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@article{205203,
        author = {Shubham Singh and Dr. Jyoti Ignace Tete and Dr. Ajay kumar},
        title = {Role And Impact of Corporate Social Responsibility In Profitability of Business A Case Study of Ranchi District, Jharkhand},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {1},
        pages = {6442-6451},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=205203},
        abstract = {Corporate Social Responsibility (CSR) is no longer viewed merely as a voluntary act of philanthropy. Over time, it has evolved into an important business strategy that can influence a company's financial performance and long-term sustainability. In India, the introduction of Section 135 of the Companies Act, 2013 made CSR spending mandatory for eligible companies, creating greater interest among researchers, policymakers, and business leaders in understanding whether CSR investments contribute to improved profitability. Against this backdrop, the present study explores the relationship between CSR activities and business profitability in Ranchi district, Jharkhand, a major industrial centre known for its mining and public sector enterprises such as CCL, NTPC, HEC, MECON, and Power Grid Corporation.
The research follows a descriptive and analytical approach and relies on secondary data collected from sources including the MCA CSR Portal, CMIE Prowess database, annual reports of selected companies, and the Open Government Data Platform. The analysis covers the period from FY 2020–21 to FY 2023–24. To assess financial performance, three commonly used accounting indicators—Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE)—have been considered as dependent variables. CSR expenditure and CSR intensity are used as the key independent variables, while firm size has been incorporated as a control variable to account for differences in the scale of operations among the selected companies.
Preliminary findings indicate that companies with higher CSR spending tend to report stronger profit margins, suggesting a positive relationship between social investment and financial performance. This observation is broadly consistent with existing research, which argues that well-planned CSR initiatives—particularly those focused on education, healthcare, and community development—can create both operational advantages and reputational gains for businesses. Such initiatives often strengthen stakeholder relationships, improve public perception, and contribute to a more supportive business environment.},
        keywords = {Corporate Social Responsibility, Business Profitability, CSR Expenditure, Public Sector Undertakings.},
        month = {June},
        }