| Pub. Date | : Oct, 2023 |
|---|---|
| Product Name | : The IUP Journal of Corporate Governance |
| Product Type | : Article |
| Product Code | : IJCG021023 |
| Author Name | : Akinchan Buddhodev Sinha and Arindam Sinha |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 22 |
Business enterprises consume the resources of the society for manufacturing of goods and services. Now in the process of creation of business utilities like form utility, time utility, ownership utility, etc., both the ecosystem and the society get severely affected due to Green House Gases (GHG) emission and other hazardous activities, thereby creating a social obligation on the corporate houses to take care of the society and uphold the tenet of 'People', 'Planet' and 'Profit'. In view of the growing importance and mandatory requirements under Companies Act, 2013, for the companies to undertake Corporate Social Responsibility (CSR) subject to certain requirements, it is of paramount research interest to reconnoiter the social and financial dimensions of select companies of eight core sectors of Indian economy, i.e., Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The basis for undertaking a study of the above-mentioned core sectors are that most of the core sector-based companies by nature of their activities emit GHG, utilize non-renewable resources, constitute 40.27% of the weight of items included in the Index of Industrial Production (IIP), contribute substantially to the Gross Domestic Product of India, etc. The social and relationship capital will be studied for both public and private sector companies and correlation analysis among CSR expenditure and Earnings Before Interest and Tax (EBIT) and CSR and Profits After Tax (PAT) will be done to understand the relationship between CSR activities and the mentioned financial variables.
Gone are the days when issues pertaining to environment and social governance were merely part of routine activities. Today, with growing awareness regarding conservation of environment and growing risks arising from climate change, Environment, Social and Governance (ESG) have gained a strong foothold. When a company focuses on environmental and social issues, it also not only exhibits its pious intentions to preserve the milieu in which it operates, it also aims to create a tangible, practical plan that paves the way to accomplish the desired outcomes.