IMPACT OF CORPORATE SOCIAL RESPONSIBILITY(CSR) ON BUSINESS

SUSTAINABILITY AND RURAL DEVELOPMENT WITH REFERENCE TO

SELECT COMPANIES IN KANCHIPURAM DISTRICT

1. INTRODUCTION

The global research has unearthed the fact that the economic activities have a massive impact
on the natural and human ecology. Every business acquires the inputs, be it raw materials,
energy, land and water resource, human resource and many more from the nature and society.
Eventually they need to give back what is acquired. Corporate Social Responsibility (CSR)
is the understanding and realizing this responsibility and responding proactively to voluntarily
contribute to the devastating effects of business actions. CSR is the measurement and
accountability of the positive and negative consequences of an organization’s actions on the
Triple Bottom Line of People, Planet and Profit. Corporate sectors across the globe have
stepped up in the present era with CSR, as a strategy to head towards a sustainable future. It is
doing good to the society with a business integrated approach. According to Elkington (2018),
“the triple bottom line is a sustainability framework that examines a company’s social,
environment, and economic impact.”

1.1 CSR in Global Context

CSR is a multidimensional theory with no unanimously accepted definition. The following

definitions contribute to the understanding of the concept.

Howard R. Bowen, an American economist is considered as the father of CSR as he had

catalysed the term Corporate Social Responsibility in 1953 in his book “Social Responsibilities
of the Businessman”. In his words, “CSR refers to the obligations of businessmen to pursue
those policies, to make those decisions, or to follow those lines of action which are desirable
in terms of the objectives and values of our society”

The universal concurrence of CSR was marked in 1990 with the publication of Donna J.
Wood’s publication, Corporate Social Responsibility Revisited, in 1991. In the same year
Archie B. Carroll published his paper on “The Pyramid of Corporate Social Responsibility”

Carroll’s CSR model: Carroll developed a four-dimensional CSR model, which is considered
as the fundamental framework that stated “Corporate social responsibility encompasses the
economic, legal, ethical, and discretionary (philanthropic) expectations that society has of
organizations at a given point in time”.
According to UNIDO, CSR is the way through which a company achieves a balance of
economic, environmental and social imperatives (Triple-Bottom-Line Approach) while
addressing the expectations of shareholders and stakeholders.

The World Business Council for Sustainable Development (WBCSD), 2001, defines CSR
as ‘‘the commitment of business to contribute to sustainable economic development, working
with employees, their families and the local communities’’

Philip Kotler and Nancy Lee (2005) define CSR as “a commitment to improve community
wellbeing through discretionary business practices and contributions of corporate resources”

1.2 Evolution of CSR in India

CSR in India has its history of evolution decades back. The terminology CSR may be new in
India, whereas the principles and the concept of CSR has its existence way back in 19th century.
In the First phase (Pre-independence period), the concept of CSR was promoted through
religions for centuries and the contributions were known as philanthropy, charity, seva, dhaan,
dharmada and many more. The practice of corporate giving emerged through setting up of
temples and religious institutions, charitable trust which was managed by the family members
of the corporate community. In the Second phase (struggle for freedom), Mahathma Gandhi
insisted industrial tycoons to share their wealth with the underprivileged people of the society
and support freedom struggle. He also influenced them to build trust for educational and
training institutions. During the Third Phase from 1960-1990, CSR was entrusted with the
Public Sector Undertakings (PSUs) to ensure the proper distribution of wealth. But PSUs were
unsuccessful. Hence expectations were shifted from public to private sectors. In 1965,
academicians, politicians and businessmen laid emphasis on transparency and social
accountability. In 1990, there was a boom in the economic growth of the nation on account of
economic liberalisation and globalisation which led to increased contribution towards social
responsibility. CSR was integrated into sustainable business strategy by the business entities.
In the present day, with the Companies Act 2013, CSR is made mandatory with 2%
contribution of their average net profit of the three preceding financial years. The act is
applicable to companies with a net worth of INR500 crore net worth or INR 1000 crore turnover
or INR 5 crore profit after tax.

In the opinion of N.R.Narayana Murthy, Founder member, Infosys, “it is the responsibility
for business leaders who have enjoyed the fruits of India’s growth to redistribute wealth and
enable our community to grow”.
“In a free enterprise, the community is not just another stakeholder in business but is in fact
the very purpose of its existence". - Jamsetji Nusserwanji, Founder, Tata Group.

1.3 Sustainability
The sustainability idea was first established and became important to human beings during
1970s and 1980s. In 1970s, according to the Stockholm conference reports, sustainability is a
means of realizing the developmental needs of all people without sacrificing the earth's capacity
to sustain life (History of Sustainability, 2012). In order to have continuous supply of natural
resources, raw materials, and resources to protect human health and the environment,
sustainability is crucial. Sustainability, therefore depends both on reducing ecological footprint
and on improving the quality of life. Many companies involve in various CSR activities, but
not all the company attributes to all the requirements of CSR which means sustainability in all
areas are not achieved. The ideas behind sustainability have been pointed out to the reduction
in the waste and pollution by increasing the use of renewable resources and by learning the
right way of using energy (Bell & Morse, 2003, p. 22). For learning the right way of using
resources in a sustainable approach, companies should begin to understand themselves as part
of the nature rather than thinking that they are apart from environment and society (Steve May;
George Cheney; Juliet Roper, 2007, p. 351).

1.4 Rural Development

Rural development is the process of improving the quality of life and economic well-being of
people living in rural areas, often relatively isolated and sparsely populated areas. The
involvement of private firms is a key element to foster rural development strategies. Companies
participating in integrated value chains are expected to act as a strategic partner providing
market opportunities for rural producers, as well as sharing technology, skills, and knowledge
necessary with them.

2. REVIEW OF LITERATURE

A review of literature is the summary of research materials published. This provides

understanding and familiarising with the areas focussed and areas with unresolved questions.

2.1 International

Rosemarie Frigstad Gee (2012) examined the effectiveness of the partnerships for
CSR programmes and how sustainability could be assured by which all stakeholders can be
benefitted. According to the respondents the organizations adopt CSR to give back to the
society as well to enhance their corporate reputation. It is found that the beneficiaries were
benefitted by the CSR programmes undertaken by the organization.

Morteza Khojastepour and Raechel Johns (2014) investigated on the effect of

environmental CSR on corporate reputation and profitability. The research findings show a
positive impact of environmental CSR on corporate reputation. It is also found that a balance
between environmental CSR issues, corporate reputation and profitability heads to sustainable
competitive advantage.

Sobia Saeed (2015) attempted to measure the impact of corporate social responsibility
on firm’s financial performance in Ghee and Fertilizers company. The results of the study
express that there exists a positive relationship between CSR and firm’s financial performance.
Workforce, Society, Market and Environment oriented CSR has resulted in increase in sales,
high return on investment, better reputation and customer satisfaction.

Amani Abdallah Gamal El Din (2016), have explored that the role of CSR in
Sustainable Development is an invitation to reshape the responsibilities of a whole society with
its different constituencies. The study reveals that a collaborative partnership between the
multilateral organisations, government, NGOs and the local community can make a difference
on overall Sustainability.

Francis Tom Baariu & Dr. Alaka D. Opollo (2017) indicated that there exists a
positive relationship between Employee and Customer CSR with that of the selected company
and acts as a core factor in generating revenue for the industry.

Thi Lan Anh Nguyen and Thi Hoa Le Vo (2019) investigated the CSR engagement
problem in the garment supply chain. The study concluded that the CSR Higher CSR
coefficient is required to manage the cost of CSR investment. The smaller the CSR cost is, the
higher will be the CSR performance. It also indicated that the cost relies on the development
in science and technology.

2.2 National

According to Jain Jyoti and Saxena Karunesh (2014), CSR is used as a most
innovative tool which positively affects the financial status of the firm. The study examined
and found that there is a significant relationship between CSR activities and financial
performance of the firm. Through several statistical analysis, the study recognized CSR as a
value creation approach both internally and externally and showcased the identity of the
company as a socially responsible firm.

Raiswa Saha and Richa Dahiya (2015), found that CSR is the key driver for
sustainability. The authors have stated that the business is responsible and accountable for all
that it takes from the environment. Through ethical corporate behaviour, an organisation can
reduce the impact of its action on the environment in which it exists and pave way for the
growth and development of the society. This paper emphasises on the infrastructural and skill
development of the communities surrounding the peripherals of the organisation,
environmental protection and on the efficient utilisation of the resources.

Shital Padhiyar (2018) examined the CSR activities and the attitude of top and middle
level management of selected companies of the two sectors namely, Oil & Gas and Textile. It
is concluded that there exists a difference in the focus area between the companies of the two
sectors. But the top and middle level manager’s attitude in accepting the need for and rationale
of CSR and towards implementation is similar among the companies of both the sectors.
Whereas they differ on the criticism against industry for CSR.

Madhu Bala and Deepak Verma (2019) analysed the manager’s perception towards
CSR. The study revealed that there is a shift in the organization’s attitudes towards CSR from
the traditional philanthropic view to modern view. Organizations consider to engage in CSR to
reap long term benefits in terms of sustainable development, competitive advantage and
corporate reputation.

V.Balachandran and S.Saranya (2020) have made an attempt to review the initiatives
and trends of corporate sustainability with reference to the sustainability reporting in India. The
study concluded that Indian companies are embracing CSR as an alternative tool for sustainable
growth and development. CSR is embedded into the internal and external policies of an
organization from the workplace to environment, community and beyond.

3. RESEARCH GAP
The aim of this descriptive and empirical study is to address a gap in the literature that
remains largely under researched in Kanchipuram District. It attempts to shed light on the
practices of CSR in select companies within the Industrial Parks in the district. Literatures on
Issues and challenges of CSR, Sustainability, CSR through ethical business, Impact of CSR on
Sustainability in the context of economic, social and environment, Impact of CSR on Financial
and overall performance of the business, Impact of CSR on rural development is found to some
extent whereas literature focussing on the Impact of CSR both on the Business Sustainability
and Rural Development of a particular area is limited. Hence, this gap is identified and
addressed in the present study.

4. STATEMENT OF THE PROBLEM

The literature survey has revealed that CSR has been in existence for decades in various forms
like charity, dharma, donations and many more. In this study, the researcher has identified a
gap in the area of impact analysis of CSR on Business Sustainability and Rural Development
from the view of organizations and the beneficiaries as well. Hence, the question set is to find
out whether the CSR initiatives of the selected companies have any impact on the sustainability
of business itself and so as it has on the development of rural areas in terms of People, Planet
and Profit. The study engages to find whether there is any significant relationship between the
CSR initiatives towards the Triple-bottom line and Business Sustainability and similarly Rural
Development.

5. OBJECTIVES OF THE STUDY

A research objective explains the direction of a research. Therefore, the following research
objectives serves as a guideline in the conduct of the study.

1. To sketch the theoretical and conceptual framework of Corporate Social Responsibility,

Business Sustainability and Rural Development and to showcase key highlights of CSR
initiatives of selected companies.
2. To assess the perception of selected companies in adopting CSR for Business
Sustainability and Rural Development.
3. To examine the impact of CSR interventions on Business Sustainability with reference
to People, Planet and Profit.
4. To assess the perception of the rural beneficiaries towards adoption of CSR by
companies for Rural Development.
5. To examine the impact of CSR on Rural Development.

6. HYPOTHESES FORMULATION

1. There is no significant relationship between Organizational efforts towards People,

 Planet and Profit and Business Sustainability
2. There is no significant relationship between Organizational efforts towards People,
Planet and Profit and Rural development
3. There is no significant influence of demographic variables on Business sustainability
4. There is no significant influence of demographic variables on Rural development
5. There is no significant relationship between CSR interventions carried out in rural areas
and Social development
6. There is no significant relationship between CSR intervention carried out in rural areas
and Economic development

7. SCOPE OF THE STUDY

CSR is a sensational term revolving around the Corporate world and National economic
forum. This is because it is believed that CSR can bring about a transformation in the status of
our nation from developing to developed country. The study aims at analysing the CSR
initiatives of selected companies within the selected Industrial estates in Kanchipuram district
and its impact on Business sustainability from the business perspective and the impact on Rural
Development from rural beneficiaries perspective.

8. RESEARCH METHODOLOGY

8.1 Nature of the Study

The type of study is descriptive and empirical in accordance with the topic chosen.
Empirical analysis is done by calibrating scientific instruments on the accumulated data using
evidence. Descriptive method involves identification of facts through surveys and studies.

8.2 Sources of Data

The data were collected both from Primary and Secondary sources. To accomplish the
research objectives of the study, primary as well as secondary data were used to gather
information and develop knowledge on the selected topic to transform into numerical data.

8.3 Primary Data

Primary data were obtained in two phases. Phase I deals with collection of data through a
structured questionnaire from the top and middle management employees of the selected
companies by rating their responses using Five-Point Likert scale statement. Phase II deals
with the collection of data from the rural population from the neighbouring villages of the
selected industrial area using a structured interview schedule by rating their responses with a
Five Point Likert scale statement. The interview was carried out in the local language and
recorded in the interview schedule. Data were also obtained from the Government agencies
with regard to the CSR contributions by selected companies for rural development.

8.4 Secondary Data

Secondary data were collected mainly from Annual reports, Sustainability reports, CSR
reports, Official websites of companies, reports of surveys by private institutions Blogs on
CSR, Journal and Research papers, presentations on CSR and websites on employee reviews.

8.5 Population and Sampling

According to the Companies Act 2013, certain companies are mandatorily required to
contribute part of their profits towards CSR activities. In view of this, for the purpose of the
study, only large and few medium scale industries come within the mandatory framework and
hence are considered for sampling. Companies having operations in the industrial parks in
Kanchipuram district form part of the sample frame. There are 13 Industrial parks in
Kanchipuram district. There are 11 taluks in the district as per census 2011, of which major
Industrial parks with large and medium scale industries have been setup in the three major
taluks of the district, namely Sriperumbudur, Chengalpattu and Tambaram. Estates developed
by SIPCOT, TIDCO and SEZ category within the three taluks are considered for determining
the sample size. Therefore 5 industrial parks are drawn. The study commenced in the year
2018 and hence data from the District Industrial profile 2015-16 of Kanchipuram is utilized for
the study.

Key factors involved for sample selection are:

➢ Industries that form part of the selected industrial estate

➢ Large and Medium scale industries involved in CSR activities selected industrial estate
➢ Firms that concentrate on rural development within the selected industrial estate
➢ Firms performing community development initiative in the surrounding rural areas that
comes within the framework of the selected industrial estate.

Sample Size Determination (Phase I Respondents-Employees)

Sample size was determined using the following formula;

 N=Z2*P*Q)/S. E2

Z represents the z value for corresponding confidence interval

P represents probability of occurrence of an event

Q represents probability of non-occurrence of the event

= (1.96 x 1.96 x 0.5 x 0.5) / (.05 x .05)

= 384.16

~ 384

Hence, the desired sample size has to be at least 385 for this study

Sample Size Determination (Phase II Respondents-Rural people)

The sample size for the survey is determined by applying the following formula:

Sample size n = (ZS/E)2

Where,

Z = 1.96 (Standardized value corresponding to95% confidence interval)

S = Sample standard deviation from pilot study = 0.562

E = Acceptable error = 0.05 (5%)

Sample size (n ) = (ZS/E)2

= (1.96*0.562/0.05)2

= 485.33

~ 485

8.6 Study Area

Kanchipuram District is selected as the study area. The justification for the selection is
as follows:

➢ Kanchipuram district has 13 Industrial estates as per the District Industrial Profile (DIP)
2015-16.
 ➢ A majority of five Industrial estates with three Industrial parks developed by SIPCOT,
one developed in Public- Private partnership between Mahindra World City Developers
and TIDCO and MEPZ developed by Central Government is concentrated in this
district.
➢ The total number of operational SEZ in Tamilnadu is 40 which is the highest among
the others states and Kanchipuram district ranks first among the districts in Tamilnadu
with 22 operational SEZ.
➢ There are 11 Revenue taluks in the district (DIP 2017-18) with a rural population of
1459916.

8.7 Sampling Technique

The research is carried out in two phases. Phase I deals with the impact of CSR on
Business Sustainability and Phase II with the impact of CSR on Rural development. Under
Phase I, sample is drawn through non-probability sampling method. Purposive sampling
method is adopted to select the sample. As the study is focused on the impact of CSR, firms
within the selected industrial parks involved in CSR activities towards achieving
sustainable business and support to rural community development is considered as the key
factor for sample selection. It is intended that the sample is chosen from diversified sectors
that fulfills the sampling objectives. Hence, large and medium scale CSR performing
companies from various sectors (Automobile Engineering, Auto Components
manufacturing, Information Technology, Construction, Software, Paint, Glass products,
Rubber Products, Personal Goods, Chemicals, Concrete Machinery manufacturing) are
selected as sample of the study.

A structured questionnaire is designed and administered to the CEOs in top management,

heads of CSR, HR, finance and marketing departments in the middle management. This
has been done partly through online survey forms and partly through physical forms handed
over personally. For the purpose of data collection, companies within the selected Industrial
estates in the study area performing considerable CSR interventions in the local community
is selected for sampling. Though many companies adopt CSR activities, the focus of the
study is on companies that prioritize rural development in the rural areas embracing the
industrial estate in Kanchipuram district. Eventually 39 companies were identified based
on the investigation through field visit carried out in the rural areas surrounding the selected
Industrial estates. 500 Questionnaires were distributed to the selected companies of which
 451 responses were received. Fourteen questionnaires were found with data insufficiency.
Hence after excluding those fourteen respondents, the sample size of the main survey is
437, which is more than the samples required

The following table represents the population and sample of the study. The following table
shows the sample distribution.

Table – 1

Companies Wise Sample Distribution: Phase I

Sl.No. Selected Industrial Estates Selected Companies

1. SIPCOT, Sriperumbudur 9
2. SIPCOT, Irungattukottai 9
3. SIPCOT, Oragadam 5
4. Chennai Export Processing Zone (CEPZ), Tambaram 3
5. Mahindra World City (MWC), Chengalpattu 13
Total 39
Source: Compiled by Researcher

Under Phase II data collection, rural areas that come within the framework of the industrial
estates are contemplated. A field visit was initiated to interview the rural people using a
structured interview schedule regarding the level of CSR initiatives carried out by the
companies, thematic areas focused and their opinion on the impact of CSR on development
aspect of the community. The sample chosen to analyse the impact of CSR on Rural
development are people from the rural areas surrounding the selected industrial estates using
convenience sampling. 485 rural people were selected as per sample size determination and
interview schedule was conducted. Hence 485 is the sample size for the Phase II study.

Table – 2

Sample Distribution of Villages: Phase II

Sl.No. Selected Industrial Estates Selected

Villages
1. Villages covered in SIPCOT, Sriperumbudur 5
2. Villages covered in SIPCOT, Irungattukottai 10
3. Villages covered in SIPCOT, Oragadam 5
 4. Villages covered in Chennai Export Processing Zone (CEPZ), 7
Tambaram
5. Villages covered in Mahindra World City (MWC), Chengalpattu 8
Total 35
Source: Compiled by the Researcher

8.8 Measurement Instrument

Questionnaire was developed based on the objectives. The questionnaire divided into
eight parts.

Section Name of the Section

I Demographic profile of the respondents
II General CSR profile of the company
III Organizational effort towards PEOPLE
IV Organizational effort towards PLANET
V Organizational effort towards PROFIT
VI Perception of Organization in Adoption of CSR for Business Sustainability &
Rural Development
VII Business Sustainability
VIII Rural development

8.9 Period of Study

The duration of the study is from 2018 to 2020. The data collection period ranged between
October 2019 to April 2020.

8.10 Pilot Study

It is essential to test the questionnaire in order to understand the possible weaknesses and
identify the inadequacies present therein. It also allows us to identify the unclear and repetitive
questions that needs modification. Since the study carries out data collection in two phases,
pilot study was also initiated in two phases Therefore, under Phase I, a structured questionnaire
was pilot tested with 40 respondents. The respondents were the managers of CSR, HR and
marketing departments and employees participating in CSR initiatives. It is noted that the
Chronbach’s alpha of 0.834 showed 83.4% of reliability for pilot study. Since the respondents
have well understood the questionnaire, no major alterations were made in the questionnaire.
In second pilot study, interview schedule was conducted with 45 rural people located around
the industries in Kanchipuram District. It is noted that the Chronbach’s alpha of 0.819 showed
81.9% of reliability for pilot study. Respondents were able to respondent almost all the
questions in Interview schedule, so main study was carried out without any alterations.

8.11 Statistical Analysis

8.11.1 Reliability of the Main Study

Reliability of an instrument refers to the degree of consistency between multiple

measurements of variables. It is extent to which an experiment tests or any measuring
procedures yield, the same result on repeated attempts. Reliability was estimated through
internal consistency method which is applied to measure the consistency among the variables
in a summated scale. In the present study, the Cronbach’s Alpha co-efficient of reliability was
found based on primary data of the present study. Cronbach’s Alpha value of 0.879
(employees) and 0.843 (Rural people) confirms the reliability of the data is 87.9% and 84.3%
respectively.

8.11.2 Statistical Tools used

The validity, reliability and analysis of the data in this study was analysed using IBM
SPSS Statistics v 23.0 and IBM SPSS AMOS v.23.0 was used to perform structural equation
modelling. In this study the following statistical tools are used.

• Percentage Analysis
• Descriptive Measures
• Exploratory Factor Analysis
• One way Analysis of Variance with Duncan’s Post Hoc test
• Bi-variate Correlation
• Multiple Regression Analysis
• Confirmatory Factor Analysis
• Structural Equation Modelling

9. LIMITATIONS OF THE STUDY

The study is restricted to Kanchipuram district and hence cannot be generalized. The
results may vary with selection of different Taluks, Industrial locations and villages. Only the
companies within the selected industrial estate were covered for Phase I questionnaire and the
neighbouring rural villages and beneficiaries from the rural areas within the purview of the
industrial estates were only selected for the study. Different methodology for selection of
samples may produce different results. The changing Government regulations from time to
time may impact on the results in the future.

10. SCHEME OF CHAPTERISATION

Table – 3
Scheme of Chapterisation
Chapters Description
Chapter I The Introduction chapter gives an insight to the concept of CSR,
Sustainability and Rural Development followed by research gap, statement of
problem, objectives, hypotheses, scope of the study, research methodology
and limitations of the study.
Chapter II Theoretical and Conceptual Framework of CSR, Sustainability,
Sustainable Development and Rural Development, the Evolutionary
background, benefits, various provisions and guidelines are constructed and
discussed in this chapter.
Chapter III Review of Literature summarizes the existing scholarly resources on the
selected research topic with a wide range of literature survey done to acquire
knowledge on the study area and identify the research gap, that forms the basis
for the study.
Chapter IV This chapter contains two parts that discusses the Perception of
Organization in adopting CSR for Business Sustainability and Rural
Development.
Chapter IV This chapter deals with the analysis of Impact of CSR on Business
Sustainability with reference to People, Planet and Profit.
Chapter V This chapter deals with the analysis of Perception of the rural beneficiaries
towards adoption of CSR by companies for Rural Development and
Impact of CSR on Rural Development.
Chapter VII This chapter delivers the Summary of Findings, Suggestions and
Conclusion.
11. MAJOR FINDINGS OF THE STUDY

On the basis of analysis of primary data, the following major findings are derived.

11.1 Demographic Status Respondents from selected Organization

The summary of the demographic profile is tabulated in the table 1.2:
Table: 4
Summary of Demographic Factors of Respondents

S. No Demographics Percentage Inference

Years of Professional The majority of the respondents have more
1 39.80
Experience than 10 years of professional experience.
2 Gender 69.30 The majority of the respondents were male
The majority of the respondents have 3-5
Experience with
3 28.80 years of experience in the present
present organization
organization.
The majority of the respondents were in the
4 Age 36.60
age group of 20 to 30 Years
The majority of the Respondents are
5 Qualification 54.40
graduates
The majority of the respondents belong to
6 Hierarchy 92.20
middle level management
The majority of the respondents belong to
7 Organization Type 58.40
private organization
The majority of the respondents belong to
8 Organization Size 89.90
the Nuclear family
Source: Primary data

11.2 Influence of Demographic variables on Business Sustainability:

Significant influence of Demographic variables on Business Sustainability is observed.
➢ Years of professional experience, Age and Organization type have significant
influence on Business Sustainability with F-values 4.861, 5.873 and
31.062 respectively.
 ➢ Gender, Experience with present Organization, Qualification, Hierarchy and
Organization size does not have significant influence on Business Sustainability
with F-values 0.123, 2.373, 0.103, 0.041 and 0.342 respectively.

11.3 Influence of Demographic variables on Rural Development:

Significant influence of Demographic variables on Rural Development is observed.
➢ Years of professional experience, Age, Qualification, Organization type and
Organization size have significant influence on Rural Development with F-
value 4.861, 5.873, 5.812, 31.062 and 6.438 respectively.
➢ Gender, Experience with present Organization and Hierarchy does not have
significant influence on Rural Development with F-value 0.101, 2.369 and
0.911 respectively.

11.4 Respondents Awareness Level about CSR Initiatives

Table - 5
Awareness on CSR
Statement Mean SD
Employees are aware of the CSR activities done
4.48 0.577
by the company
Employees are motivated to volunteer CSR
4.20 0.752
activities and Projects
Appropriate budget is allocated for various
4.13 0.604
CSR activities.
Reporting on CSR and sustainable practices
4.62 0.591
adopted is followed by the organization
There is a relationship between CSR and
4.40 0.658
Sustainability
Separate department/CSR Foundation is
constituted by the organisation to directly 4.35 0.729
carryout the CSR activities
Organisation involves in CSR activities through
4.08 0.799
NGOs
CSR is considered as part of cost in our
3.98 0.940
Company/Organization
 Conducts awareness and training within the
3.91 0.735
organisation for CSR initiatives
Source: Primary data

➢ It is inferred from the above table that Employees’ awareness about the CSR
initiatives is good.

11.5 Relationship between “Adoption of CSR” by companies towards “People, Planet and
Profit”

➢ Positive relationship is observed between Organizational efforts towards People

and adoption of CSR and is found to be significant with r value 0.402.
➢ Positive relationship is observed between Organizational efforts towards Planet
and adoption of CSR with r value 0.330
➢ Positive relationship is observed between Organizational efforts towards Profit
and adoption of CSR with r value 0.395.

11.6 Impact of CSR on Business Sustainability and Rural Development - Organization’s

Perspective

The impact of CSR intervention by the companies in the neighbouring rural areas for
Business Sustainability and Rural Development is accessed in the organization’s perspective
by applying People, Planet and Profit as factors.

11.6.1 Relationship between CSR interventions towards “People, Planet and Profit” and
“Business Sustainability”

➢ Positive and Good relationship is observed between Organizational efforts

towards People and Business Sustainability and the relationship is found to be
significant (r=0.435).
➢ Positive relationship is observed between Organizational efforts towards Planet
and Business Sustainability and the relationship is found to be significant
(r=0.302)
 ➢ Positive relationship is observed between Organizational efforts towards Profit
and Business Sustainability and the relationship is found to be significant
(r=0.603).

11.6.2 Relationship between CSR interventions towards “People, Planet and Profit” and
“Rural Development”.

➢ Positive relationship is observed between Organizational efforts towards People

and rural development with r=0.508, which is observed as significant.
➢ Positive relationship is observed between Organizational efforts towards Planet
and rural development with r=0.274, which is observed as significant.
➢ Positive relationship is observed between Organizational efforts towards Profit
and rural development with r=0.385, which is observed as significant.

11.7 Demographic Profile of the Respondents from Rural Areas

The summary of the demographic profile is tabulated in the table 1.2:
Table - 6
Demographic Profile of the Respondents from Rural areas

S. No Demographics Percentage Inference

1 Gender 53.8 The majority of the respondents were male

The majority of the respondents were in the
2 Age 32.0
age group of 46 to 60 Years
The majority of the respondents belong to
3 Type of Family 51.5
the Nuclear family
The majority of the respondents were
4 Marital Status 86.8
Married
Educational The majority of the Respondents had
5 33.6
Qualification studied class 1 – 8.
The majority of the respondents were
6 Occupation 31.8
Salaried employees
The majority of the respondents fall
Average Annual
7 38.7 between Rs.50,001 to Rs.1,00,000
Income of Households
category.
Source: Primary data
11.8 Impact of CSR on Rural Development – Rural Beneficiaries Perspective
The impact of CSR intervention by the companies in the neighbouring rural areas for
Rural Development is accessed in the rural beneficiaries perspective by applying Social
Development and Economic Development as factors.

11.8.1 Relationship between CSR interventions towards “Education, Health, Sanitation

& Hygiene, Building Infrastructure, Livelihood and Agriculture” and “Social
Development”.
➢ Positive and Significant relationship is observed between ‘CSR interventions
for Education’ and ‘Social Development’ (r=0.707).
➢ Positive and Significant relationship is observed between ‘CSR interventions
for Health, Sanitation & Hygiene’ and ‘Social Development’ (r=0.448).
➢ Positive and Significant relationship is observed between ‘CSR interventions
for Building Infrastructure’ and ‘Social Development’ (r=0.309).
➢ Positive and Significant relationship is observed between ‘CSR interventions
for Livelihood’ and ‘Social Development’ (r=0.328).
➢ Significant relationship between ‘CSR interventions for Agriculture’ and
‘Social Development’ is not observed, (r=0.121).

11.8.2 Relationship between CSR interventions towards “Education, Health, Sanitation

& Hygiene, Building Infrastructure, Livelihood and Agriculture” and “Economic
Development”.
➢ There exists positive and significant correlation between Education and
Economic Development with r=0.423,
➢ There exists positive and significant correlation between Health, Sanitation &
Hygiene and Economic Development with r=0.412,
➢ There exists positive and significant correlation between Building Infrastructure
and Economic Development with r=0.011,
➢ There exists positive and significant correlation between Livelihood and
Economic Development with r=0.519
➢ Significant relationship between Agriculture and Economic Development is not
observed with r=0.108.
12. SUGGESTIONS

1. Through CSR activities Companies can achieve Business sustainability – Economic,

Societal and Environmental, as they are linking the company with responsible actions
and innovations. Hence it is suggested that every company must consider CSR as part
of cost to company which is mandatory.
2. A Government - Public -Private collaboration in CSR can be considered as effective
strategy for Rural development and Disaster management to serve the society. The
recent collaboration of many corporate houses together with the Government to fight
the COVID – 19 pandemic in 2020 is a classic example of partnership between
Government-public-Private partnerships. This kind of partnership in All India Rural
Development areas can make India to take top position among developed nations.
3. Though there is Awareness among majority of the employees, it is yet unknown to
many in the organization. Hence programmes on CSR could be effectuated both
internally for the employees and externally for the rural beneficiaries on regular
intervals.
4. Majority of the firms are contributing to the welfare of the employees yet there is a
dissatisfaction in the areas of work-life balance, pay-scale and promotions. The
organizations are suggested to enhance the transparency to resolve these issues.
5. Through CSR and stakeholder management strategies, firms could manage possible
risks and contribute to the improvement of the socio-economic conditions of rural
communities nearby their manufacturing or administrative sites. Hence firms are
advised to adopt CSR as a strategic tool to harness prosperity in the business
environment and society as well.
6. The study observes that the organizations established in the industrial estates in rural
areas are creating employment opportunities to many rural people. Yet these
employments are only on contractual basis and not direct and permanent in nature.
Business organizations have the ability to create permanent source of income in the
rural community that can enhance their livelihood.
7. It is observed that majority of the companies have made appreciable contributions to
the field of education and Healthcare, whereas negligible contributions are only found
to be done to Agriculture. Business organizations and Government agencies in joint
venture can bring about drastic changes in the field of agriculture to sustain the future
 food availability. Hence Government should strongly encourage companies to
contribute to Agricultural improvements.

13. CONCLUSION

Corporate Social Responsibility is considered to be the feasible driver both for Business
Sustainability and rural development. A company adopting CSR practices can support the
society in many ways such as Poverty alleviation, lower pollution, applying sustainable
practices in energy and natural resource utilisation; improving health, sanitation and education,
providing Employment, building infrastructure and livelihood of the rural communities. CSR
activities of a company can also support Agriculture.

Corporate social responsibility has much broader implications both for the business and nation
as a whole. It reduces dependency on the Government for social change. There is a need for
public-private partnership with well-defined controls and processes for the best use of
resources for social change. Through the application of CSR strategies, firms can receive
various benefits like enhancement of company’s competitive advantage, customer recognition,
cost reduction by eco-efficiency and recycling as well as an increase in the personnel’s morale,
reduction of labour turnover, conservation of internal and external resource for future and
creating brand value through sharing of economic benefits for providing opportunities to rural
population thereby leading to rural development.

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➢ https://sipcot.tn.gov.in/pages/view/typeof-Industries
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