Corporate Social Responsibility Disclosure And Corporate Financial Performance: A Study Of Indian Software And IT Sector

Abstract

Till date organizations used corporate social responsibility (CSR) as competitive advantage to show case their concern and behave in responsible manner by voluntary contribution for social development. But compulsory contribution of 2% profits for CSR activities make it matter of importance given in strategies formulation these days, due to implied accountability on corporate to justify their operation with respect to society and environment. In this regards sector specific activities differ on the basis of impact they made on society and environment. The aim of this paper is to identify reporting pattern of IT specific companies and find out the impact of size and profitability on disclosure norms. Content analysis and regression was used to fulfil the objectives. Annual reports of 17 IT companies which come under top 500 companies were selected for the study on the basis of income was collected from the official website of the companies. The results indicates that social issues are more important in comparison to environmental issues for CSR contribution and large companies contribute and disclose more but most of the companies contribute in the growth of society for long term sustainability. So CSR and financial performance of a company are interlinked and same goes with corporate social disclosure.