Is Corporate Social Responsibility in India Still in a Confused State?— A Study of the Participation of the Private Sector Companies of India in Corporate Social Responsibility Activities

Abstract

This article aims to explore the establishment of a pattern of participation of corporate social responsibility (CSR) activities amongst private sector companies as reflected in the respective company documents in the public domain, taking absolute profit as the parameter. An empirical and analytical study was undertaken whereby the corporate official websites of the companies were analyzed for the time period 2006–2007 to 2008–2009. Data were then generated from such an analysis using qualitative document analysis. For this study, we used ‘number of sentences’ as the unit for measurement of CSR participation. Descriptive statistics, Pearson’s correlation, multiple regression analysis and conjoint analysis were used to analyze the data. The study showed that the most preferred CSR activities were education, health and environment. Drinking water and sanitation and urban upliftment were the least preferred activities. A high level of dispersion was observed with respect to the least preferred activities; and a low level of dispersion was observed with the most preferred activities. Significant correlation was observed with respect to various CSR activities that the companies were responsive to. The activities which had a significant impact on the companies divided into deciles, at different levels, as per the multiple regression analysis were: education, health, environment, employability, rural upliftment, others and empowerment. Companies belonging to the manufacturing sector and the diversified sector have shown the highest responsiveness towards such activities. Companies have attached the highest importance (Level 1) to the following CSR activities: education, environment, health, rural upliftment and others.