Sustainability Through CSR and its Impact on Financial Performance (A Case Study of Tata Consultancy Services)

Abstract

Corporate Social Responsibility (CSR) has emerged as a central pillar of sustainable business practices globally, particularly in India, where it is mandated by the Companies Act, 2013. This study critically examines the relationship between CSR and profitability through the lens of Tata Consultancy Services (TCS), a leading IT services company in India. Focusing on Section 135 of the Companies Act, which mandates CSR expenditure for qualifying firms, and the areas outlined in Schedule VII, the paper evaluates TCS's strategic integration of CSR into its operational and financial frameworks. Using ten years of financial data (2014-2024) and statistical tools like correlation and regression analysis, the study finds that profitability significantly influences CSR expenditure. By aligning its initiatives with statutory requirements, TCS demonstrates how compliance can drive corporate reputation, stakeholder trust, and operational efficiency. This paper contributes to the discourse on how regulatory frameworks can shape sustainable business practices, offering insights for companies navigating similar mandates.