Research on the role of CSR in a firm’s value creation is at a nascent stage. It is evolving due to a changing business environment, an expanded idea of CSR, and globalization. As managers demand a
more instrumental, pragmatic approach towards valuation while creating a competitive advantage for a firm, the impact of CSR initiatives towards sustainable development goals (SDGs) on profitability is
examined in the thesis. The impact of CSR on market value, social value, and sustainable value creation by Indian non-financial firms and banks is examined to meet the laudable goal of satisfying legitimate
stakeholder claims. Since the institutional environment and strategic decisions of the firm through ownership and governance impact the firm, the moderating role of promoter ownership, pressure sensitive
institutional investor (PSII) ownership, earnings management, and diversification strategy between CSR and the firm’s value highlights the integrated role of CSR for a firm. A sample of large asset-based non-financial firms in India found that SDG activities, particularly those
aligned with CSR2 (Education) and CSR4(Environment), increase firm’s profitability. Though SDG goals have no sectorial effect on firm performance, expenditure on education increases the profitability
of highly polluting Indian firms. An analysis of 1845 non-financial firms depicts the positive impact of CSR on market value, social value, and sustainable value of firms in line with stakeholder theory, and
there is a positive moderating role of PSII on market and social value and a positive moderating role of promoter ownership on market value. The positive impact of CSR on market value implies that capital
markets reward firms for taking CSR, and an increase in sustainable growth shows long-run sustainability without depending on leverage. Firms with a diversified structure through their CSR investments competitively position themselves towards incremental market value, social value, and sustainable value. Earnings management acted as a negative moderator between CSR and sustainable value. A regression of 20 Indian banks also revealed the positive impact of CSR activities on market value. CSR commitment and earnings persistence increase sustainable value in banks. Participation of banks in specific CSR activities like education and healthcare, skill development, etc., is associated with higher returns from their lending activities to customers, creating social value addition and business risk reduction.