1. 1
DOES ANY BANKING SECTOR IN DAKSHINA KANNADA DISTRICT HAVE
LONG HISTORIES AND DEMONSTRABLE ACHIEVEMENTS TOWARDS CSR
INITIATIVES?
*Ms. Ramyashree M G, PhD Research Scholar (UGC-JRF), Department of Commerce, Mangalore
University
*Dr. Ishwara P, Research Guide, Associate Professor, Department of Commerce, Mangalore
University
___________________________________________________________________________
Abstract
The popularity concept of Corporate Social Responsibility is increasing in over the
last century in India. The concept of social responsibility becomes one of the tool for
achieving the most competitive and dynamic knowledge-based economy. There is a global
recognition of Corporate Social Responsibility (CSR) of the financial institutions in
developed countries and the lack of interest in the relevance of this concept in developing
country, it is essential to investigate the relation between Corporate Social Responsibility and
Financial Performance in the Indian banking sector. This research paper defines on a
theoretical level the concept of Corporate Social Responsibility, its development, its present
form and the influence on financial performance of the banking industry. The study reveals
the determinants and conditions for developing CSR strategies within banks. The main
objective of this paper is to examine the nature of relationship between corporate social
responsibility (CSR) and financial performance (FP). It shows CSR initiatives In doing so we
have summarized the findings of the empirical studies, drawn the conceptual framework,
measured CSR by developing a measure of corporate social performance (CSP) and finally
made an investigation on the banking sector of Dakshina Kannada District. In this respect, the
CSR status measured in this study would serve as an important benchmark for further studies.
Keywords: Banking Sector, Corporate Social Performance, Corporate Social
Responsibility, CSR Initiatives.

2. 2
Introduction
With the emergence of civilisation of mankind, social behaviour became an integral
part of life and every activity. Today the success of a company is in threefold say financial,
environmental and social commitment. In recent years, there has been a growing interest,
both in the academic as well as the business world, around the issue of Corporate Social
Performance (CSP) - a multidimensional measure (Carroll, 1991; Griffin and Mahon, 1997)
of corporate social responsibility (CSR) that captures firm actions aimed at engaging a
broader set of stakeholders and ranging across a wide variety of inputs, internal routines or
processes, and outputs.Bank has its own philosophy on CSR. It is also observed that a
fixed Percentage of profit is spend (i.e.1%) on CSR. No evidence is found in Annual
report about the separate CSR Report but section is inserted on CSR by
RBI. According to the recent updates of Companies Bill 2012, the Ministry of Corporate
Affairs made it mandatory to utilize 2% of Net profit for CSR activities in India. The bank
engagedin the socioeconomicdevelopment, rural development andsustainable economic devel
opment of the country.
Significance of the study
The purpose of this study was to investigate the relationship between organization
corporate social responsibility and financial performance of commercial banks, to examine
the character of corporate social responsibility in organizations ,to establish the relationship
between organization social responsibility and financial performance, to investigate the
relationship between corporate social responsibility and financial performance, to assess the
relationship between organization social capital and corporate social responsibility.
Statement of the problem
The financial performance of banks in Dakshina Kannada has continuously declined
in the past years regarding social responsible activities. This could be attributed to weak
organization social Capital, Personnel insufficient corporate social responsibility. Further
there is mistrust and absence of associability in many banks. So there is need of studying
Banking sectors responsibility towards social welfare and their performance.

3. 3
Objectives of the study
i. To understand the scenario of corporate social responsibility in India.
ii. To examine the character of corporate social responsibility in organizations.
iii. To analyse the bank performance towards CSR through case study.
iv. To investigate the relationship between corporate social responsibility and financial
performance.
v. To suggest measures on the basis of findings of the research study.
Scope of the Study
The study focused on the commercial banks carrying out their activities in Dakshina
Kannada district.
Research Methodology
The present study is in partly descriptive partly diagnostic in nature.
Conceptual framework was developed from the secondary data comprising of the published
literature. With the research problem primary data will be generate through the survey
method on the sample units selected in Dakshina Kannada District in Karnataka State. A
structured questionnaire and personal interview will be used to generate primary data.
Convenience sampling method is used to generate primary data. The data was collected from
a sample of 5 Banks originated from Dakshina Kannada District itself such as Vijaya bank
with, corporation bank, Karnataka Bank, Syndicate Bank and Canara Bank.
CSR: Conceptual framework
Most authors argued in favour of CSR, despite the lack of consensus on what
it really meant. However, Friedman (1962) promoted contrary viewpoint by asserting that
“businesses had no other social responsibility than to make as much profit as possible”.
CSR scenario in Indian Context
To describe the current state andfuture prospects of CSR in India, Sundar (2000) divi
ded thedevelopment of CSR into four phases based on the country’spolitical and economic ba

4. 4
ckground. Later on, Chahoud etal. (2007) reinforced him (2000) saying that different
CSR practices moved on parallel with India’s historical
development. The four phases are as follows:
Table 1: Phases of CSR practises
Phases Key Thrust Key strategies
Phase I
(Till 1914)
CSR motivated by
charity and
philanthropy
The oldest form of CSR was motivated by charity
and philanthropy with direct influence from culture,
religion, family tradition, and industrialization process.
Phase II
(1914-1960)
CSR for India’s s o c
i a l
development
Gandhi’sreform programs which includedactivities that so
ught in particularthe abolition of untouchability,women’s
empowerment and rural development.
Phase III
(1960-1980)
CSR under the
paradigm of the
“mixed” economy
This phase is also characterized by a shift from
corporate self regulation to strict legal and public
regulation of business activities.
Phase IV
(1980 onwar
ds)
CSR interface
between
philanthropic and
business approach.
Indian companies and stakeholders began abandoning
traditional philanthropic engagement and, to some extent,
integrated CSR into a coherent and sustainable
business strategy, partly adopting the multi
stakeholder approach.
Source: Based on Survey of Literature on CSR and Sundar (2000)
As a nation, India faces paradoxes and polarities. On the, Human Development Index
2011 India ranks at the lower end, at a 134th
of 187countries.Inequality between genders is
strong, more than 30 per cent of the At the same time India takes pride in the fact that she has
made a mark on the scientific world map. India boasts of the world's third largest educated
and technical manpower, and is reckoned as an economic power house. It is a progressive
country, and inclusive growth is at the centre of India's national agenda.
CSR Initiatives
 In rural areas, training in agriculture through Development Committees and in
consultation Village Administration.
 Focusing on renewable energy for rural livelihood and building of schools and
provision of subsidized in the schools.
 Cleaning and deepening of wells and ponds and providing potable drinking water.

5. 5
 Development of roads and infrastructural facilities.
 Building hospitals and providing healthcare facilities and free medical mobile van
facilities to the needy residing around the factory.
Analysis and Interpretation
Following 5 case studies shows the primary research conducted in Dakshina Kannada
born 5 banks such as Corporation Bank Ltd., Canara Bank, Karnataka Bank Ltd., Corporation
Bank Ltd., and Vijaya Bank Ltd. Relating to the CSR areas and its effectiveness in the
activities.
Case Study 1
Bank Compa
ny
Type
CSR Activities
Trust /
Foundation for
CSR
CSR Areas Three main CSR
activities
Corporati
on Bank
Ltd.
1906
Public
Sector
Corporation
Bank
Economic
Development
Foundation
1. Community Welfare
2. Disaster Relief
3. Education
4. Healthcare
5. Poverty Eradication
6. Rural Development
7. Vocational Training
8. Women
1. Rural
Development
2. Healthcare
3. Vocational
Training
Source: Survey
Case Study 2
Bank
s
Compa
ny
Type
CSR Activities
Trust / Foundation
CSR Areas Three main CSR
activities
Cana
ra
Bank
190
Public
Sector
Canara
Bank
Centenary
Rural
Developmen
1. Community
Welfare
2. Disaster Relief
3. Education
4. Healthcare
1. Rural Development
2. Women's empowerment
3. Education and employment

6. 6
6 t Trust 5. Poverty
Eradication
6. Rural
Development
7. Vocational
Training
8. Women
Primary Source: Survey
Case Study 3
Bank Company
Type
CSR Activities
Trust /
Foundation
CSR Areas CSR Main Activities
Karnataka
Bank Ltd.
1924
Private
Sector
No 1. Community
Welfare
2. Disaster Relief
1. Community Welfare
2. Disaster Relief
Primary Source: Survey
Case Study 4
Bank Company
Type
CSR Activities
Trust / Foundation
CSR Areas CSR Main
Activities
Syndicate
Bank
1925
Public
Sector
No 1. Education
2. Healthcare
3. Physically Challenged
4. Poverty Eradication
5. Rural Development
6. Women
1. Rural
Development
2. Education
3. Healthcare
Primary Source: Survey

7. 7
Case Study 5
Bank Company
Type
CSR
Activities
Trust /
Foundation
CSR Areas Three main CSR
activities
Vijaya
Bank Ltd.
( 1931)
Public
Sector
Vijaya Rural
Development
Foundation
(VRDF)
1.Community Welfare
2.Education
3.Healthcare
4. Rural Development
5. Vocational Training
6.Women
1. Rural
Development
2. Community
Welfare
3. Healthcare
Primary Source: Survey
Financial Performance and CSR Relationship
Table No. 2 Financial Performance and CSR Relationship
Banks No. of
employe
e
Branche
s in
India.
Profit
before
tax(Rs in
Crores)
Net profit
after tax
(Rs in
Crores)
CSR Budget Karmayog
CSR 2010
Rating
Vijaya Bank
Ltd.
11565 1190 759 507 Not disclosed 1/5
Corporation
Bank Ltd.
13143 1155 2146 1181 Not Disclosed 3 / 5
Karnataka
Bank Ltd.
5244 464 167 167 Not Disclosed 1/5
Syndicate
Bank
Not
disclosed
35 cities 1026 914 Not Disclosed 2 / 5
Primary Source: Survey

8. 8
Table No. 3 Karmayog CSR 2010 Rating (out of 5 Scores)
Banks Profit before
tax ( Rs in
Crores)
Net profit after
tax
Karmayog CSR 2010
Rating (out of 5)
Percentage
(%)
Vijaya Bank
Ltd.
759 507 1 10
Corporation
Bank Ltd.
2146 1181 3 30
Karnataka
Bank Ltd.
167 167 1 10
Syndicate
Bank
1026 914 2 20
Canara Bank 2889 3000 3 30
Total 6987 5769 10 100
Primary Source: Survey
Figure 1: Graphical representation of CSR performance and Financial Performance of
the banks
Interpretation
The above Figure 1 shows the variations of
banks profitability and performance of the 5
Banks. X Axis shows Banks and Y Axis
shows Profitability of the Banks. Karnatka
Bank’s profit before tax and after tax is
same. Canara Bank is having more profit
after tax. Rest other banks having less in
Primary Source: Survey profit after tax. Canara banks financially sounds.
0
500
1000
1500
2000
2500
3000
3500
4000
Karnataka…
SyndicateBank
CanaraBank
Tatal
Percentage (%)
Karmayog CSR
2010 Rating
(out of 5)
Net profit after
tax

9. 9
Figure 2: Chart representation of Karmayoga CSR Ratings of Banks
Primary Source: Survey
Figure 2 depicts the percentage of Karmayog organisation scoring on the basis of Corporate
social responsibility activities towards social welfare. According to the graph it is clear that
comparatively Canara bank is good enough in financial strength and in CSR activities.
Findings
It provides a summary of selected empirical studies where the second column
indicates the statistical relation between CSR and corporate financial performance.
 As shown in the case study 1 under corporation bank has the Trust of
Corporation Bank Economics Development Foundation CSR activities and works under 8
CSR areas with major activities of Rural development, Health Care and Vocational Training.
 Canara Bank has its own Trust named “ Canara Bank Centenary Rural
Development Trust’ with 8 CSR areas and major activities of Rural Development, Women
Empowerment Education and Employment.
 Karnataka Bank has no CSR trust/ Foundation. Key CSR area only
Community Welfare and Disaster Relief.
 Syndicate Bank is also not having a trust for CSR activities.. But works in the
5 areas.. Key activities include Rural Development, Education and Health care.
 Vijaya bank has a trust as Vijaya Rural Development Foundations (VRDF)
with 6 CSR activities. And Key areas like Rural Development Community,
Welfare Healthcare.
Vijaya
Bank Ltd.
Corporatio
n Bank
Ltd.
Karnataka
Bank Ltd.
Syndicate
Bank
Canara
Bank
Percentage (%) 10 30 10 20 30
Karmayog CSR 2010 Rating (out of
5)
1 3 1 2 3
Net profit after tax 507 1181 167 914 3000
Profit before tax ( Rs in Crores 759 2146 167 1026 2889
0
1000
2000
3000
4000
5000
6000
7000
AxisTitle
Karmayoga CSR Ratings of Banks

10. 10
 Not disclosed CSR budget in all the bank’s annual reports and publication.
 Karmayoga scored 5 points to rank the organisation for CSR activities Vijaya
bank with 1/5, corporation bank 3/5, Karnataka Bank 1/5, Syndicate Bank 2/5 and Canara
Bank 3/5.
 Among 5 Parent Banks of Dakshina Kannada Canara Bank is working with
more number of employees effectiveness in CSR top most, next Corporation bank, Syndicate
Bank, Vijaya Bank and finally comes Karnataka Bank.
 Finally, it is clear that Public sector banks performing well in CSR than
Private Sector Banks.
Suggestions
 Each bank should disclose the information regarding the CSR budget.
 Banks should have a separate department for maintaining an account and activities of
social responsible activities.
 According to Companies Bill 2012 the companies must implement 2% of Net profit
of 3 preceding years profit for corporate social responsibility.
 Individual responsibility, awareness and initiatives have to develop among banking
Industry.
Conclusion
Finally, a Committee/ trust/ association have to set up to monitor the Corporate
Social Responsibility Policy of the bank from time to. “There is need of well versed in the
language of sustainability in the field of banking industry in social, environmental, and
financial responsibility; clearly, their version of Corporate Social Responsibility is not lip
service. In sum, Banking Sector should keep sustainability initiatives and one to look to for a
sustainable corporate approach to CSR in a way that helps, not hurts, the bottom line.

11. 11
Reference:
1. Hung Woan Ting, Bala Ramasamy, Lee Chew Ging, (2010) "Management systems and the
CSR engagement", Social Responsibility Journal, Vol. 6 Iss No. 3, PP 362 – 373.
2. Csr In BanksCanara Bank Ltd. _ Csr Rating 2010 - Corporate Social Responsibility -
India _ Details Of Csr Of The 1-500 Companies For The Year 09-10 _
Www.Karmayog.Org_File
3. Csr In BanksCorporation Bank Ltd. _ Csr Rating 2010 - Corporate Social Responsibility -
India _ Details Of Csr Of The 1-500 Companies For The Year 09-10 _
Www.Karmayog.Org_Files
4. Csr In BanksKarnataka Bank Ltd. _ Csr Rating 2010 - Corporate Social Responsibility -
India _ Details Of Csr Of The 1-500 Companies For The Year 09-10 _
Www.Karmayog.Org_Files
5.Suman Kalyan Chaudhury ,Sanjay Kanti Das , Prasanta Kumar Sahoo (2011) practices Of
Corporate Social Responsibility (Csr) In Banking Sector In India:An Assessmentvolume , vol
4.
6. Bhattacharya, C. B., and Sankar Sen. 2004. Doing Better at Doing Good: When, Why, and
How Consumers Respond to Corporate Social Initiatives. California Management Review 47
(1): 9–24.
7. Dr. Jyotsa Diwan Mehta (2009), “Beyond CSR: Corporate Sustainability- A Long term
perspectives”, GYAN Management – An Annually Referred Journal of Management and
Technology, Vol. 3, Iss No.1, Pp 158-166.
8. L. Kvasnicková Stanislavská, K. Margarisová, K. Štastná Corporate Social Responsibility
In Banking Sector L Universitatis Agriculturae Et Silviculturae Mendelianae Brunensis
Volume Lx 21 Number 2, 2012
9. Lauren Anderson & Gretchen Longenbach (2010), Corporate Social Responsibility
Analysis: Standard Chartered Bank Spring 2010