Analyzing CSR Impact on Organizational Performance: India & Sweden

This report investigates the impact of Corporate Social Responsibility (CSR) on organizational performance, focusing on retail businesses in India and Sweden. It examines the distinct CSR policies of both countries and their effects on business outcomes. The research includes a literature review exploring the relationship between CSR and organizational success, along with the methods for effective CSR implementation and its benefits. The study formulates and tests hypotheses using quantitative methods, including correlation, regression, and ANOVA, based on survey data collected from leading retail firms in both countries. The analysis aims to identify significant differences in the impact of CSR activities between the two nations, providing insights for strategic improvements and mitigating any negative effects of CSR on business performance. The report also discusses the evolution of CSR, its significance, and the challenges faced by organizations in this domain. The findings of this research will support in assessing the difference in the impact of CSR activity over the business performance in two distinct countries i.e. India and Sweden. Based on it, relevant strategies and measures can be taken into account to reduce the negative impact of CSR on business performance.

CORPORATE SOCIAL
RESPONSIBILITY

Table of Contents
ABSTRACT.....................................................................................................................................1
INTRODUCTION...........................................................................................................................2
LITERATURE REVIEW................................................................................................................5
THEORY DEVELOPMENT AND HYPOTHESES FORMULATION........................................8
RESEARCH METHODOLOGY...................................................................................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................22

ABSTRACT
This report intends to highlight the impact of Corporate Social Responsibility on the
organisational performance. In this respect, insight from Indian and Sweden companies has been
taken into account. This is so because both possess differences in policies of CSR which can
cause variation on organisational performance. CSR is directly associated with the business
expenses and therefore present research highlighted its role on the business performance. In this
respect, relevant hypotheses are framed and tested. To collect the relevant data regarding CSR
and business performance, 5 leading retail firms from each of the mentioned country is taken into
account. Data has been collected with the help of survey techniques so that wide range of
respondents can be taken. In order to test the hypothesis, quantitative technique is focused. For
this, SPSS is used to apply statistical measures like correlation, regression and ANOVA. This
research will certainly support in assessing the difference in the impact of CSR activity over the
business performance in two distinct countries i.e. India and Sweden. Based on it, relevant
strategies and measures can be taken into account to reduce the negative impact of CSR on
business performance.
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Topic- To analyse the impact of CSR on the performance of an entity: A case study on India and
Sweden's retail business organisation
INTRODUCTION
Overview
The research has been conducted on corporate social responsibility. This have to be
fulfilled by every company. The management of the company realises some responsibilities
towards the economic environment and social culture. For getting the advantages in terms of
growth and promotion, this investigation is very important. In this work, information will be
gathered regarding India and Sweden company's. Both Countries have their own CSR polices
which companies have to follow. This will give effect on environment but that will be having
difference in both nations. Performance motivation is an important aspect in this regard. The
motivation can be in terms of profit which business will generate by performing the activities in
environment. There are some major challenges that are faced by an organisation like selecting
the effective activity of CSR according to strategy along with better engagement of stakeholders
with management of the business organization. This will also help in reducing the risk of
reputation in the market because it leads to promotion of the business concern in the society. So
they have decided to make a research on CSR activity as this will make effective growth of the
firm. There are some skills which are required in making investigation like collection, comparing
and analysing data in the effectual way.
Aims and objectives
The research has conducted to find out the impact of the corporate social responsibility
on company. This have been done on the two countries companies. Research objective have to
be define while preparing for investment. The aims and objectives are back bone of the research
because this will give the direction to perform activity. There are following aims and objectives:
Aim
 The impact of corporate social responsibility on performance of organisation.
Objectives
 To evaluate the way in which CSR leads to success of company
 To Find out the methods by which organisation can perform CSR effectively
 To assess the benefits of CSR in organisation.
 To evaluate the effect of CSR applied in India and Sweden.
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Research question
Aim and objectives has been defined on CSR. Analysing the impact of CSR on
company’s performance. For finding the challenges in investigation research questions have to
be prepared.
Q. In what ways CSR can lead a company towards success?
Q. Finding the Best method of CSR activity?
Q. Analysing benefits of CSR activity?
Q. What is the effect of CSR in India and Sweden?
Research hypothesis
Hypothesis 1
HO (Null hypothesis): There is no significant relationship takes place between CSR and
organizational success.
H1 (Alternative hypothesis): There is a significant relationship takes place between CSR and
organizational success.
Hypothesis 2
HO: There is no significant difference take place in the mean value of CSR activities performed
by India and Sweden.
H1: There is a significant difference take place in the mean value of CSR activities performed by
India and Sweden.
Rationale of the study
The rationale of this research proposal is to evaluate the effects of implementing the CSR
activities in company of two countries. CSR activity performed for benefits of the organisation
and society. When this action gets perform that will help in making profit for business by the
promotion. It supports in making good brand name of company. It will help in fulfilment the
requirements of the society. This will make the impressive CSR activity.
What is issue?
Basic issue of the current research is to evaluate the impact of corporate social
responsibilities measures adopted by the companies operated in a retail industry in India and
Sweden which involves in providing charity services to facilitate the needy people in a society.
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CSR activities conducted by an entity are analysed in relation to the impact of this on the
existing business performance of an entity.
Why it is issue?
CSR initiatives taken by an entity are required to be analysed properly as this would
affect an entity's current market status as customers will support this organisation which are
highly involved in offering CSR activities depicts the transparent activities of organisations in
front of al the users of market.
Why it is an issue now?
Scope of business gets increases or decreases with the changes takes places in the
external business environment which will be helpful for an entity by analysing its CSR activities
in order to ensure higher business performance over a certain period.
What light shed on?
Current research emphasises on the current needs and aspirations of an entity which can
be fulfilled with the help of al the CSR activities conducted by an entity in order to capture
higher market share in the external business environment.
Analysing and framework
In 1960 the corporate social responsibility has been introduced. In this, organisation have
to take care of their stakeholders and engage with them. The stakeholders are those people who
affects the business activity like employees, suppliers, and customer. In this CSR programmes
they have to take care of health and safety issues but also focuses on the environmental and
ethical matters. For an instance, Nike is one of the famous brand name in the market, but, they
are not performing well in respect to their responsibilities towards society. Due to this, their
brand name and personality got disturbed. This will give impact on their performance. In Sweden
all most all the companies are performing the CSR because they believe that they will get
advantage in making competition in market. Atlas Copco is a company which is working in
accordance with Corporate social responsibility because they believe this is effective opportunity
for growth of the business.
Significance of the study
In present time period the companies are responsible for their activity and operation
which affects the society. Now days the companies are making their long term objectives and
goals and for that managers and leaders of a business organization has to comply by the CSR
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policies and norms. In aspect of the cited organization, the manager is desirous of implementing
the CSR activities which lead them in the prevailing market industry. There are so many theories
which need some focus. Finding the important factors and drivers which will give effect on
companies. It is important because this will assist in making the success of business and
performance of industry will get improved. By this the company will able to get brand layout and
brand awareness. This will improve the financial performance of business organisation this is
conducting for making the future development of CSR activity.
LITERATURE REVIEW
Overview
This research has been conducted for analysing of factors and drivers of corporate social
responsibility. This will give a positive impact on the organisation performance. For this
purpose, there are specified process for conducting research. In this aim and objectives have to
be set. Then according to that questions have to be ready. On that questions research have been
conducted. CSR needs to be implemented in the organization as it realises the duty of leaders and
higher management to work for the betterment of the society.
By this research some data have been generated. Converting that data in to the
information then Analysing that information will assist in making the selection of the CSR
activity which will help in making the effectual profit for the company. Factors which affect the
organisation function and drivers which will be analysed. This will support in making the
effective CSR activity in the industry.
1.1 Evaluate the way in which CSR leads to success of company
According to the study of seitel (2001) which states that an organisation have to perform
CSR activity. This will give benefits to company and society. This activity can be performed and
improved by some methods. In regard to performance of an organisation there are so many
scandals and challenges which have to be faced in the business. For managing these firms
Company have to adopt the CSR activity. This will help in making the effective management of
performance. Also, by effective implementation of CSR activities, the cited company can also
earn the public confidence which will increase public confidence.
Fulfilling Rights and obligations: There are so many companies which are losing trust of
customer in market. For this they have to follow all the rules and regulations that have been
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made by government. This will help in making faith in customers which will support in making
effective growth of industry. It is considered as the important aspect of CSR.
Improve internal regulation: In development of manufacturing unit they have to make the
effective relation with employees. For this the manager have to identify the code of conduct
which is made by owner of company. This will help in making effective growth of the company.
Gathering the awareness of corporate ethical, social and environmental behaviour of
stakeholders. This have to analysis in the organisation for CSR activity. These will help in
making the effective development firm. These divers have to be investigated because in selection
of CSR activity they will give some impact. Basically these will be impacting the company
performance. These are the factor that have to be analysis. For an example In India Mahindra and
Mahindra Ltd and in Sweden Electrolux are following this CSR activity because of this, they get
success in the market.
1.2 The methods by which organisation can perform CSR effectively
According to Schneider and Schmidpeter, (2012) suggest that there are different methods
in which corporate social responsibility measures can be adopted in order in facilitating its
variety of clients. For making the effective CSR activity, same methods are used by companies
such as Practice transparency, Making suitable purchasing decisions, Paying more active role in
community, Support the local community, Encourage innovation and understanding that CSR
come from Top. For example Tata steel Ltd and Ikea are using this method for performing CSR
activity.
1.3 Assessing the benefits of CSR in organisation
According to Servaes and Tamayo, (2013) study that explain that CSR activity give
benefits to organisation and society. These benefits have to be identify effective to prepare
planning. These will be the advantage of this activity. Reward for making the CSR activity in the
organisation. Various approaches used by an entity in order to apply its CSR activities such as
Effective brand recognizance, Business reputation will be positive, Making the customer loyalty
and increase the sale, Save the operation cost, Financial performance will get better, Growth of
organisation, Help in making easier access to capital
These are some major benefits which will give by the corporate social responsibility
(CSR). By this activity the performance of organisation will get effective and customer will get
trust on brand then this will make effective brand image of company. This will give impact on
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the sale of organisation and reduce the risk of company. In organisation manger have to take care
of the stakeholder this is a policy of Sweden. The main stakeholders are employees, suppler,
shareholders and customer. Companies have to provide some safety and security to them because
without them no company can performer the work. So they have to manage them in organisation.
For that there are so rules and regulation that have to perform in the organisation.
1.4 Evaluate the effect of CSR applied in India and Sweden
From the point of view Jo and Harjoto, (2011) India is having more than 11 lac
companies registered, out of them only 14,500 are performing the CSR activities. For this
government has made some policy, that every company have to spend their 2% from revenues on
CSR. This will encourage the CSR activity in country. Sweden does not consist of much
business organization, but most of the corporation work in pursuance of CSR polices and
regulations. Their policy is to make the effective and healthy relation with the stakeholders and
some charges which are required to be paid when business concern make the discrimination.
These roles will give the effective impact on firms and society of both countries.
Gap Analysis
Eberstadt (1977) has claimed that corporate social responsibility (CSR) is a traditional
approach which has been started by the 2000 year before. This activity has been started from 18th
century. This have been made for the labour force. Adam Smith was the first man who have
invented the economic model as this will help in making the effective development in the
corporate society and assist in managing the financial resource of the company. But, the Sims
claim that this CSR activity have been organised and get development in 20th century. Before the
20th century there was no effective work by company on the corporate social responsibility. That
time meaning of CSR was charity.
In traditional time period only charity have been done as the CSR activity. But now day
there are so many function that have to perform along with the charity in CSR activity. The
second principle is the standard making by this performance will be evaluate in the organisation.
This have some obligation to performing in an organisation these responsibility are related to
safety and security of stakeholders. There is some other duty toward society which have to
perform by company. This will make effective sale in the market. The third principle say that
company have to fallow the policy which is made by the government.
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Phatak, Bhagat and kashlak (2005), has defined the business ethics. They have defined
moral values according to this company have to make organisation performance. The managers
of the cited company have shown the motive of this CSR activity in the organisation. They have
also defined the consequences of the decisions and action. They have to guide standard and
principles of an organisation by analysing these ethics. Companies are making the effective CSR
activity in firm and they have decided make the CSR as the vital role for every companies. This
will assist in making effective performance of organisation. Companies has shown the society
expectation which have been defined by this business will get influence in their activity. Jackson
defined three level of ethics Which is based on responsibility of organisation because this will
also affect the business.
Wood (1991) has defined the three major principles of drivers. In the first they have talk
about the obligation of power which is used in the organisation. Second level say responsibility
organisation Third level show Decisions and experiences which should be used in effective
manner. Panwar say that drives give the impact on the company performance. This will assist in
making the effective development of the firm.
Critical analysis
Eberstadt say that this Approach comes in traditional time period of 18th country but
development and use of CSR have become effective in 20th country. There are different types of
principles is defined in that literature review by Sims. According to Phatak, Bhagat and kashalk
there are so many factors which have to be managed. Drivers have divided in two major part,
said by Hopkins. Jackson defined the current time period CSR activity which has to be
performed So the companies analyse the factors and drivers which will help in making the
effective CSR activity given by Wood.
Focus of the current research lies on differentiating the CSR activities and initiatives
taken by the companies falls under the retail sector of both India and Sweden in order to analyse
its overall impact. The effectiveness of the best suitable CSR activity will enhance the role of an
enterprise in the external business environment.
THEORY DEVELOPMENT AND HYPOTHESES FORMULATION
Research is a process to find out something new and innovative things which helps to
achieve goals and objectives of the project. There are some beliefs and facts such as collected
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data and information should be accurate, reliable and authentic in the nature. The research team
should follow rules and regulations that was decided by the researcher. If company is not
working according the norms and ethics then society will not accept that particular organisation.
All companies are working for earn profits as well as society's welfare. (Mishra and Suar, 2010)
It helps to provide various services and facilities to personal. CSR activities and programmes
assist for develop healthy environment, also increases standard of living. Hypotheses is the
procedure which based on past evidence. On this basis, analysis of collecting data and
information of research project is done. It is best method or techniques that aid to take better
decision. This is totally based on statistical and mathematical term by which it becomes easy to
compare past evidence to actual collected result. There are involving two types of variables
dependent and another one is independent. Depended covariant are correlated by each other's
These are based on outcomes of research. That's why variables are changed according to the
result and information, then researcher can take corrective action in the effective manner.
Independent variables refers to these are not changed on the basis of project outcomes .
CSR activities and programmes are conducted by the sustainable companies like state working in
Sweden for society development. The main purpose is to inspire companies to create and
improvement, promoting use of these practices and maintain strong relation of CSR Europe and
the NPO network. The mission is sustainable business by focusing on CSR which aid to develop
society as well as personal development. Its help to reach profitability and growth of the country.
Example: ICA is the retail company in Sweden that leading on foods and meals. It is also
working for profit and set ethical standards, focusing on food quality and promoting healthy
lifestyle. On the other hand, CSR is operate in India as companies take raw materials, human
resources and so more from the society by completing the task and targets of CSR practices the
business are giving back something to them. It came effect on 1st April 2014 that only applicable
on specific companies such as net worth of the business is Rs. 500Cr or more, turnover is Rs.
1000Cr or more and net profit Rs. 5Cr or more. The policy of CSR is, by the company have to
invest at least 2% from net profit that assist in eliminate hunger and poverty, providing
education, promoting gender equality, empowering women and reducing child mortality from the
state. For Example: Mahindra and Mahindra Ltd. working for society's development and
according to that CSR is not just a duty for all enterprise this is the way of life that help to
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provide various kind of facilities. In this country Prime Minister's national relief fund and others
set by the central government for socio development and healthy environment.
Research related problems and issues are formulated in the tabular form by which understand
easily and effectively manner. While research were facing various difficulties that may be
impacting on project in the negative or positive way. In this research using qualitative method by
which there are using various strategies to collect actual and reliable information. such as survey,
interview and so more. In these methods researchers and customers are interact with each other
and share views/ ideas on the basis of their experience and knowledge about that particular
research project. Qualitative method based on quality of outcomes and research result (KimPark
and Wier, 2012). Its help to take better and appropriate decision regarding any situation that
assists to resolve problems and issues. There are two types of Hypotheses such as null
hypotheses refers it's not depended on any phenomena of research outcomes. On the other
hand, alternative hypotheses is the same of null hypotheses but it take various form those are
depending on each other's. These methods are provide an systematic direction to understand
and compare actual result to standard information. Variables are uncertain in the nature, that are
changes according to the research and their outcomes. Hypotheses is applicable on CSR research
project in the systematic way. CSR activities and curriculum are working in Sweden and India.
Its is aid to measure the respect of human rights, improving working environment, removing
corruption, eliminate hunger and poverty, discrimination and so more. Hypotheses is based on
past evidence of CSR practices by which easy to find out past working quality and lack of points
as well as recent activities performance and society's developments programmes. (Bear,Rahman
and Post, 2010).
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