Purpose – In today’s business environment, the significance of Corporate Social Responsibility and ethical considerations is increasingly pronounced. This paper aims to measure and evaluate the Corporate Social Performance of banks over the past five years, utilizing their CSR expenditure as a benchmark for comparison.
Design/Methodology/Approach – The current study is used secondary sources of data, this including both qualitative and quantitative information obtained from the respective bank’s website, to fulfill its objectives. Multiple regression analysis is used to know the influence of the independent variables on the dependent variable.
Findings – The CSR practices and expenditure by the Private sector banks are good compared to public sector Banks. It is evident that both sets of banks have failed to adhere to the regulations outlined in Section 135(IV) of the Companies Act 2013 and the guidelines provided by the RBI. It is found that the priority has been given by the banks on Health, Education, Environment, Women Empowerment, Community Development, Gender Equality, Livelihood and Vocational Skill sectors only. It is also noticed that the selected banks neglected and not focused on various other sectors which are identified under schedule VII of the companies Act 2013.
Practical Implications –The banking sector stands to gain numerous benefits from engaging in CSR initiatives. enhancing their performance through improved goodwill, a positive social image, and expanded business opportunities, serving as a compelling model for other industries to follow.
Originality/Value – The Paper measure and evaluates the performance of public and private sector banks on the basis of their CSR expenditure.
Keywords: Corporate Social Responsibility, Corporate Social Performance, CSR Practice, Public Bank, Private Bank.
Sindhu N.R. & H.R. Uma (2024). Corporate Social Responsibility: A Paradigm Shift in Public and Private Sector Banks in India for Stabilizing Economic Growth. Review of Economics and Econometrics Studies, 3: 1, pp. 31-46.