IJIMT 2014 Vol.5(5): 344-350 ISSN: 2010-0248
DOI: 10.7763/IJIMT.2014.V5.538

Is "CSR‟ Expenditure or an Investment? Empirical Examination

Sujata Banerjee and Kaushik Mandal
Abstract— Now-a-days Corporate Social Responsibility is gaining prominence among the organizations of various fields. Organizations now are emphasizing on CSR initiatives by integrating their business operations with the CSR activities to sustain in this competitive world. Our study is based on secondary data collected from PROWES database for the year 2003 to 2012 for 21 commercial banks The purpose of this study is to know the comparative contributions of societal expenditure and marketing expenditure on profitability, also to compare the growth rate of societal expenditure and growth rate of ratio of the said expenditures before and after dec’07. By categorizing the stated banks as top performer and non top-performer based on their profitability, this study compares the incurred comparative expenditure between said two groups and its likely impact on profit. The analysis shows that societal expenditure has been increased after ’07 but not significantly and marketing related expenditure have been increased much more than that of the expenditure made towards society. Again when we observe the profit contributions of these expenditures of the top –performer, we can see that the societal expenditure contributes much as compared to marketing expenditure. So, the question arises why not marketing expenditure routed to societal expenditure so that it can be considered as a win-win situation for corporate and society where they can stimulate profitability along with development of the society .

Index Terms— Corporate social responsibility, marketing expenditure, profitability, societal expenditure.

The authors are with the Department of Management Studies, National Institute of Technology, Durgapur, India (e-mail: sujata2707@gmail.com, kaushikmandal.nit@gmail.com).


Cite: Sujata Banerjee and Kaushik Mandal, " Is "CSR‟ Expenditure or an Investment? Empirical Examination," International Journal of Innovation, Management and Technology vol. 5, no. 5, pp. 344-350, 2014.

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