Objectives: The study aims to find different areas which have impact of corporate social responsibility also to determine appropriate relationship between latent variables and CSR so that its validity and reliability can be tested.
Methods/Statistical analysis: For collection of data, a close-ended structured questionnaire has been sent to the employees working in companies through e-mail and 300 responses were received. The study focuses primarily on the areas which are affected because of corporate social responsibility activities performed by corporate sector. For this purpose, Exploratory Factor Analysis technique has been used to identify the significant factors on which CSR is having more impact.
Findings: The factor analysis was conducted on 26 items with orthogonal rotation (varimax). The KMO measure is found to be 0.947. An initial analysis was run to obtain Eigen value for each component in the data. Total four factors have Eigen value over Kaiser Criterion of 1 and in combination explaining 80.423% of the total variance. The study has identified 4 major factors for studying the impact of CSR activities performed by the companies. These factors are: Social impact, Economic Impact, Environmental Impact and Company impact. Out of all the factors explored, Social impact emerged as the most important factor having the highest Eigen value of 10.962 and explaining maximum variance of 54.810%. After new Companies Act, 2013, the scope of spending in CSR activities has increased and companies are now coming up with new and innovative ideas to make an impact of their CSR initiatives.
Application/Improvements: The study may help companies to function their CSR activities in more structured way so that it may have a balanced impact of CSR on different areas other than health and education.