Effect of CSR Spending on Profitability of Indian Banks: A Case Study of Selected Private Banks
Keywords:
CSR, spending annual report, profitabilityAbstract
Over the past few years there is great debate over the responsibility of the business unit towards society. Companies Act 2013 also mandates the organisational unit to spend 2% of its average last three years earnings (profits) towards the society. However it does not lays down the area for such spending. Organisations are free towards such spending. Some organisations show such spending in their annual reports while some does not. The present paper is an attempt to find out whether organisations (Banks) which are showing such spending in their financial reports have any advantage over those which is not showing such explanation of spending. The results show that those banks which are showing such explanations of CSR spending in detail in their financial records have an advantage over others which are not giving such explanations.
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