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In order to determine whether the mean of different statements and hypothesis for different groups
differ significantly, parametric and non-parametric tests are used. Independent t-test (if distribution is
normal) and 2 independent sample test (if distribution is not normal) is applied when two groups are
to be tested. For more than two groups, ANOVA is used if the distribution is normal while K sample
independent test is used if the distribution is not normally distributed.
The objective here is to critically analyze the undertaking of CSR in SMEs. Only questions seen as
fundamental and sector-wise analysis have been included. As such, several statistical tests are
performed to see their significance.
The 2% CSR levy imposed by the state seems to affect SMEs drastically. It might be one of the
reasons that impedes the latter’s engagement in CSR in an optimal manner. The first analysis is to
test whether those who have set a particular budget apart from the 2% levy face as much difficulty to
do CSR as do those who do not set a particular budget ,i.e., they contribute by way of the 2% levy.
To know which statistical test to use, we have to test for the normality of the distribution.
Tests of Normality
Kolmogorov-Smirnova Shapiro-Wilk
Kolmogorov-Smirnov
Since p-value is 0.000 (less than 0.05), we reject Ho.
Hence, the setting of particular budget does not follow a normal distribution.
Shapiro-Wilk
For further affirmation, we look at the Shapiro-Wilk statistics. Here also, the p-value is 0.000
(<0.05). Again, we reject Ho.
\
Now, we want to test whether the difference in mean of setting 2% CSR levy as budget and the
barrier encountered to CSR is significant. To do this, the Mann-Whitney test is used.
Mann-Whitney test
Ranks
Do you set a particular
budget set for CSR
activities? N Mean Rank Sum of Ranks
Total 78
Test Statistics
-0.981
Z
0.327
Asymp. Sig. (2-tailed)
Monte Carlo Sig. (2-tailed) Sig. .330b
99% Confidence Interval Lower Bound .318
Upper Bound .343
Since there is no significant difference between setting 2% CSR levy as budget set and the
barrier encountered to CSR, it implies that there is no need to further test for the degree of
association and correlation values as it would be fruitless to do so, since it is already known that
the tax levy and barriers assumes very little difference and hence are closely linked.
Thus, it can be concluded that the 2% levy is indeed impeding CSR undertakings rather than
encouraging SMEs to do CSR.