Case Study: Impact of CSR on employee motivation Abstract:
The workforce is a unique and irreplaceable possession of an Organization and it is absolutely necessary to keep them motivated at all times for continuous development and growth. The purpose behind this research is to help modern day companies realize the importance of CSR and how it can help to enhance the economic prosperity of an organization while motivating the workforce at the same time. Data collection is carried out with the aid of two questionnaires. Each questionnaire consists of 20 questions in the context of CSR and Employee Motivation. Data Analysis is completed with the assistance of IBM SPSS. The result of this research gives us understanding about the roles of CSR and the characteristics responsible behind employee motivation. Apparently the employees find it utterly encouraged whenever the Top Management involves them in decision making, concerning issues of the organization. The employees are fairly satisfied with their salary, the system of leaves they are provided with and their responsibilities.

INTRODUCTION:
Indian Oil is known to be the national oil flagship company of India with interests in business straddling the whole value chain of hydrocarbon – from refining, transportation of pipeline and marketing of products of petroleum to exploration and production of crude oil and gas, marketing of natural gas and petrochemicals. It is the leading Indian corporate, according to the Fortune “Global 500” listings; it was ranked at the 88th position in the year 2013. Comprising of over 34,000 strong workforces, it has been decades since Indian Oil has been helping meet the energy demands of India. With a corporate vision to be the Energy of India, Indian Oil has closed the year 2012-13 with a sales turnover of Rs.4,14,909 Crore and profits of Rs.5,005 Crore. Indian Oil has been working with communities and CSR has been the keystone of achieving success from its foundation. The three core areas of the initiatives taken by the corporation in the field of CSR ‘Clean Drinking Water’, ‘Health & Medical Care’ and ‘Expansion of Education’. Projects of CSR are usually embarked upon the proximity of the establishments of Indian Oil to improve the quality of life of the community, which include groups of marginalized people viz., SCs, STs, OBCs, etc.

The annual budget of CSR in Indian Oil has progressively escalated from 0.5% of previous year’s net profit in 1991 to 2% of previous year’s retained profit effective 2009. Rights of human is respected, employees are valued and innovative technologies are invested upon and quick fix of flow of energy which is sustainable and growth in economy is looked into meticulously by the Corporation. Since the genesis of the corporation, Indian Oil has reinforced a myriad of initiatives in social and communities of India. Millions of lives are touched in a positive manner by supporting environmental and health-care projects and social, cultural and educational programs.

Statement of the problem
Modern day companies need to realize the importance of CSR and how it can help to enhance the economic prosperity of an organization while motivating the workforce at the same time. CSR plays a significant role in the present day organizations and the sole purpose of the research is to anticipate the influence it has on employee motivation and commitment.

Objective of the study
To find whether CSR activities have an impact on Employee Motivation or not.

Methodology
Conclusive (quantitative) research design is used in this research.

Sampling Scheme
The sampling technique used for this conclusive research was convenience sampling. Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.

Data Collection
The target population for this quantitative research were employees working at Bijwasan terminal of IOCL. Out of the 10 employees, 2 were female and the remaining 8 were male employees. The respondents were 1 Chief Manager, 1 Sr.

Manager, 3 Managers, 2 Deputy Managers, 1 Assistant Manager, 1 Operation Officer and 1 Assistant Operation. For the research, two different questionnaires were designed, out of which, one of the questionnaires was solely to measure the level of CSR present in the organization. And the other questionnaire was to analyze the motivational factors that influence the employees working in that firm. The employees were asked their opinion on whether or not they could vouch for the benefits from CSR disclosure in the firm. They were also interrogated on the incentives provided by their respective organizations and then finally whether CSR is a motivation to them. The second questionnaire, it was designed to reach a conclusion on the factors which actually motivate employees to work harder for their respective firms. The questions were framed and designed around monetary and non-monetary benefits to good physical working conditions, qualitative relationship with the work group, team spirit, performance appraisal and so on.

Data analysis
Firstly, the reliability test is applied on the Motivation and the CSR factors. There are 20 motivations factors depicted in the first questionnaire and 20 factors in the second which measure the level of CSR present in the organization. Ideally, the value should be greater than 0.6 which reflects high reliability used in the questions. Case Processing Summary N % Valid 7 100.0 Case Excluded 0 .0 a s Total 7 100.0 a. List wise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's N of Alpha Items .905 20

Case Processing Summary N % Valid 10 100.0 Case Excluded 0 .0 a s Total 10 100.0 a. List wise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's N of Alpha Items .811 19

The value of Alpha is well above 0.6 in both the cases which clearly reflects high reliability about the questions used to measure Motivation and CSR respectively. Descriptive analysis on the 20 motivation factors used in the second questionnaire. Descriptive Statistics Mini Maxi N mum mum Salary_motivates 10 1.00 5.00 Financial_incentives_more_motivation 10 2.00 5.00 Satisfied_salary 10 3.00 5.00 Satisfied_leaves 10 4.00 5.00 Good_physical_working_conditions 10 3.00 5.00 Sufficient_retirement_benefits 10 1.00 5.00 Sufficient_medical_benefits 10 5.00 5.00 Importance_of_visibility_with_top_mg 10 3.00 5.00 mt Recognition_of_work_done_by_superi 10 3.00 5.00 ors Good_status 10 3.00 5.00 Satisfied_responsibility 10 3.00 5.00 Importance_of_relationship_quality 10 3.00 5.00 Satisfied_with_HR_dept 10 2.00 5.00 Team_spirit 10 2.00 5.00 Motivated_by_charity_activities 10 1.00 5.00 Schedule_own_work 10 1.00 5.00 Satisfaction_working_culture 10 3.00 5.00 Performance_appraisal_motivates 10 2.00 5.00 Involvement_in_decision_making_mot 10 3.00 5.00 ivates Policies_CSR_motivates 10 3.00 5.00 Valid N (listwise) 10

Mean 3.9000 3.6000 4.5000 4.7000 4.1000 3.6000 5.0000 4.5000 4.4000 4.4000 4.4000 4.6000 3.3000 3.9000 3.8000 4.2000 4.1000 3.6000 4.5000 4.0000

Std. Deviation Variance 1.19722 1.433 .84327 .711 .70711 .500 .48305 .233 .73786 .544 1.57762 2.489 .00000 .000 .84984 .84327 .69921 .69921 .69921 1.05935 .87560 1.22927 1.31656 .73786 1.26491 .70711 .94281 .722 .711 .489 .489 .489 1.122 .767 1.511 1.733 .544 1.600 .500 .889

From the table above, we can conclude that the employees get motivated if the top management involves them in decision making regarding issues like future prospects, CSR etc . The next factor which motivates the employees the most is the quality of relationship in the informal work-group. On the other hand, the employees are dissatisfied with the support they receive from the HR Department. The employees are not happy with the retirement benefits provided by the organization. Next we perform Descriptive analysis on the 20 CSR factors used in the second questionnaire. Descriptive Statistics Mini Maxi N mum mum CSR_important_for_all_business Company_benefits_from_CSR Additional_contribution Incentives_training Equal_job_opportunities Contribution_to_environment_issues Organize_cultural_events Voluntary_activities_conducted CSR_motivates Environment_impact_assessment Ergonomics_of_workers Inventory_management Fatigue_work CSR_assessment_of_business_partners Customer_satisfaction Competitiveness Employee_turnover Absenteeism_rate Revenues CSR_rate Valid N (listwise) 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 5.00 2.00 3.00 3.00 4.00 3.00 1.00 3.00 3.00 1.00 4.00 2.00 3.00 4.00 4.00 4.00 1.00 1.00 2.00 3.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Std. Deviation .00000 1.25167 .69921 .70711 .48305 .70711 1.41814 .70711 .69921 1.22927 .42164 .94281 .47140 .42164 .48305 .48305 1.37032 1.10050 .82327 .94281

Mean 5.0000 3.7000 4.4000 4.5000 4.7000 4.5000 3.7000 4.5000 4.6000 3.8000 4.2000 4.0000 4.0000 4.2000 4.3000 4.3000 3.1000 2.9000 3.3000 4.0000

Variance .000 1.567 .489 .500 .233 .500 2.011 .500 .489 1.511 .178 .889 .222 .178 .233 .233 1.878 1.211 .678 .889

From the table above, we can conclude that the employees feel that CSR is important for all types of businesses. The employees also believe that CSR motivates them to participate in CSR activities. The employees are happy with the voluntary activities conducted by the organization like blood donations.

Employees believe that CSR has the least effect on the Absenteeism Rate in the organization. Employee turnover is not affected by CSR. The next step is to observe the correlation matrix. A correlation matrix consists of a list of all the variables across the top, and the same list down the side. The diagonals is always all 1’s, because that’s the correlation between each variable and itself. Correlations m Pearson Correlation 1 Sig. (2-tailed) N 10 c Pearson Correlation .643* Sig. (2-tailed) .045 N 10 *. Correlation is significant at the 0.05 level (2-tailed). m c .643* .045 10 1 10

The value 0.643 is the correlation between Motivation and CSR. However, only the pvalue could tell us whether the correlation is significant or not. In this case the p-value is 0.045, which is less than 0.05. Therefore, we reject the Null Hypothesis and accept the Alternate Hypothesis, i.e., CSR activities do have an impact on Employee Motivation. The next step is to perform Regression analysis and observe the dependency of Employee Motivation on CSR activities performed by the organization. Our independent factor in this test will be CSR and the dependent factor is Motivation. Variables Entered/Removeda Variables Variables Model Entered Removed Method b 1 c . Enter a. Dependent Variable: m b. All requested variables entered.

Model Summary Adjusted R Std. Error of Model R R Square Square the Estimate a 1 .643 .413 .340 .36557 a. Predictors: (Constant), c

ANOVAa Sum of Model Squares 1 Regression .753 Residual 1.069 Total 1.822 a. Dependent Variable: m b. Predictors: (Constant), c df Mean Square 1 .753 8 .134 9 F 5.635 Sig. .045b

Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B 1 (Constant) 3.311 c .274 a. Dependent Variable: m Std. Error .374 .115 Beta .643 t 8.857 2.374 Sig. .000 .045

From the results shown above, it is clear that the P value (0.044) is less than 0.05. Therefore, the Null Hypothesis is rejected and we accept the Alternate Hypotheis. The Null Hypothesis indicates that there is no impact of one factor on the other whereas the Alternate Hypothesis points that there is impact. Therefore, we can conclude by saying that CSR activities performed by the organizations do have an influence on Employee Motivation.

Findings:
The result of this research gives us understanding about the roles of CSR and the characteristics responsible behind employee motivation. Apparently the employees find it utterly encouraged whenever the Top Management involves them in decision making, concerning issues of the organization. responsibilities. Conversely, it is found that the employees are dissatisfied with the assistance they receive from the Department of Human Resource. The research further shows us that employees are displeased with the retirement benefits they are provided with. The employees are fairly satisfied with their salary, the system of leaves they are provided with and their

Commitment towards the CSR activities can lead the employees towards establishment of a successful organization. Thereby making the suppliers , customers and partners of the organization notice the constructive development of CSR. Development of more dedicated employees contribute hugely in achieving their commissioned target. The employees are highly motivated by these powerful CSR program to be more focused and goal oriented.

Suggestions
Employees are inspirited to work for their organization . It is possible to amalgamate social, environmental and economic evolution through CSR and make the workplace more efficacious. Researches and studies have shown that when organizations implement CSR successfully, it has a direct impact on employee aspects such as confidence, recruitment, efficiency, work rate and output. Given below are the top 5 ways to influence the staff through CSR: 1. Allow the employees to participate. Employees feel more privileged if they are given direct responsibilities to organize events and tend to perceive the organization as a family. 2. Let the employees take the leadership role. Allow the employees to come up with innovative ideas to raise funds and make them invest in the area of their choice. The organization will taste a sense of pride and the employees will be inspirited to perform better. 3. Identify the right attitude. The organization need to build an environment

around CSR for the employees to be more dedicated and commit to their responsibilities. Acknowledging the employees for bringing up innovative ideas and initiatives will boost their confidence and commitment. 4. Advocate staff referrals. Employees will be loyal 5. Promote initiative. An effectively applied CSR initiative will lead to a large number of content employees. Researches and studies have shown that dedicated employees are 2.5 times more likely to achieve their objectives compared to their disinterested colleagues. Make it a point to fully promote initiative in order to increase the satisfaction level that your CSR projects have already established.

Future Scope of Research
In the future, organizations will welcome the prospect of customizing their distinctive background and accept the fundamental ideas related to CSR. The emphasis shall be on continuous CSR growth and especially the impact that CSR exercises have on social and environmental constraints. The Research will have to be accordingly designed so that it covers every aspect related to CSR and at the same time gives valuable information in relation to Employee Motivation. In order to get an idea about the level of CSR prevalent in the country, it is essential to conduct a nationwide research focusing on companies ranging from small-size to large-size. The responses gathered in the present research were insufficient as the questionnaires used were too weak to reflect the factors influencing Employee Motivation. For a better understanding of elements influencing Employee commitment and devotion towards the Organization, a compelling and thorough questionnaire shall have to be designed, which will explore different particulars related to the staff.