Linking Corporate Social Responsibility and Financial Performance: A Comparative Study of Indian Banks"

Abstract

This study investigates the relationship between Corporate Social Responsibility (CSR) and financial performance, with a particular focus on commercial banks in India. Adopting a comprehensive literature review as the research methodology, 23 scholarly articles were analyzed to assess various perspectives—positive, negative, neutral, and mixed—on the CSR-financial performance linkage. The review reveals that while a significant relationship exists between CSR and financial performance, its nature is influenced by contextual factors such as industry type, firm strategy, regulatory framework, and ownership structure (public vs. private sector banks). Empirical evidence suggests that strategically aligned CSR initiatives contribute positively to financial performance, enhancing brand value and stakeholder trust. However, challenges such as resource diversion, regulatory compliance costs, and superficial CSR practices often complicate the outcomes. The findings underscore the importance of adopting an integrated, strategic, and socially aligned CSR approach to ensure long-term financial and societal gains. The study concludes by recommending greater transparency, alignment with Sustainable Development Goals (SDGs), and integration of CSR with core business operations for Indian banks to realize sustainable value creation.