Assessing Corporate Social Responsibility Performance using Grey Relation Coefficient Method: A Comparative Study

Abstract

. Corporate Social Responsibility (CSR), or as we commonly refer to it, is expected to dominate business reporting. Every company is required to have CSR policies and report on their related activities annually. This enables us to describe both socially responsible practices and socially irresponsible activities, which can be recognized. Today, CSR is considered an advanced universal concept that has evolved and grown methodologically. It is a globally known language and perspective that has become increasingly significant. In this decade, partners are expected to prioritize more than just making money and complying with the law; they must also demonstrate concern for business development. CSR has become an integral part of modern-day business. Social Impact: CSR studies enable us to comprehend how businesses affect society and what they have to offer. They examine how businesses promote sustainable practices, address social and environmental challenges, and enhance local communities. Research sheds light on the positive impact that corporations can have on society through the analysis of CSR programs and their outcomes. Stakeholder Involvement: CSR research emphasizes the importance of participation, including that of employees, clients, suppliers, communities, and investors. It investigates how businesses interact with and respond to their stakeholders to promote cooperation, communication, and trust. By developing deeper relationships and understanding successful stakeholder engagement tactics, businesses can enhance their social license to operate. Sustainability: CSR research plays a crucial role in the development of sustainable business operations. It explores how companies incorporate resource efficiency, environmental considerations, and climate change mitigation measures into their day-to-day practices. Research helps generate best practices and facilitates the transition to a more sustainable economy by identifying effective sustainability initiatives. Gray correlation analysis is a tool originally proposed by Deng to address MCTM (Multiple Criteria and Targeted Measure) problems. It has been successfully used to resolve various MCTM problems. GRA (Gray Relational Analysis) stands for the analysis pattern that examines the serial and data type relationship or geometric pattern between measurable impacts in a communication evaluation model. The following factors were analyzed in the study: Community relations, Diversity aspects, Employee relations, Ecological environment, Product aspects, Ownership by family, Ownership by founder, Ownership by mutual funds, Ownership by banks and insurance firms, Ownership by employees (ESOP), Family CEO (dummy), Founder CEO (dummy), Debt/equity, Return on assets. From the results, it is seen that the Founder CEO (dummy) has obtained the first rank, whereas the ownership by banks and insurance firms has the lowest rank.