The study contributed to the debate on the link between CSR and financial performance of the corporate sector on the basis of information on CSR and financial performance indicators (CFP) for top 100 listed companies in India between 2005 and 2020. Structural equation modelling tools were used to assess the relationship between the composite variables CSR and CFP. The companies were also classified into two groups namely, mineral-based and non-mineral-based. The study found a significant and positive effect of CSR on CFP. However, the study found interesting differences in the route of such effect for mineral and non-mineral groups of companies. While the positive CSR-CFP relationship in non-mineral-based companies was primarily due to enhancement in their internal resource management efficiency and increase in productivity, for mineral-based companies, it was more driven by legitimacy and community reputation concerns.
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