An Empirical Study on Corporate Social Responsibility of Commercial Banks with Special Reference to Central Tamilnadu Dr.P.Marishkumar Keywords:

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1 An Empirical Study on Corporate Social Responsibility of Commercial Banks with Special Reference to Central Tamilnadu Dr.P.Marishkumar Associate Professor Department of Management Studies VMKV Engineering College Salem , India Abstract Corporate social responsibility (CSR) is a commonly used model in recent years, particularly after companies act But CSR actions and its calculated values in policy formulation for an banking industry may differ from other industries. The significance of essential mechanism of CSR is different for all companies and this is the important cause that one industry thinks more accountable for the environmental issues although another industry thinks like to invest in social issues. The motive of this research article is to study the importance of CSR in Indian banking industry and how it is unlike in association to other industries even in the same sector. Content analysis was done to achieve this objective. It seems that banks feels more responsible for social issues and financial inclusion is the central part to fulfil their social responsibility while environmental issues remain unaddressed by most of them. Keywords: Corporate social responsibility (CSR), content analysis, banks in India, association, CSR in Indian banking industry I Introduction: Social responsibility of business is not new to our nation. In previous years, whenever was famine, the leading business executives of the area would literally throw open their go downs and treasure and chest to provide food and other assistance to the needy. Social responsibility represents moral obligation of a business towards social development and requires resources for solution of social problems & n activity of social welfare. It emphasizes of social dimensions of business activity in which it makes contribution toward s improvements in the quality of life. Banks plays an important role in economics through transforming money by space and scale. Banks concentrates the quantitative and qualitative techniques in corporate governance. The experts of this field should combines business reasons with ideological reasons. Commercial banks as funding agency advertisers with requisite expertise have a comparative advantage to promote socially and environmentally sustainable business that will decide the development and direction of the economic condition of our nation. A. Importance of the study: Business is an integral part of the society. It makes use the resources of the society for its functioning. Therefore the business expected to discharge its duties and responsibilities in enhancing the welfare of the society. The concept of social responsibility is that the profit is the primary function the business, the business must be ran the wide ground of what is the best for the community and the society at the maximum contribution. Banking is the service oriented business which touches the lives of millions of the people. A potent force can be 1

2 brought the socio economic transformation in the country. The commercial banks is providing service only in the major cities and town to the needs of industries nand big business who could offer various securities and such banks called as class banks. In order to make the banks more response to the need of the society,14 commercial banks were nationalized in the year of July1969. Since there is a structural and qualitative change in the profile of commercial banking concepts. B. Objectives of the study; To study the importance of the social responsibility in commercial banks. To study the various services offered by the select commercial banks in central tamilnadu. To assess the various social responsible key initiatives taken by commercial banks. To analyze the factors influencing the social activities of the commercial banks II. Research Methodology; 1) Sampling Design This study is confined to the branch managers of the select commercial banks in central tamilnadu. There are 19 select commercial banks in central tamilnadu and these select commercial banks are considered the universe of the study. In the stage, by adopting quota sampling, 25 respondents are selected from each commercial bank. The sampling details are given in the following table. TABLE 1 SAMPLING DISTRIBUTION Name of the Hospital No. of Samples State bank of India 25 Indian bank 25 Canara bank 25 Indian overseas bank 25 ICICI 25 HDFC 25 Total 150 Type of Bank Number of Bank Percentage Public s ector Private s ector Total Banks are: SBI, Indian, Canara Bank, Indian overseas bank, ICICI and HDFC bank. 2) Tools for Data Collection This study is empirical in nature based on survey method. The first-hand information for this study was collected from the offices of the select commercial banks in central tamilnadu. As an essential part of the study, the primary data were collected from 150 branch managers with the help of interview schedule for a period of 6 months. The secondary data were collected mainly from journals, reports, books, internet and records. 3) Framework of Analysis In order to study the social responsibility of commercial banks, various statistical tools such as chi square test, student t test, paired comparison t 2

3 test, analysis of one-way variance, co-efficient of variation, discriminant function analysis, multiple regression analysis and percentage analysis were employed. The chi square test was employed to measure the association between the satisfaction level of the patients belonging to different socioeconomic profiles and the social responsibility of commercial banks. To arrive at possible solutions, percentage analysis was also employed in this study. 4) Key Areas of CSR Activities Various parameters like ownership, major area of CSR contribution, Publication of business responsibility report (BRR), Formation of CSR committee, Publication of separate CSR report or Sustainability and total CSR amount contribution were analysed to understand the aptitude of bank. Key Areas of CSR Activities Number of Banks Education Facilities Percentage Healthcare Facilities Skill development and training and development Programme Environment 3 50 Women empowerment Assistance during natural calamities Financial inclusion ion Development of culture and s ports Energy conservation Other activities : Assistance to poor, Donation, etc III Findings 1. Out of 150 respondents, per cent were male and per cent were female. The predominant age group of the respondents (36 per cent) is years. A good majority of the remaining respondents were distributed in the age group years % and 11.60% of the respondents were distributed in the age groups upto 30 years and above 50 years respectively. 2. The highest literacy rate (35.20%) of the respondents is degree level per cent of the respondents have got upto H.Sc education and per cent have got Diploma/ITI education per cent of the respondents have postgraduate and above qualifications per cent of the respondents are businessmen, 42 per cent are employed, per cent are professionals, 3.40 per cent are students and housewives, and 15.20% are agriculturists per cent of the respondents have monthly income upto Rs and per cent have Rs to Rs as monthly income per cent of the respondents have monthly income Rs About per cent of the respondents have above Rs as monthly income. 5. Out of 150 respondents, 20%, 20%, 20%, 20% and 20% of the respondents belong to SBI, Indian bank, Canara bank, ICICI, HDFC banks respectively. 50 per cent of the respondents belong to the urban area and 50 per cent of the respondents belong to the rural area. 3

4 6. Out of 150 respondents, 50 per cent are prepaid service users and 50 per cent are postpaid service users. 20%, 20%, 20%, 20% and 20% of the respondents belong to Erode, Namakkal, Karur, Trichy and Salem respectively per cent of the respondents are married and per cent are unmarried. 7. Majority of the banks per cent were social lending activities often. It shows that the banks are highly interested in taking social responsibility activities. 8. Most of the banks allotted minimum 5 lakh rupees for the purpose of carrying out social responsibility activities. 9. There is no noteworthy association between the satisfaction level of the respondents belonging to different genders, age groups, educational status groups, occupations, monthly income groups locations, different commercial banks in central tamilnadu and services of the select commercial banks in central tamilnadu 10. There is no significant association between public and private commercial banks on number of social responsibility activities carry out in a year. 11. There is no significant association between urban, semi urban and rural public and private commercial banks on number of social responsibility activities carry out in a year. 12. There is no significant association between years of existence of public and private commercial banks on number of social responsibility activities carry out in a year. 13. Female respondents, respondents in the age group above 50 years, respondents having ITI/Diploma, professionals, the respondents whose monthly income is above Rs.35000, urban respondents, respondents of SBI are more satisfied with the of the social responsibility awareness programme in the Salem. IV Suggestions: The banks has to take necessary voluntary initiatives for providing service regarding social responsibility activities such as social responsibility programme on various issues, medical programme, educational awareness programme, blood donation etc, beyond the compulsion of government by assisting the sponsor scheme and priority sector lending. 1. All select commercial banks in central tamilnadu are advised to execute the social responsibility initiatives by committee or a staff to take care of social responsibility activities. 2. The select commercial banks in central tamilnadu should provide the awareness programme of various facilities offered to rural customers then only the social responsibility activities would successfully reaches to the rural customers. 3. The government strongly recommends to the select commercial banks in central tamilnadu to start new bank branches in 4

5 rural areas because the rural people could not reach the bank branches to avail the facilities. 4. The RBI or government has to form a separate board to monitor the select commercial banks to do the social responsible activities. 5. The RBI or government has to instruct the select commercial banks in central tamilnadu to highly involve the social responsible activities based on the needs and expectation of the people. 6. The customers and also the public should be utilized the social responsible activities offered by the select commercial banks in central tamilnadu in effectively. 7. The customers and also the public should provide their cooperation and support with the bank executives or authorities for the purpose of successful execution of social responsible activities in their area. V Conclusion: The banks are considered to be an important service providing organization in our country which is facilitates enormous people in the society to develop them. The current situation has to improve their performance on the social responsible activities of select commercial banks in central tamilnadu. In this regards, The banks has come across on the social responsible activities of select commercial banks in central tamilnadu that all the banks doing some kind of social responsible activities beyond compulsion of RBI and government. It is insisted that all the banks has to take some voluntary initiation to fulfill social responsible activities of select commercial banks in central tamilnadu based on the need and expectations of the customers and also general public in this area. Thus the select commercial banks in central tamilnadu is performing their social responsible activities in effectively therefore need to put extra effort may be given to the public to set an example of this region and also rural development. This social responsible contribution helps to improve the economic condition of the customers and develops the growth of our nation. References: Hertz, Noreena. (2012), Gradual demise of Gucci capitalism to be followed by responsible capitalism, The Economic Times, 23rd January Lee E. Preston and Douglas P. O Bannon (1997), The Corporate Social-Financial Performance Relationship: A Typology and Analysis, Business and Society, Vol.36 (4),pp Marish Kumar.P and Dr. C. Natarajan (2013). Gap Analysis in the Service Performance of the New Generation Private Banks In Salem District: An Empirical Study, Innovative Intellectual Publications,Volume No.II, April September, p

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