COMPOSITE NON-PARAMERTRIC CSR INDEX FOR PUBLIC SECTOR BANKS OF INDIA

Abstract

This paper provides a methodological framework for developing a non-parametric corporate social responsibility (CSR) index for India's public sector banks. The index is made up of four dimensional indices that capture various CSR indicators. A modified version of data envelopment analysis (DEA), also known as the Benefits-of-the-Doubt model, is used for the aggregation. To construct the composite index of CSR, this method is special in that it does not include a-priori information of weights and instead assigns endogenous weights obtained from actual data to each individual dimension of CSR by banks. This methodological framework was demonstrated using a data set of 26 Public Sector Banks that began CSR operations in 2008 in response to RBI directives issued in 2007 and continued until 2017, when SBI Associates merged in SBI. The information was gathered using the Reserve Bank of India's (RBI) 48 CSR indicators as well as the Companies Act of 2013. The results depicted that since 2007, PSBs have followed a CSR pattern, according to the report.