Chapter - 4 Research Methodology: 4.1 Need of The Study
Chapter - 4 Research Methodology: 4.1 Need of The Study
Chapter - 4 Research Methodology: 4.1 Need of The Study
RESEARCH METHODOLOGY
company can actually enhance its own economic value and brand image as well as
benefits the society. In addition, companies and other organisations are required to
The Section 135 of the Companies Act 2013 defines CSR and scope of applicability
of mandatory CSR clause. Some of the key provisions of the Act are:
• CSR is applicable from FY 2014-15. For the purpose of First CSR reporting
the Net Profit shall mean average of the annual net profit of the preceding
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three financial years
• Companies need to spend 2% of the average net profits made by the company
• The CSR projects should fall under the 10 broad areas outlined in the
health care and sanitation and making available safe drinking water;
and hostels for women and orphans; setting up old age homes, day
care centers and such other facilities for senior citizens and measures
backwards groups;
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up public libraries; promotion and development of traditional arts and
handicrafts;
o Measures for the benefit of armed forces veterans, war widows and
their dependents;
Government;
o Company itself
o Own foundation/trust
o NGOs/Trusts
o Section 8 companies
However, the implementing partner should have three years track record.
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Many companies are putting more emphasis on Corporate Social Responsibility‟s
Triple Bottom Line: People, Planet and Profit. These economic, social and
they operate. In an increasingly competitive market place consumers are looking for
companies that not only produce a quality product or service, but also reflect their
own values. CSR is a vehicle through which companies give something back to the
society, but the challenge before the companies is to identify CSR priorities and the
areas of invention which are meaningful in the context of society development. So,
there is a need to study and understand the CSR practices being taken by different
corporate houses.
employment, earn profits and use this for social welfare. Nowadays, CSR has
become mandatory fro specified group of companies and there is a need to know
which sector companies (private sector and public sector) are doing better CSR
practices. This study will show sector wise comparison of CSR practices
The study will also highlight that do the Indian firms truly believe in CSR and its
ability to do social and financial good. Many companies and corporations have not
yet realised the importance of CSR practices. Therefore, there is a need to study
Besides the responsibility towards the society the companies are responsible to work
in a manner so that they earn profit and increase their profitability. Companies have
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responsibility towards shareholders, investors, creditors. So, there is a need to study
To make an overall study that to what extent the companies in India are doing CSR
The objectives of a study provide a definite and proper track for any research
activity. To make the present study more scientific following objectives are
1. To study the present status of CSR policy in India with respect to Company’s
Act 2013.
5. To compare the CSR thematic priorities and current CSR project Approach of
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4.4 Research Methodology
For questionnaire purpose 75 public and 225 private companies have been
from public sector. The 225 questionnaire was given to private sector. Out of
For the purpose of study 497 large scale organizations basically covering
public sector and private sector companies in India which belong to different
Total No. of
Sectors
Companies
Aluminum 3
Banks (All) 38
Packaging 6
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Personal care 9
Pharmaceuticals 23
Refineries 4
Others 177
public sector has been choosen. However, 225 private sector companies is choosen
after tax of Public sector companies & Private sector companies a sample of few
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To study about the thematic priorities, CSR past & current project, and partners,
1. Adani Foundation
3. Alstom Foundation
4. AMM Foundation
5. Amway Foundation
7. Avantha Foundation
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17. Deepak Foundation
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35. ICICI Foundation
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53. NTPC Foundation
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71. Times Foundation
• The performance analysis of the public and private Banks also has been
studied. The 19 Indian Banks (12 Public + 7 Private) are selected on the
Sr. Sr.
Public Banks Private Banks
No. No.
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3 Punjab National Bank 3 Axis Bank
8 Andhra Bank
10 Corporation Bank
11 Indian Bank
12 UCO Bank
To know the exact status of CSR policy according to 2013 Act, Implementation
5. Biocon Ltd
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7. Cipla Ltd
The selection of the companies are based on huge market share in the country. The
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• BSE and NSE listed companies are selected.
• Different CSR practices is being done by these agenies and some have been
To accomplish the above stated objectives of the study primary and secondary data
are taken into consideration. The primary data has been collected through
framed to collect the data regarding CSR policy and CSR Companies Act 2013.
Primary Data
b) The questionnaire framed for public sector was given to 75 public sector
The same questionnaire was given to private sector companies. The total 225
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Secondary Data
g) Blogs on CSR
The data will be examined for the last three financial years that is from 2011-12 to
2013-14.
4.4.6 Hypotheses
To make present study more practical, following hypotheses have been framed by
the researcher.
H 0 Indian companies are not following the CSR policy according to Companies Act
2013.
H 1 Indian companies are following the CSR policy according to Companies Act
2013.
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H 0 There is no significant difference in CSR policy of Public and Private.
development.
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4.4.7 Tools for Study
Statistical Tools
Statistical tools will be used by the researcher at the time of research on the
availability of data and as per the requirement of study. Some of these are mean,
1. Simple average and percentage will be used to evaluate the CSR items.
Statistical Tools
σ
σx =
n
x.
µH0
ZCal =
σx
Where
σ = Simplest deviation
n = Sample size
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X1 − X2
Z =
1 1
Sp +_
n1 n2
X1 − X2
t =
1 1
Sp +_
n1 n2
Sp =
( n 1 − 1) s12 + ( n 1 − 1) s22
n1 + n2 − 2
Where
means
X1 = Mean of sample 1
n1 = Size of sample 1
X2 = Mean of sample 2
N2 = Size of sample 2
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4.5 Limitations of the Study
The study is based on the secondary data collected from the CSR report NGO Box
Foundation.
Checklist will be prepared to check CSR practices of selected companies on the basis of
Graphs, Charts, Tables will be used to represent the trend of CSR practices, CSR initiatives
in selected companies and for doing comparative analysis and profitability analysis among
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3. To study the Public and For Descriptive z-Test
corporate social Private descriptive Survey and percentage
responsibility Companies survey 497 questionnaire analysis
spending of Indian companies is
companies selected. 75
public and 225
private sector
companies is
selected.
4. To compare the Public and For Descriptive z-TEST and
corporate social private descriptive Survey and percentage
responsibility companies survey questionnaire analysis
spending of public purpose 497
sector companies companies is
and private sector
selected. 75
companies
public and 225
private sector
companies is
selected.
5. To compare the Public and The total 21 Descriptive Graphs, t-Test
CSR thematic private companies is Survey and and percentage
priorities and companies selected for questionnaire analysis
current CSR descriptive
project Approach survey. 75
of public and
public and 225
private sector
companies private sector
companies is
selected.
6. To provide an Public and Total 497 Descriptive Graph and
understanding of private companies is Survey and Percentage
the role played by companies selected for questionnaire analysis.
corporate houses descriptive
and public sector survey and
undertakings and
data is
interaction
amongst various collected
stakeholders and through
find out the secondary
challenges and sources. 75
recommend public and 225
remedial measures. private sector
companies is
selected.
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4.9 Data Sources and Type
The study is conducted based on the primary and secondary sources of data collected
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