India has the world’s richest record of Corporate Social Responsibility (CSR). The concept of Corporate Social Responsibility may be new to the corporate world, but it was originated from Mauryan period, where philosophers like Kautilya tinted moral ethics and practices while operating business.  “Corporate Social Responsibility is the continuing commitment by the business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” Today, companies are expected to be answerable, accountable, and responsible to benefit the society as a whole. The initiatives like ISO 14001, SA-8000, OHSAS-18001 ISO -26000, Global Reporting initiative and the Global Compact etc. are a good initiation towards CSR. Several regulatory changes have been introduced by the government over time to ensure organizations and companies play their part in CSR initiatives, for example, section 135 and schedule VII of the companies Act. as well as the CSR provisions of the Companies’ Act 2014. This paper aims at studying the CSR expenditure of top 4 Indian fertilizer companies and relationship between their financial performance and CSR expenditure. The study outcome that there is significant positive relation between Corporate Social Responsibility and financial parameters such as Profit After Tax and Earning Per Share. Hence government should encourage the organizations to spend on CSR initiatives, which will not only promote environment sustainability and social causes, but this will also promote the gesture of giving back to the society and environment. Additionally, for organizations, it will impact consumer satisfaction and will positively boost their brand image.

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Keywords: Corporate Social Responsibility (CSR), Financial Performance, Profit After Tax (PAT).