CSR Initiative & Its Impact Upon Share Prices

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Running head: CSR INITIATIVE & ITS IMPACT UPON SHARE PRICES
CSR INITIATIVE & ITS IMPACT UPON SHARE PRICES
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1CSR INITIATIVE & ITS IMPACT UPON SHARE PRICES
Table of Contents
Introduction......................................................................................................................................2
Tata Group.......................................................................................................................................2
Peer group Analysis.........................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

2CSR INITIATIVE & ITS IMPACT UPON SHARE PRICES
Introduction
From the initiation of the barter system till the modern era of plastic money a very long
path is trodden by mankind. Profitability may not be the only driving force but also the aspect of
social welfare is an aspect of importance for rendering growth and development in the market
sphere in the long run. The cut throat competition as well as business rivalries is prevalent in the
market and due to this reason it necessitates ensuring quality of the goods and services,
transparency in the financial transactions involved. This is because of the fact that it mutually
boost the business environment as well as the socio economic environment rendering welfare for
both the society and the corporate world (Cahyandito and Pau. 2017). This incorporate the
importance of practicing corporate social responsibility for business organizations. The paper
delve into the corporate social activities of TATA group and examines how their CSR activities
impacts the share prices as well as shareholders decision making for the company.
Tata Group
The Tata group have their business in multiple fields and among which it have
multinational presence. Tata steel, Tata motors, Tata power, Tata global beverages, Tata Tele
services, etc. are the companies that are working to together in different fields. The company
have its presence in airlines, automotive, chemicals, electrical utility, locomotives, retail,
healthcare, information technology, hospitality, real estate, steel, telecommunication, defense,
finance, home appliance, etc. and many other domains. This renders the probability for the
organization to diversify its investment in different fields and utilize the profit earned from the
diversified fields (Iyanar and Prasad. 2018). It is important to understand that the company’s
presence in multidimensional fields enables an opportunity to the organization to cope up with
the market fluctuations and render a better state of return in effective manner. The revenue

3CSR INITIATIVE & ITS IMPACT UPON SHARE PRICES
generation of the company is 100. 4 billion by 2018 along with the amount of total assets being
135 billion and the number of employees are 700, 000 (Friedman and Heinle. 2016).
The TATA group have invested substantial percentage of their profit in activities that are
related to corporate social responsibility. During the financial year of 2017- 18 the company is
being found to invest over 6 lakhs in CSR projects that positively affected the economy. 40 % of
the CSR budget is being found to get invested with affirmation of the SC/ST communities in
order to ensure betterment in the segment of employability and the overall environment of the
rural communities. Tata have differentiate its policies by extracting 20 rupees from the salaries
of its employees and invested them in the betterment of the victimized women of the rural India
followed by sponsoring children for their educations through non-formal education centers
(Gomes and Marsat. 2018). Tata reinforced its investments in the segments of health and
hospitality followed by gathering their employees’ money for investing them in lessening
pollution and serving safe water to various communities of the country (Iyanar and Prasad.
2018). Share prices are the reflection of the investments that are being done by the investors who
are not only interested upon the company but also possess the trust upon the company that it will
grow over time. The initiatives of Tata group to boost the economic structure of the country
based on their abilities have invest in the corporate social activities have also found to impress
the shareholders of thee company for which the share prices are found to get impacted by the
financial year of 2017- 18 (De Klerk, de Villiers and van Staden. 2015) highlighted as follows:
TATA GROUP OF INDUSTRIES
Date Open High Low Close Adjusted Close Volume Change in
Share
Prices