Association of Corporate Social Responsibility on Performance of Selected Public Sector Enterprises in India

Association of Corporate Social Responsibility on Performance
of Selected Public Sector Enterprises in India
Final report
Submitted for the fulfilment for the degree of
Bachelors of Commerce
Under the Supervision of: Submitted by:
Prof.Pramod Kumar Mahek
Head of Department of Accountancy and Law B.Com (Hons.)
Faculty of Commerce 142023
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DAYALBAGH EDUCATIONAL INSTITUTE
CertiFiCate
Certified that the Dissertation entitled “ASSOCIATION OF CORPORATE SOCIAL
RESPONSIBILITY PRACTICES ON PERFORMANCE OF SELECTED PUBLIC SECTOR
ENTERPRISES IN INDIA” submitted by MAHEK, to the DAYALBAGH EDUCATIONAL
INSTITUTE, Dayalbagh, Agra, for the fulfillment of the degree of “BACHELOR OF
COMMERCE (HONS.), is a record of bonafide research work carried out by her,
under my supervision, further, this work has not been submitted for award of
any other degree.
Place:
Date:
Prof. Pramod Kumar
(Project Supervisor)
Head, Department of Accountancy and Law
Dayalbagh Educational Institute
Dayalbagh, Agra
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DeClaration
I solemnly affirm that the project report entitled “ASSOCIATION OF CORPORATE
SOCIAL RESPONSIBILITY PRACTICES ON PERFORMANCE OF SELECTED PUBLIC
SECTOR ENTERPRISES IN INDIA” embodies an original piece of work carried out
by me under the supervision of Prof. Pramod Kumar, Head, Department of
Accountancy & Law, Faculty of Commerce, Dayalbagh Educational Institute (DEI),
Dayalbagh, Agra, and has not been submitted, either in part or full, or any other
University/Institute for the award of any other degree.
DATE: MAHEK
B.Com (Hons.)
Deptt. Of Accountancy & Law
Faculty of Commerce
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aCKnoWleDGeMent
Research is a long journey, which cannot be accomplished without assistance from varied quarters.
Here, I would like to acknowledge all those who helped me during this memorable task of my lifetime.
First and foremost with folded hands I thank “ALMIGHTY GOD”, who blessed me with the power to
successfully complete the task.
No words will ever be adequate to express my lifelong indebtedness to my institute, Dayalbagh
Educational Institute (Deemed University). I am fortunate enough to complete this work from such an
institute.
The first person I would like to thank is my supervisor, Prof. Pramod Kumar. During these years, I have
known him as a sympathetic and principle-centered person. His overly enthusiasm and integral view on
research and his mission for providing “only high-quality work and not less”, has made a deep
impression on me. His true knowledge and skills made him a constant oasis of ideas and passions in
commerce, which exceptionally inspire & enrich my growth as a student. Besides, he has been a true
friend of mine throughout the period of study. I am really glad that I have come to know him in my life.
I am grateful to all the teachers of the department –Prof. P.D. Saini, Prof. Nidhi Sharma, Prof. L.N. Koli,
Dr. Rakesh Kumar, Dr. Sanil Kumar for their valuable suggestions & necessary guidance at every step
which I needed the most.
The chain of my gratitude would be definitely incomplete if I would fail to thank the library members of
the faculty providing me the no. of books at the right time. I owe my sincere gratitude to the members
of my family.
Besides, I will be failing in my duties without paying my sincere gratitude to all those who have not
been named individually but helped me at various stages of this work in all possible ways.
MAHEK
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preFaCe
With the increased concentration on the Corporate Social Responsibility, firms are not only required to
focus narrowly on generating profit returns for shareholders. Hence, nowadays, both having a decent
Corporate Social Responsibility performance and adding profitability are t he significant aspects for the
company to achieve the sustainable success in the long-term.
The present study has been carried out with the following objectives-
i. To determine the association of Corporate Social Responsibility (CSR) on organizational
performance.
ii. To compare the key Corporate Social Responsibility practices undertaken by selected public
and private sector companies.
The data has been collected from secondary sources only. The secondary sources include data collected
from Annual Reports, Journals and Corporate Social Responsibility Report of the selected public and
private sector companies.
Though the study has been done with all the possible ways and means to reduce the limitations, the
following are the limitations-
i. The study is conducted only with the reference of Corporate Social Responsibility practices
undertaken in selected companies.
ii. The sample size is limited to only four companies considered in the study.
The study has been divided into five chapters. Chapter I deals with Introduction part of the study. It
covers the conceptual framework of Corporate Social Responsibility and research purpose.
Chapter II discusses the past literature reviews made for the purpose of the study to find out the
research gap. Chapter III discusses the company profile of selected public and private sector companies.
Chapter IV analyses the comparative performance of selected public and private sector companies.
Chapter V summarizes the findings, submits the conclusion and suggestions of the study. These
suggestions of the study should certainly help in improving the financial performance of the companies
and also offers a wide scope for future research on this topic.
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taBle oF ContentS
SERIAL NO. TOPICS PAGE NO.
1. CERTIFICATE
2. RESEARCHER’S DECLARATION
3. ACKNOWLEDGEMENT
4. PREFACE
5. TABLE OF CONTENTS
6. INTRODUCTION
• NEED OF THE STUDY
• OBJECTIVES OF THE STUDY
• RESEARCH METHODOLOGY
7. REVIEWS OF LITERATURE
• NATIONAL REVIEWS
• INTERNATIONAL REVIEWS
8. COMPANY PROFILE
• BHARAT PETROLEUM CORPORATION LIMITED
• GAS AUTHORITY OF INDIA LIMITED
• TATA STEELS LIMITED
• MAHINDRA AND MAHINDRA LIMITED
9. ANALYSIS & INTERPRETATION
10. SUMMARY OF FINDINGS,CONCLUSION AND SUGGESTIONS
11. REFERENCES & BIBLIOGRAPHY
12. ANNEXURES
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The concept of Corporate Social Responsibility was introduced in 1960. Initially the main concerns of
Corporate Social Responsibility were employment opportunities, health and safety issues. Nowadays,
Corporate Social Responsibility is not just focusing on the health and safety issues but it is also focusing
on environmental and ethical matters.
Corporate Social Responsibility is basically used as a competitive tool by the organizations to get the
competitive advantage and corporate resources. It is a management concept whereby company integrate
social and environmental concerns in their business operations and interactions with stakeholders.
DEFINITIONS
The idea of Corporate Social Responsibility first came up in 1953 when it became an academic topic in
H.R. Bowen’s “Social Responsibilities of the Business”. Corporate Social Responsibility is defined by a
number of authors. Some of the famous definitions are:
According to Bowen, “CSR refers to the obligation of businessman to pursue those policies to make
those decisions or to follow those lines of relations which are desirable in terms of the objectives and
value of our society”.
According to World Bank Group, “CSR is the commitment of business to contribute to sustainable
economic development by working with employees, their families, the local community and society at
large, to improve their lives in ways that are good for business and for development”.
According to Forbes (2010),“Corporate Social Responsibility works in two ways. The company gives
back to the society, in turn, people get to know about the company who helped them most and cater to
their products and services”.
According to World Business Council for Sustainable Development, “ CSR is the continuing
commitment by business to have ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as the local community and society at large”.
GREEN SUPPLY CHAIN
Corporate Social Responsibility involves a commitment to contribute to the economic, environmental
and social sustainability of the community through the continuous contribution of stakeholders, the
active participation of communities influenced by company’s activities and the public reporting of
company policies and performance in the economic, environmental and social areas.
There is a strong relationship between Corporate Social Responsibility and Green Supply Chain. One of
the most famous and effective tool to achieve green transformation in the corporate world is “ Green
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Supply Chain Management”. It focuses on sustainable design that increases environmental and social
awareness across the supply chain. Sustainable design involves reconstruction of design processes in
such a way so that current as well as future human needs can be met out without compromising with the
environment. The basic objectives of sustainability are to reduce consumption of non-renewable
resources, minimize wastage and to create healthy and productive environment.
NEED OF THE STUDY.
CSR is an emerging concept which goes beyond charity and requires the company to act beyond its legal
obligations and to integrate social, environmental and ethical concerns into company’s business. CSR
activities has an impact on organizational performance which can be measured by way of various
indicators such as profit, corporate image, sales and customer satisfaction. To understand such impact,
the study of CSR is needed.
The ultimate objective of public sector is to ensure social welfare by way of generating employment
opportunities and to earn profit. Nowadays, CSR has become mandatory according to Companies
Act,2013 and there is a need to know which sector (i.e. whether private sector or public sector) is doing
better CSR practices in present era.
OBJECTIVES OF THE STUDY
 To determine the association of Corporate Social Responsibility (CSR) on organizational
performance.
 To compare the key Corporate Social Responsibility (CSR) practices undertaken by selected
public and private sector companies.
RESEARCH METHODOLOGY
To accomplish the above objectives of the study, the following research methodology has been used.
Sample Size:
The sample size of the study was four large scale public and private sector companies.
Sample selection criteria:
Companies were selected on the basis of India’s top CSR and Sustainability Companies according to
Report of Forbes published in 2014.
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Source of data:
The data for the study was collected from secondary sources which includes
• Website (www.shodhganga.com, www.futurescape.com, etc.)
• Journals (Corporate Social Responsibility and Environmental Management and International
Journal of Corporate Social Responsibility)
• Annual Reports available on the websites
• CSR Reports published by the companies
Duration of the study:
For the purpose of analysis of data, a period of three financial years from 2012-13 to 2014-15 was taken
into consideration.
OBJECTIVE-WISE RESEARCH METHODOLOGY
1. To determine the association of CSR on
organisational performance
To attain this objective, statistical tools such as
correlation and regression along with accounting
tools such as profitability and efficiency ratios
has been used.
2. To compare the key CSR practices undertaken
by public and private sector companies
A Checklist from Annual Reports of companies
has been prepared for such comparison.
LIMITATION
-The study has been only with the reference of CSR practices undertaken in selected public sector
companies.
-The sample size has been limited to only 4 companies in this study
-The study has been concerned with the only one parameter of organization parameter.
10

CHapter: 2
reVieWS oF literatUre
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A literature review is a body text that aims to review the critical points of current knowledge including
substantive findings as well as theoretical and methodological contributions to a particular topic.
Literature reviews are secondary sources and as such do not report any new or original experimental
work.
 National Reviews
 International Review
 NATIONAL REVIEWS
S.No. YEAR AUTHOR TITLE OBJECTIVES RESEARCH
METHODOLOGY
FINDINGS
1. 2015 Rajesh K.
Yadav
Richa Jain
Custome-r’s
Percepti-on
Towards
CSR:A Case
Study of
Reliance Life
Insurance
1.To study the
CSR activities
performed by
Reliance Life
Insurance
2.To analyse the
overall business
performance of
Reliance Life
Insurance after
its successful
completion of
CSR activities
The whole study was
based on primary
data collected
through self-
structured
questionnaire
1.There is a significant
rise in the business
performance and a
very positive customer
perception towards
Reliance Life
Insurance
2.Customers being
aware are assertively
looking forward to
deal with companies
that are active in CSR
activities
2. 2013 Dr.M.
Ramana
Kumar
CSR
(Analysis of
Selected
Indian
Private and
Public Sector
Companies)
1.To analyse the
CSR activities
carried out by
Indian Private
(RIL) and Public
Sector companies
(ONGC)
2.To study the
Indian
Government
policies and
programmes of
CSR
The study was based
on secondary data
from the annual
reports of RIL and
ONGC
1.There is a significant
difference in the CSR
practices of RIL and
ONGC as the CSR
budget of ONGC is
more than RIL during
the year 2009-10 ,
2010-11, 2011-12 and
average CSR score of
ONGC is more than
that of RIL during
2009-13.
2. Though the Indian
private and public
firms are making
efforts in the CSR
areas, still there is
requirement of more
13

emphasis on CSR.
3. 2011 Monika
Hartman
CSR in the
food sector
To analyse the
importance of
CSR in the food
sector particularly
those companies
which have high
brand
The study was based
on secondary data
1.SME’s are less
capable of discharging
their obligations
towards society
2. Consumers show
preference for those
brands or food sector
that give importance to
CSR activities.
4. 2011 Roman
Lanis
Grant
Richardson
Is Corporate
Social
Responsibilit
y
Performance
associated
with Tax
Avoidance
To examine
whether CSR
performance is
associated with
corporate tax
avoidance
The study uses
secondary data for
analysis and uses
various statistical
techniques such as
correlation and
regression
1. The higher the level
of CSR performance of
a firm, the lower the
likelihood of tax
avoidance.
2. The CSR categorise
community relations
and diversity represent
particularly important
elements of CSR
performance that
reduce tax avoidance.
5. 2010 Debabrata
Chatterjee
Corporate
Governance
and
Corporate
Social
Responsibilit
y: The Case
of Three
Indian
Companies
To analyse the
corporate
governance
practice of three
prominent Indian
firms i.e. ITC
Ltd., Infosys
Tech. Ltd. And
RIL
The study was based
on secondary data
with the help of
sustainability reports
1. The study found that
though the corporate
governance practice
are exemplary, there
exists difference in the
way the companies
adopt these practices.
2. Infosys seems to be
doing much better than
the ITC and RIL.
6. 2010 Supriti
Mishra
Damodar
Saur
Does CSR
influence
Firm
Performance
of Indian
Companies
To examine
whether CSR
toward primary
stakeholders
influence the
financial and the
non-financial
performance of
Indian Firms
Perpetual data on
CSR and NFP were
collected through
questionnaire survey
and data on FP were
obtained from
secondary sources
Stock-listed firms
shows responsible
business practices and
better FP than the non-
stock-listed firms.
7. 2010 Shah
Bhaskar
CSR in an
Indian Public
Sector
Organisation
: A Case
Study of
BPCL
To examine the
initiatives
undertaken by
BPCL being a
public sector unit
The data collection
has been done
through personal
interviews with top
executives of the
company and
supplemented
There is a broad
relationship between
organisation and
society. Organisation
has its existence only
with the society. It was
found that company
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through other
information available
in the public domain
has taken a lot of
initiatives in order to
serve the society.
Being a Public Sector
Unit and true to its
mandate,BPCL has
undertaken lot of
innovate CSR
initiatives in and
around the areas of its
functioning
8. 2001 C.B.Bhatta
charya
Sankar Sen
Shuili Du
Corporate
Social
Responsibilit
y and
Competitive
Advantage :
Overcoming
the Trust
Barriers
To understand the
conditions under
which a brand’s
CSR actions can
serve as effective
instrument of
competitive
strategy, helping
it compete with a
formidable
market leader
The study was based
on primary data
1.The challenge can
reap superior business
returns among
consumers who had
participated in CSR
initiative relative to
those who were merely
aware of the initiative
2. The participant
consumers
demonstrate the
desired business
returns in favour of the
challenges.
 INTERNATIONAL REVIEWS
15

16
S.No. YEAR AUTHOR TITLE OBJECTIVES RESEARCH
METHODOLO
GY
FINDINGS
1. 2016 Saurabh
Mishra
Sachin B.
Modi
CSR and
Shareholder
Wealth: The
Role of
Marketing
Capacity
1.To evaluate the
role of marketing
capability in the
relationship between
CSR and shareholder
wealth
2.To find out
whether CSR efforts
affect stock returns
and idiosyncratic
stock risk only in the
presence of high
marketing capability
Secondary data
for a large
samples of 1725
firms for the year
2000-2009
indicates that the
effects of overall
CSR efforts on
stock return
Although marketing
capability has the
interaction effects
with verifiable CSR
efforts-
environment,
products, diversity,
corporate
governance and
employees on stock
returns. It has no
significant
interaction effect
with community-
based efforts
2. 2015 Satinder
Singh
Ashwarya
Sharma
CSR Practices
in India:
Analysis of
Public
Companies
1.To study the
regulatory
environment for the
CSR in India
2.To analyse the
CSR activities
carried by public
companies
The sources of
information are
various Indian
and International
journals,
Government and
respective
companies
websites. For the
analysis purpose
the Annual
Reports of the
respective
companies are
used
1.Regulatory
framework for CSR
in India is now
become mandatory
for all corporates to
follow from 2014.
2.Guidelines on
CSR practices
cover broadly all
categories like
sustainable
development,
education, poor
empowerment,
women
empowerment,
infrastructure
sports, etc.
3. 2014 Daniel
Korschun
C.B.
Bhattachar
ya
Corporate Social
Responsibility,
Customer
Orientation and
the Job
Performance of
frontline
employees
To examine the
frontline employee
responses to CSR
Use data set of
Global 500
financial service
company.
Employee survey
at the financial
service company
where the focus
groups were
conducted and
matched survey
responses with
supervisor rating
of job
performance
The frontline
employees identify
with the
organisation and
with customers as a
function of how
much the employee
recognize
management and
customers
respectively to
support the
company’s CSR
activities. However,
these respective
effects are stronger
among employees
for whom CSR is
already tried to
their sense of self.
4. 2014 Gabriel
Eweje
Introduction:
Trends in
Corporate Social
Responsibility
and
Sustainability in
To examine the
trends in CSR and
Sustainability in
developing and
emerging economies
The study was
based on
secondary source
of data. Uses
descriptive and
theoretical
Awareness on CSR
and Sustainability
concept is growing
in developing
countries and many
stakeholders

CHAPTER: 3
THEORITICAL OVERVIEW
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BHARAT PETROLEUM CORPORATION LIMITED
Bharat Petroleum Corporation ( BPCL) was established in 1952. It is one of the leading company in the
petroleum sector in.The 1860s saw vast industrial development. A lot of petroleum refineries also came
up. An important player in the South Asian market then was the Burmah Oil Company. Though
incorporated in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company,
which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper
Burma. The search for oil in India began in 1886, when Mr. Goodenough of McKillop Stewart
Company drilled a well near Jaypore in upper Assam and struck oil. In 1889, the Assam Railway and
Trading Company (ARTC) struck oil at Digboi marking the beginning of oil production in India.
On 24th January 1976, the Burmah Shell Group of Companies was taken over by the Government of
India to form Bharat Refineries Limited. On 1st August 1977, it was renamed Bharat Petroleum
Corporation Limited. It was also the first refinery to process newly found indigenous crude (Bombay
High), in the country.
Business area:
BPCL is into exploration, production and retailing of petroleum and petrol related products.The retail
busines unit of BPCL is into marketing of petrol, diesel and kerosene .It has network of 6553 retail
outlets and 1007 kerosene dealers and is partnered with big food chain companies
It also offers full range of automotive engine, gear oils, transmission oils, speciality oils and greases .It
caters to around 8000 industrial customers across India.It also provide Aviation Turbine fuel (ATF) to its
airline customers. Its subsidiary at Numaligarh has capacity of 3 MMTPA. BPCL is one of the supplier
of naptha in Andhra Pradesh has committed to AP Transco to supply sufficient quantities of naptha for
operation of its four power station. BPCL has launched a GPS technology for tracking vehicles for its
5,200 tanker trucks fleet.This system will help the company track the trucks for better logistic
efficiency.This will result in prevention of pilferages and fuel adulteration.
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GAS AUTHORITY OF INDIA LIMITED
GAIL India Limited is a premier flagship integrated Energy Company of India and is placed in coveted
'Navratna' category of Indian public sector companies. The Navratna Companies are the brightest face of
Indian public sector. It is a group of the most profitable and efficient central public sector undertakings
having more financial and administrative autonomy. Erstwhile it was known as Gas Authority of India
Limited. As per the guidelines, set up under the Industrial Policy
Resolutions in the initial years of national planning, the Government of India focused upon setting some
major industries for national development and self sufficiency. Oil and Gas sector were also the major
thrust areas and the government decided to follow a two point strategy for the effective regulation of oil
and gas. It was:
(i) Exploration and production of the gas, for which Oil and Natural Gas (Commission (ONGC) was set
up;)
(ii)The refining of the oil, for which the government established oil refining companies like Indian Oil
Corporation (IOC), Hindustan 149Petroleum Corporation Limited (HPCL) and Bharat Petroleum
Corporation Limited (BPCL).
Vision & Mission
The company in its true corporate identity has well defined vision and mission4 which sets the guidelines
for every job the employees perform or any project the company undertakes. Every individual working in
the company follows the vision and mission which are as under:
Vision
Be the Leading Company in Natural Gas and beyond, with Global Focus, Committed to Customer Care,
value creation for all Stakeholders and Environmental Responsibility.
Mission
To accelerate and optimize the effective and economic use of Natural Gas and its fractions to the benefits
of national economy.
Following these work ethics and core values, the company is today the number one energy company of
Asia and number two of the
Main Products
Telecom, Others, Other Sales, Other Services, Refinery (Crude Oil), HDPE, PP & LLDPE, Polymers,
Butene, Ethylene, Propane, Pentane, C2/C3 (Ethane/Propane), Solvents, Gas Natural, CNG, Liquefied
Petroleum Gas, Naptha,
20

MAHINDRA AND MAHINDRA LIMITED
Mahindra & Mahindra was established on October 2, 1945 when K.C. Mahindra visited the United States
of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged
'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its
invincibility on the battlefields of World War II be ideal for India's rugged terrain and its kutcha rural
roads. Swift action followed thought. The Mahindra brothers joined hands with a distinguished
gentleman called Ghulam Mohammed. And, Mahindra & Mohammed was set up as a franchise for
assembling jeeps from Willys, USA.
Two years later, India became an independent nation and Mahindra & Mohammed changed its name to
Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post–partition and became the first
Finance Minister of Pakistan.
Mahindra & Mahindra is the only Indian company among the top three tractor manufacturers in the
world. The Group has a leading presence in key sectors of the Indian economy.The Group employs over
50,000 people and has several state–of–the–art facilities in India and overseas.
Mahindra & Mahindra has comprehensive manufacturing facilities with high level of vertical
integration.
The business area of the company spreads to:
Automotive sector
The company manufactures & markets utility vechicles, light commercial vechicles that includes three
wheeler vechicles,namely; Scorpio, Bolero, Champion and many more. The company also exports its
products to several countries in Europe, Africa, South America, South Asia and the Middle East. M&M
has a tie up with Renault for production & marketing of Logan. Mahindra International is into producing
trucks and buses.The company has entered into a joint venture with Navistar for production of disel
engines & trucks.
Farm equipment
M&M's farm equipment segment has presence in six continents and has a worldwide network of 800
dealers .Its total combined production capacity is 1,50,000 tractors a year from countries like India, USA,
China and Australia. The company is also into agri business.
Trade, Retail & Finance
Mahindra’s Intertrade Division provides steel & steel related services. It offers steel raw materials,
metals, ferro alloys, etc. It also processes Cold Rolled Grain Oriented (CRGO) and Cold Rolled Non
Grain Oriented (CRNGO) steels that are required for transformers & compressors.Mahindra Retails is
into distribution business and has tie up with big names like Lego, Disney, Mattel and others.
Infrastructure
21

M&M has also entered Infrastructure development that operates in real estates, SEZs, hospitality, project
engineering and design.Under this it has created Mahindra Holiday & Resorts, Mahindra Lifespaces &
Mahindra World City.
TATA STEELS LIMITED
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the
top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum.
It is now the world's second-most geographically-diversified steel producer, with operations in 26
countries and a commercial presence in over 50 countries. The Tata Steel Group, with a turnover of Rs.
1, 48,614 crores in FY 14, has over 80,000 employees across five continents and is a Fortune 500
company.
Tata Steel’s larger production facilities comprise those in India, the UK, the Netherlands, Thailand,
Singapore, China and Australia. Operating companies within the Group include Tata Steel Limited
(India), Tata Steel Europe Limited (formerly Corus), Tata Steel Singapore and Tata Steel Thailand.
The Tata Steel Group’s vision is to be the world’s steel industry benchmark in “Value Creation” and
“Corporate Citizenship” through the excellence of its people, its innovative approach and overall
conduct. Underpinning this vision is a performance culture committed to aspiration targets, safety and
social responsibility, continuous improvement, openness and transparency.
In 2008, Tata Steel India became the first integrated steel plant in the world, outside Japan, to be
awarded the Deming Application Prize 2008 for excellence in Total Quality Management. In 2012, Tata
Steel became the first integrated steel company in the world, outside Japan, to win the Deming Grand
Prize 2012 instituted by the Japanese Union of Scientists and Engineers.
Indian Operations
Tata Steel founded India’s first industrial city, now Jamshedpur, where it established India’s first
integrated steel plant in 1907. The Jamshedpur Works currently comprises of a 9.7 mtpa crude steel
production facility and a variety of finishing mills.
Two new Greenfield steel projects are planned in the states of Jharkhand and Chhattisgarh. Kalinganagar
project is underway, it is set to augment production capacity by 3 MnTPA in the first phase.
Mines and collieries in India give the Company a distinct advantage in raw material sourcing. Iron Ore
mines are located at Noamundi (Jharkhand) and Joda (Odisha) both located within a distance of 150 km
from Jamshedpur. The Company’s captive coal mines are located at Jharia and West Bokaro
(Jharkhand).
22

CHAPTER: 4
ANALYSIS AND INTERPRETATION
23

OBJECTIVE 1: To determine the association of CSR on organizational performance
In order to determine the association of CSR on organizational performance , statistical tools such as
correlation and regression alongwith accounting tools such as profitability and efficiency ratios were
used.
 Use of statistical tools such as correlation and regression
YEARS
|CSR EXPENDITURE AS A % OF
PROFIT AFTER TAX RETURN ON NET WORTH CORRELATION REGRESSION
2012-13 .6765 15.88 0.829087818 0.687386609
2013-14 .8466 20.86
2014-15 1.4949 22.63
INTERPRETATION:
This graph indicates that as CSR expenditure increases, the return on net worth indicating
profitability also increases during the last three financial years.Thus,it indicates positive
relationship between CSR and firm’s performance.
24

YEARS
CSR EXPENDITURE AS % OF
2012-13 1.6074 16.73 0.969335953 0.939612189
2013-14 1.4307 16.28
2014-15 2.3655 17.36
INTERPRETATION:
This graph indicates as CSR expenditure falls in 2013-14, the return on net worth indicating profitability
of the company also decreases. And as CSR expenditure rises in 2014-15, return on net worth also rises.
Thus, it shows that there is a significant positive relationship between CSR and firm’s performance.
TATA STEEL LIMITED
YEARS
CSR EXPENDITURE AS A % OF
2012-13 3.3727 8.80 0.030946052 0.000957658
2013-14 3.3174 10.11
2014-15 2.6627 9.34
25

INTERPRETATION:
This graph indicates as CSR expenditure falls in 2013-14 it does not affect return on net worth in short
term. But as CSR expenditure falls in 2014-15 too, it results in fall in return on net worth. Thus, it shows
positive association between CSR and firm’s performance.
YEARS
CSR EXPENDITURE AS A % OF
PROFIT AFTER TAX RETURN ON NET WORTH CORRELATION
REGRESSIO
N
2012-13 0.4551 16.96 0.864084643 0.74664227
2013-14 1.3436 22.38
2014-15 2.5063 23.58
26

INTERPRETATION:
This graph indicates as CSR expenditure of the company increases during the last three financial
years , the return on net worth also increases.Thus it indicates positive association between CSR
and firm’s performance.
27

OBJECTIVE 2: To compare the key CSR practices undertaken by public and private
sector companies.
In order to achieve this objective, checklist was prepared from the Annual Reports of the companies and
statistical tool i.e. standard deviation has been used.
Checklist 1:-
S.No. PARAMETERS 2012-13 2013-14 2014-15
1. Promoting Education   
2. Conservation of Natural Resources   
3. Skill Development 
4. Women Empowerment
5. Protection of National heritage,art and culture
6. Promote health and hygiene   
7. Community Development   
8. Contribution to Technology Incubators
9. Contribution to Prime Minister’s National Relief Fund
10. Training to promote rural sports
11. Measures for the benefit of armed forces veterans
12. Care of the elderly and the disabled
13. Environment Protection  
14. Supporting the Prime Minister’s Clean India campaign
under Swachh Bharat Vidyalaya Program
TOTAL 4 5 6
28

Checklist 2:-
S.No. PARAMETERS 2012-13 2013-14 2014-15
2. Conservation of Natural Resources  
3. Skill Development  
8. Contribution to Technology Incubators  
9. Contribution to Prime Minister’s National Relief Fund  
12. Care of the elderly and the disabled 
13. Environment Protection

TOTAL 5 6 8
29

Checklist 3:-
TATA STEEL LIMITED
S.No. PARAMETERS 2012-13 2013-14 2014-15
2. Conservation of Natural Resources 
3. Skill Development
5. Protection of National heritage,art and culture 
8. Contribution to Technology Incubators   
9. Contribution to Prime Minister’s National Relief Fund   
10. Training to promote rural sports 
TOTAL 5 5 8
30

Checklist 4:-
S.No. PARAMETERS 2012-13 2013-14 2014-15
2. Conservation of Natural Resources 
3. Skill Development   
9. Contribution to Prime Minister’s National Relief Fund 
10. Training to promote rural sports 
12. Care of the elderly and the disabled 
13. Environment Protection   

TOTAL 5 7 8
31

INTERPRETATION:
YEARS X MEAN (X-MEAN) (X-MEAN)2 STANDARD
DEVIATION
2012-13 4 5 -1 1 .81
2013-14 5 5 0 0
2014-15 6 5 1 1
TOTAL 15 2
DEVIATION
2012-13 5 6.34 -1.34 1.7956 1.24
2013-14 6 6.34 -.34 0.1156
2014-15 8 6.34 1.66 2.7556
TOTAL 19 4.6668
TATA STEEL LIMITED
DEVIATION
2012-13 5 6 -1 1 1.41
2013-14 5 6 -1 1
2014-15 8 6 2 4
TOTAL 18 6
32

DEVIATION
2012-13 5 6.67 -1.67 2.7889 1.24
2013-14 7 6.67 0.33 0.1089
2014-15 8 6.67 1.33 1.7689
TOTAL 20 4.6667
SUMMARY TABLE:
S.No. COMPANY’s NAME STANDARD
DEVIATION
1. Bharat Petroleum Corporation Limited 0.81
2. Gas Authority of India Limited 1.24
3. Tata Steel Limited 1.41
4. Mahindra and Mahindra Limited 1.24
INTERPRETATION:
This table shows that Bharat Petroleum Corporation Limited had least standard deviation (0.81) which
implies that BPCL had more consistency in the performance of CSR activities in comparison to the
other selected companies.
33

CHAPTER: 5
SUMMARY OF FINDINGS,
CONCLUSION AND SUGGESTIONS
FINDINGS: -
• The study revealed that there is a significant positive association between CSR practices and
organizational performance.
• All the selected companies fulfilled the required provision of the CSR.
34

• BPCL had least standard deviation i.e. 0.81 in the performance of CSR activities during the last
three financial years.
• As BPCL had least standard deviation, it indicates that BPCL performs better CSR practices as
compared to other selected companies.
• GAIL had highest correlation coefficient i.e. 0.99 which implied its CSR expenditure influences
its profitability positively.
CONCLUSION: -
Until late in India, the mission of business firms was exclusively economic. But, with the
business environment being characterized by various developments including the shift of power
from capital to knowledge, increased levels of literacy, and the shrinkage of geographical
boundaries due to faster means of tavel and communication , people are , by and large,
becoming conscious of their rights, which has led to a rise in the expectations of the common
man from business.
The main aim of the study is to determine association between Corporate Social Responsibility
practices and firm’s performance. This study has been established a significant positive
association between CSR and Organization performance.
SUGGESTIONS: -
 This study indicates CSR is now considered as an investment not as expenditure therefore companies
should invest in performing CSR because if firms do so they will get more financial benefits than
what invested in CSR.
 In addition, companies should not only invest on CSR but also disclose its spending on CSR to all
stakeholders that how, where and what amount they have invested in CSR. Companies invest a lot of
money on advertisement to create a good image in the mind of customers but if they also invest a
little portion of this amount on CSR can also build good image.
 Corporate social responsibility manages reputation by creating good image in the mind of customers,
suppliers etc. Stakeholders will think that when a company is fulfilling its social responsibility then
how it is possible that it will do anything bad for them, so their trust will enhance on company.
Stakeholders trust will impact on company’s profitability and success. Therefore, it was concluded
that corporate social responsibility has positive impact on the financial performance of a firm.
 As with the passage of time competition between the firms is increasing and stakeholders can easily
switch from one firm to another therefore firms should do more and more to attract stakeholders so
that companies financial performance increase. Therefore, firms should spend on performing socially
35

responsible activities Impact of corporate social responsibility on the firm’s financial performance
and by this companies will protects itself from complaints, objections, and lawsuits which occur
because of destroying atmosphere and injuring employees due to hazardous operations of companies.
Suggestions For Future Research :-
 Identification of reasons and benefits of practicing corporate social responsibility in different sectors
of business can have a scope for further research along with development of company ethics
programme, integration of business ethics & ethics training to the staff.
 A study involving other independent variables such as corporate reputation, organizational climate &
sustainability can be undertaken to find out its effect on corporate social responsibility.
 Companies should integrate social entrepreneurship into their core culture by actively channelizing
their research and development capabilities in the direction of socially innovate products and
services.
36

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2347-3207
 Hartmann, Monika (2011). “Corporate Social Responsibility in the food sector”. European
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and Applied Management Research, ISSN: 2349-5677 Volume 1, Issue 11, April 2015
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 Daniel Korschun, C.B. Bhattacharya, and Scott D. Swain (2014) Corporate Social
Responsibility, Customer Orientation, and the Job Performance of Frontline Employees.
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BIBLIOGRAPHY
38

• Corporate Social Responsibility and Environmental Management
• International Journal of Corporate Social Responsibility
WEBSITES
1. www.kpmg.com/ifrs
2. www.icwai.org
3. www.icsi.edu
4. www.researchgate.com
5. www.scholar.google.com
6. www.wikiwords.org
7. www.brkacademy.com
8. www.icfaipress.org
39

Checklist
S.No. PARAMETERS 2012-13 2013-14 2014-15
1. Promoting Education
2. Conservation of Natural Resources
3. Skill Development
6. Promote health and hygiene
7. Community Development
9. Contribution to Prime Minister’s National Relief Fund
TOTAL 5
41

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