Sectoral Analysis of Csr Spending and Its Influence on Profitability: a Comparative Study of It, Pharma, and Automobile Industries in India

Abstract:

This study looks at how CSR spending differs across the IT, Pharmaceutical, and Automobile industries in India, and how it affects company profitability. The research is based on 15 large-cap companies (5 from each sector) and examines their CSR spending along with key financial measures like ROA, ROE, and Net Profit Margin. By using comparative analysis and ANOVA, the study finds that there are clear differences in both CSR spending and profitability across these sectors. The IT industry shows more consistent CSR investment and stable financial performance, while the Pharmaceutical and Automobile sectors show more variation in both CSR spending and profitability. The results suggest that the impact of CSR is not the same in every industry it depends on factors such as industry nature, regulations, and size of operations. Overall, the study helps managers and policymakers understand how to design better CSR strategies that can improve financial performance while also supporting sustainable development.