*Research Scholar, Department of Commerce, Pondicherry University, Karaikal Campus, India
**Head & Associate Professor, Department of Commerce, Pondicherry University, India
Online published on 4 September, 2013.
The purpose of the present paper is to study the level CSR initiatives to what extent influences the financial performance of Petro, Oil and Gas Products industry for the period of Six years, in India. For this purpose, BSE 200 Indexed and Karmayog (an NGO, who measures the CSR activities of the Indian companies in India), rated 10 companies were selected at random from Petroleum, Oil and Gas industry. CSR disclosure scores for each selected company has been calculated based on the Karmayog ratings of CSR activities. To Calculate CSR score of a company, three key parameters were considered. They are, CSR ratings given by Karmayog –the company's allocation of fund for CSR activities in the Budget and finally the area of focus made by the company in their CSR activities or involvement. In the present study CSR Activities have been classified into Healthcare, Education, Environment, Rural development and Other Community Welfare activities. After calculating the score on CSR disclosures, an analysis on the relationship between corporate social responsibility score and selected financial parameters such as Total Income, Total Assets, Net worth and Number of Employees of the companies have been made. Apart from the above, CSR score also analyzed with Profit before Tax and Debts of the firm to find its extent. To analyze the relationship between CSR disclosure score and the CSR Budget, Profit before Tax and Debts of the companies Spearmen's coefficient of Rank Correlation has been used and has been tested for its validity. The relationship between CSR score and Total Income, Total Assets, Net worth and Number of Employees has been tested through Karl Pearson's coefficient of Correlation. The coefficient of determination has been tested through multiple regression analysis and resulted that the Total Income only influencing the CSR score of this Industry and there is positive relationship between CSR score with CSR budget, Total Income and Number of Employees in all over the years and CSR score with Total Asset had positive relationship only for 2007, 2008 and 2010 only. CSR score and Net worth has no any significant relationship in all the years except during 2009. Debts have the significant relationship with CSR score during 2009, 2010 and 2012. Financial performance has the positive relationship with CSR score in all over the period except 2009 in this selected industry.
Corporate social responsibility, CSR budget allocations, Total Income, Debts, Profit, CSR Score and Petro, Oil and Gas Industry
