PROJECT PROPOSAL

CORPORATE SOCIAL RESPONSIBILITY

PRACTICES OF THE BANKING SECTOR: A CASE
STUDY OF SBI

NAME: TANYA

ENROLLMENT NO.: 2300681167

PROGRAM: MBAHM

MMPP-01

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INTRODUCTION
Corporate Social Responsibility (CSR) has emerged as a pivotal aspect of business operations,

transcending mere profit-making objectives to encompass broader societal welfare considerations.

Within the banking sector, CSR practices play a significant role due to the sector's inherent

influence on economic growth, financial stability, and community development. This case study

delves into the CSR initiatives undertaken by the State Bank of India (SBI), one of the largest and

most prominent banking institutions in India. By examining SBI's CSR practices, this study aims

to provide insights into the evolving role of banks in addressing social, environmental, and ethical

concerns while balancing stakeholder interests.

In recent years, the concept of CSR has gained traction globally, driven by increasing expectations

from stakeholders for businesses to operate in a sustainable and responsible manner. Within the

banking industry, which serves as a linchpin of economic activity, the significance of CSR cannot

be overstated. Banks hold a unique position of influence, not only in allocating capital but also in

shaping socio-economic outcomes through their lending, investment, and community engagement

activities. As such, banks like SBI are increasingly recognizing the importance of integrating CSR

into their corporate strategies to foster long-term sustainability and value creation.

The State Bank of India (SBI), established in 1955, stands as a beacon of trust and reliability in

India's financial landscape. With its extensive network of branches and diverse range of financial

products and services, SBI plays a pivotal role in driving inclusive growth and financial

empowerment across the country. Recognizing its societal responsibilities, SBI has proactively

embraced CSR as a core component of its organizational ethos. Through targeted initiatives and

partnerships, SBI endeavors to make a meaningful difference in areas such as education,

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healthcare, rural development, environmental conservation, and empowerment of marginalized

communities.

SBI's CSR initiatives are guided by a comprehensive framework aimed at maximizing positive

social impact while aligning with the bank's business objectives and values. By integrating CSR

into its business model, SBI not only fulfills its obligations towards society but also enhances its

brand reputation, stakeholder trust, and employee morale. Through transparent reporting and

stakeholder engagement, SBI ensures accountability and fosters a culture of responsible banking.

This case study seeks to delve into the specific CSR practices adopted by SBI, examining their

effectiveness, challenges encountered, and the lessons learned for the broader banking sector.

ABOUT SBI
1. History: SBI was established in 1806 as the Bank of Calcutta, making it the oldest bank in

the Indian subcontinent. Over the years, it underwent several name changes and mergers,

eventually becoming the Imperial Bank of India in 1921. In 1955, the Indian government

nationalized the Imperial Bank and renamed it the State Bank of India.

2. Size and Scope: SBI is a behemoth in the Indian banking sector, with a vast network of

branches and ATMs spread across the country and a significant presence in international

markets. It offers a wide range of banking and financial services to individuals, businesses,

and institutions, including retail banking, corporate banking, investment banking, wealth

management, and insurance.

3. Ownership: SBI is a public sector bank, majority-owned by the Government of India.

However, it operates as a corporate entity with its own board of directors and management

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 team. While the government holds a controlling stake, SBI is listed on the stock exchanges,

allowing for public ownership of its shares.

4. Mission and Vision: SBI's mission is to be the "banker to every Indian" by providing

accessible and affordable banking services to all segments of society. Its vision is to be the

"most preferred and trusted bank enhancing value for all stakeholders."

5. Corporate Social Responsibility (CSR): SBI is actively involved in CSR initiatives aimed

at promoting inclusive growth, sustainable development, and community welfare. Its CSR

activities encompass areas such as education, healthcare, rural development, environmental

sustainability, and skill development.

6. Technology and Innovation: SBI has embraced technology to enhance its operational

efficiency and customer service delivery. It offers various digital banking solutions,

including internet banking, mobile banking, and digital wallets, to cater to the evolving

needs of its customers.

7. Regulatory Compliance: As a regulated financial institution, SBI operates within the

framework of the Reserve Bank of India (RBI) guidelines and other regulatory bodies'

directives. It adheres to strict standards of governance, risk management, and compliance

to maintain financial stability and safeguard stakeholders' interests.

ABOUT DELHI BRANCHES

1. Number of Branches: SBI operates a considerable network of branches in Delhi, catering

to the banking needs of residents, businesses, government entities, and institutions.

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2. Location: SBI branches in Delhi are situated in key commercial, residential, and industrial

areas, ensuring accessibility and convenience for customers. They can be found in

prominent locations such as Connaught Place, Chandni Chowk, Nehru Place, South

Extension, Dwarka, Rohini, and many more.

3. Services Offered: SBI branches in Delhi offer a comprehensive range of banking and

financial services, including savings and current accounts, loans, deposits, investment

products, insurance, and wealth management services. They cater to both retail and

corporate customers, providing personalized solutions to meet diverse financial needs.

4. Digital Banking Facilities: In addition to traditional banking services, SBI branches in

Delhi provide digital banking facilities to customers, including internet banking, mobile

banking, ATM services, and digital payment solutions. These technological advancements

enhance convenience and accessibility for customers, allowing them to conduct banking

transactions anytime, anywhere.

5. Customer Service: SBI prioritizes customer satisfaction and service excellence, ensuring

that customers receive prompt assistance and support at branches. Trained staff members

are available to address inquiries, provide guidance on financial products, and assist with

banking transactions, fostering a positive customer experience.

6. Community Engagement: SBI branches in Delhi actively participate in community

engagement initiatives and corporate social responsibility (CSR) activities. They

collaborate with local organizations, educational institutions, and government agencies to

support initiatives related to education, healthcare, environmental sustainability, and

community development.

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REVIEW OF LITERATURE
Bhattacharya, C.B., & Sen, S. (2004). Doing Better at Doing Good: When, Why, and

How Consumers Respond to Corporate Social Initiatives.: Bhattacharya and

Sen's seminal work explores the consumer response to corporate social initiatives.

The authors delve into the motivations behind consumer support for CSR practices,

highlighting the potential benefits for companies engaging in socially responsible

behavior. While their focus extends beyond the banking sector, their findings offer

valuable insights into consumer perceptions and behaviors that are relevant to

understanding the impact of CSR initiatives implemented by banks.

Matten, D., & Moon, J. (2008). "Implicit" and "Explicit" CSR: A Conceptual

Framework for Understanding CSR in Europe.: Matten and Moon provide a

comprehensive conceptual framework for understanding Corporate Social

Responsibility (CSR) in Europe. Their framework distinguishes between implicit

and explicit CSR, shedding light on the varying approaches adopted by companies

in addressing social and environmental concerns. By examining CSR practices

across different industries and regions, their work offers valuable perspectives on

the contextual factors shaping CSR strategies in the banking sector.

Rahman, S., & Reynolds, M. (2017). Corporate Social Responsibility Reporting by

the Global Banking Sector: Trends and Challenges.: Rahman and Reynolds analyze

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the trends and challenges in Corporate Social Responsibility (CSR) reporting within

the global banking sector. Their study offers a comprehensive overview of CSR

reporting practices among banks, highlighting the evolution of reporting standards,

emerging trends, and the key challenges faced by banks in disclosing their CSR

activities. By synthesizing empirical evidence from various studies, Rahman and

Reynolds provide valuable insights into the dynamics of CSR reporting in the

banking industry.

Srivastava, M. (2019). Corporate Social Responsibility in Banking Sector: A

Literature Review.: Srivastava's literature review focuses specifically on Corporate

Social Responsibility (CSR) practices within the banking sector. By synthesizing

findings from a wide range of academic studies, Srivastava offers a comprehensive

overview of the various dimensions of CSR in banking, including community

engagement, environmental sustainability, ethical lending practices, and stakeholder

management. The review identifies gaps in existing research and suggests avenues

for future research to advance our understanding of CSR in the banking sector.

Tsoutsoura, M. (2004). Corporate Social Responsibility and Financial Performance.:

Tsoutsoura's study investigates the relationship between Corporate Social

Responsibility (CSR) and financial performance, focusing on the banking sector. By

analyzing data from U.S. banks, Tsoutsoura finds evidence of a positive association

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between CSR performance and financial performance, suggesting that socially

responsible banks may outperform their peers financially. Her findings contribute to

the ongoing debate on the business case for CSR in banking and highlight the

potential benefits of integrating CSR into banks' strategic priorities.

Crifo, P., Diaye, M., & Pekovic, S. (2017). CSR Engagement and Value Relevance

in the Banking Industry.: Crifo, Diaye, and Pekovic explore the relationship between

Corporate Social Responsibility (CSR) engagement and value relevance in the

banking industry. Their study investigates how CSR activities undertaken by banks

impact their financial performance and market valuation. By analyzing data from

European banks, the authors find evidence suggesting that CSR engagement

positively affects banks' market valuation, indicating that investors perceive CSR as

value-enhancing in the banking sector.

Jain, P., & Gupta, M. (2016). A Study of Corporate Social Responsibility in Indian

Banks.: Jain and Gupta's study examines Corporate Social Responsibility (CSR)

practices in Indian banks, focusing on the initiatives undertaken, motivations behind

CSR engagement, and challenges faced by banks in implementing CSR programs.

Through interviews and surveys with bank executives and CSR professionals, the

authors provide insights into the strategies, priorities, and impact of CSR activities

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within the Indian banking sector, contributing to the understanding of CSR dynamics

in emerging economies.

Moir, L. (2001). What Do We Mean by Corporate Social Responsibility?: Moir's

work offers a critical examination of the concept of Corporate Social Responsibility

(CSR), exploring its definitions, dimensions, and implications for businesses. By

reviewing various perspectives on CSR from academic literature and business

practice, Moir elucidates the complexities surrounding CSR discourse and

challenges simplistic notions of corporate responsibility. Her insights are

particularly relevant for understanding the multifaceted nature of CSR and its

interpretation within the banking sector.

Rasheed, S., & Lodhi, S. (2020). Corporate Social Responsibility in Pakistan's

Banking Sector: A Stakeholder Perspective.: Rasheed and Lodhi investigate

Corporate Social Responsibility (CSR) practices in Pakistan's banking sector from a

stakeholder perspective. Through interviews and surveys with stakeholders

including bank employees, customers, regulators, and civil society representatives,

the authors explore perceptions of CSR initiatives, their effectiveness, and the role

of banks in addressing societal challenges. Their study sheds light on the contextual

factors influencing CSR dynamics in Pakistan's banking industry and provides

valuable insights for policymakers and practitioners.

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Van Liedekerke, L., & de Moor, L. (2017). Corporate Social Responsibility in

Banking: A Review of Current Developments and Future Directions.: Van

Liedekerke and de Moor offer a comprehensive review of current developments and

future directions in Corporate Social Responsibility (CSR) within the banking

sector. Their study synthesizes insights from academic literature, industry reports,

and regulatory frameworks to provide an overview of CSR practices, challenges,

and emerging trends in banking. By identifying areas for further research and policy

implications, the authors contribute to advancing the understanding and practice of

CSR in banking.

OBJECTIVES OF THE STUDY

The objectives of the study are as follows:

1. To study the effectiveness of SBI's CSR initiatives in addressing key societal

challenges such as education, healthcare, rural development, and

environmental sustainability.

2. To study the impact of SBI's CSR activities on stakeholder engagement,

including employees, customers, communities, and investors, and to assess

perceptions of the bank's corporate citizenship.

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 3. To study the alignment of SBI's CSR strategies with regulatory requirements,

international standards, and emerging best practices in the banking sector, and

to identify areas for enhancement or improvement in CSR governance and

reporting.

HYPOTHESIS OF THE STUDY

1. H : There is no significant difference in the effectiveness of SBI's CSR

initiatives across various societal challenges such as education, healthcare,

rural development, and environmental sustainability.

2. H : There is no significant association between SBI's CSR activities and

stakeholder engagement, including employees, customers, communities, and

investors, indicating no perceived impact on the bank's corporate citizenship.

RESEARCH METHODOLOGY
Research Design: The research design for this study adopts a survey method, aiming

to gather data from a sample of 100 respondents selected through random sampling.

The survey approach allows for the collection of primary data directly from

stakeholders involved with or affected by the State Bank of India's (SBI) Corporate

Social Responsibility (CSR) initiatives. This method enables the researchers to

obtain insights into stakeholders' perceptions, attitudes, and experiences regarding

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SBI's CSR practices, thereby facilitating a comprehensive understanding of the

effectiveness and impact of these initiatives.

Nature and Source of Data: The data collected for this study are of a primary

nature, obtained directly from respondents through a structured questionnaire. The

questionnaire serves as the primary tool for data collection, designed to capture

stakeholders' views on various aspects of SBI's CSR activities. The respondents

comprise a diverse sample representing employees, customers, community

members, and investors associated with or interested in SBI's CSR initiatives. By

leveraging primary data sources, the study ensures the relevance and specificity of

information regarding stakeholders' perceptions and experiences.

Sample and Sampling Technique: The sample size for this study consists of 100

respondents, selected using a random sampling technique. Random sampling

ensures that each member of the target population has an equal chance of being

included in the sample, thereby enhancing the representativeness and

generalizability of findings. The sample includes individuals from diverse

demographic backgrounds, geographical locations, and stakeholder categories,

reflecting the varied perspectives and interests relevant to SBI's CSR practices. By

employing random sampling, the study aims to minimize bias and maximize the

reliability of research outcomes.

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Data Collection: Data collection for this study primarily involves administering the

structured questionnaire to the selected sample of 100 respondents. The

questionnaire comprises a series of closed-ended and Likert-scale questions

designed to elicit stakeholders' opinions, perceptions, and feedback regarding SBI's

CSR initiatives. The survey is conducted through various channels, including online

platforms, email correspondence, and in-person interactions, depending on the

preferences and accessibility of respondents. Adequate measures are taken to ensure

the confidentiality, anonymity, and ethical integrity of the data collection process.

Data Analysis: Upon completion of data collection, the collected responses are

subjected to rigorous analysis to derive meaningful insights and draw valid

conclusions. The data analysis process encompasses both descriptive and inferential

statistical techniques, including frequency distributions, cross-tabulations,

correlation analyses, and hypothesis testing. These analytical methods enable the

researchers to summarize key findings, identify patterns or trends in stakeholders'

perceptions, and assess the relationships between variables of interest. By employing

systematic data analysis procedures, the study aims to generate empirically grounded

insights into the effectiveness, impact, and alignment of SBI's CSR practices,

thereby contributing to evidence-based decision-making and strategic planning

within the organization.

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TANTATIVE CHAPTERIZATION
o CHAPTER 1: INTRODUCTION
o CHAPTER 2: REVIEW OF LITRETURE
o CHAPTER 3: RESEARCH METHODOLOGY

o CHAPTER 4: ANALYSIS AND INTERPREATATION

o CHAPTER 5: CONCLUSION AND SUGGESTION
o BIBLIOGRAPHY

o ANNEXTURE

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