SUCHITRA A.

“CORPORATE SOCIAL RESPONSIBILITY PRACTICES OF KERALA BASED

LISTED COMPANIES ” THESIS DEPARTMENT OF COMMERCE , PSMO COLLEGE,
THIRURANGADI ,UNIVERSITY OF CALICUT.
 Chapter 1
INTRODUCTION
1.1 Introduction
1.2 Significance of the study
1.3 Research Problem
1.4 Objectives of the study
1.5 Variables used for the study
1.6 Scope of the study
1.7 Operational Definitions used in the study
1.8 Research Methodology
1.9 Period of Study
1.10 Limitations of the Study
1.11 Presentation of the report
References
Chapter 1 Introduction

1.1 Introduction

Corporate Social Responsibility – this can be considered as the most discussed,

criticized and substantiated concept of the era. It deals with the business of the
business which is beyond financial numbers. People, precisely called as stake holders
are demanding more and more from the corporate houses. The need for practices like
corporate social responsibility, corporate governance can be attributed to the growing
expectations of the people around business.

Till the late twentieth century, the mission of business firms was exclusively
economic. With the business environment being characterised 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 travel and communication,
people are by and large, becoming conscious of their rights which has led to a rise in the
expectations of society from business. An organisation definitely receives all its necessary
input from the society and there starts the obligation towards the people. CSR has
increasingly become an important activity nationally and internationally. In recent years it
has become a fundamental business practice and has gained much attention of the
management and board of directors of the companies as it helps them in achieving good
business practices and effective leadership. It can also be observed that the way today’s
corporate approach different social causes have changed considerably. It had changed
from mere charity to empowerment.

CSR is generally viewed as the business contribution to sustainable

development. Sustainable development is a concept which gains relevance day by day
in the current scenario. Sustainable development can be defined as “development that
meets the present needs without compromising the ability of future generations to
meet their own needs”. When the triple bottom line concept (social, economic,

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Chapter 1 Introduction

environment) work with the concept of sustainable development CSR become way an
organisation try to achieve a balance between economic, social and environmental
aspects while addressing the stakeholder expectations. So CSR has made an
imperative change in the way a business is done. The concerns of the managers have
shifted from mere economic aspect and they give due weightage to legal, ethical,
moral, social and environmental impact of their actions while making a decision.

CSR has its roots in the thinking of 20th century where the thinkers made
suggestions to incorporate religious principles to business activities. It started with
philanthropy where rich and generous people made contributions for the upliftment of
downtrodden. The evolution happened gradually and lead to the steward principle which
required the business and wealthy individuals to act as the caretakers of the society. It
required the utilisation of the society’s resources for the wellness of the society as a
whole. Bowen, Carroll had their role in giving a definition to the concept of CSR.

One of the most accepted definition of CSR was given by World Business
Council for Sustainable Development as “Corporate Social Responsibility is the
continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as
well as of the local community and society at large.

1.1.1 CSR in India

India has a richest tradition as far as corporate social responsibility is

concerned. Even though the name was different in different periods, the concept of
CSR dates back to over 100 years. This concept involved in the country from
merchant charity to philanthropy and then to social responsibility. Industrialists like
Bajaj, Birla and Tata established trusts and foundations and carried out many social
initiatives. Later Gandhiji’s idea of trusteeship was accepted by the industrialists and
they involved in social reform through rural development, education and women
empowerment. The next stage lead to the formation of the concept of social
responsibility and the nationwide seminars conducted in this regard accelerated the

2
Chapter 1 Introduction

process. Finally businesses have started to accept CSR as a sustainable business

strategy and woven the practice of social responsibility with their business. All the
pioneers like Azim Hashim Premji, Shiv Nadar, and Wipro etc. continued to
contribute to the society through various initiatives and the concept of CSR started to
derive a formal shape since the introduction of Voluntary Guidelines in 2009 by the
Ministry of Corporate Affairs. This was followed by further guidelines in 2011 and
then to the introduction of mandatory CSR in the Companies Act 2013.

1.1.2 CSR fund flow in India from 2014-15 to 2018-19

After the introduction of mandatory CSR when we look back, it can be

concluded that India had done a good job in this regard. According to a study conducted
by NGO BOX CSR BOX regarding the CSR fund flow in India, we see an array of
business to government and government to business collaborations taking place in the
areas of education, health care, rural development, and road safety awareness. The study
also reveals that the total CSR fund investment by the companies in India is going to
cross 50,000 crores by March 2019.Education is the most invested sector followed by
healthcare and sanitation initiatives. The study was based on the big 500 companies of
the country and the following are the major findings.

 CSR compliance in-line with the prescribed CSR/year is going to increase and
would reach in the range of 97-99% by FY 2019-20.

 Education is the most preferred intervention area for companies, especially

companies with medium CSR budget, and this is expected to remain the most
preferred theme for years to come.

 CSR compliance level is set to increase, and in-depth (detailed) disclosures in

the annual reports will be a common practice

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Chapter 1 Introduction

Figure 1.1: Percentage of CSR spending from 2014-15 to 2018-19

Percentage of CSR spending from 2014-15 to 2018-19

0.60% Poverty Alleviation, Health Care and WASH

6.50% Education and Skills
Gender Equality and Women Empowerment
1.50% 12.30%
29.40% Protection of Heritage and Art
1.90% Benefits of Armed Forces Veteran
0.30% Environmental Sustainability

10.10% Technology Incubation

Rural Sports and Paralympic

0.20% Prime Minister's National Relief Fund

1.70% Rural Development
32.30%
3.20% Urban Slum Development
Other ( Admin, Misc.Projects)

Source: Report of NGO BOX and CSR BOX

 It is clear from the graph that education is the most invested sector i.e. about
15000cr and it is followed by poverty alleviation, healthcare and WASH
initiatives (the projected amount is 14094 crores). Rural development and
Environmental Sustainability also topped the list.

 Maharashtra topped the state- wise list of CSR spending. It contributed 15.59%
of the total CSR spending in India.

Table 1.1: State wise CSR spending for the year 2018

State % of Share in India’s CSR Fund Rupees in Crores

Maharashtra 15.59% 7473
Rajasthan 6.18% 2962
Karnataka 5.95% 2852
Gujarat 5.28% 2531
West Bengal 4.55% 2181
Tamil Nadu 4.54% 2176
Odisha (Orissa) 4.53% 2171
Andhra Pradesh 4.52% 2166
Jharkhand 3.60% 1725
Telangana 3.23% 1248
Source: Report of NGO BOX CSRBOX

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Chapter 1 Introduction

 Reliance Industries Limited tops the companies list regarding the CSR
spending. It is followed by ONGC Ltd. And TCS Ltd.

It is high time that the CSR initiatives in India take a new deviation by entering
into new collaborations and partnerships for the effective implementation of CSR. As
quoted in the report of NGOBOX “Shared vision and mission, shared objectives and
co-created programmes by companies, not for profits and government agencies, are
the future of corporate social responsibility and sooner we adopt that, the better our
programs and greater our impacts will be”

1.1.3 CSR and Stakeholders

“Corporate Social Responsibility is measured in terms of businesses improving

conditions of their employees, shareholders, communities and environment.”

- Klaus Schwab, Chairman, World Economic Forum

This quote reveals the relevance of stakeholders and today our corporate are
increasingly interpreting CSR in terms of the interest of a specific but a large and
diverse segment of stakeholders. Corporate strongly believe that the attempts made in
CSR domain will help in generating favourable responses from the stakeholder group.
CSR can foster very strong and positive relationships with the stakeholders of the
company. The key for creating value from CSR lies in understanding the stakeholder’s
perception and interpretation of the CSR activities. So having a stakeholder approach
is the key to the success of any corporate house in the modern world.

1.1.4 CSR for Community Development

By community development, it is the improvement or benefits the community

members have derived in different aspects of their life like health and sanitation,
education, living standards etc. In a country like India, where the population and their
problems are seamless, CSR can be used as a very effective tool. The corporate can easily
contribute to the community development by reaching out to the local community where
their business operates and thus help the government in reaching the ultimate goal of the
development of the nation. The intervention of the corporate community in the social and
environment needs of the country has become a necessity since our government policies

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Chapter 1 Introduction

fail to reach the common people. CSR is a bridge in building a cordial relationship
between the corporate and the community where the corporate operates. This relationship
is mutually beneficial for the corporate and the community.

Apart from understanding in general about the CSR implementation by the

Kerala based listed companies, the study also make an attempt to understand the
stakeholder reaction to the CSR investments made by the companies. For this, the
CSR project of Cochin Shipyard Limited is selected and an attempt is made to
understand the perception of the beneficiary group.

1.1.5 About Cochin Shipyard Limited

Cochin shipyard is one of the leading PSU in Kerala. The company is a pioneer
in shipbuilding & repair in India. It possesses an infrastructure that combines
economy, scale, and flexibility, and has ISO 9001 accreditation. CSL also has an
exclusive area set for offshore construction and future expansion. As one of the India's
top 10 public sector undertakings, CSL has been rated excellent by the Government of
India, four times in a row for achieving the targets. The company has a long history in
CSR practices even before the introduction of mandatory CSR. The company was
undertaking CSR activities following the guidelines of the Department of Public
Enterprises for the past few years. The company covers various sectors like health,
education, empowerment, Clean India etc.

1.1.6 About the CSR project of CSL- Drinking Water Project at Chottanikkara

The 750 families residing in Ambadimala settlement colony falling within the
Chottanikkara Grama Panchayat were not having proper water supply due to the
geographical constraints. The water supply by the water authority was not sufficient to
meet the needs. The CSL has taken up this issue and addressed the water scarcity
faced by the Ambadimala residents. Major works of the project included a well
construction (water source), over head tank (1,00,000 litre) pipe lines, pumping house,
water purification plant and distribution points. The project came under the category
of Integrated Rural Development. The panchayat on the request of residents and ward
members forwarded a request to CSL for considering the water scarcity problem of
this area under the CSR project of CSL. The company considered the project and

6
Chapter 1 Introduction

screened and reviewed the project considering various factors like number of persons
benefited, the cost associated with the implementation of the project etc. The total cost
associated with the project was 75 lakhs. CSL provided 60 lakhs for the project
implementation. The CSR team and the Civil Engineering Department of CSL made
constant visits to the site of the project. The CSL continuously monitored the project
construction and development. The inauguration of the scheme was held at the site on
27th February, 2016. Shri Madhu S Nair, C&MD, CSL dedicated the scheme and
handed over the key to the Grama Panchayat. Shri Anoop Jacob, Honourable Civil
Supplies and Education Minister, Govt. of Kerala inaugurated the function in the
presence of the officials of Cochin Shipyard, government of Kerala and the residents.
The CSR Cell and the Civil Department of CSL extended full support to the
Panchayat in undertaking the project within the stipulated timeline ensuring the best
quality. The local people also extended their support by providing the land for
constructing the infrastructure needed for the project.

1.2 Significance of the study

Corporate responsibility of firms towards society dates back to the 1930s. It

was then CSR became a huge discussion among economists and social activists.
Different authors had presented their views regarding CSR from time to time.
Business involvement in social welfare and development has been a tradition in India
and its evolution from individuals' charity or philanthropy to Corporate Social
Responsibility can be seen in the business sector over the years. The concept of
parting with a portion of one's surplus wealth for the good of society is neither modern
nor a Western import into India. From around 600BC, the merchant was considered an
asset to society and was treated with respect and civility as is recorded in the
Mahabharata and the Arthasasthra.

Over the centuries, this strong tradition of charity in almost all the business
communities of India has acquired a secular character. The concept of CSR was
practiced by the polluting industries like oil, chemicals etc in the earlier years. But the
spread of CSR today is at a thriving rate. The companies are maintaining managers,
officials etc for the proper implementation of CSR and the reporting is also given

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Chapter 1 Introduction

greater attention through publishing reports of CSR activities in the official websites
as well as the annual reports of the company. The introduction of mandatory CSR in
the Companies Act 2013 had accelerated the process of CSR in India. The reflections
of the CSR activities all over India can be seen in the state of Kerala also.

Many major companies of Kerala had come up with innovative ways of solving
social problems. As per the latest CSR report of NGO BOX regarding the CSR
spending, Kerala’s share is only 1.68% of the total CSR spending in India. The study
will help in understanding the CSR initiatives of the Kerala based listed companies.
The study intend to identify the CSR practices of Kerala based listed companies.
Another aspect covered in the study is the stakeholder perception regarding CSR.
Many previous studies had covered the perception of managers, employees and
customers. But very few studies project the perception of the beneficiary group
regarding the initiative and its benefits. So the study also intends to understand the
perception and satisfaction of the beneficiary group regarding the CSR project.

1.3 Research Problem

The increased awareness and concern amongst the stakeholders, has resulted in
their demand that businesses of all types and sizes need to function with fairness and
responsibility. Specifically, this calls for businesses being thoroughly aware and
conscious of their social, environmental and economic responsibilities, and balance
these different considerations in an ethical manner. The Government of our country
has also taken this issue gravely and introduced many policies and regulations in this
regard. The Ministry of Corporate Affairs had issued the voluntary guidelines for the
implementation of CSR in 2009. They have also issued a revised guide line in 2011.
Efforts were also made to make CSR mandatory based on certain conditions and this
also came true by the introduction of mandatory CSR in the Companies At 2013.
Further rules and amendments are also introduced in this regard. It is high time to
make an analysis regarding the implementation of these regulations by various
companies and how well they implement various projects as a part of their CSR
initiative. All these made it inevitable to study how this is implemented by the
companies in Kerala and the approach of beneficiaries to the CSR practices of
companies in Kerala.

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Chapter 1 Introduction

1.3.1 Research Questions

1. How the CSR implementation is done by the Kerala based listed companies?

2. Whether these companies are carrying on their

a) CSR policy formulation,

b) CSR committee formation and

c) CSR implementation

d) Selection of area of CSR intervention

e) CSR spending

in compliance with the CSR clause in Companies Act 2013?

3. What is the perception of beneficiaries regarding the concept of CSR?

4. Is there any difference in the perception of the beneficiaries regarding the

concept of CSR based on their gender, educational qualification, occupation,
age, religion, marital status, income, size of their family and number of earning
members in the family?

5. What is the perception of the beneficiaries regarding CSR project of Cochin

Shipyard Limited?

6. Is there any difference in the perception of the beneficiaries regarding the CSR
project of Cochin Shipyard Limited based on their gender, educational
qualification, occupation, age, religion, marital status, income, size of their
family and number of earning members in the family?

1.3.2 Research Gap

The review of literature helped in understanding the studies so far happened in

the area of corporate social responsibility. None of the earlier studies focus on the
quantitative analysis of the CSR implementation by the companies and the compliance
of its various aspects with the Companies Act 2013. Also very few studies are
available regarding perception and satisfaction of the beneficiaries regarding a CSR
project implemented by the company. The available studies focus only on the

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Chapter 1 Introduction

perception of a local community regarding the CSR activities done by the companies
around them. Other earlier studies focus on the perception of the employees and
managers regarding corporate social responsibility. Being the persons who make use
of the benefits of the CSR projects, it’s important to understand how the beneficiary
group perceives the concept of CSR and CSR project.

So this study of CSR implementation of the Kerala based listed Companies will
be helpful in having an overview of CSR implementation of the Kerala based listed
companies and its compliance with the Companies Act, 2013 and a specific feedback
regarding the CSR project of Cochin Shipyard Limited.

1.4 Objectives of the study

The main purpose of the study is to make an analysis of the CSR practices of
selected companies in Kerala. The objectives of the study are

 To make a comparative study of the CSR practices of Kerala based listed

companies.

 To find out the compliance of Kerala based listed companies with the CSR
legal framework in India.

 To identify the amount of CSR investment and major sectors of CSR

investment.

 To understand the perception of beneficiaries regarding the concept of CSR

 To study the perception of beneficiaries regarding the CSR project of Cochin

Shipyard Limited.

 To make suitable suggestions to the companies, Government and beneficiaries

for improving the implementation of CSR projects.

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Chapter 1 Introduction

1.5 Variables used for the study

Table 1.2: Variables studied using secondary data

Variables Sub Variables Purpose

 Formation of CSR Committee To understand the extent
 Disclosure regarding CSR committee of compliance of CSR
in the Director’s annual report regulations achieved by
 Standalone CSR committee the companies regarding

 Number of Members in the Committee the formation of CSR

 Number of Independent Directors committee

CSR Committee in the Committee
 Existence of Women Directors in
the Committee
 Disclosure of the role of the
Committee in the annual report
 Number of Committee meetings
held in a year
 Availability of CSR policy in To understand the extent
public domain of compliance of CSR
 Availability of CSR policy link in regulations achieved by
the director’s annual report the companies regarding
 Disclosure of area of intervention the formulation of CSR
in the CSR Policy policy.

 Disclosure of CSR vision/ mission/

philosophy in the CSR Policy
CSR Policy
 Disclosure regarding mode of
implementation
 Disclosure of details of the monitoring
framework in the CSR policy
 Disclosure about treatment of
surplus in csr policy
 Details of CSR Committee in the
CSR Policy

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Chapter 1 Introduction

 Disclosure of CSR in the format To understand the extent

as prescribed by the act of compliance of CSR
 Disclosure of outline of CSR regulations achieved by
Policy in the director’s report the companies regarding
 Disclosure of the details of the Disclosure / CSR
projects and programmes Reporting
undertaken
 Disclosure of the average net
profit of the company for the
last 3 financial years
 Disclosure of the prescribed
CSR Expenditure
 Disclosure of the details of the
amount spent on CSR in the
directors report
 Disclosure of the unspent
CSR Reporting amount in the director’s report
 Disclosure on reason for
unspent amount in the director’s
report
 Disclosure of the sector in
which CSR is spend in the
director’s report
 Disclosure of the location of
spending
 Disclosure of the mode of
implementation
 Disclosure of the direct and
overhead expenses incurred on
the projects
 Disclosure of the administrative
expenses incurred on the
projects

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Chapter 1 Introduction

 Responsibility statement in the

annual CSR disclosure.
 Prescribed Expenditure  To understand the
 Actual Expenditure extent of compliance
 Unspent amount of CSR regulations
achieved by the
companies regarding
the CSR expenditure
 To make a
CSR Expenditure comparison between
the prescribed and
actual expenditure
 To identify the
companies which
belong to the
unspent category and
the reason
 Directly by the company  To understand how
Implementation
Mode of CSR  By establishing Foundations the companies have
 Through NGOs implemented CSR
 To identify the
geographical area
Location of CSR chosen by the
spending
companies to make
CSR investment
To identify the area of
Area of CSR CSR intervention chosen
Intervention
by the companies

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Chapter 1 Introduction

Table 1.3: Variables used in the primary Data Analysis

Variables Sub Variables Purpose

 Gender To analyse the relationship
 Age between the demographic
variables and the perception
Demographic  Marital Status
of the beneficiary group.
 Religion
 Number of Family Members
 Educational Qualification To analyse the relationship
Socio-  Occupation between the socioeconomic
variables and the perception
Economic  Earning Members
of the beneficiary group.
 Average Monthly Income
 Individual pipe connection To analyse whether there is
through project any difference in the
Source of water  Public tap under project perception of beneficiary
used by the group based on the main
 Individual pipe connection by
beneficiary source water used by them.
water authority
group
 Public tap by water authority
 Own well
 Responsibility towards Helpful in understanding the
stakeholders perception regarding the
CSR
 Stakeholder awareness creation concept of corporate social
responsibility
 Goodwill creation
 Project Quality Helpful in understanding the
 Project Management perception and satisfaction
of the beneficiary group
 Project Execution
regarding the CSR project of
 Project Viability
Cochin Shipyard limited
CSR Project  Project Governance
 Project Benefit
 Project Control
 Project Awareness
 Project Mechanism

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Chapter 1 Introduction

1.6 Scope of the study

The study is limited to the Kerala based listed companies. Only that company
which has their registered office in Kerala and listed in NSE or BSE is selected for the
study. The CSR compliance, CSR practices, CSR expenditure and other CSR related
aspects of these companies come under the scope of the study. Also the study
specifically makes an attempt to study in detail regarding the CSR project of Cochin
Shipyard Limited. For this purpose, the beneficiaries of that particular project are also
included in the study.

1.7 Operational Definitions used in the study

Corporate Social Responsibility

Corporate Social Responsibility includes the projects and programs relating to

the activities specified in Schedule VII of the Companies Act, 2013 or the activities
undertaken by the Board of Directors of the Company in pursuance of the
recommendations of the CSR committee on the basis of the subjects listed in the
Schedule VII of the Act

CSR Committee

The committee of the Board formed to formulate the CSR policy and make
recommendations to the Board, implement and monitor the CSR activities of the
company.

CSR Policy

CSR Policy is the document which contains all the details related to the CSR
activities to be undertaken as specified in Schedule VII of the Act.

CSR Reporting

CSR reporting is the inclusion of the details of the CSR activities of the
company in the annual report in the prescribed format

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Chapter 1 Introduction

CSR Expenditure

It includes all the expenditure incurred for carrying on the projects and
programs relating to CSR activities approved by the board and which comes under the
purview of Schedule VII of the Act.

Kerala Based Listed Companies

The Companies which are having their registered office situated in Kerala and
are listed in any of the stock exchanges.

Project Beneficiaries

Those who derive benefit from the implementation of a project

1.8 Research Methodology

The present study has been designed as descriptive one based on both secondary
and primary data. It is the fact finding investigation. The study focuses on particular
facts and dimensions of the problem. It makes use of various statistical methods to
establish relationship between variables and to examine the quantitative data.

1.8.1 Source of Data

(a) Secondary data

The data was collected from official websites of the companies, website of
Ministry of Corporate Affairs, annual reports and published CSR policy and
sustainability reports of the companies. Data was also collected from journals,
periodicals, books available etc collected from research institutes, documentation
centres and libraries. The Company Law Bhavan, Confederation of India Industry, and
the corporate houses of the selected companies were personally visited by the
investigator. The news report on the CSR activities of the various companies and CSR
related sites like CSR India, Karmayog etc was followed by the investigator in
collecting the secondary data.

(b) Primary data

Primary data was collected from the beneficiaries of CSR project of Cochin
Shipyard limited. Survey method was used to collect the primary data. The data

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Chapter 1 Introduction

regarding the perception of the beneficiaries on the concept of corporate social

responsibility and the CSR project of CSL at Ambadimala towards the CSR activities
have been collected through a detailed survey which was done using a pretested
questionnaire.

1.8.2 Sample Design

Sample design used for the study is explained in the following sections.

Population and Sample size

The study is divided into two parts.

The first part constituted the analysis of the CSR implementation of the Kerala
based listed companies. All the companies which are registered in Kerala and listed in the
stock exchange constituted the population of the study. For conducting this study census
method was used and all the 26 Kerala based listed companies were selected for the study.

Second part of the study was based on the perception of the beneficiaries of
CSR project of Cochin Shipyard Limited.

The project was implemented in Ambadimala at Chottanikkara Panchayath,

Ernakulam. The 750 families living in the Ambadimala area of Chottanikkara
Panchayath constituted the population of the study. Simple random sampling
technique using lottery method was employed to select the samples. The sample size
was calculated on the basis of the formula developed by Krejice and Morgan (1976).

Calculation of sample size

𝜒2 × 𝑁𝑃 (1−𝑝)
Sample size =
𝑑 (𝑁 −1) + 𝑃 (1−𝑝)
2

𝜒2 = table value of chi-square for 1 degree of freedom at the significance

level 5% (3.84)

N = Population Size

P = Population proportion (assumed to be .50 so that it would give the

maximum sample size)

d = Degree of accuracy expressed as proportion i.e. 95% accuracy is

expected i.e. .05

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Chapter 1 Introduction

In this study, the population is known and the population = 750

3.84 x 750 x .05 x.05

So the sample size = = 254 (rounded to 260)
(0.05)2 x 749 + 3.84 x .05 x. 05

1.8.3 Pilot Study

The appropriateness of the tool is checked by conducting a pilot study. The

pilot study was conducted among 40 beneficiaries. On the basis of the pilot study the
questionnaire was further refined and that questionnaire was used for the final data
collection. The questionnaire was self developed in consultation with the supervisor.
The questionnaire was in closed form and it consisted of statements to understand the
perception of the beneficiary respondents. The scale was 10 point Likert scale.

1.8.4 Reliability

It refers to the degree of dependency or consistency possessed by a scale. The

reliability of the scale used in the study is measured using Cronbach’s Alpha. An
alpha value of 0.70 or above is considered to be a criterion for demonstrating strong
internal consistency, alpha value of 0.60 or above is considered to be significant
(Cronbach and Meehl, 1955). The perception regarding CSR is measured based on
three factors and the Project perception is measured based on 9 factors. The reliability
of the two sets of statements is checked and the results are shown in the concerned
analysis chapters.

1.8.5 Scale Refinement and Validation

Validity test provide the most critical evaluation of the scale. Validity indicates
the degree to which instrument measures, what it is believed to measure. . It can also
be considered as utility, or the extent to which, differences found with a measuring
instrument reflects the true differences among these to be tested (Koeske, 1994).

Content validity of the tool was measured by consulting with experts and
academicians in this field. It is the process by which the standard of the measuring
tool is determined. The researcher approached experts and academicians in the field
and consulted them for to ensure that the questionnaire prepared for collecting the data
regarding the perception of the beneficiary group is having content validity.

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Chapter 1 Introduction

1.8.6 Data Preparation for Analysis

The data collected should be prepared for the analysis and the following
processes were done as a part of data preparation.

Data Editing: The data collected was checked for completeness and edited if required.

Coding: The items in the questionnaire was coded to facilitate the data entry to the
SPSS Program

Elimination of Blank Questionnaire: If 25% of items or more left unanswered, the

questionnaire should be excluded from the analysis. Elimination of two questionnaires
was done and the number of responses analysed in the study become 258.

1.8.7 Tools of data analysis

The data collected have been analysed by applying appropriate arithmetical and
statistical techniques. The data so analysed were interpreted and arrived at unbiased
and true inferences. The computer program SPSS was used to analyse the data. The
following are the few techniques used in the study

Percentages

It is one of the frequent ways used to represent statistics. Percent simply means
per hundred. A percentage frequency distribution is a display of data that specifies the
percentage of observations that exist for each data point or grouping of data points. It
is a particularly useful method of expressing the relative frequency of survey
responses and other data. The secondary data was analysed using percentage.

Descriptive Analysis

The collected data were tabulated in the descriptive nature like mean, standard
deviation, variance etc. It helped in identifying the significance of the variables in the
study.

One Sample t – test

It is a test used to examine the statistical difference between the sample mean
and the known value /hypothesised value of a population.

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Chapter 1 Introduction

Independent Sample t test

It is used to compare the mean differences of two independent sample groups

to identify whether there is significant difference between the associated population
means.

One Way ANOVA

This is an extension of one sample t test. It provides a one way analysis of

variance for a quantitative dependent variable by an independent variable. Normally it
is used when there is a minimum of 3 groups. In this, one factor or the independent
variable analysed will have three or more categorical groups.

Exploratory Factor Analysis

Exploratory Factor Analysis denotes a class of procedures primarily used for

data reduction in summarization. While doing CSR research, there may be large
number of variables which are correlated and which can be reduced to manageable
level. So the relationship among these interrelated variables are examined and they are
represented in terms of a few underlying factors.

Cluster Analysis

Cluster analysis is helpful in identifying the groups or segments that are more
like each other than they are like members of other groups or segments. It is a class of
techniques used to classify objects or cases into relatively homogenous groups called
clusters. The study made use of cluster analysis

Artificial Neural Network

Artificial Neural Networks are computing algorithms that can solve complex
problems imitating animal brain processes in a simplified manner. ANN model is a
three-layered network of interconnected nodes: the input layer, the hidden layer, and
the output layer. The nodes between input and output layers can form one or more
hidden layers. Every neuron in one layer has a link to every other neuron in the next
layer, but neurons belonging to the same layer have no connections between them.
The study made use of artificial neural network for establishing the factors influencing
perception of beneficiaries regarding corporate social responsibility.

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Chapter 1 Introduction

Automatic Linear Model

Automatic Liner Model is also used in the study to establish the factors
effecting the perception of the beneficiaries regarding the CSR project of CSL. It
refers to a data mining approach which makes use of machine learning to find the best
predictive model of the study using the available data.

1.9 Period of Study

The period of study is from 2013 to 2019. The data relating to the CSR
initiatives of banks were collected from the annual reports and official websites of the
companies selected for the study. Secondary data analysis was conducted based on the
annual reports of the companies from 2014-15 to 2017-18. The survey was conducted
among beneficiaries of CSR project of Cochin Shipyard Limited during a period of 6
months from June 2018 to November 2018.

1.10 Limitations of the Study

 The beneficiaries interviewed were lacking awareness about the concept of

CSR. Only few were highly knowledgeable about this concept and CSR
activities of different companies. This might affect the accuracy of the data.

 The study about the CSR implementation of Kerala based listed companies
was done purely based on the reports published by the companies.

 The beneficiary group of only one CSR project of a company is selected for
the study. This is because CSR projects of the companies do not have a
common nature regarding the area of intervention, amount spent, geographical
area, beneficiary group etc.

1.11 Presentation of the report

The report of this study is presented in eight chapters.

The first chapter gives a brief account of the concept of corporate social
responsibility. It also introduces the problem, objectives, variables used, scope, period
of study, methodology, limitations of the study and presentation of the report

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Chapter 1 Introduction

The second chapter reviews the existing literature on the concept of CSR, the
CSR activities in India and perception of the stakeholders regarding CSR activities of
the companies.

The third chapter provides the theoretical and legal framework of CSR in
India. Theoretical part deals with the concept of CSR, History of CSR, CSR in world,
CSR in Asia and CSR in India. It deals with the evolution and the present position of
CSR in our country. Legal Framework part deals with the existing regulatory
framework for CSR practice in India. It discusses in detail the formulation of
regulations regarding corporate social responsibility. It starts with voluntary
guidelines issued by Ministry of Corporate Affairs in 2009 and 2011, CSR clause and
Schedule VII of the Companies Act 2013 and the amendments and new rules
formulated in this regard.

The fourth chapter deals with CSR Practices of Kerala Based Listed
Companies. The chapter studies the CSR compliance, CSR Practices, CSR
Expenditure, Sector of CSR Spending and all the CSR related aspects of Kerala Based
Listed Companies.

The fifth chapter provides a background study regarding the CSR project of
Cochin Shipyard Limited. It also covers the demographic, social and economic
characteristics of the beneficiaries.

The sixth chapter deals with the analysis of the perception of beneficiaries
regarding the concept of Corporate Social Responsibility.

The seventh chapter deals with analysis of the perception of beneficiaries

regarding the Corporate Social Responsibility Project of Cochin Shipyard Limited.

The eighth chapter contains the summary of the study, findings, suggestions
conclusion and the areas of further research work derived there from.

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Chapter 1 Introduction

References
1. Archie.B.Carroll(July2016),Carroll’s Pyramid of CSR: taking another look,
International Journal of Corporate Social responsibility accessed through
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2. Cronbach, L.J., & Meehl, P.E., Construct validity in psychological tests,
Psychological Bulletin, 52, 1994, pp. 281-302.
3. Companies Act 2013 accessed through
http://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf
4. CSR IN INDIA : The numbers do add up – an analysis of CSR fund flow in
India from FY 2014-15 to 2017-18 accessed through
https://csrbox.org/media/CSR%20in_India_Numbers_Do_Add_Up_Report-
2018_Web-lite.pdf
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Mahatma Gandhi University
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11. Pushpa Sundar, (2013) Business & Community – The Story of Corporate
Social Responsibility in India, Sage Publications India Pvt. Ltd.
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