An Examination of the Relationship between Corporate Social Responsibility and Profitability with reference to State Bank of India

Priyanka Saha

Assistant Professor, Bangabasi Morning College, Kolkata. Email: misspriyankariimisaha20009@gmail.com

 Volume 4, Number 1 I Full Text PDF

Abstract

In India, the banking sector has significant history of getting engaged themselves in different kind of social activities which are known as Corporate Social Responsibility (CSR). The paper examines the relationship between CSR and profitability of State Bank of India (SBI) which is the initiator of CSR activities in the banking sector of India. The study used annual reports of SBI for the year 2008 to 2016. Ordinary least square (OLS) model of regression was analyzed to assess the impact as well as test the hypothesis of the study whether there is a relationship and the extent of the relationship between the independent variable (corporate social responsibility expenditure) and the dependent variable (profit after tax). The hypothesis that was formulated was tested and the result shows that there is significant positive relationship between corporate social responsibility and profitability in case of SBI.

Keywords: Corporate social responsibility, corporate financial performance, SBI, profitability