Linking CSP, ESP and CEP of Top 100 Indian Firms
*Faize Nabi ** Saif Azam ***Azmat Ali Khan
Abstract
The research paper aims to explore the associations between and among Unit’s profit-making, GreenEx Performance and CSR Index with the use of Spearman’s Rank Correlation Method. The data of the Units has been adopted from the Forbes’ India’s Top 100 Units. A CSR Index has been generated on the basis of ratio of Unit’s actual CSR spend and stipulated 2% of Avg. PAT (as per CSR Clause no. 135 in the proposed Companies Act 2013). For GreenEx performance the data has been adopted from BSE GreenExchange. For the Form’s Profitability the data has been adopted from Business Today’s India’s Best 500 Units in the year 2013. The findings are suggestive of strong association between GreenEx and CSR Index, Strong association between GreenEx and Profitability, and weak association between Profitability and CSR Index. The findings indicate that the Units which are highly Eco-friendly are also highly involved in CSR activities. Secondly, the findings indicate that the Units which are highly Eco-friendly are also high on profitability. Lastly, the findings indicate that the Units which are highly profit making are not necessarily and proportionately CSR active. The association between CSR and Profitability though positive is found to be weak.
Keywords: CSR Index, GreeEx, Profitability
*Associate Professor & Head-CDC, ABIMS, Aligarh
** Associate Professor, ABIMS, Aligarh
*** Sr. Assistant Professor, ABIMS, Aligarh
INTRODUCTION
Profitability
A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business 's owners, who may or may not decide to spend it on the business.
Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly
Abstract
The research paper aims to explore the associations between and among Unit’s profit-making, GreenEx Performance and CSR Index with the use of Spearman’s Rank Correlation Method. The data of the Units has been adopted from the Forbes’ India’s Top 100 Units. A CSR Index has been generated on the basis of ratio of Unit’s actual CSR spend and stipulated 2% of Avg. PAT (as per CSR Clause no. 135 in the proposed Companies Act 2013). For GreenEx performance the data has been adopted from BSE GreenExchange. For the Form’s Profitability the data has been adopted from Business Today’s India’s Best 500 Units in the year 2013. The findings are suggestive of strong association between GreenEx and CSR Index, Strong association between GreenEx and Profitability, and weak association between Profitability and CSR Index. The findings indicate that the Units which are highly Eco-friendly are also highly involved in CSR activities. Secondly, the findings indicate that the Units which are highly Eco-friendly are also high on profitability. Lastly, the findings indicate that the Units which are highly profit making are not necessarily and proportionately CSR active. The association between CSR and Profitability though positive is found to be weak.
Keywords: CSR Index, GreeEx, Profitability
*Associate Professor & Head-CDC, ABIMS, Aligarh
** Associate Professor, ABIMS, Aligarh
*** Sr. Assistant Professor, ABIMS, Aligarh
INTRODUCTION
Profitability
A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business 's owners, who may or may not decide to spend it on the business.
Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly
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