Abstract
The relationship between Corporate Social Responsibility (CSR) and Corporate Financial Performance (CFP) has been one of the most debated topics in finance and management literature. While earlier research generally suggested a positive relationship, findings remain inconsistent due to differences in measurement, methodology, and context. This narrative review synthesizes evidence from 43 peer-reviewed studies published between 2015 and 2025 to provide a thematic understanding of the CSR-CFP relationship. The review identifies five major themes: CSR as a valueenhancing investment, CSR as a financial burden, the non-uniformity of CSR-CFP relationships, CSR and specific financial dimensions, and CSR-CFP linkages in emerging economies. By distinguishing financial performance into shareholder value, profitability, cost of capital, risk, and capital structure, this study presents a multidimensional view of how CSR affects firm financial outcomes. Evidence suggests that strategically aligned and authentic CSR practices generally enhance financial performance by building reputation, stakeholder trust, and risk reduction, whereas mandatory or symbolic CSR initiatives often yield neutral or negative impacts. Special emphasis is placed on the evolving CSR provisions in the Indian economy following the Companies Act (2013), which institutionalized CSR as a mandatory requirement. By integrating thematic insights into a coherent structure, this review clarifies the conditions under which CSR strengthens or weakens financial performance and offers insights into key methodological and contextual moderators, while also proposing a structured framework for future research across varied institutional settings.
Keywords: Corporate Social Responsibility, Emerging Economies, Financial Performance, Narrative Review, Profitability.