CHAPTER-1
EXECUTIVE SUMMARY
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Executive Summary
This project aims to offer a preliminary pre liminary case study exploration of the t he “Corporate “Corporate social responsibility” responsibility” issues being addressed and reported by Jyoti Jyoti Bhaskar Shinde student of OIM Corporate Social Responsibility (CSR) is the commitment of business to contribute to sustainable economic development, working with employees, t heir families, the communi co mmunity ty and society at large to improve quality of life, in ways that are both good for business and a nd good for development. Although the contemporary CSR agenda is maturing, t he term “CSR” has not yet taken hold within many public-sector agencies, either in industrial or developing developing countries. Few government initiatives have been undertaken explicity explic ity as “pro“pro -CSR Initiatives” but nonetheless many have contributed effectively to the promotion of greater social responsibility. There is a significant opportunity for public sector bodies in developing countries to harness current enthusiasm for “CSR” alongside alongside key public policy goals and priorities to encourage delivery of results in both respects. Through an in-depth exploration of the dilemmas challenges, and complexities inherent to current models of corporate social responsibility, the program will p ush the frontiers of the field and bring into focus the next generation of issues facing practit ioners.
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CHAPTER-2
INTRODUCTION
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INTRODUCTION TO CSR
Corporate social responsibility (CSR ) is a business approach that contributes to sustainable
development by delivering economic, social and environmental e nvironmental benefits for all a ll stakeholders. CSR is is a concept with many definitions and practices.
Corporate social responsibility, often abbreviated "CSR," is a corporation's initiatives initiat ives to assess and take responsibili responsibility ty for the t he company's effects on environmental and social wellbeing. The term generally applies to efforts that t hat go beyond what may be required by regulators or environmental protection groups.
Corporate Social Responsibility is not a new concept in India, however, the Ministry of Corporate Affairs, Government of India has recently notified the Sect ion 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibilit y Policy) Rules, 2014 "hereinafter CSR Rules" and other notifications related t hereto which makes it mandatory (with effect from 1st April, 2014) for cert ain companies who fulfill the criteria as mentioned under Sub Section 1 of Section Sect ion 135 to comply with the provisions re levant to Corporate Social Responsibility. Responsibility.
The term "Corporate Social Responsibility (CSR)" can be referred as corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to companies efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change.
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Moreover, while proposing the Corporate Social Responsibility Rules under Section 135 of the Companies Act, 2013, the Chairman of the CSR Committee mentioned the Guiding Principle as follows: "CSR is the process by which an organization thinks about and evolves its relationships with stakeholders for the common good, and demonstrates its commitment in this regard by adoption of appropriate business processes and strategies. Thus CSR is not charity or mere donations. CSR is a way of conducting business, by which corporate entities visibly contribute to the social good. Socially responsible companies do not limit themselves to using resources to engage in activities that increase only their profits. They use CSR to integrate economic, environmental and social objectives with the company's operations and growth."
WHAT CONSTITUTES CSR UNDER COMPANIES COMPANIES ACT, 2013?
Recently notified Companies (Corporate Social Responsibility Policy) Rules, 2014 has defined the term t erm "Corporate Social Responsibility Re sponsibility (CSR)" as follows: "Corporate Social Responsibility (CSR)" means and includes but is not limited to : i. Projects or programs relating to activities specified in Schedule VII to the Act; or ii. Projects or programs relating to activities undertaken by the board of directors of a company (Board) in pursuance of recommendations of the CSR Committee of the Board as per declared CSR Policy of the company subject to the condition that such policy will cover co ver subjects enumerated in Schedule VII of the Act. Meaning thereby, conducting all those activities which are either specified under Schedule VII to the Companies Act, 2013 or those which are recommended by the CSR Committee of the Board as per the CSR Policy and are undertaken by the Board of directors of the Company will be covered under the scope of activities of Corporate Social Responsibility.
ACTIVITIES COVERED UNDER SCHEDULE VII OF THE COMPANIES ACT 2013
Ministry of Corporate Affairs vide its Notification dated 27th February, 2014 (which shall come into force with effect from 1st April, 2014) has come up with the modified Schedule VII which covers wide range of activities which can be undertaken by the Companies as a part of their CSR initiat initiatives. ives.
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The activities involve the following:
Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water;
Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water;
Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art, setting up public libraries, promotion and development of traditional arts and handicrafts;
Measures for the benefit of armed ar med forces veterans, war widows and their dependents;
Training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports;
Contribution to the Prime Ministers' National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities a nd women;
Contributions or funds provided to technology incubators located within academic institution which are approved by the Central Government;
Rural development projects. The above mentioned activities constitute the CSR activities and the companies which are covered under the provisions of Section Sect ion 135 shall be required to carry out any one or more of the activities as specified spec ified above along with following its CSR Policy.
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Benefits of corporate social investment for businesses
The potential benefits of CSR to companies include:
better brand recognition
positive business reputation
increased sales and customer loyalty
operational costs savings
better financial performance
greater ability to attract talent and retain staff
organisational growth
easier access to capital
SOCIAL RESPONSIBILITY
1) Responsibility towards itself: it is the responsibility of each corporate entity entit y run business and to work towards growth, expansion and stability and thus earn pro fits. If the corporation cor poration is to achieve social and economic ends, e nds, organizational efficiency should be boosted up.
2) Responsibility towards Employees: Employees are the most important part of an
organization. Following are some of the responsibilities which a business ent ity has towards its employees
Timely payment
Hygiene environment
Good and impartial behaviour
Health care through yoga
Recreational activities
Encouraging them to take part in managerial decision
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3) Responsibility towards shareholders : It is the responsibility of corporate entity to
safeguard the the shareholder’s investment and make efforts to provide a reasonable return on their investment.
ent itled to a certain 4) Responsibility towards state: Out of the profit available, the state is entitled share as per the income tax laws. Utmost transparency has to be exerted regarding the profit and loss account and the balance sheet. 5) Responsibility towards consumers: The company should maintain high quality standards
at reasonable price. It should resort to malpractices such as boarding and black marketing.
6) Responsibility towards environment: It is the responsibility of the organization to
contribute to the protection of environment. It should produce eco- friendly products. Moreover, industrial management must be taken care of. o f.
Corporate Corporate Social Responsibility (CSR) is:
An obligation, beyond that required by the law a nd economics, for a firm to pursue long term goals that are good for society.
The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large.
About how a company manages its business process to produce an overall positive impact on society.
Corporate Corporate Social Responsibility:
Conducting business in an ethical way and in the interests o f the water community.
Responding positively to emerging societal priorities and experience.
A willingness to act ahead of regulatory regulator y confrontation. confrontation.
Balancing shareholder interests against the interests of the wider community.
Being a good citizen in the community.
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Is CSR the same as business ethics?
There is clearly an overlap between CSR and business ethics Both concepts concern values, objectives o bjectives and decision based on something so mething than the pursuit of profits
And socially responsible firms must act ethically
Designed to increase its profits so long as it stays will the rules of the game, which is to say, engages in open and free competition, without deception or fraud [Milton the difference is that ethics concern individual actions act ions which can be assessed as right or wrong by reference to moral principles. CSR is about the organization’s obligation to all stakeho lderslders- and not just shareholders.
There are four dimensions of Corporate Responsibility
Economic – Responsibility Responsibility to earn profits for owners
– Responsibility to comply with the law (society’s codification of right and Legal – Responsibility wrong)
Ethical – Not Not acting just for profit but doing what is right, just and fair
Promoting human welfare and goo dwill Voluntary and Philanthropic – Promoting
Being a good corporate citizen contributing to the community and the quality of life.
The debate on social responsibility:
Not all business organization behave in a socially responsible manner. And there are people who would argue that it is not t he job of business organizations to be concerned about social issues and problems problems There are two schools of thought on this issue:
In the free market view, the job of business is to create wealth with the interests of the shareholders as the guiding principle
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The corporate social responsibility view is that business or ganization should be concerned with social issue
Free market view – a a summary
The role of business is to create cr eate wealth by providing goods and services services
There is one and only one social responsibility of business- to use its resources and engage in activities Friedman, American economist
Giving money away is like a self-imposed tax.
Managers who have been put in charge of a business have no right to give away the money of the owners.
Managers are employed to generate wealth for the t he shareholders- not give it away
Free markets and capitalism have been at the centre of economic and social development
Improvements in health and longevity have been bee n made possible by economies driven by the free market
To attract quality workers it is necessar y to offer better pay and conditions and this leads to a rise in standards of living and wealth creation
Free markets contribute to the effective management of scarce resources
It is true at times the market fails and therefore some regulation is necessary to redress the balance
But the correcting of market failure is a matter for government-not business
The free market case against corporate social responsibility
The only social responsibility of business is to create shareholder wealth
The efficient use of resources w ill be reduced if businesses are restricted restr icted in how they can produce
The pursuit of social goals dilutes businesses primary purpose
Corporate management cannot decide what is in the social interest
Costs will be passes on to consumers
It reduces economic efficiency and profit
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Directors have a legal obligation to manage the company in the interest of shareholders- and not for other stakeholders
CSR behaviour imposes additional costs which reduce competitiveness
CSR places unwelcome responsibilities on businesses rather t han on government government or individuals
The corporate responsibility view
Businesses do not have an unquestioned right to operate in society
Those managing business should from society and on socially created institutions
There is a social contract between business and society involving mutual obligations obligations that society and business recognise that t hey have have to each other
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CSR as Value Creation –
Corporate social responsibility in a new approach helps company so that considers the interests of total stakeholders within both organizat ion and society. And also company can use these interests developing its strategy and duration of implementation. Hence, there are some approaches that how CSR play as modern approach for value creation. CSR as Risk Management –
Customers, governments and civil society organizations expect that companies do business with respect for people and planet. Internationally Internationally this is laid la id down in the OECD OECD Guidelines for Multinational Enterprises. Companies are demanded to identify, prevent and reduce CSR risks in their supply chain, upstream and downstream. This is also called ‘due diligence’ or ‘CSR risk management’. CSR risk management consists of seven steps: 1. Formulate a CSR policy 2. Map your supply chain 3. Perform a risk assessment 4. Prioritise 5. Collaborate with supply chain partners to address risks 6. Integrate approach in business processes and monitor progress 7. Communicate about policies and progress CSR as corporate philanthropy –
A company that practices corporate social responsibility (CSR ) embraces responsibility for its actions and, through its activities, positively pos itively affects the environment, society, consumers, employees, communities, and other stakeholders. One type of CSR is is philanthropic giving.
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MODEL OF SOCIAL RESPONSIBILITY –
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CARROL’s MODEL –
Carroll's model synthesizes a range of theories and models summarized in four kinds of social obligations that together constitute CSR: • Economic responsibilities are fundamental. Without the foundation of profitability, none of the other responsibilities are feasible or deliverable. • Moving up one step, legal responsibilities are the next most important and reflect the way that society's ethical principles are codified and applied. 14
• Ethical or moral responsibilities form a higher set of internalized obligations that encourage workers, managers, and firms to do what is right and avoid doing harm. • Philanthropic Philanthropic obligations reside at the apex of Carroll's pyramid of corporate social responsibility, obliging the corporation to act as a good corporate citizen to promote a generalized social welfare that is crucial to shared quality of life (Carroll, 1991). These levels are not independent. independent. Carroll sees them as tightly t ightly interre interrelated lated with a high degree of interdependence. Carroll's model is useful because it allows us to map the theories that have been developed to analyze CSR activities in application to media organizations. Media industry theory typically prioritizes the economic dimension of media's social responsibilities. The second group can be summarized as media ethics theories and corresponds to the second level in Carroll's hierarchy. The third category can be related to media shareholder theories. Finally, I will argue that the ultimate category — that that of the philanthropic or the good corporate citizen — can can be at least partially identified in the work of sustainability media theorists like Garriga and Mele (2004). In what follows we treat eac h level in turn. The first level of theorization focuses on socially responsible activities as tools for wealth creation. Of course this is significant for any commercial enterprise, but one needs to understand that even not-for-profit public corporations are nonetheless financial organizations. Lacking the resources to operate effectively inherently means that no other aspect of social responsibility is possible for a media firm. The problem, however, is that too often (and increasingly) this is considered as the only social obligation of media companies. If that were indeed valid, then it would strongly suggest that the management of media firms is no different from any kind of firm.
Economic: The firm being an economic entity, its pr imary responsibilitiesis responsibilitiesis to t o satisfy
economic needs of the society and generation of surplus for rewar ding the investors and further expansion and diversification.
Legal: The laws of the land and intemat intemational ional laws of trade and commerce has to be
followed and complied with. w ith.
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soc iety expects the business to Ethical: Ethical responsibilities are norms which the society
observe like not resorting to hoarding and other malpractices.
Discretionary: Discretionary responsibilities refer to t he voluntary voluntary contribution co ntribution of the
business to the social cause like involvement in community community development or other social projects pertaining to health and awareness of the masses. masses. 2.. 2
Ackerman Model (1976)
The model has emphasized on the internal policy goals and there relation to the CSR. This model defines CSR in three different phases:
First Phase: Top management recognizes social problem
appoints staff specia lists to look into the issue and find Second Phase: The company appoints measures to tackle it.
Third Phase: Implementation of the strategy derived by the specialists
Six strategies in the adoption of CSR
Regection strategy Adversary strategy Resistance strategy Compliance strategy Accommodation strategy Proactive strategy
b) Halal’s Model: Halal’s return on resour ce
model of corporate performance recognizes the
fact that the corporate social responsiveness is a quite difficult task as no corporate posture is value free. A firm can only attempt atte mpt to form a workable coalition among members having diverse interests, engaged in creating value for f or distribution among members of coalition. The social issues may become conflicting beyond a certain 16
level of economic activity. The coordination between economic and ethical decision is necessary so that the future and shareholders shareholder s may be safeguarded
C) Corporate Citizen Model Corporate citizenship involves citizenship involves the social responsibility of responsibility of businesses and the extent to which they meet legal, ethical and economic responsibilities, as established by shareholders.
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CSR PRINCIPLES & STRATEGIES
Respect for human rights.
Respect for the differences of views.
Diversity & non-discrimination non-discrimination should be the guiding principle. princip le.
Make some social contribution.
Enter into e dialogue
Self-realization & creativity.
Fair dealings & collaboration.
Feedback from the community.
Positive value- added
Long term economic & social development
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INDUSTRY PROFILE
Cooperative banks are owned by their customers and follow the cooperative the cooperative principle of one person, one vote. Co-operative banks banks are often regulated under both banking banking and cooperative legislation. They provide services such as savings and loans to non-members as well as to members and some participate in the wholesale markets for bonds, money and even equities. equities.[1] Many cooperative banks are traded on public stock public stock markets, with markets, with the result that they are partly owned by non-members. Member control is diluted by these outside stakes, so they may be regarded as semi-cooperative. Cooperative banking systems are also usually more integrated than credit union systems. Local branches of co-operative banks select t heir own boards of directors and manage their own operations, but most strategic decisions require approval from a centr al office. Credit unions usually retain strategic decision-making at a local level, though they share back-office functions, such as access to t he global payments payments system, by federating. federat ing. Some cooperative banks are criticized for diluting their cooperative principles. Principles 2-4 of the "Statement on the Co-operative Identity" can Identity" can be interpret ed to require that members must control both the governance systems and capital of their cooperatives. A cooperat ive bank that raises capital on public stock markets creates a second class of shareholders who compete with the members for control. In some circumstances, t he members may lose control. This effectively means that the t he bank ceases to be a cooperative. Accepting deposits from non-members may also lead to a dilution of member control. reta il and commercial banking organized on a cooperative a cooperative basis. basis. Cooperative banking is retail Cooperative banking Cooperative banking institutions take deposits and lend money in most parts of the world. Cooperative banking, as discussed here, includes retail banking carr ied out by credit by credit unions, mutual unions, mutual savings banks, banks, building building societies and cooperatives, and cooperatives, as as well as commercial co mmercial banking services provided by mutual by mutual organizations (such as cooperative as cooperative federations) to federations) to cooperative businesses.
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STRUCTURE OF BANK
The cooperative bank is is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.
These banks provide most services such as savings and current accounts, safe deposit lockers, loan or mortgages to private and business customers . In India, the Co-operative Banks are required to be registered under the Cooperative Societies Act, of the concerned state, and regulated by cooperative societies and
RBI
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HISTORY
The co-operative banks in India have a history of almost 100 years. The co -operative banks are an important constituent of the Indian Financial System, judging by their role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. The co-operative movement was originated in the west, but t he important that such bank have assumed in India is rarely paralleled anywhere else in the world. Their role in rural financing continues to be important event today, and their business in urban areas a lso has increased phenomenally in recent years mainly due to the sharp increase in the number of primary cooperative banks. Co-operative banks in India India are registered under the Cooperative Societies Act. Establishment Establishment of Co-operative Co-operative Banks in i n India
The co-operative banks in India are well established financial s ervice organization. The first legislation on cooperation was passed in 1904. In 1914, the Maclagen Committee envisaged a three tier struct ure of cooperative banking, viz., Primary Agricultural Agricultural Credit Services (PACs) ( PACs) at the grass root level, Central Centra l Co-operative Banks at the district level le vel and State Co-operative Banks at State level or Apex level. The first urban cooperative bank in India was formed nearly 100 years back in Baroda. The co-operative banks arr ived in India in the beginning of 20th Century as an official effort to create cr eate a new type of institution based on the principles of co-operative organization and management, suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for money lenders, lenders, to provide timely and adequate short-term and long-term institutional institut ional credit at reasonable rates of interest. interest . In the formative stage, Co-operative banks were urban co-o perative societies run on community basis and their lending activities were restricted to meeting credit requirements of their members. The concept of Urban Cooperative Bank was first spelt out by Mehta Bhansali Committee in 1939 which defined on Urban Co-operative Bank. Provisions of Section Sect ion 5 (CCV) of Banking Regulations Act, 1949 (as applicable to Co-operative Societies) defined an Urban Co-operative Bank as a Primary Co-operative Bank other t han a Primary Co-operative Society was made applicable in 1966. 69
The co-operative banking structure in India is bifurcated into Short ter m structure and Long-term structure. While the short-term structure is three tier structures, long-term co-operative banking structure is the two tier str uctures as mentioned below: 21
Short-Term Co-operative Bank Bank Structure A State Co-operative Bank works at the apex level (ie. works at state level).
The Central Co-operative Bank works at the Intermediate Level(i.e., District Cooperative Banks ltd. works at district distr ict level)
Primary co-operative credit societies at base level (At village level)
Long-Term Co-operative Bank Structure
State Co-operative Agriculture and Rural Rura l Development Banks (SCARDBs) at the apex level.
Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) at the district level or block level.
Role of Co-operative Banks in India
The co-operative banks in India play an important role even today in rural financing. The businesses of co-operative banks in the urban areas also 70 have have increased phenomenally in recent years due to the t he sharp increase in the number of primary co-operative co-o perative banks. The cooperative banks are expected to perform some duties, namely, extend all t ypes of credit facilities to customers in cash and kind, advance consumption loans, extend banking facilities in rural areas, mobilize deposits, supervise the t he use of loans etc. The needs of co -operative bank are different. Co-operative banks in India finance finance rural areas under: Farming Cattle Milk Hatchery Personal finance Co-operative Co-operat ive banks in India finance urban areas under: Selfemployment Industries Small scale units Home finance Consumer finance Personal finance 3.6 Types & Function of Co-operative Banks, India The co-operative banks are small-sized units which operate both in urban and non-urban centers. They finance small borrowers in industrial and trade sectors besides professional and salary classes. Regulated by the 71 Reserve Bank of India, they t hey are governed by the Banking Regulations Act 1949 and banking laws (co-operative societies) societ ies) act, 1965. The co-operative banking structure in India is divided into following 5 categories: Primary Co-operative Credit Society The primary co-operative credit society is an association assoc iation of borrowers and non-borrowers residing in a particular locality. The funds of the society are derived der ived from the share capital and deposits of members and loans from central co-operative co-o perative banks. The borrowing powers of the members as well as of the society are fixed. The loans are given to members for the purchase of cattle, catt le, fodder, fertilizers and pesticides. pest icides. Central Co-operative Banks These are the federations of primary credit societies in a d istrict and are of two types-those types-t hose having a membership of primary
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societies only and those having a membership of societies as well as individuals. The funds of the bank consist of share capital, deposits, loans and overdrafts from state co-operative co -operative banks and joint stocks. These banks provide finance to member societies within the li mits of the borrowing capacity of societies. They also conduct all the business of a joint stock bank. State Co-operative Banks The state co-operative bank is a federation of central co-operative co -operative bank and acts as a watchdog of the co-operative banking banking structure in the 72 state. Its funds are obtained from share capital, deposits, loans and overdrafts from the Reserve Bank of India. The state co-operative banks lend money to central co -operative banks and primary societies and not directly to the farmers. far mers. Land Development Banks The Land development banks are organized in 3 tiers namely; state, central, and primary level level and they meet the long term credit requirements of the t he farmers for developmental purposes. The state land development banks oversee, the primary land development banks situated in the districts and tehsil areas in the stat e. They are governed both by the state government and Reserve Bank of India. Recently, the supervision of o f land development banks has been assumed by Nat ional Bank for Agriculture and Rural development (NABARD). The sources of funds for these banks are the debentures subscribed by both both central and state government. These banks do not accept deposits from the general public. Urban Co -operative Banks The term Urban Cooperative Banks (UCBs), though not formally defined, refers to primary co -operative banks located in urban and semiurban se miurban areas. These banks, t ill 1996, were allowed to lend money only for non-agricultural purposes. This dist inction does not hold today. These banks were traditionally centered on communities, localities, wor k place groups. 73 They essentially lend to small borrowers and businesses. Today, their scope of operat ions has widened considerably. The origins of the urban co-operative banking movement in India can be trace d to the close of nineteenth century. Inspired by the success o f the experiments related to the co-operative movement in Britain and a nd the cooperative credit movement movement in Germany, Ger many, such societies were set up in India. Co-operative societies are based on t he principles of cooperation, mutual help, democratic decision making, and open membership. Co-operatives represented a new and alternative alternat ive approach to organization as against proprietary firms, partnership firms, and joint stock companies companies which represent the dominant form of commercial organization. They mainly rely upon deposits from members and non-members and in case of need, they get finance from either the District central co-operative bank to which they are affiliated or from the Apex co-operative bank if they work in big cities where the apex bank has its Head Office. They provide credit to small scale industrialists, salaried employees, and other urban and semi-urban residents. Functions of Co-operative Banks Co23
operative banks also perform the basic banking functions of banking but they differ from commercial banks in the following respects 1) Commercial banks are joint-stock joint- stock companies under the companies’ co mpanies’ act of 1956, or public sector bank under a separate act of a parliament 74 whereas co-operative banks were established under the co-operative societies acts of different states. 2) Commercial bank structure is branch banking structure whereas Cooperative banks have a three tupe setup, with State Co-operative Bank at Apex level, Centra l / District Co-operative Co-oper ative Bank at district level, and Primary Co-operative Co-o perative Societies at rural level. 3) Only some of the sections of Banking Regulation Act of 1949 (fully applicable to commercial banks), are applicable to co-operative banks, resulting only in partial control by RBI of co-operative banks and a nd 4) Co-operative banks function on the t he principle of cooperation and not entirely on commercial parameters. 3.7 Credit Structure of Co-operative Banking in India India's cooperative banking structure consists of two main segments, viz., agricultural and non agricultural credit. There are two separate structures in the case of agricultural credit - one for short and medium term credit and the other for long term credit. The co-operative credit structure for short and medium terms is a three tier, one with pri mary agricultural credit societies at the base level, the central co-operative bank at the district level and state cooperative bank at the apex level. Over and above these 75 institut ions, grain banks banks are actively functioning as primary societies in cert ain states. Though the organisation of central and state co-operative banks was mainly for the t he benefit of the agricultural credit sector, they serve non-agricultural societies too. Primary Agricultural Credit Societies Pr imary Agricultural Credit Societies (PACS) are the foundation of the co-operative credit structure and form the largest number of co-operative co-o perative institutions in India. Most of these societies have been organised mainly to provide provide credit facilities and to inculcate the habit of thrift and economy among their members. The share capital of a societ y is divided into units, called shares, contributed by the members. The most important source of finance of PACS is members' deposits. Borrowings constitute the most important element of their working capital. The criteria for borrowings differ from state to state according to their liability. Punctuality in the repayment of loans has hardly been observed by the members with the result that there has been a st eep rise in the amount of overdues all over t he country. In India, PACS are passing through an era of crisis. Increasing incidence of non-viability is one of the t he 24
major setbacks. PACS have made little progress in attracting deposits. In majority of the cases, the deposits were collected through book adjustments by carving certain portion of loan 76 amount. The repaying capacity of t he PACS has been dwindled considerably, resulting mounted overdues in the loan outstanding against members. Along with the increasing volume of business the number of PACS r unning unning into loss and the amount of loss has increased considerably over the years. The important reasons for this situation are: existence of non-viable and dormant societies, uneven growth of agricultural credit movement, inadequacy of the quantum of loan supplied by them, defective loan policies, delay in loan disbursement, inadequate supervision and defective audit, no linking of credit with marketing, high overdues, ineffective management, neglect of small farmers and domination of vested interests District Central Co-operative Banks District Central Cooperative Banks (DCCBs) occupy the middle level position in the three tier co -operative credit structure of the country. In the beginning of the t he formation of PACSs, they could not function effectively without gaining financial support from an outside agency. The formation of DCCBs was thus a felt need for mutual help. The Co-operative Societies Act of 1912 permitted the registration of DCCBs. Even before before the enactment of this Act, some DCCBs were established to cater to the needs of primary societies. In I n 1906, forerunner forerunner of the first DCCB was established as a primary pr imary society in Uttar Pradesh. At Ajmer in Rajasthan the first DCCB was 77 established in 1910. But the first full-fledged DCCB as per the provisions of the Act of 1912 was started in Jabalpur District Distr ict of the Central Province. The DCCBs are formed mainly with the objective of meeting the credit r equirements of member societies. As an institution for helping the societies in times t imes of need, they finance agricul agr icultural tural credit cr edit societies for production purposes, marketing societies for marketing operations, industrial industrial societies for supply operations and other societies fo r working expenses. expenses. In short, the t he major major objectives of the DCCBs are to provide loans to affiliated societies, to act as a balancing centre of finance for primary societies, societ ies, to arrange for the supervision and control of the affiliated societies, to raise deposits from members and non-members, to convene conferences of the member societies societ ies and also prescribe uniform procedure for the t he working working of primary societies, to open branches of the bank bank at important places with the permission of the Registrar of Co-operative Societies and to maintain maintain and utilise ut ilise state partnership. Generally, the area of operation of a DCCB is limited to one district. State Co-operative Banks in India The State Co-operative Banks (SCBs) or the Apex Banks occupy a crucial posit ion in the three tier co-operative credit st ructure in India. These Apex Banks or State Co-oper ative Banks are formed by federating DCCBs in each state. The T he Apex Banks assume a key-position 25
in the co-operative credit structure st ructure because the financial assistance from RBI and the National 78 Bank for Agriculture Agriculture and Rural Development are invariably routed through them 3.8 Co-operative Banks in Pondicherry In Pondicherry, banking on modern lines st arted only in 1875 when the Banque de l’Indo Chine (Indo -China Bank) was established. When the Banking-Companies Banking-Companies Act 1949 and the Foreign Exchange Regulation Act 1947 were extended to Pondicherry in 1954, The withdrawal of t he Indochina Bank in March 1953 paved the way for the establishment of Indian Banks. The co-operat ive movements have taken very deep roots in Union Territory of Pondicherry since 1953. The co-operative sector to- day has emerged as one of the vital instruments of Socio-Economic Socio -Economic regeneration. Following are the Cooperative bank in India -
State Cooperative Banks (SCBs) List of State Cooperative Banks in India:
Andaman and Nicobar State Co-operative Bank
Andhra Pradesh State Co-operative Bank
Arunachal Pradesh State Co-operative Apex Ban
Assam Co-operative Apex Bank
Bihar State Co-operative Bank
Chandigarh State Co-operative Bank
Chhattisgarh Rajya Sahakari Bank Maryadit
Delhi State Co-operative Bank
Goa State Co-operative Bank ltd
Gujarat State Co-operative Bank
Haryana State Co-operative Apex Bank
Himachal Pradesh State Co-operative Bank
Jammu and Kashmir State Co-operativ Bank
Jharkhand State Co-operative Bank 26
Karnataka State Co-operative Apex Bank Bangalore
Kerala State Co-operative Bank
Madhya Pradesh Rajya Sahakari Bank Maryadit
Maharashtra State Co-operative Bank
Manipur State Co-operative Bank
Meghalaya Co-operative Apex Bank
Mizoram Co-operative Apex Bank
Nagaland State Co-operative Bank
Odisha State Co-Operative Bank
Pondichery State Co-operative Bank
Punjab State Co-operative Bank
Rajasthan State Co-operative Bank
Sikkim State Co-operative Bank
The Tamil Nadu State Apex Co-operative Bank
Telangana State Co-Operative Apex Bank Limited
Tripura State Co-operative Bank
Uttar Pradesh Co-operative Bank
Uttarakhand State Co-operative Bank
West Bengal State Co-operative Bank
Urban Cooperative Banks (UCBs) List of Scheduled Scheduled Urban Cooperative Banks in India:
Apna Sahakari Co-Op Bank Ltd
Ahmedabad Mercantile Co-Op Bank
27
Kalupur Commercial Coop. Bank
Mehsana Urban Co-Op Bank
Nutan Nagarik Sahakari Bank
Rajkot Nagrik Sahakari Bank
Rajkot District Co-Op Bank
Sardar Bhiladwala Pardi Peoples Coop Bank
Surat Peoples Coop Bank
Rajdhani Nagar Sahkari Bank
Adhyapaka Urban Co-operative Bank
Andhra Pradesh Mahesh Co-Op Urban Bank
Indian Mercantile Co-operative Bank
Abhyudaya Abhyudaya Co-operative Co-o perative Bank
Bassein Catholic Co-operative Bank
Bharat Co-operative Bank (Mumbai)
Bharati Sahakari Bank
Bombay Mercantile Co-operative Bank
Citizencredit Co-operative Bank
Dombivli Nagari Sahakari Bank Ltd
Goa Urban Co-operative Bank
Gopinath Patil Parsik Janata Sahakari Bank
Greater Bombay Co-operative Bank
Jalgaon Janata Sahakari Bank
Janakalyan Sahakari Bank
Janalaxmi Co-operative Bank
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Janata Sahakari Bank
Junagadh Commercial Co-operative Bank
Kallappanna Awade Ichalkaranji Janata Sahakari Bank
Kalyan Janata Sahakari Bank
Karad Urban Co-operative Bank
Mahanagar Co-operative Bank
Mapusa Urban Co-operative Bank of Goa
Nagar Urban Co-operative Bank
Nasik Merchant’s Co-operative Co-operative Bank
New India Co-operative Bank
NKGSB Co-operative Bank Bank
Pravara Sahakari Bank
Punjab & Maharashtra Co-operative Bank
Rupee Co-operative Bank
Sangli Urban Co-operative Bank
Saraswat Co-operative Bank
Shamrao Vithal Co-operative Bank
Solapur Janata Sahakari Bank
Thane Bharat Sahakari Bank
The Kapole Co-operative Bank
TJSB Sahakari Bank
Zoroastrian Co-operative Bank
Nagpur Nagrik Sahakari Sahakari Bank Shikshak Sahakari Bank
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Akola Janata Commercial Co-operative Bank
Akola Urban Co-operative Bank
Khamgaon Urban Co-operative Bank
Muneshwra swamy BANK
Mehsana Urban Co-op Bank Ltd.
Eenadu Urban Co operative Bank
Rohit Kataria Co-operative Bank
Dakshin Barasat Service Co-Operative(Bank) Society Private Limited; Dakshin Barasat
The Jaynagar Mozilpur People's Co-operative Bank Ltd. Jaynagar Mozilpur
Sangli District Primary Teachers Bank Ltd, Sangli
Chartered Mercantile M.B. Ltd, Lucknow, U.P.
Lic of india staff co operative operat ive bank. bank. H.O Pattom Thiruvananthapuram
Akhand Anand Co-Op Bank
The Varachha Co-op Bank Ltd., Surat
The Surat District Co-Op Bank Ltd
THE SUTEX CO-OP. BANK LTD.
The Bardoli Nagarik Sahakari Bank Ltd
The City Co-Op Bank Ltd
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COMPANY PROFILE
GP Parsik Sahakari Bank was started on 21 st May, 1972 in a remote village at Kalwa.
Founder of GP Parsik Bank - Gopinath Shivram Patil and his young energetic
team
The bank has achieved Scheduled status in the year 1998 and achieved multi stat e status in March 2015.
The bank has 85 fully computerized branches in Thane, Mumbai, Navi Mumbai, Raigad, Pune, Nashik, Sangli, Kolhapur districts in the state of Maharashtra and in Mapusa and Margaon in Goa, Karnataka
Sahakarmurti Gopinath Shivram Patil Bhavan, Bhavan, Parsik Nagar, Kalwa, Thane Head Office- Sahakarmurti
Website – Website – www.gpparsikbank.com www.gpparsikbank.com
31
Milestones, Achievements & Awards • “Congress Seva Dal” awarded – “ Seva – Bhushan Bhushan Award 1995-96”. • Maharashtra State Cooperative Cooperative Banks Association awarded the “Best Urban Bank Bank Padmabhushan • "Vasantdada Patil Award” for three consecutive years 1995-96, 1996-97, and 1997-98. • Scheduled Bank Status – 30th 30th January, 1998. • Parsik Bank got awards for three consecutive years ending 98-99 98-99 from Organization called “Yuvak Mudra”, who organized who organized competition in memory of Rajarambapu Rajara mbapu patil in regards with merit and principal of cooperative banks. • Bris Indiglo has ranked Parsik Bank as follows in their survey for t he year 2002-2003. 2002 -2003. * First Number in “Overall Ranking” in Thane District. * Second Number in “Overall Ranking” in all over Maharashtra State. * Fourth Number in “Safest Category” • The Maharashtra State Cooperative Banks Associat ion has awarded the trophy of Padmabhushan • Vasantdada Patil Award – 2008-09 2008-09 for Best cooperative bank in konkan region for the year 2008-09 • Successful Implementation of CBS – 2009 2009 • RTGS, NEFT, Any Branch Banking Service – 2009 – 2009 • SMS Banking Service – 2009 2009 • Bank got 1st Rank in the category of best bank among Cooperative banks with deposit over Rs.500 Crores for the year 2009-10 from The Maharashtra Urban Coop. Banks Federation 32
• Merger of Ichalkaranji Mahila Sahakari Bank Ltd. - 2010 • Centralised outward / Inward clearing - 2010 • Bank got 3rd Rank in the category of best bank among Cooperative banks ban ks with deposit over Rs.500 Crores for the year 2010-11 from The Maharashtra Urban Co -op. Banks Federation E-Payment Service – Service – 2011 2011 • Personalised Cheque Book Facility - 2011 • Tie - up with NPCI for ATM network sharing under NFS Switch – 2011. 2011. • First Bank Bank in India to launch “RUPAY” ATM Brand of NPCI - 2011 • Bank has bagged National Level " Best Youth Chairman Award " for the year 2013 declared by Banking Frontier. Hon.Chairman Shri.Ranjit Gopinath Patil was felicitated with the Award by Shri. K. C. Shashidhar, Chief General Manager, NABARD. • Bank has achieved " BANCO AWARD " i.e First Prize for Best Bank in a group of Cooperative Banks having deposits between • Rs.1001 crore and Rs. 1750 crore for the year 2013. • Bank offers Insurance in association with with The Oriental Insurance Co. Ltd. • Bank, in association with UTIITSL , has started providing PAN card Services • Bank has launched Internet Inter net Banking Facility and Mobile Banking Facility Facilit y from 27th July,2014 * Bank has won award IN APPRECIATION AND RECOGNITION FOR BEING ONE OF THE HIGHEST RUPAY * CARD ISSUING BAN K by NPCI * Bank has won second prize in BANCO AWARD-2014 for Best Bank in the Category of Deposits upto 3000 crores. * Bank has achieved MULTI-STATE Scheduled co-op Bank status. * Bank has started e-lobby services.
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* Bank has started e-commerce services. • Multi State Scheduled Bank Status – 26th 26th March, 2015.
Upcoming Branches:
1. Malad (W), Mumbai 2. Sakinaka,Mumbai 3. Digha,Navi Mumbai 4. Pen,Raigad 5. Shahu Putala, Ichalaranji 6. Jaisingpur, Kolhapur
34
FINANCIALS No.
Particulars
31/03/2015 (RS. IN LAKHS)
31/03/2016 (RS. IN LAKHS)
31/03/2017 (RS. IN LAKHS)
1
No. of Shareholders
77738
82559
88277
2
Working Capital
270157.53
305373.05
362479.29
3
Total Deposits
216783.55
244545.25
297978.32
4
Loans
126704.64
154756.43
177691.03
5
Investments
106874.83
81367.67
98081.95
6
Profit
3066.07
3206.66
4732.17
7
Net N.P.A
0.00%
0.00%
0.00%
8
CRAR
19.47%
20.43%
19.33%
9
Audit Class
"A"
"A"
"A"
35
HISTORY
In the year 1972 the Government of Maharashtra acquired all agricultura l land of 68 villages of Thane-Belapur belt in Thane district of Maharashtra, for the purpose of setting up a new city i.e. “New Bombay”. To equip the project affected persons and their family members with strength and ability, to survive with new urban means of livelihood, it was necessary to provide them financial assistance. With a view to provide provide financial assistance, generate employment and means of livelihood, Late Lat e Shri.Gopinathdada Shri.Gopinathdada Shivram Patil (M.co m, LLB), a great visionary Leader alongwith a group of youngsters of Kalwa village took the initiative of formation of Urban Co-operative Co- operative Bank. The bank was named as “Parsik” because act ive jurisdiction of bank was the west side area of Parsik Hill, which which has range from fro m Kalwa to Belapur (the famous Parsik Railway Tunnel is situated in the sa me range). “Parsik” also means Parshwanath (Lord Shiva), whose temple exists on the hill.
The bank depicts transparency, trust, customer service, excellence and team work as its Core Values. With the consistent and concerted efforts effort s of all the devoted Directors, employees and well wishers, the t he bank achieved “Scheduled Status” on o n 30th January, 1998. Consequent upon achieving Scheduled Status the area of operation of the Ba nk was extended to the entire State of Maharashtra. The bank had succeeded in opening 14 Branches and 2 Extension Counters with business-mix of Rs.180.83 Crores which includes deposits of Rs.119.18 Crore and Advances of Rs.61.65 Crore. The bank showed c ommendable CASA of 46% and also “Zero” percent of Net NPA. This percentage was outcome outcome of persistent and dedicated efforts taken by selfless directors and employees.
Since then, the bank started showing remarkable presence in the Co -operative Banking Sector. The bank was growing by opening its branches in the districts of Thane, Navi Mumbai, Raigad, Nashik, Pune and Kolhapur. In 2010, t he bank acquired Ichalkaraji Mahila Sahakari Bank Ltd., Ichalkaranji having 6 branches and saved thousands of deposit holders o f their hard earned money.
The bank became “Multi State St ate Bank” in March, 2015. The T he bank expanded its operation in the State of Goa by opening the branches in Mapusa and a nd Madgaon. In 2017, the bank achieved a milestone business of Rs. 5000 crore consisting consist ing of Rs. 3100 crore deposits and Rs. 1900 crore 36
Advances through 80 fully computerized branches keep ing consistent highest percentage of CASA and Net NPA of Zero Percent. The bank has strived to achieve a vision of a business -mix of Rs. 10,000 crore through 100 branches by 2020 and and also wish to establish a bank giving giving fully digitalized services. The Bank is “financially sound and well managed Bank” within RBI definition. It is profit making since inception and has ‘A’ Audit classification. classification.
The bank has bagged various precious awards from banking as well as IT Sector for its outstanding achievements in the fields of governance, recovery, leadership and t echnological security.
VISION & MISSION Bank's Vision Statement Strive To Achieve Highest Level Of Ethical, Efficient And Effective Customer Service With Robust Technological Support Through Highly Motivated And Committed Professional Staff With Social Responsibility.
Bank's Mission Statement Providing Excellent Customer Service with Transparency, Trust And Timely Updated Technology Through Diversified Products For Consistent Growth Of The Bank And Customers.
Bank's Bank Core Values Transparency
We believe in cultivating a culture of transparency t ransparency across our business tributaries. Our honest and fair business practices make us a preferred name for all our stakeholders.
Trust
The greatest wealth we possess is the trust of our customers. We believe in creat ing long-term relationships by partnering customers across financial do mains and helping them achieve their financial goals realistically. 37
Customer Services
For us, customer satisfaction comes above everything else. By introducing new value additions and by improving existing offerings, we ensure our customers' needs are met in the best possible manner.
Excellence
We go to great lengths to ensure the highest standards of banking excellence. We have committed ourselves to deliver an evolved banking experience through our array of superior products and services.
Teamwork
We believe in harnessing the true t rue spirit of teamwork in everything we do. By readily sharing experience, resources and opportunities, we ensure that all our o fferings come with a higher degree of accountability.
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LIST OF DIRECTORS
Directors Name
Designation
Mr. Ranjit Gopinath Patil
Chairman
Mr. Narayan Gajanan Gawand
Vice Chairman
Mr. Jayram Kashinath Patil
Director
Mr. Dashrath Dattu Gharat
Director
Mr. Namdev Bhau Patil
Director
Mr. Kayyum Rashid Cheulkar
Director
Mr. Navnath Maruti Patil
Director
Mr. Prakash Nakul Patil
Director
Mr. Sanjay Vitthal Popere
Director
Mrs. Rajashree Prakash Patil
Director
Smt. Shashikala Dashrath Patil
Director
39
CHAPTER-3
LITERATURE REVIEW
40
LITERATURE REVIEW
According to Bowen (1953), theoretical and empirical researches point to Haward Bowen's social responsibility of the businessman as primary st udy that consider and evaluate about relationship between corporations and society. Some of these researches include (Carroll (Carro ll 1979) and (Aupperle, Carroll et al. 1985). After these researches, most studies concentrate on the corporate social responsibility in the business and soc ial environment as process and also focus on application it. For example, using from behavior analysis as a method for solution solution of social problem is one of o f them (Fitch 1976). During 1981s to 1990s, some studies have been done regarding measurement of the relationship between corporate social responsibility and financial performance. In these st udies have been confirmed the relationship between CSR and financial performance (Ullmann ( Ullmann 1985; McGuire, Sundgren et al. 1988). Most important important study on the 1991s is Carroll's pyramid of corporate social responsibility. This is most famous example about CSR. This model focuses on hierarchy of responsibilities and has four levels of responsibilities including economic, legal, ethical, and philanthropic p hilanthropic levels (Carroll 1979). This paper focuses on it as dimensions of corporate social respo nsibility for design new framework because these elements can create value in each level of responsibility for corporations and society. The Carroll's pyramid revised and 3C-SR model replaced it (Schwartz and Carroll 2003). The 3C-SR model emphasize because of discretionary nature of t he social responsibility, the philanthropic category as not justifiable. Later on the 3C -SR model modified and shifted toward contemporary impressions of corporate social responsibility as fundamental to the business system and represented in concept s. Some of the modern models are triple bottom line including people, planet, and profit and social audit ing (Schwartz and Carroll 2003
41
Meehan, Meehan et al. 2006). Corporate social responsibility as an extensive co ncept has various meaning. Among these terms, corporate social performance, corporate social responsiveness, stakeholder management, corporate citizenship, and corporate social responsibility are more common. There are a large number studies that confirmed them (Carroll 1979; Wood 1991; Turban and Daniel 1996; St anwick and Stanwick 1998; Maignan, Ferrell et al. 1999; Shropshire and Hillman 2007). The most important point in these researches is related re lated to how corporate social responsibility is measured. The t hree methods are that contribute in the measuring CSR (McGuire, Sundgren et al. 1988). The first method is the knowledgeable or specialist evaluations about t he policies of corporate. In this method is very important that access to all scope of the routine and non-routine activities act ivities within corporation and also the expertness of the researchers. As well as the accuracy of this method depends on these important factors (Abbott and Monsen 1979; Márquez and Fo mbrun 2005; Luo and Bhattacharya 2006). The content investigation and examination of annual reports and documents of corporate is the second method. The content examination is defined a set of procedures and instructions to create valid deduction from from text (Weber 1990; Basil and Weber 2006). And also content analysis is a technique research -based for creating cr eating replicable and valid deduction from texts to the contexts of their use. The important advantage of this method is when compared to the other methods (Krippendorff 2004). The third method that use to measure corporate social responsibilit y is the performance of corporation in controlling pollution as a proxy measure. This method focuses on pollution that one o ne of aspect or dimension dimension of social soc ial responsibility. Therefore, this method is important for industries that pollution is meaningful issue. And also this factor can be a limitation in measurement process (Chen and Metcalf 1980; McGuire, Sundgren et al. 1988). This paper points out some research that studied the relat ions of corporate social responsibility with other aspects such as financial performance, perfor mance, social and environmental performance, and so on. About one hundred twenty-seven published studies between 1970 and 2002 2002 with different measurement methods have have been done (Margolis and Walsh 2003). In these researches generally two main types of performance in the financial areas for investigation relationship between CSR and various aspects of corporation performance have been used. One of the most most related studies st udies is financial performance measures measures based on accounting that is not suitable method, because has certain difficulties. For instance, it only
42
exhibits historical company performance that creates t hrough manipulation manipulation of the managers and generates results among companies due to the use from www.ccsenet.org/ijbm International Journal of Business and Management Vol. 6, No. 9; September 2011 150 ISSN 1833-3850 E-ISSN 1833-8119 different different accounting acco unting procedures which cannot be compared. The positive relationship between CSR and financial performance has been indicated by some of these researches researc hes (Margolis and Walsh 2003). For example, the link between environmental management practices and financial perfor mance (Montabon, (Montabon, Sroufe et al. 2007) and strong correlation between corporate cor porate financial and social and a nd environmental performance (Orlitzky, Schmidt et al. 2003) are some of these studies. And also some researches investigate the t he linkage between company size and corporate social responsibility (Stanwick and Stanwick 1998; Udayasankar 2008). These researches generate equivocal results and a nd explore a u-formed u-for med linkage managing corporate performance between the contribution of corporate social responsibility and company size. According these studies, companies with very small and very large size being equally motivated to participated in corporate social responsibility with medium-sized companies being the least motivated (Udayasankar 2008). As a result, according to both modern stakeholder and agency theory, there is a positive relationship between cor porate social responsibility and financial perfor mance (Cochran and Wood 1984; McGuire, McGuire, Sundgren et al. 1988; Waddock and Graves 1997; McWilliams and Siegel 2000). This is very important for managers that how use from CSR in the modern business business world. Because of the increasing of environmental awar eness, increasing of shortage of resources, and the demand for transparency, tr ansparency, managers should move toward using more and more from CSR so that create value for t heir organizations and society. The value creation must be as basic principle until top management design competitiveness strategies. From the above literature review we can say Resea rch on CSR activities of GP PARSIK BANK have not been undertaken
43
RESEARCH PROBLEM This is the first Research Researc h Gap due to Lack of research on CSR activities of GP PARSIK BANK
OBJECTIVE
To know the brief detail about Corporate Social Responsibility
To learn Corporate Social Responsibility of GP Parsik Sahakari Bank
To learn SOCIAL activity done by bank to help the society
To know how the funds are raised for Social act ivity
SCOPE OF STUDY After going through this study we will be able to understand the Cor porate Social Responsibility Of Gopinath Patil Parsik Bank
44
CHAPTER -4
RESEARCH METHODOLOGY
45
Method of data collection
Data collected is a mixture mixture of o f both the primary data and secondary data. As this research was a descriptive and qualitative research resear ch primary data is collected co llected by conducting personal interviews with various employees of different departments, quest ionnaires were also given to these employees. Secondary data is collected from its official site as well as from the annual reports published by them. Based on the objectives of the study, there are t wo types of Research:
Exploratory Research: Exploratory research is conducted when one is seeking
insights into the general nature of a situation, s ituation, the possible decision alternatives, and the relevant variables that need to be considered. While conducting my study, study, I used exploratory research, which was flexible and a nd was aimed at identifying all the attributes that provides satisfaction satisfact ion to customers before and after buying a vehicle. I undertook an intensive review of t he automobile industry in India, and screened so me issues which I as a researcher felt needed more clarification or study.
Descriptive Research: My exploratory research conducted brought out a host of
factors which affects the customers buying attitude. These factors were then filtered to form a set of the most important alternatives, which might affect a consumer’s and a retailer’s decision regar ding ding the purchase of vehicle and which brand they prefer. The purpose was to find an accurate snapshot of the market market environment of automobiles.
Sampling method:
46
The method used in this kind of research is simple random non-probability sampling method because the data collected is t aken from the employees who were either free or supposed to give the data.
Tools and techniques used:
The tools used in this research to collect t he primary and secondary data are as follows:
a. Questionnaires - Questionnaires were distributed d istributed randomly to employees employees who were e ither free or supposed to feel those questionnaires. The questionnaire distr ibuted was an open ended questionnaire except for questionnaire given to human resource. Some of t he questions in that questionnaire were closed ended.
b. Personal interviews - Personal interviews were conducted co nducted by me by going going to GP Parsik Bank headquarters at Kalwa and tried to understand the process of various CSR activity from them.
c. Behavior observations - I also observed the behaviors of some so me employees and if my observation is right then it is going to help me to e liminate the bias among the opinions of different informants towards the departments and or ganization.
47
CHAPTER- 5
DATA ANALYSIS INTERPRETATION
48
Social responsibility of GP Parsik Sahakari Bank
In October, 1985 Late. Gopinath Shivram Patil Pat il (M.com., LLB) - The founder of Gopinath Patil Parsik Janata Sahakari Bank Ltd. & consumer co -operative society had initiated a proposal to Forest Department, Pune, to sought permission for a Green Initiative Initiative pr oject. Forest Department allotted a hill, called Parsik Pars ik Hill, which is situated nearby Kalwa Village and the well known Parsik Railway Tu nnel.
Forest Department permitted for the plantation on the Parsik Hill in 1990. For last 25 years the work of plantation and other related activities act ivities like minor irrigation, forest conservation are going on. Under the guidance of Board of Directors, employees of GP Parsik Bank have been regularly performing various various activities to run r un this this project effectively. Due to their hard work and consistency, the land admeasuring 70 hectare came under plantation. Once a barren hill is now covered with more than 1,50,000 trees, which is a huge success.
2. At the request of CIDCO LTD. in the year 1993, Parsik Bank has undertaken the development of garden on 14 acres of land situated near Belapur in Navi Mumbai area. The said garden was also named as Parsik Hill H ill Garden. The employees and members of Board has given their total commitment for the development of garden.
3. Parsik Bank in the year 1998-99 has planted nearly 1200 plants in Kalwa Vitawa region under scheme called Clean Thane Green Thane, which was initiat ed by Thane Muncipal Corporation. It also included decoration of one traffic island and building a bus stop.
49
4. Other activities • Educational help • Medical help • Building of shed for funeral & other religious activities • Sports • Financial assistance to social organizations
5. Bank has maintained a fund called Member Welfare Fund. Every year a co nsiderable amount is contributed to this fund out of net profit earned by the bank
Corporate Social Responsibility in the year 2013-14
GP Parsik Bank had conducted Blood B lood Donation Camp On 17th November 2013, being the “Smritidin” of founder founder Chairman Late Shri. Gopinath Shivram Patil, THANCO Bank Karmachari Sangh arranged Blood Donation Camp at Bank's Head Office, Parsik Nagar, Kalwa. Blood donors including directors, staff and members participated in the camp and 117 bottles bottles of blood were collected during the camp. Bank has organized Medical checkup camp for members above 45 years of age and many types of medical tests of members were undertaken free of cost.
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Corporate Social Responsibility in the year 2014-15
GP PARSIK BANK acknowledges acknowledges its social soc ial responsibilities by donating permissible percentage of net profit to Social Organisations. During the year, year, the bank donated ` 23,85,000/- to 19 organizations who are committed committed for social causes.
During this financial year Jammu and Kashmir faced natura l calamity. In response to an appeal made by Indian Bank’s Association as well as t he Prime Minister of India to extend help for rehabilitation of these affected affect ed people the employees of the bank contributed an amount equivalent to one day Privilege Leave ` 4,88,747/- and the bank also contributed ` 5,11,253/- total amounting to ` 10,00,000/10,00,000/- to Prime Minister’s National Relief Fund.
A Blood Donation Camp was organised on 7th 7t h November, November, 2014 at its Head Office, Kalwa, Thane. The Blood donners donners included Directors, Directo rs, Officers and Staff who donated 102 bottles of blood. The above programme was o rganised by Thanco Bank Karmachari Sangh, Thane, Unit Gopinath Patil Parsik Janata Sahakari Bank Ltd.
The bank also organized Medical Check-up Camp for members above 45 years of age free of cost on 7th 7t h November, November, 2014 at its Head Office, Kalwa, Thane.
The Bank organized training programme for members as per the revised bye laws commensurate with 97th constitutional amendment.
The bank has also given financial help for education to the dependents of the members. During the year ` 72,000/- was given to 27 students.
The bank has given 4,58,500/- to 41 shareholders towards medical assistance dur ing the year.
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The Bank arranges cricket tournament every year for the employees. Most of the employees participated in tournament and showed their talent. The Bank’s Head Office – Office – IT IT Dept. team achieved first prize in Cricket competition and won Late Gopinath Patil Smruti Chashak with efforts of All-r ounder Sachin Madhavi (Man of the Series) and our Bhiwandi Branch won Second prize. A limited overs Inter Bank Cricket Tournament organised by Sahakarmurti Gopinathdad Go pinathdadaa Patil Pat il Foundation on memory of “Late Gopinath Patil Saheb”. Total 15 Banks teams were participated in Inter Bank Cricket Tournament i.e. Reserve Bank of India, NKGSB, DNSB, TJSB, Apana Sahakari Bank, Chembur Nagrik Sahakari Bank, Vasai Vikas Sahakari Bank etc. Our Bank won the first prize by defeat ing Vasai Vikas Sahakari Bank Ltd., by three runs and Sahakarmurti Gopinath (Dadasaheb) ( Dadasaheb) Patil Smruti Chashak was accepted by Captain Mr. Kiran Madhavi and his tea mmates with Trophy and Cash prize. The Best Batsman – Batsman – Roshan Roshan Patil (GP Parsik Bank), Best Bowler – Manas Manas Raut (Vasai Vikas Sahakari Bank Ltd.), Best Fielder - Sumit Ghadigaonkar (RBI), Allrounder Player – Player – Rahul Rahul Thakur (GP Parsik Bank) Ba nk) were honoured by b y bouquet, Trophy and Cash prize.
Afforestation: The Bank’s founder Chairman, Late Shr i. Gopinath S.Patil, had immensely contributed for environmental, social, educat ional and other important sectors. He has inspired many of his associates for forestation. forestatio n. Along with them and with the help of Sahakar Bazar Kalwa, more than 1.5 lac trees are being planted on Parsik Hill. The bank has also planted trees on o n both sides of the road at Kalwa, Vitawa and Parsik Nagar which gives pleasant view to all of us. Today forestation is the necessity to contain Global Warming. Shri. Bharat Pandurang Mhatre, Deputy General Manager who retired from 1st April, 2015 has decided to devote his time for taking care of this project.
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Corporate Social Responsibility in the year 2015 -16
GP PARSIK BANK acknowledges its social respo nsibilities by donating permissible percentage of net profit to Social Organisations. During the year, year, the bank donated ` 21,50,000/- to 21 organizations who are committed committed for social causes.
A Blood Donation Camp was organized on 7th November, 2015 at its Head Office, Kalwa, Thane, by GP Parsik Banks E mployees & Officers Association.
The bank also organized Medical Check-up Camp for members above 45 years of age free of cost on 7th November, 2015 at its Head Office, Kalwa, Thane.
The bank has also given financial help of ` 76,000/- to 31 students for education to the dependents of the members.
The bank has given ` 2,31,000/- to 25 shareholders towards medical assistance dur ing the year.
The Bank arranges cricket tournament every year for the employees. A limited overs Inter Bank Cricket Tournament was organised by “Sahakarmurti “Sahakarmurt i Gopinathdada Patil Foundation” in memory of ‘Late Gopinath Patil Sa heb’. Total 16 Banks teams tea ms participated in Inter Bank Cricket Tournament. The The Saraswat Co.Op. Bank Ltd., won first prize and Reserve Bank of India won second pr ize.
Afforestation :TheBank’s :TheBank’s founder Chairman, LateShri. GopinathS.Patil, had immensely contributed for environmental, social, educat ional and other important sectors. He has inspired many of his associates for forestation. Along with them and with the help of Sahakar Bazar Kalwa, more than 1.5 lakh trees are being planted on Parsik Hill.
53
The bank has also planted trees on both sides of the road at Kalwa, Vitawa and Parsik Nagar which gives pleasant view to all of us. Today Today forestation is the necessity to contain Global Warming
54
Corporate Social Responsibility in the year 2016 -17
GP PARSIK BANK acknowledges its social soc ial responsibilities by donating permissible percentage of net profit to Social Organisations. During the year, year, the bank donated ` 18,25,000/- to 16 organizations who are committed committed for social causes.
A Blood Donation Camp was organized on 7th November, 2016 at its Head Office, Kalwa, Thane, by GP Parsik Banks E mployees & Officers Association.
The bank also organized Free Medical Check-up Camp for members above 45 years of age on 7th November, 2016 at its Head Office, Kalwa, Thane.
The bank has also given financial help of ` 46,000/- to 20 students for education to the dependents of the members.
The bank has given ` 1,13,000/- to 14 shareholders towards medical assistance during the year.
The Bank arranges cricket tournament every year for the e mployees. mployees. A limited overs o vers Inter Bank Cricket Tournament was organised by “Sahakarmurti Gopinathdada Patil Pa til Foundation” in memory of ‘Late Gopinath Patil Sa heb’. Total 16 Banks teams tea ms participated in Inter Bank Cricket Tournament. Reserve Reserve Bank of India won first prize and Bassein Catholic Co-operative Co- operative Bank won second prize.
The bank participated and contributing contrib uting during “TRAFFIC SECURITY WEEK” at Thane educate driver on safety measures.
Afforestation : The Bank’s founder Chairman, Late Shri. Gopinath S.Patil, had immensely contributed for environmental, social, educat ional and other important sectors. He has inspired many of his associates for forestation. Along with them and
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with the help of Sahakar Bazar Kalwa, more than 1.5 lakh trees are being planted on Parsik Hill.
The bank has also planted trees on both sides of the road at Kalwa, Vitawa and Parsik Nagar which gives pleasant view to all of us. Today Today forestation is the necessity to contain Global Warming. War ming.
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CHAPTER -6
FINDINGS & CONCLUSION
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FINDINGS & CONCLUSION
Banking sector in India is showing interest in integrating sustainability into their business models but its CSR reporting practices are far from satisfaction. There are o nly a few banks which report their activities on triple t riple bottom line principles. As a matter of fact, t he standards for rating CSR practices are less uniform in comparison to that for financial rating. This leads to problem in comparison of corporate cor porate houses and determining the CSR rating. The study found out that among the reporting banks also, some banks are making false gestures in respect of their efforts for socioenvironmental concerns. Most of the Banks use CSR practices as a marketing tool and many are only making token efforts to wards CSR in tangential ways such as donations to charitable trusts, NGOs, sponsorship of events, et c. Very few banks have a clearly defined CSR philosophy. Mostly banks implement CSR in an ad-hoc manner, unconnected with their business process and don’t state how much they spend on CSR activities. Further voluntary actions are required to be taken by the financial bodies to ensure the socio-environmental feasibility of projects to be financed. Indian banking banking sector must also portray their socially responsible behaviour through integrating integrating triple bottom line principle.Financial Institutions can do a lot to assist efforts for social responsibility and achieve sustainability. Banks must also provide appropriate training to its employees on environmental and social risks in lending to ensure that climate change is taken into account in corporate banking decisions.
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BIBLIOGRAPHY
https://www.gpparsikbank.in
https://en.wikipedia.org/wiki/Coo https://en.wik ipedia.org/wiki/Cooperative_bank perative_banking ing
https://en.wikipedia.org/wiki/L https://en.wik ipedia.org/wiki/List_of_banks_ ist_of_banks_in_India in_India
https://en.wikipedia.org/wiki/Cor https://en.wik ipedia.org/wiki/Corporate_social porate_social_responsibility _responsibility
http://lexicon.ft.com/Term http://lex icon.ft.com/Term?term=cor ?term=corporate-social-re porate-social-responsibility--(CSR) sponsibility--(CSR)
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ANNEXURE
QUESTIONAIRE
1. What are the CSR activities of GP Parsik Bank? 2. How do they raise funds for social activity? 3. How do they manage their social responsibility every year?
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