An Analysis on Consumer Perception towards Corporate ...globalbizresearch.org/chennai_conference/pdf/pdf/ID_C...Proceedings of the Second International Conference on Global Business,

Proceedings of the Second International Conference on Global Business, Economics, Finance and

Social Sciences (GB14Chennai Conference) ISBN: 978-1-941505-14-4

Chennai, India 11-13 July 2014 Paper ID: C4107

1

www.globalbizresearch.org

An Analysis on Consumer Perception towards Corporate Social

Responsibility Practices in Salem City

A. Jayakumar,

Professor & Former Controller of Examinations,

Department of Commerce,

Periyar University,

Salem, India.

Email: [email protected]

K. Geetha,

Department of Commerce,

Periyar University,

Salem, India.

Email: [email protected]

_____________________________________________________________________

Abstract

Corporations of the twenty-first century can derive enormous benefits when they are

perceived as being socially responsible by their stakeholders. Among all the stakeholders,

one important group that appears to be particularly susceptible to a company’s Corporate

Social Responsibility (CSR) initiatives is its consumers. CSR has positive influence on

consumers’ evaluations and purchase intentions of company/product. The positive link

between CSR and consumer patronage makes managers realize that CSR is not only an

ethical imperative, but also an economic one in today’s marketplace. The purpose of this

paper is to explore the perception of respondents on corporate social responsibility, to find

out the perception and knowledge of consumers of companies towards CSR practices in

Salem city, to identify whether the CSR practices has made any effect in consumer decision

making while purchasing the products, and their willingness to pay a premium price for the

CSR practices. Questionnaire was used to collect the primary data. Convenient sampling

technique was used to select the respondents. The sample consists of 100 respondents. The

study concluded that though the consumers in Salem may not aware of the mandatory

provisions of CSR, they have showed their willingness to buy CSR products and willingness to

pay premium price for the CSR practicing companies’ products. Hence, a positive link exists

between the CSR and consumer behavior. CSR not only create positive attitude towards the

company, it also a weapon for attaining sustainable tomorrow.

___________________________________________________________________________

Key words: Consumer Perception, Corporate Social Responsibility, Consumer Behaviour

mailto:[email protected]

mailto:[email protected]




2


1. Introduction

Corporations of the twenty-first century can derive enormous benefits when they are

perceived as being socially responsible by their stakeholders. Among all the stakeholders,

one important group that appears to be particularly susceptible to a company‟s Corporate

Social Responsibility (CSR) initiatives is its consumers (Bhattacharya and Sen, 2004). CSR

has positive influence – across a range of product categories – on consumers‟ evaluations and

purchase intentions of company/product. The positive link between CSR and consumer

patronage makes managers realize that CSR is not only an ethical/ideological imperative, but

also an economic one in today‟s marketplace.

1.1 CSR in India

The World Business Council on Sustainable Development defines CSR as “the

commitment of business to contribute to sustainable economic development, working with

employees, their families and local community and society at large to improve their quality of

life‖.

Corporate social responsibility can be defined as “ethical payback of corporate house

towards the society”.

The Indian society is highly social in nature. The concept of CSR has always been a part

of Indian business in some way or other. In the beginning, the CSR was influenced by

culture, religion, family customs and industrialisation. Some of the high profile business and

industrial families as Tata, Birla, Godrez and so on pioneered the concept of CSR in terms of

charity and philanthropy. India being a fast growing economy is booming with opening up of

national and multinational firms. And also at the same time, India faces social challenges like

poverty, population growth, corruption and illiteracy etc., therefore, in order to create and

facilitate an environment of equitable partnership between the civil society and business, it is

all the more important for the Indian companies to see CSR in the right perspective.

1.2 Types of CSR activities in post liberalized Indian scenarios

But the scenario around the world has been changing since 1950. Rapid industrialization

and globalization have led to corporate fitting to find foot hold in global market and also as a

better employer. After opening up of Indian economy in 1990, Indian corporate houses were

exposed to threat of external competitors for the first time. Global competitors had deep

pockets and were able to pay high so the concern of employee satisfaction and happiness

increased among Indian corporate house thus leading to sudden surge of private sector

companies who were profit makers pre 1990 into social/employee concern affairs like CSR.

These CSR activities were more concentrated towards creation of employable population in

the society and the retaining them from switching to other competing companies.




3


1.3 Mandate of CSR activities

In 2009, the government made it mandatory for all public sector oil companies to spend 2

per cent of their net profits on corporate social responsibility. Besides the private sector, the

government is also ensuring that the public sector companies participate actively in CSR

initiatives. Adding to this, On 27th February 2014, the Government of India has notified

provisions and corresponding rules pertaining to Corporate Social Responsibility under the

Companies Act, 2013 (2013 Act) and this came into force with effect from 1 April 2014. As

per the provisions of the new Companies Act, any company having a turnover of more than

Rs. 1,000 crore or a networth of over Rs. 500 crore or a net profit of over Rs. 5 crore, has to

spend 2 per cent of their annual net profit on CSR activities. Hence, this provision will bring

major changes in the country as a whole.

2. Review of Literature

Andre Sobczak, Gervaise Debucquet and Christelle Havard (2006)1, in this paper, the

authors analysed the impact of education on students‟ and young managers‟ perception of

companies and corporate social responsibility. The research is based on an electronic

questionnaire for students and alumni of different institutions of higher education of higher

education in Nantes (France). The main result of this exploratory study is the impact of the

different types of academic institutions on the respondents‟ perception on companies and their

attitude towards CSR concepts and tools.

Jean – Marie Codron, Lucie Siriex and Thomas Reardon (2006)2, this paper focuses

on the environmental and ethical attributes of food products and their production processes.

The paper first presented the four movements that have brought to the fore new aspects of

food product quality, to wit: 1) aspects of environmental ethics and 2) social ethics.

Consumers tend to perceive the organic production movement and the integrated agricultural

movement as a single group because they both deal with the environment. Finally, the paper

identified challenges faced by those promoting food products with environmental and

social/ethical attributes as they attempt to communicate coherent signals to consumers at this

crucial moment in the emergence of a mass market for these products.

Lei Wang and Heikki Juslin (2011)3, In this paper the authors determined the effects

of personal values on individual perceptions of CSR issues. The authors investigated 980

1 Andre Sobczak, Gervaise Debucquet and Christelle Havard (2006), “The impact of higher education

on students‟ and young managers‟ perception of companies and CSR: an exploratory analysis”,

Corporate Governance, Vol.6, No.4, pp.463-474. 2 Jean – Marie Codron, Lucie Siriex and Thomas Reardon (2006), “Social and Environmental attributes

of food products in an emerging mass market: Challenges of Signaling and consumer perception, with

European illustrations”, Agriculture and Human Values, I-23, pp.283-297. 3 Lei Wang and Heikki Juslin (2011), “The Effects of Value on the Perception of Corporate Social

Responsibility Implementation: A study of Chinese Youth”, Corporate Social Responsibility and

Environmental Management, No.18, pp.246-262, 2011.

http://economictimes.indiatimes.com/topic/CSR




4


Chinese young people, finding that: Chinese youth displayed a mixed value structure of

traditional and emerging western values, stronger self-transcendent values than self-

enhancement values, and stronger openness values than conservation values. Chinese youth

have negative perceptions of corporate social performance of corporations in China,

especially on the environmental dimension. Personal values have a significant effect on

perception of Chinese youth of CSR. The practical ethical contribution of this study suggested

that value cultivation is a good way to develop ethical behavior and responsibility, which in

turn affect the development of CSR in china.

PHAM Duc Hieu, (2011)4, the author of this paper has examined how executives and

managers from different Vietnamese enterprises represent their awareness and their

perceptions of corporate social responsibility, as well as whether the attitude of Vietnamese

consumers towards CSR. Structured questionnaires have been used to collect data from

managers and customers. 30 selected companies operating in three main sectors namely,

Banking, Brewery and Clothing and Textiles have been taken into account. Based on the

analysis, the paper provided evidence that while a large proportion of managers expressed a

highly positive attitude towards CSR and its reporting, consumers‟ perception is at low state

and questionable. Although the consumers do not have a clear attitude, the research results

showed that the awareness of consumers and their purchasing decisions influence

significantly on the CSR implementation as well as CSR disclosure of companies.

Percy Marquina Feldman and Arturo Z. Vasques-Parraga (2013)5, the objective of

this research is to explain key antecedents to consumer social responses, in particular, the

comparative effects of CSR initiatives and CA in the consumer purchasing behavior. A

choice-based conjoint model was applied to quota consumer samples from two disparate

countries (USA and Peru) in the shoe industry. The variables used in the study are

company‟s environmental commitment, corporate giving to worthy causes, good labour

practices, leadership in the industry, product quality and technological innovation. The main

results of the study demonstrated that some CSR initiatives such as companies‟ environmental

commitments, along with some CA, such as product quality significantly explain the nature of

consumer responses and a trade-off effect on consumers‟ willingness to pay for a product.

2.1 Statement of the Problem

Consumers are an important and complex factor in the CSR equation: Undoubtedly, they

may contribute to its diffusion through their purchase behavior. Firms need to become more

4 PHAM Duc Hieu, (2011), “Corporate social responsibility: A study on awareness of managers and

consumers in Vietnam”, Journal of Accounting and Taxation, Vol. 3, No.8, pp.162-170, December

2011. 5 Percy Marquina Feldman and Arturo Z. Vasques-Parraga (2013), “Consumer social responses to CSR

initiatives versus corporate abilities”, Journal of Consumer Marketing, Vol.30, No.2, 2013, pp.100-

111.




5


proactive with respect to consumer social responsibility if they want to make their CSR

initiatives more effective as the consumer attitude, decision, purchases and behaviour are still

the elements determining the demand for goods and services most directly. Lack of

awareness about CSR practices is a limiting factor in consumers‟ ability to reward / punish

corporations appropriately. The present study is a modest attempt to study the consumer

perception on CSR practices in Salem City.

It becomes important to investigate whether customers value the dedication of

organization towards CSR endeavours. A very little research has been carried out to

investigate any preference given to companies following CSR practices by the customers, and

hence it becomes very important to study whether customers value the CSR practices adopted

by organizations, and give preference to the products/services offered by organizations

practising CSR. The study is undertaken to determine the extent of consumer preferences and

consumers‟ willingness to buy and pay CSR products.

2.2 Scope of the Study

Socially responsible behaviour of the company is good market practice and that it

generates positive consequences for the business is increasingly accepted, but there is still a

lack of research on potential benefits of social responsibility from the marketing perspective,

as well as on its effects on the consumer segment. The empirical evidence about the relation

between Corporate Social Responsibility Practices and consumer behavior is still limited.

Hence, the current work aims to shed light on the corporate social responsibility practices on

consumer perspective in Salem City.

2.3 Objectives of the study

The main objective of the study is to study the Corporate Social Responsibility Practices

on consumer perspective in Salem City.

The secondary objectives are,

To create awareness and to find out the perception and knowledge of consumers of

companies towards CSR practices in Salem city.

To identify whether the CSR practices has made any effect in consumer decision making

while purchasing the products.

To know about the consumer preference towards the CSR practices.

To know whether the consumer are willing to pay a premium price for the CSR practices.

3. Research Methodology

This research is based on the survey method.

3.1 Data collection

In this study, both primary and secondary were collected. The primary data were

collected by using a well-structured questionnaire. The secondary data were collected from




6


various companies‟ websites from published articles, magazines, newspapers and

miscellaneous records.

Sample design

The persons who know about CSR are the respondents of the study. A convenient

sampling technique was used to select the respondents. The sample consists of 100

respondents was taken for the study.

Tools for analysis

The data collected through the questionnaire were scrutinized, and SPSS package was

used to analyze the primary data. Statistical tools like Percentage Analysis, Chi-square and

ANOVA were used for the analysis purpose.

Table No.1: Gender of the Respondents

Gender Frequency Percentage

Male 79 79.0

Female 21 21.0

Total 100 100 Source: Primary Data

It is clear from the above table that out of the total respondents taken for the study, male

respondents are 79% and Female respondents are only 21%.

Majority of the respondents are Male respondents.

Table No.2: Educational Qualification of the Respondents

Educational Qualification Frequency Percentage

Under Graduation 18 18.0

Post-Graduation 44 44.0

Any other qualification 38 38.0

Total 100 100

Source: Primary Data

It is inferred from the above table that 18% of the respondents are under-graduates, 44%

are Post-graduates, and 38% of the respondents are having education like M.Phil, Ph.D,

Diplomo etc.,

Majority 44% of the respondents are Post-Graduates.

Table No.3: Occupation of the Respondents

Occupation Frequency Percentage

Businessman 22 22.0

Professional 7 7.0

Private Employee 42 42.0

Government Employee 6 6.0

others 23 23.0

Total 100 100.0





7


It is known from the above table that out of the total respondents 22% of the respondents

are Businessman, 7% of the respondents are Professionals, 42% of the respondents are Private

employees, 6% of the respondents are Government employees and 23% of the respondents

are students, Research Scholars, etc.,

Majority 42% of the respondents are Private employees.

Table No.4: Monthly income of the respondents

Occupation Frequency Percentage

Upto `10,000 24 24.0

`10,001 - `20,000 44 44.0

`20,001 - `30,000 26 26.0

Above `30,000 6 6.0

Total 100 100.0


It is found from the above table that out of the total respondents 24% of the respondents‟

monthly income is upto `10,000, 44% of the respondents‟ monthly income is between

`10,001 - `20,000, 26% of the respondents‟ monthly income is between `20,001 - `30,000, and

6% of the respondents‟ monthly income is above `30,000.

Majority 44% of the respondents‟ monthly income is between `10,001 - `20,000.

Table No.5: Major Responsibility of the company

Responsible for Frequency Percentage

Customer 33 33.0

Employees 6 6.0

Shareholders 12 12.0

Local Society 4 4.0

Global Society 17 17.0

Environment 24 24.0

Others 4 4.0

Total 100 100.0


It is inferred from the above table that out of the total respondents, 33% of the

respondents opined that the company is responsible for its customers, 6% of the respondents

opined that the company is responsible for its employees, 12% opined that the company is

responsible for its Shareholders, 4% opined that the company is responsible for the local

society, 17% of the respondents opined that the company is responsible for the Global

society, 24% of the respondents opined that the company is responsible for the Environment

and 4% opined that the company is responsible for its suppliers etc.,




8


Majority 33% of the respondents opined that the company is responsible for its

customers.

Table No.6: Sources of Awareness of CSR

Sources Frequency Percentage

Press 30 30.0

Family and Friends 6 6.0

Company's annual reports 14 14.0

Books 28 28.0

Internet 5 5.0

Any other sources 17 17.0

Total 100 100.0


The above table exhibits the sources of awareness of CSR, 30% of the respondents came

to know the CSR through the press, 6% of the respondents came to know through Family and

Friends, 14% of the respondents came to know the CSR through Company‟s annual reports,

28% of the respondents came to know through the Internet, and 17% of the respondents came

to know the CSR activities through Seminars and Conferences.

Majority 30% of the respondents came to know the CSR through the press.

Table No.7: Awareness of CSR Activities


Yes 61 61.0

No 39 39.0

Total 100 100.0


The above table shows the opinion of the respondents on the awareness of CSR activities.

61% of the respondents opined that they aware CSR activities and 39% of the respondents do

not aware of the CSR activities.

Majority, 61% of the respondents‟ are aware of CSR activities.

Table No.8: The industry which is considered to be important for CSR


Healthcare 26 26.0

Food & Beverages 16 16.0

Automotive 29 29.0

Financial Services 5 5.0

Media 11 11.0

Apparel 6 6.0

Any other industry 7 7.0

Total 100 100.0





9


It is clear from the above table that out of the total respondents, 26% of the respondents

opined that the Healthcare industry is considered to be important for CSR activities, 16% of

the respondents opined that the Food & Beverages industry is important, 29% of the

respondents opined that the Automotive industry is considered to be important, 5% of the

respondents opined the Financial Services industry is important, 11% of the respondents

opined that the Media is important for CSR, 6% of the respondents opined that the Apparel

industry is important and 7% of the respondents opined that the industries like Energy,

Technology are considered to be important for CSR.

Majority 29% of the respondents opined that the Automotive industry is considered to be

important for CSR activities.

Table No.9: Preference of CSR activities


Healthcare 20 20.0

Education 16 16.0

Disaster Relief 15 15.0

Environment 24 24.0

Rural Development 18 18.0

Animal Welfare 4 4.0

Any other practices 3 3.0

Total 100 100.0


It is understood from the above table that out of the total respondents 20% preferred the

Healthcare related CSR activities, 16% preferred the Education related CSR activities, 15%

preferred the Disaster relief related CSR activities, 24% preferred Environment protection

related CSR activities, 18% preferred Rural Development, 4% preferred Animal Welfare




10


related CSR activities and 3% preferred other CSR practices such as, Vocational training for

the backward people, Women empowerment, child welfare etc.,

Majority 24% of the respondents‟ preferred Environment protection related CSR

activities.

Table No.10: Opinion on Willingness to buy CSR products

Opinion Frequency Percentage

Yes 69 69.0

No 31 31.0

Total 100 100.0


The above table depicts the Opinion of the respondents on willingness to buy CSR

products. Out of the total respondents 69% of the respondents are willing to buy CSR

products and 31% of the respondents are not willing to buy CSR related products.

Majority 69% of the respondents are willing to buy CSR products.

Table No.11: Opinion on Willingness to pay premium price


Yes 53 53.0

No 47 47.0

Total 100 100.0


It is understood from the above table that 53% of the respondents are willing to pay

premium price for the CSR practising company‟s products, and 47% of the respondents are

not willing to pay extra price for the CSR practising company‟s products.

Majority 53% of the respondents are willing to pay premium price for the CSR practising

company‟s products.




11


Table No.12: Awareness on Mandatory Provision of CSR

Opinion Frequency Percentage

Yes 41 41.0

No 59 59.0

Total 100 100.0


The above table exhibits the opinion of the respondents on Mandatory Provision of CSR.

41% of the respondents have known about the mandatory provision of CSR and 59% of the

respondents have not known about the Mandatory provision.

Majority 59% of the respondents have not known about the Mandatory provision.

4. Chi Square Analysis

1. Association between the Educational qualification of the Respondents and Mandatory

Provision of CSR activities:

Ho: There is no association between the Education of the Respondents and Mandatory

provisions of CSR activities.

H1: There is an association between the Education of the Respondents and Mandatory


Table No.13

Educational Qualification Mandatory provision of CSR

Total Aware Not Aware

Under-graduation 5 13 18

Post-graduation 18 26 44

Any other qualification 18 20 38

Total 41 59 100

In order to find out the relationship between the Education of the Respondents and

Mandatory provisions of CSR activities, Chi-square analysis was used and the result of the

test is shown in the following table:

Value df P value Remark

Pearson Chi-

Square 1.938 2 0.379 Not Significant

It is clear from the above table, the „P‟ value is greater than 0.05 and hence the result is

not significant at 5% level of significance. Hence, the Null Hypothesis education




12


qualification and awareness on Mandatory Provisions of CSR are not associated does hold

well.

From this analysis, it is concluded that there is no close relationship between the

Educational Qualification and awareness on Mandatory Provision of CSR. Hence, there is no

difference in Educational Qualifications of the respondents in knowing the mandatory


2. Association between the place of the Respondents and willingness to buy CSR

products:

Ho: There is no association between the place of the Respondents and willingness to

buy csr products.

H1: There is an association between the place of the Respondents and willingness to

buy csr products.

Table No.14

Place Willingness

Total Yes No

Urban 47 21 68

Semi urban 6 4 10

Rural 16 6 22

Total 69 31 100

In order to find out the relationship between the place of the respondents and willingness

to buy CSR products, Chi-square analysis was used and the result of the test is shown in the

following table:


Pearson Chi-

Square .522 2 .770 Not Significant

It is noted from the above table, the „P‟ value is greater than 0.05 and hence the result is

not significant at 5% level of significance. Hence, the Null Hypothesis the place of the

Respondents and willingness to buy CSR products are not associated does hold well.

From this analysis, it is concluded that there is no close relationship between the place of

the Respondents and willingness to buy CSR products. Hence, the place of the respondents is

not a major factor in buying CSR products.

3. Association between the monthly income of the Respondents and willingness to pay

premium price for CSR products:

Ho: There is no association between the monthly income of the Respondents and willingness

to pay premium price for CSR products.




13


H1: There is an association between the monthly income of the Respondents and willingness

to pay premium price for CSR products.

Table No.15

Monthly Income Willingness

Total Yes No

Upto Rs.10,000 9 15 24

Rs.10,001- Rs.20,000 26 18 44

Rs.20,001-Rs.30,000 15 11 26

Above Rs.30,000 3 3 6

Total 53 47 100

In order to find out the relationship between the monthly income of the respondents and

willingness to pay premium price for CSR products, Chi-square analysis was used and the

result of the test is shown in the following table:


Pearson Chi-

Square 3.222 3 .359 Not Significant

It is noted from the above table, the „P‟ value is greater than 0.05 and hence the result is

not significant at 5% level of significance. Hence, the Null Hypothesis the monthly income

of the Respondents and willingness to pay premium price for CSR products are not associated

does hold well.

From this analysis, it is concluded that there is no close relationship between the monthly

income of the respondents and willingness to pay premium price for CSR products. Hence,

there is no difference in monthly incomes in willing to pay premium price for CSR products.

4. ANOVA

1. TEST FOR MEAN SCORES OF WILLINGNESS TO PAY PREMIUM PRICE FOR

CSR PRODUCTS REGARDING WITH THE OCCUPATION OF THE

RESPONDENTS

Test for Mean Scores of willingness to Pay Premium Price for CSR Products with the

Occupation of the Respondents was tested with ANOVA test procedure and the results of the

analysis are given in table.

Null Hypothesis: Ho.: There is no significant difference between the mean scores of

willingness to pay premium price for CSR products with the occupation of the respondents.

Table No.16




14


Descriptives Occupation of the Respondents

N Mean Std.

Deviation

Std.

Error

95% Confidence

Interval for

Mean Minimum Maximum

Lower

Bound

Upper

Bound

Yes 53 3.09 1.319 .181 2.73 3.46 1 5

No 47 2.91 1.487 .217 2.48 3.35 1 5

Total 100 3.01 1.396 .140 2.73 3.29 1 5

Occupation of the respondents

Sum of

Squares

df Mean

Square

F P Remarks

Between Groups .802 1 .802 .409 .524 Not Significant

Within Groups 192.188 98 1.961

Total 192.990 99

The table displays the descriptive statistics of the sample size, mean, standard deviation

and standard error. The table also shows that the F Statistics, calculated as the ratio of the

variances. The column P Value shows the probability value from the t distribution. Since, the

P Value is greater than 0.05, we accept the Null hypothesis. Hence there is no significant

difference in the mean scores of willingness to pay premium price for CSR products with the

occupation of the respondents.

2. TEST FOR MEAN SCORES OF PREFERENCE FOR CSR ACTIVITIES AND AGE

OF THE RESPONDENTS

Test for Mean Scores of Preference for CSR Activities and Age of the Respondents was

tested with ANOVA test procedure and the results of the analysis are given in table.

Null Hypothesis: Ho.: There is no significant difference between the mean scores of

Preference for CSR Activities and Age of the Respondents.

N Mean

Std.

Deviatio

n

Std.

Error

95% Confidence

Interval for Mean Minimum Maximum

Lower

Bound

Upper

Bound

Healthcare 20 2.20 .616 .138 1.91 2.49 1 3

Education 16 1.94 .250 .062 1.80 2.07 1 2

Disaster Relief 15 2.93 .799 .206 2.49 3.38 2 4

Environment 24 2.54 .833 .170 2.19 2.89 2 4

Rural

Development 18 2.50 .786 .185 2.11 2.89 1 4

Animal Welfare 4 2.50 1.000 .500 .91 4.09 2 4




15


Any other

practices 3 2.00 .000 .000 2.00 2.00 2 2

Total 100 2.41 .753 .075 2.26 2.56 1 4

Age of the respondents

Sum of

Squares

df Mean

Square

F P Remarks

Between Groups 9.661 6 1.610 3.218 .006 Significant

Within Groups 46.529 93 .500

Total 56.190 99

The table displays the descriptive statistics of the sample size, mean, standard deviation

and standard error. The table also shows that the F Statistics, calculated as the ratio of the

variances. The column P Value shows the probability value from the t distribution. Since, the

P Value is less than 0.05, we reject the Null hypothesis. Hence there is a significant difference

in the mean scores of Preference for CSR Activities and Age of the Respondents.

5. Findings of the Study

It is clear from the study that majority 79% of the respondents are male.

Majority 44% of the respondents are Post-Graduates.

Majority of the respondents‟ age is between 21-30 years.

Majority 42% of the respondents are Private employees.

Majority 44% of the respondents‟ monthly income is between `10,001 - `20,000.

Majority 68% of the respondents opined that the companies have the responsibility

towards the improvement of the society.

It was depicted from the study that majority 33% of the respondents opined that the

company is responsible for its customers.

The study reveals that majority 30% of the respondents came to know CSR through the

press.

It is found from the study that majority, 61% of the respondents‟ are aware of CSR

activities.

It is understood from the study that majority 29% of the respondents opined that the

automotive industry is considered to be important for CSR activities.

Majority 24% of the respondents‟ preferred Environment protection related CSR

activities.

More than half of the respondents (69%) are willing to buy CSR products.




16


Majority 53% of the respondents are willing to pay premium price for the CSR practising

company‟s products.

Majority 59% of the respondents have not known about the Mandatory provision.

From the Chi-Square analysis, it is concluded that there is no close relationship between

the Gender and the awareness on CSR.

From the Chi-Square analysis, it is concluded that there is no close relationship between

the Educational Qualification and awareness on Mandatory Provision of CSR.

From the Chi-Square analysis this analysis, it is concluded that there is no close

relationship between the place of the Respondents and willingness to buy CSR products.

From the ANOVA, it is found that there is no significant difference in the mean scores of

willingness to pay premium price for CSR products with the occupation of the

respondents.

From the ANOVA, it is found that there is a significant difference in the mean scores of

Preference for CSR Activities and Age of the Respondents.

6. Conclusion

Globalization of Indian economy has led to a paradigm shift in the way corporate social

responsibilities were performed in India. The way companies used to look at CSR activities

has also changed from a philanthropic activity to more professional activity. CSR activity has

become more of a responsibility and compulsion to Indian corporate from all perspectives of

their existence. The CSR activities in India will keep moving towards more holistic

upliftment of Indian society. In this study, to sum up, majority of the respondents preferred

Environment protection related CSR activities. More than half of the respondents are willing

to buy and half of the respondents are willing to pay premium price for CSR products. But,

not more than half of the respondents did not aware of the CSR mandatory provisions. The

consumers in Salem City know about CSR but they did not aware of the practices done by the

companies. They expect that the companies CSR practices should be disclosed through the

media. CSR is one such concept through which the country can attain its sustainable

development.

References

Andre Sobczak, Gervaise Debucquet and Christelle Havard, “The impact of higher education

on students‟ and young managers‟ perception of companies and CSR: an exploratory

analysis”, Corporate Governance, Vol.6, No.4, pp.463-474.

Jean – Marie Codron, Lucie Siriex and Thomas Reardon, “Social and Environmental

attributes of food products in an emerging mass market: Challenges of Signaling and

consumer perception, with European illustrations”, Agriculture and Human Values, I-23,

pp.283-297.




17


Jothi M, “Competitiveness, sustainability and CSR initiatives of commercial banks in India:

An empirical study of BSE listed commercial banks”, The Alternative – Journal of

Management studies and research, Vol. X, No. 1, Oct – March 2011, Pgs. 21-37.

Kailash Tuli, “Sustainable Business Strategy or Eyewash for unethical business practices: A

study of the CSR initiatives of Coca Cola India”, Management & Change, Vol.14, No.2,

2010.

Kamal Singh, “Business Ethics and Corporate Social Responsibility – Time for action now”,

Effective Executive, Vol.XII, No.10, October 2009, pgs.58-64.

Kavitha W and Anitha P, “Disclosures about a CSR practices: A literature Review”, The IUP

Journal of corporate Governance, Vol.X, No.1, January 2011, Pgs.45-55.

Lei Wang and Heikki Juslin, “The Effects of Value on the Perception of Corporate Social

Responsibility Implementation: A study of Chinese Youth”, Corporate Social Responsibility

and Environmental Management, No.18, pp.246-262, 2011.

Maksimainen J, P Saariluoma, and P Jokivuori, “Corporate Social Responsibility and Values

in Innovation Management”, World Academy of Science, Engineering and Technology 53

2009.

Malvinder Singh, “Corporate Social Responsibility- Contribution to sustainable

development”, productivity News, Vol.45, No.3, May-June 2007, Pgs.52-54.

Mercia Selva Malar, “Social Cause Marketing - The CSR responsibility of B-Schools”,

Effective Executive, Vol.XII, No.9, September 2009, Pgs. 17-18.

Muruganantham G, Case study on Corporate Social Responsibility of MNC‟s in India,

International Trade & Academic Research Conference (ITARC) - London 2010.

Parvinder Arora, Ajay K Garg and S C Vaidya, “Efficacy of Integrating Corporate Social

Responsibility and Procurement Strategy – A case study of leading cotton Textile

Manufacturing Company in India”, South Asian Journal of Management, Vol.14, No.1-2,

Jan-June 2007, Pgs.105-119.

Peggy Simcic Brønn and Albana Belliu Vrioni, Corporate social responsibility and cause-

related marketing: an overview, International Journal of Advertising, Vol. 20, No.2, 2001,

Pgs.207-222.

Percy Marquina Feldman and Arturo Z. Vasques-Parraga, “Consumer social responses to

CSR initiatives versus corporate abilities”, Journal of Consumer Marketing, Vol.30, No.2,

2013, pp.100-111.

PHAM Duc Hieu, “Corporate social responsibility: A study on awareness of managers and

consumers in Vietnam”, Journal of Accounting and Taxation, Vol. 3, No.8, pp.162-170,

December 2011.




18


Rohit Pande, “Corporate social responsibility: A Human Face for the Global Economy”, The

Alternative - Journal of Management studies and Research, Vol. VIII, No.2, April –

September 2009, Pgs. 57-69.

Satish Kumar and Ritesh Tiwari, “Corporate Social Responsibility: Insights into

contemporary research”, The IUP Journal of Corporate Governance, Vol. X, No.1, January

2011, Pgs.22-44.

Websites

http://www.csrquest.net

http://www.csrwire.com

http://www-935.ibm.com

http://oae.sagepub.com

http://csr-news.net

http://www.indianet.nl

http://www.csrquest.net/

http://www.csrwire.com/

http://www-935.ibm.com/

http://oae.sagepub.com/

http://www.indianet.nl/

Documents

An Analysis on Consumer Perception towards Corporate ...globalbizresearch.org/chennai_conference/pdf/pdf/ID_C...Proceedings of the Second International Conference on Global Business,