A study on corporate social responsibility with special reference to selected Banks in Karnataka

Abstract

Corporate Social Responsibility (CSR) is referred to as the business responsibility and an organization s actions on environmental, social, ethical and economic issues of its surroundings. It is usually described in terms of a company considering, managing and balancing the economic, social and environmental impacts of its activities. A business organization cannot work in isolation and the extent to which a business organization should consider the environmental, ethical and social issues in its working foregoing a part of its profit for the betterment of the society as a whole, the constituents of which are its employees, environment, moral and ethical issues etc. A company which fails to do so is jeopardizing its commercial future. In India, the ethical and moral model initiated by Mahatma Gandhi during 1930s is well known which affirmed the responsibility of family-run-businesses conducting social and economic activities. Corporate social responsibility has no standard definition. However, we can generally define that it is a type of contribution/s from the corporate houses out of their profit to the various aspect of social development of the society. Whatsoever business houses functions in the domestic and global economy. They have to respond the local social needs in which they are working. On other hand they have to also address the needs of the share holder s demands on time. The Banking sector is the lifeline of any modern economy. It is one of the pillars of the financial system, which plays a vital role in the success/failure of an economy. India has one of the most extensive banking structures in the world and these institutions basically aimed to provide financial services to society and make profit out of their business. They are not the charitable institutes. However, they may need to fulfil corporate accountability, responsibility and stewardship. In a most philosophical meaning we can say since banks are working in the society they must address the social problems by sharing small portion of their total profit. Hence, through their social interventions Banks not only get social reorganizations but also good branding. Because it is widely found that any general decision of Banks will impact upon society and environment in one way or other. Good CSR increases reputation and branding of any business house. A detailed literature research from various journals, articles, thesis and reports has confirmed that banks have been facing institutional and financial constraints concerned to planning, implementing and disclosing the CSR activities. This study is undertaken to understand and analyse the perception, practice and execution of CSR activities of the selected banks in Karnataka. Some of the tools and techniques such as Mean, Standard Deviation, Frequency and accounting software s such as Microsoft Excel and SPSS are used for analysing the primary data collected through structure questionnaire as well as CSR contributions of last 5 years (secondary sources). Karl Pearson s co-efficient of correlation and multiple regression analysis used for testing the hypotheses. Indian banking industry is making efforts in the CSR initiatives through appropriate schemes but still there is a requirement of more emphasis on strategic planning for new schemes, implementing, reporting and evaluating the CSR initiatives. The majority of the studied banks are neglecting some areas such as infrastructure support, economic and social causes and others such as art, culture, sports etc. and also recommended that RBI must frame regulations towards CSR for all kinds of the Banks in India. newline