INTRODUCTION વ શ ળ જગ વ સ તર નથ એક જ મ ન પશ છ પ ખ છ, ન ન છ નસ પવત

Transcription

1 Volume-4, Issue-10, October 2017 ISSN: (Online) RESEARCH HUB International Multidiscilinary Research Journal (RHIMRJ) Research Paer Available online at: A Study of CSR Disclosure by Select Indian Comanies of Cement Industry during Pre and Post Comanies Act, 2013 Shital B. Rathod Research Scholar, Gujarat University, Ahmabad, Gujarat (India) H.C. Sardar, Research Suervisor, Gujarat University, Ahmabad, Gujarat (India) Abstract: After imlementation of comanies act, 2013 it has become mandatory for all comanies to comly with the law and to send minimum 2 of average rofit of last three years for cororate social resonsibility. Government has also classifi all the in different eleven categories. This study shows the difference between cover before and after comanies act, I. INTRODUCTION વ શ ળ જગ વ સ તર નથ એક જ મ ન પશ છ પ ખ છ, ન ન છ નસ પવત Due to backwardness and overty of the country and limitations of the government in mobilizing resources to alleviate these roblems, business & other organizations assume overriding imortance in heling for its all-round develoment. Problems afflicting society rovide oortunity to business organizations in using their resources & managerial abilities in solving them. Business owes its resonsibility towards society. Firstly, as a result of the imact of its own oerations & secondly, for being a unit of society in which it oerates. The former relates to what the organization does to the society by way of secific oerations whereas the later deals with what society demands from it. Hence, regardless of reasons, business organizations are requir to discharge social resonsibilities even though they may not be directly resonsible for social roblems. Business is requir to be socially resonsible from other consideration as well, namely, that being a otential emloyer in society it acquires tremendous social ower which in turn makes it obligatory to discharge social resonsibilities. If social resonsibilities are not effectively discharg, it is just ossible that social ower may be lost in the rocess. Furthermore, being the leading member of society, business organizations are exect to lay a leading role in solving some of the major roblems. Business organizations owe social resonsibilities to society in the same way as individuals hold. Like an individual, organization is to be view as a member of the society & hence he is exect to behave as a resonsible citizen. As er the survey of 2011, the major roblems of india are oulation, overty, sanitation, ucation, unemloyment, women emowerment, environmental issues like air ollution, water ollution, soil erosion etc. There is statutory rovision for cororate social resonsibility as er comanies act, Before these legal rovisions, most cororates were us to erform their social resonsibilities in the common like health care, ucation and environment sustainability. But this was not regulat by any agency. It was totally voluntary. But now it is mandatory. The core concet of this study is to identify the ga between disclosure by Indian cororate before and after commencement of comanies act, Before commencement of this work, cororate social resonsibility was not mandatory and now it is mandatory. Therefore, this work is divid into two arts i.e. re legal rovisions and ost legal rovisions. There were no retermin of cororate social resonsibility and now there is. Hence all ossible Indian roblems are fix to examine this relationshi or ga. This is discuss in detail in the chater of data and data analysis. II. LITERATURE REVIEW William J. Bowen mention the concet of Cororate Social Resonsibility for the first time in 1953 in the ublication Social Resonsibilities of the Businessman. However, the term Cororate Social Resonsibility became oular in the 1990s, when the German Betaharm, a generic harmaceutical comany decid to imlement CSR. The generic market is characteriz with an interchange of roducts. In 1997 an abrut sto in sales growth l the comany to realise that generic drugs market comanies could not differentiate on rice or quality. This was the relude for the comany to adot Cororate Social Resonsibility as an exression of the comany s values and as a art of its cororate strategies. By using strategic and social commitment for families with chronically ill children, Betaharm took a strategic advantage. 2016, RHIMRJ, All Rights Reserv Page 1 of 7 ISSN: (Online)

2 RESEARCH HUB International Multidiscilinary Research Journal Cororate Social Resonsibility was mainly romot by a number of multinational or large comanies; it has now become imortant to small national comanies. The following relevant studies are cover as a art of literature review. Moon (2004), in his aer entitl Government as a driver of Cororate Social Resonsibility: A U.K comarative Persective examin the role of government in driving cororate social resonsibility among the cororate. The study exlain that the drivers of CSR are relat with business and society. Business includes its reutation, cororation itself, emloyees relation knowlge, goals etc. further, the study clear that government is driver of CSR by making this relationshi true and fair through making through making olicies and regulations. The study also embark other countries situation that how their government enter into businesses for driving CSR. Vaaland, Heide (2008), in their aer entitl Managing cororate social resonsibility: lessons from the oil industry us case study methodology. The aer urose was to handle the CSR critical incidents and utilize this exerience in enforcing the CSR activities. The study conclud that CSR should be manag by handling unexect incidents, long term ruction of ga between stakeholders and their exectations and comany erformance and finally maintaining relationshi with society through interlay between actor, resources and activities. RichaGautam and Anju Shah (2009) in their aer entitl Cororate Social Resonsibility Practices In India ublish in Global Business And Management Research: An International Journal has done an analysis of 500 comanies out of which 229 comanies didn t reort on Cororate social resonsibility activities and it stat that Cororate Social Resonsibility is resent as a comrehensive business strategy, arising mainly from erformance consideration and stakeholders ressure. MahabirNarwal, Rajinder Singh (2013) in their aer entitl Cororate Social Resonsibility Practices in India: A Comarative Study Of MNC s And Indian Comanies exlore different of Cororate social Resonsibility cover by the comanies in India and to have a comarative analysis of such ractices of Indian comanies and MNCs working in India. The samle for the resent study consist of 38 comanies including 18 Indian comanies and 20 MNCs of different countries working in India across various industries. The data, thus, generat was analyz with the hel of ANOVA and Factor Analysis. The study found that there is a little difference in cororate social Resonsibility ractices of Indian comanies and MNCs and that is in terms of imortance/focus of cororate social Resonsibility. Comanies are adoting Cororate Social Resonsibility ractices of Environmental Marketing, Sustainable Develoment, Local Community Suort, and Transarency and Accountability. MNCs are adoting almost the same cororate social Resonsibility ractices as adot by their counterarts Indian comanies, thus, MNCs are adhering to the revailing business ractices in host countries. Jain (2014), in her aer entitl The Mandatory CSR in India: A Boon or Bane found that the mandat 2 CSR investment in the new Indian Comanies Bill is a novel solution to India s social roblems. It may not be erfect but it is a roduct out of necessity for economic justice in India. Cororations in India have fail to take resonsibility for the real cost of their functioning. Many often ollute the environment and run away from human hazards that they invent. 2 CSR olicy envisions a system in which each industry would contribute in a manner at with their exertise. Chemical and oil comanies might take environmental and safety initiatives and technology comanies might take tech ucation initiatives. Thus, in a nutshell, this new olicy may turn out to be a boon for both the cororate and the society, roelling India towards the ath of equitable and sustainable growth. In this literature review, different asects of different time eriods are studi by the different researchers. This work is concern with Indian roblems and CSR ractices in India. The urose of this work is to identify the synchronisation of CSR with Indian roblems. If there is no synchronisation in some, it can be suggest to the government to include them in legal rovisions so that the economic burden of government can be ruc and effects of CSR of cororate can be divert in right direction. III. REASEARCH METHODOLOGY 3.1) OBJECTIVES OF STUDY The objectives of analyzing cororate social resonsibility erformance are 1) To examine cororate social resonsibility activities erform by select Indian comanies. 2) To examine comany wise erformance score of social resonsibility. 3) To investigate the ga between social resonsibility of Indian comanies and Indian roblems. 3.2) HYPOTHESIS To examine the result of objectives the following hyothesis are develo. a) All cororate social resonsibility activities are erform by Indian comanies. b) The erformance score of all select Indian comanies is identical. c) There is significant ga between social resonsibility of Indian comanies and Indian roblems. 2016, RHIMRJ, All Rights Reserv Page 2 of 7 ISSN: (Online)

3 RESEARCH HUB International Multidiscilinary Research Journal 3.3) TYPE OF DATA: In this study, secondary data is us. Total 30 comanies are select and data is obtain from their annual reort. 3.4) PERIOD OF STUDY: Time eriod for this study was 5 years that is from to The entire study is bas on historical data. 3.5) SCOPE OF STUDY The various 11 of social resonsibility as er comanies act, 2013 are trac out for select 5 Indian comanies from their annual reorts of financial years , , , and Again, it is divid into two categories. 1) Pre comanies act, ) Post comanies act, ) SAMPLE SIZE Total 30 Indian comanies are select randomly from different six industries for the urose of the study. List of Select Indian Cororates from cement industry 1) Aditya birla nuvo 2) Century textiles 3) Madras cements ltd 4) Ultratech cement 5) Shree cements ltd. Name of cover as er schule VII of comanies act, ) eradicating extreme hunger and overty 2) romotion of ucation 3) romoting gender equality and emowering women 4) ensuring environmental sustainability 5) rotection of national art, heritage and culture 6) measures for benefit to arm forces veterans, war widows and their deendents 7) training to suort sorts 8) contribution to PM fund or any other fund 9) contribution to technology incubators locat within academic institution 10) rural develoment rojects 11) Slum area rojects 3.7) Comutation of disclosure score The erformance score of social resonsibility is calculat as under and accordingly ranks are given to the comanies over 5 years. 3.8) TABULATION OF DATA On the basis of table no. 4.1 and 4.2, we can divide the data in following four arts. > 75 = GROUP A 51 TO 75 = GROUP B 25 TO 50 = GROUP C < 25 = GROUP D 2016, RHIMRJ, All Rights Reserv Page 3 of 7 ISSN: (Online)

4 eradicating hunger,overty and malnutrition romoting ucation gender equality and emowering women environment sustainability rotection of national art, heritage and culture measures for benefit of arm forces veterans,war widows and their deendants training to romote rural sorts contribution to fund contribution to technology incubators locat within academic institution rural develoment rojects slum area rojects TOTAL RESEARCH HUB International Multidiscilinary Research Journal 3.9) LIMITATIONS OF THE STUDY: Limitations of the study are as under. 1) The data have been collect for only 5 years that is , , , and ) Only 5 comanies from automobile industry are select. 3) An attemt is made to find out the ga between Indian cororate social resonsibility and Indian roblems. IV. DATA AND DATA ANALYSIS Table 4.1 AREA WISE SOCIAL RESPONSIBILITY OF INDIAN CORPORATES NAME OF COMPANY adityabirlanuvo Century Textiles Madras cement shree cements ultratech cements Y Y Y Y N N N N N Y N Y Y Y Y N N N N N Y N Y Y Y Y N N N Y N Y N Y Y Y Y N N N N N Y N Y Y Y Y N N N N N Y N 5 TOTAL Y Y N Y N N N N N N N Y Y N Y N N N N N N N Y Y N Y N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 0 TOTAL Y Y Y Y Y N Y Y N Y N Y Y Y Y Y N Y Y N Y N Y Y Y Y Y N Y Y N Y N Y Y Y Y Y Y Y Y N Y N Y Y Y Y Y Y Y Y N Y N 9 TOTAL Y Y Y Y Y N Y Y N Y N Y Y Y Y Y N Y Y N Y N Y Y Y Y Y N Y Y N Y N Y Y Y Y Y N Y N N Y N Y Y Y Y Y N Y N N Y N 7 TOTAL Y Y Y Y N N N N N Y N Y Y Y Y N N N N N Y N Y Y Y Y N N N N N Y N Y Y Y Y Y N Y Y N Y N Y Y Y Y Y N Y Y N Y N 8 TOTAL , RHIMRJ, All Rights Reserv Page 4 of 7 ISSN: (Online)

5 RESEARCH HUB International Multidiscilinary Research Journal Table no 4.2 Comany Wise Performance Score of Social Resonsibility NAME OF COMPAN Y Aditya Birla Nuvo cover 5 PRE COMPANIES ACT,2013 ost comanies act, PSSR cover PSSR cover PSSR cover PSSR cover PSSR C B 5 C Century Textiles C C C D D Madras Cements 8 B A A Shree Cements 8 B B B Ultratech Cements 5 C 8 B Table no result of Comany Wise Performance Score of Social Resonsibility Grou A Grou B Grou C Grou D Madras cements Aditya Birla Nuvo Shree cements Century Textiles Madras cements Aditya Birla Nuvo Shree cements Century Textiles Madras cements Century Textiles Shree cements Aditya Birla Nuvo Madras cements Shree cements Aditya Birla Nuvo Century Textiles Madras cements Shree cements Aditya Birla Nuvo Century Textiles 2016, RHIMRJ, All Rights Reserv Page 5 of 7 ISSN: (Online)

6 Comany wise erformance score of social resonsibility Pre comanies act, 2013 RESEARCH HUB International Multidiscilinary Research Journal In year and , Madras cements and shree cements were the comanies which cover 8 out of total 11 with PSSR and they fall under the category of B. Aditya Birla Nuvo and Ultratech cements erform their social resonsibility towards 5 resulting into PSSR. They fall under the category of C. century textile cover 3 with PSSR and it falls under the category of C. In year , Aditya Birla Nuvo switch to B from C by covering 6 with PSSR Madras cements and Shree cements were the comanies which cover 8 out of total 11 with PSSR and they fall under the category of B. Ultratech cements erform its social resonsibility towards 5 resulting into PSSR. it falls under the category of C. century textile cover 3 with PSSR and it falls under the category of C. Post comanies act, 2013 In year and , Madras cements mov from B to A by covering 9 resulting into PSSR ultratech (1.45) cement erform social resonsibility towards 8 and it falls under the category of B with PSSR. Whereas Shree cements (1.97) cover 7 out of 11 with PSSR It also falls under the category of B. adityabirlanuvo (2.01) focus on 5 and therefore it falls under the category of C with PSSR. Century textile (0) did not contribute to any area. V. FINDINGS Aditya Birla Nuvo shows consistent distribution towards social resonsibility during re and ost comanies act, Century textiles has cover common of health, ucation and environment during re comanies act, 2013 but after imlementation of comanies act, 2013, it has not contribut to any area due to loss. Madras cements has contribut to maximum comar to other comanies during re and ost comanies act, Shree cements has reort Performance Score by covering 8 during re comanies act, Whereas after imlementation of comanies act, 2013 its erformance score has ruc to The Performance score of this comany is fairly good. Ultratech cements has reort erformance score during re comanies act, 2013 whereas during ost comanies act, its erformance score has increas to. VI. CONCLUSION: Total three objectives are fram for this study. The first objective of this study is to examine cororate social resonsibility activities erform by select Indian comanies. To examine this objective re and ost comanies act, 2013 time eriod is consider. To check the result of first objective, the following hyothesis is develo. All cororate social resonsibility activities are erform by Indian comanies. It is found that all comanies have erform their social resonsibility towards the common. But few comanies have cover all ossible. The second objective of this study is to examine comany wise erformance score of social resonsibility. For this urose, the hyothesis is following hyothesis is develo. The erformance score of all select Indian comanies is identical. Performance score of social resonsibility is calculat for each comany. It seems that the erformance score of only few comanies is identical. The third objective is to investigate the ga between social resonsibilities of Indian comanies. It is the ga between cororate social resonsibility retermin by government and cover by select Indian cororate. For this objective, the following hyothesis is develo. REFERENCES 1. Cororate Social Resonsibility In India - Sanjay K. Agarval, SAGE Publications,California,2008,Page no Moon. Jermy (2004). Government as a driver of Cororate Social Resonsibility: A U.K comarative Persective. International Centre for Cororate Social Resonsibility. No , RHIMRJ, All Rights Reserv Page 6 of 7 ISSN: (Online)

7 RESEARCH HUB International Multidiscilinary Research Journal 3. Vaaland, Terjre.,& Morton, Heide. (2008). Managing cororate social resonsibility: lessonsfrom the oil industry. Cororate communications: An international journal. Vol. 13. No. 2. P Cororate Social Resonsibility Practices In India: A Study Of 500 Comanies, RichaGautam And AnjuSinh, Global Business And Management Research: An International Journal. 5. Cororate Social Resonsibility Practices In India: A Comarative Study Of Mncs And Indian Comanies - MahabirNarwal, RajinderSinh, Social Resonsibility Journal Volume: 9, Issue: 3, Jain A (2014), The Mandatory CSR in India : A Boon or Bane, Indian Journal of Ali Research, Vol. 4, No. I, Annual reorts of comanies 2016, RHIMRJ, All Rights Reserv Page 7 of 7 ISSN: (Online)