IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM’S FINANCIAL PERFORMANCE: A STUDY OF MANUFACTURING FIRMS IN NORTHERN ODISHA

Abstract

In the realm of contemporary business and society, the concept of Corporate Social Responsibility (CSR) stands as a pivotal bridge connecting commerce and community welfare. Despite numerous efforts to formulate a clear and all-encompassing definition of CSR, its multifaceted dimensions continue to elude a singular description, as noted by Jones in 1980. The term "corporate social responsibility" serves as an umbrella, encompassing both social and environmental considerations within its ambit. This article embarks on a comprehensive journey to unravel the intricacies of CSR, elucidating its significance, implications, and synergistic relationship between businesses and societies. At the core of CSR lies the profound interdependence between business entities and the societies they operate within. This symbiotic relationship underscores the undeniable truth that the well-being of one entity is inextricably linked to the prosperity of the other. As businesses flourish, they catalyze economic growth, generate employment opportunities, and drive innovation. Contrary to misconceptions that CSR is confined to philanthropic gestures, it transcends mere charitable acts. While philanthropy remains a crucial aspect, CSR encompasses a broader scope that integrates ethical business practices, environmental stewardship, community engagement, and sustainable development. Environmental sustainability, ethical sourcing, employee welfare, diversity and inclusion, community development, and transparent governance constitute the intricate layers of CSR. Corporations navigate this intricate landscape by integrating these dimensions into their operational strategies, aligning profit motives with societal advancement.