corporate social responsibility and its alignment with business needs and social welfare
TRANSCRIPT
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PROJECT FOR MASTER OF BUSINESS ADMINISTRATION COURSE OF ASSAM DON BOSCO UNIVERSITY
Corporate Social Responsibility
and its alignment with
Business needs and Social Welfare
by Name: Rupak Ghosh
Reg. No: DE-1-2011-000015 Roll No: DG2011MBS0002
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D E C L A R A T I O N
I hereby declare that the project entitled “(CSR and its alignment with business needs and social
welfare)” submitted for the Master of Business Administration (with specialization in
OPERATION and HRM), Roll No. : DG2011MBS0002 is my original work and the project work
has not formed the basis for the award of any degree, associate ship, fellowship or any other
similar titles and has not been copied from any such sources.
Rupak Ghosh
Place: Kolkata, West Bengal Date:27-Feb-2015 Signature of the Student
: :
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A B S T R A C T
Ministry of Corporate affairs is encouraging the companies to have some CSR activities. The
companies are taking some Social Welfare activities to show that they have CSR activities.
However a proper CSR policy should not merely some social welfare activities but a holistic
responsibility of business organization towards its shareholders, employees, consumers, related
communities and environment however it’s sometime neglected. Companies may have sound
HR, Marketing, Operation policies etc. but somehow they are confused regarding their CSR
policies. They are sometime depending on some social welfare organizations who have very
limited knowledge toward the need and responsibility of business organizations. Unoptimized
CSR Activities is not creating any value addition to the company as well as to the society in true
sense. A proper structure for CSR policy is required to be developed so that companies can
exercise its responsibility towards 3P’s (Profit, People and planet) effectively.
This study is done by combining primary data with secondary data related to CSR Activity of
some major companies, in order to move forward in designing road map for future CSR
activities.
CSR Activities of Companies having manufacturing Infrastructure like SAIL, Indian Oil, Power
Sectors like NTPC, Adani Power, Tata Power etc. focused on defensive CSR Activities such as,
Activities related to Environment, Care and Development of local community. Companies of
Service Sector like Banking Sector like SBI, IDBI, HDFC etc are not focused to any fixed area.
Despite of some limitations the study addressed a scientific approach in this aspect.
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C O N T E N T S
C O N T E N T S :
Declaration ................................................................................................................................. 2
Abstract...................................................................................................................................... 3
Contents .................................................................................................................................... 4
Introduction ................................................................................................................................ 5
Background&Literature Review .................................................................................................11
Problem Statement/ Research Question ...................................................................................34
Methodology .............................................................................................................................37
Data Analysis ............................................................................................................................49
MSME Sector ........................................................................................................................50
Steel Authority of India Limited (SAIL) ...................................................................................57
Indian Oil ...............................................................................................................................61
CSR in Power Generation, Transmission & Distribution Sector .............................................65
CSR in Banking and Financial Sector in India ........................................................................66
Interpretation & Discussion .......................................................................................................69
CSR in Micro Small and Medium Enterprises ........................................................................70
CSR in Steel Authority of India Limited (SAIL) .......................................................................71
CSR in Indian Oil ...................................................................................................................79
CSR in Power Generation, Transmission & Distribution Sector .............................................87
CSR in Banking and Financial Sector in India: ..................................................................... 108
Conclusions ............................................................................................................................ 123
References ............................................................................................................................. 127
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I N T R O D U C T I O N
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I N T R O D U C T I O N
The Corporate Social Responsibility (CSR) i.e. the responsibility of enterprises for their impacts
on society is a hot topic in Global as well as Indian business arena. It’s become very relevant in
Indian context especially after The Companies Act 2013 that makes CSR Activity mandatory for
certain level of companies. Philosophically philanthropic activity of Indian Business is thousands
years old and CSR in modern days is still within the boundary of Philanthropic space but moved
from traditional intuitional building to Community development projects. The Companies Act,
2013 has introduced the idea of CSR to the forefront and through its disclose-or-explain
mandate, is promoting greater transparency and disclosure. Schedule VII of the Act, which lists
out the CSR activities, suggests communities to be the focal point.
According to the UNIDO3i, “Corporate social responsibility is a management concept whereby
companies integrate social and environmental concerns in their business operations and
interactions with their stakeholders. CSR is generally understood as being the way through
which a company achieves a balance of economic, environmental and social imperatives
(Triple-Bottom-Line Approach), while at the same time addressing the expectations of
shareholders and stakeholders. In this sense it is important to draw a distinction between CSR,
which can be a strategic business management concept, and charity, sponsorships or
philanthropy. Even though the latter can also make a valuable contribution to poverty reduction,
will directly enhance the reputation of a company and strengthen its brand, the concept of CSR
clearly goes beyond that”. From the above definitions, it is clear that:
The CSR approach is holistic and integrated with the core business strategy for
addressing social and environmental impacts of businesses.
CSR needs to address the well-being of all stakeholders and not just the
company’s shareholders.
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Philanthropic activities are only a part of CSR, which otherwise constitutes a
much larger set of activities entailing strategic business benefits.
Global principles and guidelines
A comprehensive guidance for companies relating to CSR is available in several globally
recognized guidelines, frameworks, principles and tools, some of which are discussed below.
Most of these guidelines relate to the larger concept of sustainability or business responsibility,
in keeping with the fact that these concepts are closely aligned globally with the notion of CSR.
UNGCii is world's largest corporate citizenship initiative with the objective to mainstream the
adoption of sustainable and socially responsible policies by businesses around the world. The
10 principles of the UN Global Compact have been derived from various UN conventions such
as the Universal Declaration of Human Rights, ILO's Declaration on Fundamental Principles and
Rights at Work, the Rio Declaration on environment and development, and the UN Convention
Against Corruption. These principles cover four broad areas:
• Human rights (support and respect the protection of international human rights and
ensure that business is not complicit with human rights abuses)
• Labour rights (uphold the freedom of as-association and effective recognition of the right
to collective bargaining, elimination of all forms of forced and compulsory labour, effective
abolition of child labour and elimination of description in respect of employment and occupation)
• Environment (support a precautionary approach to environmental challenges, undertake
initiatives to promote greater environmental responsibility and encourage the development of
environmental friendly technology)
• Governance (work against corruption in all forms, including bribery and extortion).
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The UN guiding principlesiii provide assistance to states and businesses to fulfil their existing
obligations towards respecting and protecting human rights and fundamental freedoms and
comply with the existing laws. These principles act as global standards for addressing the risk of
human rights violation related to business activity. In circumstances when these laws are
breached or the guidance is not adhered to, suitable remedies have also been recommended.
The primary focus is on the protection of human rights by both, the state and the business
enterprises, and the principles broadly outline the manner in which the framework can be
implemented.
ILO'siv tripartite declaration of principles on multinational enterprises and social policy is a
voluntary declaration its adoption by governments, employers and multinational organizations is
encouraged, with the intention of further ensuring labour and social standards. This is
particularly for organizations that operate across multiple countries. Focus is on core labour
standards such as
(i) freedom of association and the right to collective bargaining (prohibition of
discrimination, bonded and forced labour)
(ii) industrial relations (no trade union restrictions, regular discussions between
management and labour, and the provision of a forum to lodge complaints in case of
labour standard violation)
(iii) employment opportunities (creation of job security, improved living and working
conditions and ensuring that wages are on par with those of other enterprises in the
same country).
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International Organization for Standardization
ISO 26000: Social responsibility: This is a guidance tool provided by the ISO which enables
organizations to understand the meaning and significance of social responsibility. It is important
to note that this is not a certification but only a guiding tool. Hence, organizations which comply
with these standards are self-certified. It covers six core areas of social responsibility, including
(i) human rights (ii) labour practices (iii) environment (iv) fair operating practices (v) consumer
issues (vi) community involvement and development. This ensures a holistic approach to the
concept of social responsibility and sustainable development.
The government of India made CSR Activity mandatory for companies by the Companies Act,
2013. The concept of CSR is defined in clause 135 of the Companies Act, 2013, & it is
applicable to companies having an annual turnover of ₹ 1,000 crore or more, or a net worth of ₹
500 crore or more, or a net profit of ₹ 5 crore or more.
Under this clause, these companies are supposed to spend at least 2% of their average profit in
the last three years for CSR activities. The law has listed out a wide range of activities under
CSR, which cover activities such as promoting education, gender equity and empowerment of
women, combating HIV/AIDS, malaria etc, eradication of poverty, contribution to the Prime
Minister’s National Relief Fund and other central funds, social business projects, reduction in
child mortality, improving maternal health, environmental sustainability and employment
enhancing vocational skills.
The companies can perform these activities either by collaboration with NGO, or through their
own trusts and foundations or by combining their resources with another company. The law also
entails setting up of a CSR committee which shall be responsible for decisions on CSR
expenditure and type of activities to be undertaken. This committee shall have of three or more
directors, with at least one independent director whose presence is to ensure democracy and
diversity in the decision making process.
The law is very significant, because India is at the threshold of demographic dividend, and there
is an urgent need for the creation of human and physical capital to reap its rewards. Investment
in education, health, skill development and social infrastructure will enhance capabilities of the
youth by improving their nutritional, skill and educational level, which in turn will better their
employment prospects.
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Business Entity is for making more profit rather making profit in a sustainable manner so that it
can get profit in a continuous manner. The relationship with Business Domain and Social
welfare sector was like giving and getting donations. Feel good factor was major from the
companies end. Both domains used to know little about each other. Now with the new
companies act the donation process become permanent and statutory requirement and the
amount is not also very negligible. So If the CSR spent doesn’t benefit the Society and the
company will become useless burden for the company. Unoptimized CSR Activities is not
creating any value addition to the company as well as to the society in true sense. A proper
structure for CSR policy is required to be developed so that companies can exercise its
responsibility towards 3P’s (Profit, People and planet) effectively.
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B A C K G R O U N D & L I T E R A T U R E R E V I E W
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B A C K G R O U N D & L I T E R A T U R E R E V I E W
The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but
also a proliferation of approaches, which are controversial, complex and unclear. This article
tries to clarify the situation, ‘‘mapping the territory’’ by classifying the main CSR theories and
related approaches in four groups: (1) instrumental theories, in which the corporation is seen as
only an instrument for wealth creation, and its social activities are only a means to achieve
economic results; (2) political theories, which concern themselves with the power of
corporations in society and a responsible use of this power in the political arena; (3) integrative
theories, in which the corporation is focused on the satisfaction of social demands; and (4)
ethical theories, based on ethical responsibilities of corporations to society. In practice, each
CSR theory presents four dimensions related to profits, political performance, social demands
and ethical values. The findings suggest the necessity to develop a new theory on the business
and society relationship, which should integrate these four dimensions.
Since the second half of the 20th century a long debate on corporate social responsibility (CSR)
has been taking place. In 1953v, Bowen (1953) wrote the seminal book Social Responsibilities
of the Businessman. Since then there has been a shift in terminology from the social
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responsibility of business to CSR. Additionally, this field has grown significantly and today
contains a great proliferation of theories, approaches and terminologies. Society and business,
social issues management, public policy and business, stakeholder management, corporate
accountability are just some of the terms used to describe the phenomena related to corporate
responsibility in society. Recently, renewed interest for corporate social responsibilities and new
alternative concepts has been proposed, including corporate citizenship and corporate
sustainability. Some scholars have compared these new concepts with the classic notion of
CSRvi (Van Marrewijk, 2003 for corporate sustainability and Matten et al., 2003 and Wood and
Lodgson, 2002 for corporate citizenship).
Furthermore, some theories combine different approaches and use the same terminology with
different meanings. This problem is an old one. It was 30 years ago that Votaw wrote:
‘‘corporate social responsibility means something, but not always the same thing to everybody.
To some it conveys the idea of legal responsibility or liability; to others, it means socially
responsible behavior in the ethical sense; to still others, the meaning transmitted is that of
‘responsible for’ in a causal mode; many simply equate it with a charitable contribution; some
take it to mean socially conscious; many of those who embrace it most fervently see it as a
mere synonym for legitimacy in the context of belonging or being proper or valid; a few see a
sort of fiduciary duty imposing higher standards of behavior on businessmen than on citizens at
largevii’’ (Votaw, 1972, p. 25). Nowadays the panorama is not much better. Carroll, one of the
most prestigious scholars in this discipline, characterized the situation as ‘‘an eclectic field with
loose boundaries, multiple memberships, and differing training/perspectives; broadly rather than
focused, multidisciplinary; wide breadth; brings in a wider range of literature; and
interdisciplinary’’ (Carroll, 1994, p. 14). actually, as Carroll added (1994, p. 6), the map of the
overall field is quite poor. However, some attempts have been made to address this deficiency.
Frederick (1987, 1998) outlined a classification based on a conceptual transition from the
ethical–philosophical concept of CSR (what he calls CSR1), to the action-oriented managerial
concept of social responsiveness (CSR2). He then included a normative element based on
ethics and values (CSR3) and finally he introduced the cosmos as the basic normative
reference for social issues in management and considered the role of science and religion in
these issues (CSR4). In a more systematic way, Heald (1988) and Carroll (1999) have offered
a historical sequence of the main developments in how the responsibilities of business in
society have been understood.
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Other classifications have been suggested based on matters related to CSR, such as Issues
Management (Wartick and Rude, 1986; Wood, 1991aviii) or the concept of Corporate Citizenship
(Altman, 1998). An alternative approach is presented by Brummer (1991) who proposes a
classification in four groups of theories based on six criteria (motive, relation to profits, group
affected by decisions, type of act, type of effect, expressed or ideal interest). These
classifications, in spite of their valuable contribution, are quite limited in scope and, what is
more, the nature of the relationship between business and society is rarely situated at the center
of their discussion. This vision could be questioned as CSR seems to be a consequence of how
this relationship is understood (Jones, 1983; McMahon, 1986; Preston, 1975; Wood, 1991b). In
order to contribute to a clarification of the field of business and society, our aim here is to map
the territory in which most relevant CSR theories and related approaches are situated. We will
do so by considering each theory from the perspective of how the interaction phenomena
between business and society are focused.
As the starting point for a proper classification, we assume as hypothesis that the most relevant
CSR theories and related approaches are focused on one of the following aspects of social
reality: economics, politics, social integration and ethics. The inspiration for this hypothesis is
rooted in four aspects that, according to Parsons (1961), can be observed in any social system:
adaptation to the environment (related to resources and economics), goal attainment (related to
politics), social integration and pattern maintenance or latency (related to culture and values).1
this hypothesis permits us to classify these theories in four groups:
1. A first group in which it is assumed that the corporation is an instrument for wealth creation
and that this is its sole social responsibility. Only the economic aspect of the interactions
between business and society is considered. So any supposed social activity is accepted if, and
only if, it is consistent with wealth creation. This group of theories could be call instrumental
theories because they understand CSR as a mere means to the end of profits.
2. A second group in which the social power of corporation is emphasized, specifically in its
relationship with society and its responsibility in the political arena associated with this power.
This leads the corporation to accept social duties and rights or participate in certain social
cooperation. We will call these group political theories.
3. A third group includes theories which consider that business ought to integrate social
demands. They usually argue that business depends on society for its continuity and growth
and even for the existence of business itself. We can term these group integrative theories.
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4. A fourth group of theories understands that the relationship between business and society is
embedded with ethical values. This leads to a vision of CSR from an ethical perspective and as
a consequence, firms ought to accept social responsibilities as an ethical obligation above any
other consideration. We can term these group ethical theories.
Instrumental theories
In this group of theories CSR is seen only as a strategic tool to achieve economic objectives
and, ultimately, wealth creation. Representative of this approach is the well-known Friedman
view that
‘‘the only one responsibility of business towards society is the maximization of profits to the
shareholders within the legal framework and the ethical custom of the country’’ (1970).2
Instrumental theories have a long tradition and have enjoyed a wide acceptance in business so
far. As Windsor (2001) has pointed out recently, ‘‘a leitmotiv of wealth creation progressively
dominates the managerial conception of responsibility’’ (Windsor,2001, p. 226).
Concern for profits does not exclude taking into account the interests of all who have a stake in
the firm (stakeholders). It has been argued that in certain conditions the satisfaction of these
interests can contribute to maximizing the shareholder value (Mitchell et al., 1997; Odgen and
Watson, 1999). An adequate level of investment in philanthropy and social activities is also
acceptable for the sake of profits (McWilliams and Siegel, 2001). We will return to these points
afterwards.
In practice, a number of studies have been carried out to determine the correlation between
CSR and Corporate financial performance. Of these, an increasing number show a positive
correlation between the social responsibility and financial performance of corporations in most
cases (Frooman, 1997; Griffin and Mahon, 1997; Key and Popkin, 1998; Roman et al., 1999;
Waddock and Graves,
1997) However, these findings have to be read with caution since such correlation is difficult to
measure (Griffin, 2000; Rowley and Berman, 2000).
Three main groups of instrumental theories can be identified, depending on the economic
objective proposed. In the first group the objective is the maximization of shareholder value,
measured by the share price. Frequently, this leads to a short-term profits orientation. The
second group of theories focuses on the strategic goal of achieving competitive advantages,
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which would produce long-term profits. In both cases, CSR is only a question of enlightened
self-interest (Keim, 1978) since CSRs are a mere instrument for profits. The third is related to
cause-related marketing and is very close to the second. Let us examine briefly the philosophy
and some variants of these groups.
Maximizing the shareholder value
A well-known approach is that which takes the straightforward contribution to maximizing the
shareholder value as the supreme criterion to evaluate specific corporate social activity. Any
investment in social demands that would produce an increase of the shareholder value should
be made, acting without deception and fraud. In contrast, if the social demands only impose a
cost on the company they should be rejected. Friedman (1970) is clear, giving an example
about investment in the local community: ‘‘it will be in the long run interest of a corporation that
is a major employer in a small community to devote resources to providing amenities to that
community or to improving its government. That makes it easier to attract desirable employees,
it may reduce the wage bill or lessen losses from pilferage and sabotage or have other
worthwhile effects.’’ So, the socio-economic objectives are completely separate from the
economic objectives.
Currently, this approach usually takes the shareholder value maximization as the supreme
reference for corporate decision-making. The Agency Theory (Jensen and Meckling, 1976;
Ross, 1973) is the most popular way to articulate this reference. However, today it is quite
readily accepted that shareholder value maximization is not incompatible with satisfying certain
interests of people with a stake in the firm (stakeholders). In this respect, Jensen (2000) has
proposed what he calls ‘enlightened value maximization’. This concept specifies long-term value
maximization or value-seeking as the firm’s objective. At the same time, this objective is
employed as the criterion for making the requisite tradeoffs among its stakeholders.
Strategies for achieving competitive advantages
A second group of theories are focused on how to allocate resources in order to achieve long-
term social objectives and create a competitive advantage (Husted and Allen, 2000). In this
group three approaches can be included: (a) social investments in competitive context, (b)
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natural resource-based view of the firm and its dynamic capabilities and (c) strategies for the
bottom of the economic pyramid.
a) Social investments in a competitive context. Porter and Kramer (2002) have recently applied
the well-known Porter model on competitive advantage (Porter, 1980) to consider investment in
areas of what they call competitive context.3 The authors argue that investing in philanthropic
activities may be the only way to improve the context of competitive advantage of a firm and
usually creates greater social value than individual donors or government can. The reason
presented) the opposite of Freidman’s position) is that the firm has the knowledge and
resources for a better understanding of how to solve some problems related to its mission. As
Burke and Lodgson (1996) pointed out, when philanthropic activities are closer to the
company’s mission, they create greater wealth than others kinds of donations. That is what
happens, e.g., when a telecommunications company is teaching computer network
administration to students of the local community.
Porter and Kramer conclude, ‘‘philanthropic investments by members of cluster, either
individually or collectively, can have a powerful effect on the cluster competitiveness and the
performance of all its constituents companies’’ (2002, pp. 60–61).
b) Natural resource-based view of the firm and dynamic capabilities. The resource-based
view of the firm (Barney, 1991; Wernerfelt, 1984) maintains that the ability of a firm to perform
better than its competitors depends on the unique interplay of human, organizational, and
physical resources over time. Traditionally, resources that are most likely to lead to competitive
advantage are those that meet four criteria: they should be valuable, rare, and inimitable, and
the organization must be organized to deploy these resources effectively.
The ‘‘dynamic capabilities’’ approach presents the dynamic aspect of the resources; it is
focused on the drivers behind the creation, evolution and recombination of the resources into
new sources of competitive advantage (Teece et al., 1997). So dynamic capabilities are
organizational and strategic routines, by which managers acquire resources, modify them,
integrate them, and recombine them to generate new value-creating strategies. Based on this
perspective, some authors have identified social and ethical resources and capabilities which
can be a source of competitive advantage, such as the process of moral decision-making
(Petrick and Quinn, 2001), the process of perception, deliberation and responsiveness or
capacity of adaptation (Litz, 1996) and the development of proper relationships with the primary
stakeholders: employees, customers, suppliers, and communities (Harrison and St. John, 1996;
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Hillman and Keim, 2001). A more complete model of the ‘Resource-Based View of the Firm’ has
been presented by Hart (1995). It includes aspects of dynamic capabilities and a link with the
external environment. Hart argues that the most important drivers for new resource and
capabilities development will be constraints and challenges posed by the natural biophysical
environment. Hart has developed his conceptual framework with three main interconnected
strategic capabilities: pollution prevention, product stewardship and sustainable development.
He considers as critical resources continuous improvement, stakeholder integration and shared
vision.
c) Strategies for the bottom of the economic pyramid. Traditionally most business strategies
are focused on targeting products at upper and middle-class people, but most of the world’s
population is poor or lowermiddlle class there may be some 4000 million people. On reflection,
certain strategies can serve the poor and simultaneously make profits. Prahalad (2002),
analyzing the India experience, has suggested some mind-set changes for converting the poor
into active consumers. The first of these is seeing the poor as an opportunity to innovate rather
than as a problem.
A specific means for attending to the bottom of the economic pyramid is disruptive innovation.
Disruptive innovations (Christensen and Overdorf, 2000; Christensen et al., 2001) are products
or services that do not have the same capabilities and conditions as those being used by
customers in the mainstream markets; as a result they can be introduced only for new or less
demanding applications among non-traditional customers, with a low-cost production and
adapted to the necessities of the population. For example a telecommunications company
inventing a small cellular telephone system with lower costs but also with less service adapted
to the base of the economic pyramid.
Disruptive innovations can improve the social and economic conditions at the ‘‘base of the
pyramid’’ and at the same time they create a competitive advantage for the firms in
telecommunications, consumer electronics and energy production and many other industries,
especially in developing countries (Hart and Christensen, 2002; Prahalad and Hammond,
2002).
Cause-related marketing
Cause-related marketing has been defined as ‘‘the process of formulating and implementing
marketing activities that are characterized by an offer from the firm to contribute a specified
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amount to a designated cause when customers engage in a revenue-providing exchanges that
satisfy organizational and individual objectives’’ (Varadarajan and Menon, 1988, p. 60). Its goal
then is to enhance company revenues and sales or customer relationship by building the brand
through the acquisition of, and association with the ethical dimension or social responsibility
dimension (Murray and Montanari, 1986; Varadarajan and Menon, 1988). In a way, it seeks
product differentiation by creating socially responsible attributes that affect company reputation
(Smith and Higgins, pointed out: ‘‘support of cause related marketing creates a reputation that a
firm is reliable and honest. Consumers typically assume that the products of a reliable and
honest firm will be of high quality’’. For example, a pesticide-free or non-animal-tested ingredient
can be perceived by some buyers as preferable to other attributes of competitors’ products.
Other activities, which typically exploit cause related marketing, are classical musical concerts,
art exhibitions, golf tournaments or literacy campaigns. All of these are a form of enlightened
self-interest and a win–win situation as both the company and the charitable cause receive
benefits: ‘‘the brand manager uses consumer concern for business responsibility as a means for
securing competitive advantage. At the same time a charitable cause receives substantial
financial benefits’’ (Smith and Higgins, 2000, p. 309).
Political theories
A group of CSR theories and approaches focus on interactions and connections between
business and society and on the power and position of business and its inherent responsibility.
They include both political considerations and political analysis in the CSR debate. Although
there are a variety of approaches, two major theories can be distinguished: Corporate
Constitutionalism and Corporate Citizenship.
Corporate constitutionalism
Davis (1960) was one of the first to explore the role of power that business has in society and
the social impact of this power4. In doing so, he introduces business power as a new element in
the debate of CSR. He held that business is a social institution and it must use power
responsibly. Additionally, Davis noted that the causes that generate the social power of the firm
are not solely internal of the firm but also external. Their locus is unstable and constantly
shifting, from the economic to the social forum and from there to the political forum and vice
versa.
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Davis attacked the assumption of the classical economic theory of perfect competition that
precludes the involvement of the firm in society besides the creation of wealth. The firm has
power to influence the equilibrium of the market and therefore the price is not a Pareto optimum
reflecting the free will of participants with perfect knowledge of the market.
Davis formulated two principles that express how social power has to be managed: ‘‘the social
power equation’’ and ‘‘the iron law of responsibility’’. The social power equation principle states
that ‘‘social responsibilities of businessmen arise from the amount of social power that they
have’’ (Davis,
1967, p. 48). The iron law of responsibility refers to the negative consequences of the absence
of use of power. In his own words: ‘‘whoever does not use his social power responsibly will lose
it. In the long run those who do not use power in a manner which society considers responsible
will tend to lose it because other groups eventually will step in to assume those
responsibilities’’ (1960, p. 63). So if a firm does not use its social power, it will lose its position in
society because other groups will occupy it, especially when society demands responsibility
from business (Davis, 1960).
According to Davis, the equation of social power-responsibility has to be understood through the
functional role of business and managers. In this respect, Davis rejects the idea of total
responsibility of business as he rejected the radical free-market ideology of no responsibility of
business. The limits of functional power come from the pressures of different constituency
groups. This ‘‘restricts organizational power in the same way that a governmental constitution
does.’’ The constituency groups do not destroy power. Rather they define conditions for its
responsible use. They channel organizational power in a supportive way and to protect other
interests against unreasonable organizational power (Davis, 1967, p. 68). As a consequence,
his theory is called ‘‘Corporate Constitutionalism’’.
Integrative social contract theory
Donaldson (1982) considered the business and society relationship from the social contract
tradition, mainly from the philosophical thought of Locke. He assumed that a sort of implicit
social contract between business and society exists. This social contract implies some indirect
obligations of business towards society. This approach would overcome some limitations of
deontological and teleological theories applied to business. Afterwards, Donaldson and
Dunfee (1994, 1999) extended this approach and proposed an ‘‘Integrative Social Contract
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Theory’’ (ISCT) in order to take into account the socio-cultural context and also to integrate
empirical and normative aspects of management. Social responsibilities come from consent.
These scholars assumed two levels of consent. Firstly a theoretical macro social contract
appealing to all rational contractors, and secondly, a real micro social contract by members of
numerous localized communities. According to these authors, this theory offers a process in
which the contracts among industries, departments and economic systems can be legitimate. In
this process the participants will agree upon the ground rules defining the foundation of
economics that will be acceptable to them.
The macro social contract provides rules for any social contracting. These rules are called
the ‘‘hyper-norms’’; they ought to take precedence over other contracts. These hyper-norms are
so fundamental and basic that they ‘‘are discernible in a convergence of religious, political and
philosophical thought’’ (Donaldson and Dunfee, 2000, p. 441). The micro social contracts show
explicit or
Implicit agreements that are binding within an identified community, whatever this may be:
industry, companies or economic systems. These micro social contracts, which generate
‘authentic norms’, are based on the attitudes and behaviors of the members of the norm-
generating community and, in order to be legitimate, have to accord with the hyper-norms.
Corporate citizenship
Although the idea of the firm as citizen is not new (Davis, 1973) a renewed interest in this
concept among practitioners has appeared recently due to certain factors that have had an
impact on the business and society relationship. Among these factors, especially worthy of note
are the crisis of the Welfare State and the globalization phenomenon. These, together with the
deregulation process and
Have meant that some large multinational companies have greater economic and social power
than some governments. The corporate citizenship framework looks to give an account of this
new reality, as we will try to explain here.
In the 80s the term ‘‘corporate citizenship’’ was introduced into the business and society
relationship mainly through practitioners (Altman and Vidaver Cohen, 2000). Since the late
1990s and early 21st century this term has become more and more popular in business and
22
increasing academic work has been carried out (Andriof and McIntosh, 2001; Matten and
Crane, in press).
Although the academic reflection on the concept of ‘‘corporate citizenship’’, and on a similar one
called ‘the business citizen’, is quite recent (Matten et al., 2003; Wood and Logsdon, 2002;
among others), this notion has always connoted a sense of belonging to a community. Perhaps
for this reason it has been so popular among managers and business people, because it is
increasingly clear that business needs to take into account the community where it is operating.
The term ‘‘corporate citizenship’’ cannot have the same meaning for everybody. Matten et al.
(2003) have distinguished three views of ‘‘corporate citizenship’’: (1) a limited view, (2) a view
equivalent to CSR and (3) an extended view of corporate citizenship, which is held by them. In
the limited view ‘‘corporate citizenship’’ is used in a sense quite close to corporate philanthropy,
social investment or certain responsibilities assumed towards the local community. The
equivalent to CSR view is quite common. Carroll (1999) believes that ‘‘Corporate citizenship’’
seems a new conceptualization of the role of business in society and depending on which way it
is defined, this notion largely overlaps with other theories on the responsibility of business in
society. Finally, in the extended view of corporate citizenship (Matten et al., 2003, Matten and
Crane, in press), corporations enter the arena of citizenship at the point of government failure in
the protection of citizenship. This view arises from the fact that some corporations have
gradually come to replace the most powerful institution in the traditional concept of citizenship,
namely government.
The term ‘‘citizenship’’, taken from political science, is at the core of the ‘‘corporate citizenship’’
notion. For Wood and Logsdon ‘‘business citizen citizenship-instead it derives from and is
secondary to individual citizenship’’ (2002, p. 86). Whether or not this view is accepted, theories
and approaches on ‘‘corporate citizenship’’ are focused on rights, responsibilities and possible
partnerships of business in society.
Some theories on corporate citizenship are based on a social contract theory (Dion, 2001) as
developed by Donaldson and Dunfee (1994, 1999), although other approaches are also
possible (Wood and Logsdon, 2002).
In spite of some noteworthy differences in corporate citizenship theories, most authors generally
converge on some points, such as a strong sense of business responsibility towards the local
23
community, partnerships, which are the specific ways of formalizing the willingness to improve
the local community, and for consideration for the environment.
The concern for local community has extended progressively to a global concern in great part
due to the very intense protests against globalization, mainly since the end of the 90s. This
sense of global corporate citizenship led to the joint statement ‘‘Global Corporate Citizenship –
the Leadership Challenge for CEOs and Boards’’, signed by 34 of the world largest multinational
corporations during the World Economic Forum in New York in January 2002. Subsequently,
business with local responsibility and, at the same time, being a global actor that places
emphasis on business responsibilities in a global context, have been considered as a key issue
by some scholars (Tichy et al., 1997; Wood and Lodgson, 2002).
Integrative theories
This group of theories looks at how business integrates social demands, arguing that business
depends on society for its existence, continuity and growth. Social demands are generally
considered to be the way in which society interacts with business and gives it a certain
legitimacy and prestige. As a consequence, corporate management should take into account
social demands, and integrate them in such a way that the business operates in accordance
with social values.
So, the content of business responsibility is limited to the space and time of each situation
depending on the values of society at that moment, and comes through the company’s
functional roles (Preston and Post, 1975). In other words, there is no specific action that
management is responsible for performing throughout time and in each industry. Basically, the
theories of this group are focused on the detection and scanning of, and response to, the social
demands that achieve social legitimacy, greater social acceptance and prestige.
Issues management
Social responsiveness, or responsiveness in the face of social issues, and processes to
manage them within the organization (Sethi, 1975) was an approach which arose in the 70s. In
this approach it is crucial to consider the gap between what the organization’s relevant publics
expect its performance to be and the organization’s actual performance. These gaps are usually
located in the zone that Ackerman (1973, p. 92) calls the ‘‘zone of discretion’’ (neither regulated
24
nor illegal nor sanctioned) where the company receives some unclear signals from the
environment. The firm should perceive the gap and choose a response in order to close it
(Ackerman and Bauer, 1976).
Ackerman (1973), among other scholars, analyzed the relevant factors regarding the internal
structures of organizations and integration mechanisms to manage social issues within the
organization. The way a social objective is spread and integrated across the organization, he
termed ‘‘process of institutionalization’’. According to Jones (1980, p. 65), ‘‘corporate behavior
should not in most cases be judged by the decisions actually reached but by the process by
which they are reached’’. Consequently, he emphasized the idea of process rather than
principles as the appropriate approach to CSR issues.
Jones draws an analogy with the political process assessing that the appropriate process of
CSR should be a fair process where all interests have had the opportunity to be heard. So
Jones has shifted the criterion to the inputs in the decision-making process rather than
outcomes, and has focused more on the process of implementation of CSR activities than on
the process of conceptualization.
The concept of ‘‘social responsiveness’’ was soon widened with the concept ‘‘Issues
Management’’. The latter includes the former but emphasizes the process for making a
corporate response to social issues. Issues management has been defined by Wartick and
Rude (1986, p. 124) as ‘‘the processes by which the corporation can identify, evaluate and
respond to those social and political issues which may impact significantly upon it’’. They add
that issues management attempts to minimize ‘‘surprises’’ which accompany social and political
change by serving as an early warning system for potential environmental threats and
opportunities. Further, it prompts more systematic and effective responses to particular issues
by serving as a coordinating and integrating force within the corporation. Issues management
research has been influenced by the strategy field, since it has been seen as a special group of
strategic issues (Greening and Gray, 1994), or a part of international studies (Brewer, 1992).
That led to the study of topics related with issues (identification, evaluation and categorization),
formalization of stages of social issues and management issue response. Other factors, which
have been considered, include the corporate responses to media exposure, interest group
pressures and business crises, as well as organization size, top management commitment and
other organizational factors.
The principle of public responsibility
25
Some authors have tried to give an appropriate content and substance to help and guide the
firm’s responsibility by limiting the scope of the corporate responsibility. Preston and Post (1975,
1981) criticized a responsiveness approach and the purely process approach (Jones, 1980) as
insufficient. Instead, they proposed ‘‘the principle of public responsibility’’. They choose the term
‘‘public’’ rather than ‘‘social’’, to stress the importance of the public process, rather than
personal-morality views or narrow interest groups defining the scope of responsibilities.
According to Preston and Post an appropriate guideline for a legitimate managerial behavior is
found within the framework of relevant public policy. They added that ‘‘public policy includes not
only the literal text of law and regulation but also the broad pattern of social direction reflected in
public opinion, emerging issues, formal legal requirements and enforcement or
implementation practices’’ (Preston and Post, 1981, p. 57). This is the essence of the principle
of public responsibility.
Preston and Post analyzed the scope of managerial responsibility in terms of the ‘‘primary’’ and
‘‘secondary’’ involvement of the firm in its social environment. Primary involvement includes the
essential economic task of the firm, such as locating and establishing its facilities, procuring
suppliers, engaging employees, carrying out its production functions and marketing products. It
also includes legal requirements. Secondary involvements come as consequence of the
primary. They are, e.g., career and earning opportunities for some individuals, which come from
the primary activity of selection and advancement of employees.
At the same time, these authors are in favor of business intervention in the public policy
process especially with respect to areas in which specific public policy is not yet clearly
established or it is in transition: ‘‘It is legitimate – and may be essential – that affected firms
participate openly in the policy formation’’ (Preston and Post, 1981, p. 61).
In practice, discovering the content of the principle of public responsibility is a complex and
difficult task and requires substantial management attention. As Preston and Post recognized,
‘‘the content of public policy is not necessarily obvious or easy to discover, nor is it invariable
over time’’ (1981, p. 57). According to this view, if business adhered to the standards of
performance in law and the existing public policy process, then it would be judged acceptably
responsive in terms of social expectations.
The development of this approach was parallel to the study of the scope regarding business–
government relationship (Vogel, 1986). These studies focused on government regulations –
26
their formulation and implementation – as well as corporate strategies to influence these
regulations, including campaign contributions, lobbying, coalition building, grassroots
organization, corporate public affairs and the role of public interest and other advocacy groups.
Stakeholder management
Instead of focusing on generic responsiveness, specific issues or on the public responsibility
principle, the approach called ‘‘stakeholder management’’ is oriented towards ‘‘stakeholders’’ or
people who affect or are affected by corporate policies and practices. Although the practice of
stakeholder management is long-established, its academic development started only at the end
of 70s (see, e.g., Sturdivant, 1979). In a seminal paper, Emshoff and Freeman (1978) presented
two basic principles, which underpin stakeholder management. The first is that the central goal
is to achieve maximum overall cooperation between the entire system of stakeholder groups
and the objectives of the corporation. The second states that the most efficient strategies for
managing stakeholder relations involve efforts, which simultaneously deal with issues affecting
multiple stakeholders.
Stakeholder management tries to integrate groups
With a stake in the firm into managerial decision making. A great deal of empirical research has
been done, guided by a sense of pragmatism. It includes topics such as how to determine the
best practice in corporate stakeholder relations (Bendheim et. al.,1998), stakeholder salience to
managers (Agle and Mitchell, 1999; Mitchell et al., 1997), the impact of stakeholder
management on financial performance (Berman et al., 1999), the influence of stakeholder
network structural relations (Rowley, 1997) and how managers can successfully balance the
competing demands of various stakeholder groups (Ogden and Watson, 1999).
In recent times, corporations have been pressured by non-governmental organizations (NGOs),
activists, communities, governments, media and other institutional forces. These groups
demand what they consider to be responsible corporate practices. Now some corporations are
seeking corporate responses to social demands by establishing dialogue with a wide spectrum
of stakeholders.
Stakeholder dialogue helps to address the question of responsiveness to the generally unclear
signals received from the environment. In addition, this dialogue ‘‘not only enhances a
company’s sensitivity to its environment but also increases the environments understanding of
the dilemmas facing the organization’’ (Kaptein and Van Tulder, 2003 p. 208).
27
Corporate social performance
A set of theories attempts to integrate some of the previous theories. The corporate social
performance (CSP) includes a search for social legitimacy, with processes for giving appropriate
responses. Carroll (1979), generally considered to have introduced this model, suggested a
model of ‘‘corporate performance’’ with three elements: a basic definition of social responsibility,
a listing of issues in which social responsibility exists and a specification of the philosophy of
response to social issues. Carroll considered that a definition of social responsibility, which fully
addresses the entire range of obligations business has to society, must embody the economic,
legal, ethical, and discretionary categories of business performance. He later incorporated his
four-part categorization into a ‘‘Pyramid of Corporate Social Responsibilities’’ (Carroll, 1991).
Recently, Schwartz and Carroll (2003) have proposed an alternative approach based on three
core domains (economic, legal and ethical responsibilities) and a Venn model framework. The
Venn framework yields seven CSR categories resulting from the overlap of the three core
domains. Wartich and Cochran (1985) extended the Carroll approach suggesting that corporate
social involvement rests on the principles of social responsibility, the process of social
responsiveness and the policy of issues management. A new development came with Wood
(1991b) who presented a model of corporate social performance composed of principles of
CSR, processes of corporate social responsiveness and outcomes of corporate behavior. The
principles of CSR are understood to be analytical forms to be filled with value content that is
operationalized. They include: principles of CSR, expressed on institutional, organizational and
individual levels, processes of corporate social responsiveness, such as environmental
assessment, stakeholder management and issues management, and outcomes of corporate
behavior including social impacts, social programs and social policies.
Ethical theories
There is a fourth group of theories or approaches focus on the ethical requirements that cement
the relationship between business and society. They are based on principles that express the
right thing to do or the necessity to achieve a good society. As main approaches we can
distinguish the following.
Normative stakeholder theory
Stakeholder management has been included within the integrative theories group because
some authors consider that this form of management is a way to integrate social demands.
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However, stakeholder management has become an ethnically based theory mainly since 1984
when Freeman wrote Strategic Management: a Stakeholder Approach. In this book, he took as
starting point that ‘‘managers bear a fiduciary relationship to stakeholders’’ (Freeman, 1984, p.
xx), instead of having exclusively fiduciary duties towards stockholders, as was held by the
conventional view of the firm. He understood as stakeholders those groups who have a stake in
or claim on the firm (suppliers, customers, employees, stockholders, and the local community).
In a more precise way, Donaldson and Preston (1995, p. 67) held that the stakeholder theory
has a normative core based on two major ideas (1) stakeholders are persons or groups with
legitimate interests in procedural and/or substantive aspects of corporate activity (stakeholders
are identified by their interests in the corporation, whether or not the corporation has any
corresponding functional interest in them) and (2) the interests of all stakeholders are of
intrinsic value (that is, each group of stakeholders merits consideration for its own sake and not
merely because of its ability to further the interests of some other group, such as the
shareowners).
Following this theory, a socially responsible firm requires simultaneous attention to the
legitimate interests of all appropriate stakeholders and has to balance such a multiplicity of
interests and not only the interests of the firm’s stockholders. Supporters of normative
stakeholder theory have attempted to justify it through arguments taken from Kantian capitalism
(Bowie, 1991; Evan and Freeman, 1988), modern theories of property and distributive justice
(Donaldson and Preston, 1995), and also Libertarian theories with its notions of freedom,
rights and consent (Freeman and Philips, 2002).
A generic formulation of stakeholder theory is not sufficient. In order to point out how
corporations have to be governed and how managers ought to act, a normative core of ethical
principles is required (Freeman, 1994). To this end, different scholars have proposed differing
normative ethical theories. Freeman and Evan (1990) introduced Rawlsian principles. Bowie
(1998) proposed a combination of Kantian and Rawlsian grounds. Freeman (1994) proposed
the doctrine of fair contracts and Phillips (1997, 2003) suggested introducing the fairness
principle based on six of Rawls’ characteristics of the principle of fair play: mutual benefit,
justice, cooperation, sacrifice, free-rider possibility and voluntary acceptance of the benefits of
cooperative schemes. Lately, Freeman and Philips (2002) have presented six principles for the
guidance of stakeholder theory by combining Libertarian concepts and the Fairness principle.
Some scholars (Burton and Dunn, 1996; Wicks et al., 1994) proposed instead using a ‘‘feminist
ethics’’ approach. Donaldson and Dunfee (1999) hold their ‘Integrative Social Contract Theory’.
29
Argandon˜ a (1998) suggested the common good notion and Wijnberg (2000) an Aristotelian
approach. From a practical perspective, the normative core of which is risk management, The
Clarkson Center for Business Ethics (1999) has published a set of Principles of Stakeholder
Management.
Stakeholder normative theory has suffered critical distortions and friendly misinterpretations,
which Freeman and co-workers are trying to clarify (Phillips et al., 2003). In practice, this theory
has been applied to a variety of business fields, including stakeholder management for the
business and society relationship, in a number of textbooks Some of these have been
republished several times (Carroll and Buchholtz, 2002; Post et al., 2002; Weiss, 2003; among
others) In short, stakeholder approach grounded in ethical theories presents a different
perspective on CSR, in which ethics is central.
Universal rights
Human rights have been taken as a basis for CSR, especially in the global market place
(Cassel, 2001). In recent years, some human-rights-based approaches for corporate
responsibility have been proposed. One of them is the UN Global Compact, which includes nine
principles in the areas of human rights, labor and the environment. It was first presented by the
United Nations Secretary General Kofi Annan in an address to The World Economic Forum in
1999. In 2000 the Global Compact’s operational phase was launched at
UN Headquarters in New York. Many companies have since adopted it. Another, previously
presented and updated in 1999, is The Global Sullivan Principles, which has the objective of
supporting economic, social and political justice by companies where they do business. The
certification SA8000 (www.cepaa.org) for accreditation of social responsibility is also based on
human and labor rights. Despite using different approaches, all are based on the Universal
Declaration of Human Rights adopted by the United Nations general assembly in 1948 and on
other international declarations of human rights, labor rights and environmental protection.
Although for many people universal rights are a question of mere consensus, they have a
theoretical grounding, and some moral philosophy theories give them support (Donnelly, 1985).
It is worth mentioning the Natural Law tradition (Simon, 1992), which defends the existence of
natural human rights (Maritain, 1971).
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Sustainable development
Another values-based concept, which has become popular, is ‘‘sustainable development’’.
Although this approach was developed at macro level rather than corporate level, it demands a
relevant corporate contribution. The term came into widespread use in
1987, when the World Commission on Environment and Development (United Nations)
published a report known as ‘‘Brutland Report’’. This report stated that ‘‘sustainable
development’’ seeks to meet the needs of the present without compromising the ability to meet
the future generation to meet their own needs’’ (World Commission on Environment and
Development, 1987, p. 8). Although this report originally only included the environmental factor,
the concept of ‘‘sustainable development’’ has since expanded to include the consideration of
the social dimension as being inseparable from development. In the words of the World
Business Council for Sustainable Development (2000, p. 2), sustainable development ‘‘requires
the integration of social, environmental, and economic considerations to make balanced
judgments for the long term’’.
Numerous definitions have been proposed for sustainable development (see a review in
Gladwin and Kennelly 1995, p. 877). In spite of which, a sustainable development is ‘‘a process
of achieving human development in an inclusive, connected, equip arable, prudent and secure
manner.’’ (Gladwin and Kennelly 1995, p. 876). The problem comes when the corporation has
to develop the processes and implement strategies to meet the corporate challenge of corporate
sustainable development. As Wheeler et al. (2003, p. 17) have stated, sustainability is ‘‘an ideal
toward which society and business can continually strive, the way we strive is by creating value,
creating outcomes that are consistent with the ideal of sustainability along social environmental
and economic dimensions’’. However, some suggestions have been proposed to achieve
corporate ecological sustainability (Shrivastava, 1995; Stead and Stead, 2000; among others).
A pragmatic proposal is to extend the traditional ‘‘bottom line’’ accounting, which shows overall
net profitability, to a ‘‘triple bottom line’’ that would include economic, social and environmental
aspects of corporation. Van Marrewijk and Werre (2003) maintain that corporate sustainability is
a custom made process and each organization should choose its own specific ambition and
approach regarding corporate sustainability. This should meet the organization’s aims and
intentions, and be aligned with the organization strategy, as an appropriate response to the
circumstances in which the organization operates.
The common good approach
31
This third group of approaches, less consolidated than the stakeholder approach but with
potential, holds the common good of society as the referential value for CSR (Mahon and
McGowan, 1991; Velasquez, 1992). The common good is a classical concept rooted in
Aristotelian tradition (Smith, 1999), in Medieval Scholastics (Kemp shall, 1999), developed
philosophically (Maritain, 1966) and assumed into Catholic social thought (Carey, 2001) as a
key reference for business ethics (Alford and Naught on, 2002; Melee´, 2002; Pope John Paul
II, 1991, #43). This approach maintains that business, as with any other social group or
individual in society, has to contribute to the common good, because it is a part of society. In
mediating institution (Fort, 1996). Business should be neither harmful to nor a parasite on
society, but purely a positive contributor to the wellbeing of the society.
Business contributes to the common good in different ways, such as creating wealth, providing
goods and services in an efficient and fair way, at the same time respecting the dignity and the
inalienable and fundamental rights of the individual. Furthermore, it contributes to social well-
being and a harmonic way of living together in just, peaceful and friendly conditions, both in the
present and in the future (Mele´, 2002).
To some extent, this approach has a lot in common with both the stakeholder approach
(Argandon, 1998) and sustainable development, but the philosophical base is different.
Although there are several ways of understanding the notion of common good (Sulmasy, 2001),
the interpretation based on the knowledge of human nature and its fulfillment seems to us
particularly convincing. It permits the circumnavigation of cultural relativism, which is frequently
embedded in some definitions of sustainable development. The common good notion is also
very close to the Japanese concept of Kyosei (Goodpaster, 1999; Kaku, 1997; Yamaji, 1997),
understood as ‘‘living and working together for the common good’’, which, together with the
principle of human dignity, is one of the founding principles of the popular ‘‘The Caux
Roundtable Principles for Business’’.
CSR in Companies Act 2013ix
Applicability (Section 135)
Every company having net worth of ₹ 500 crore or more, or turnover of ₹ 1000 crore or more or
a net profit of ₹ 5 crore or more ; during any financial year
Ax foreign company defined under clause (42) of section 2 of the Act having its branch office or
project office in India which fulfill the criteria u/s 135 of the Act
32
The net worth, turnover or net profit of a foreign company shall be computed in accordance with
B/S and P&L A/c of such company prepared in accordance with the provisions of the Act.
CSR SPEND IN FINANCIAL YEAR
At least 2% of the average net profits of the company made during the three immediately
preceding financial years.
The section postulates that “net profit” shall be calculated in accordance with the provisions of
section 198.
Company shall give preference to the local area and areas around it where it operates, for
spending the amount earmarked for CSR activities
Where the company fails to spend such amount, the Board shall, in its report, specify the
reasons for not spending the amount.
SCHEDULE VIIxi
Activities which may be included by companies in their Corporate Social Responsibility
Policies:-
I. ID eradicating hunger, poverty and malnutrition, promoting preventive health care and
sanitation and making available safe drinking water:
II. promoting education, including special education and employment enhancing vocation
skills especially among children, women, elderly, and the differently abled and livelihood
enhancement projects;
III. promoting gender equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by socially and
economically backward groups;
IV. ensuring environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare, agroforestry, conservation of natural resources and maintaining quality
of soil, air and water;
V. protection of national heritage, art and culture including restoration of buildings and sites
of historical importance and works of art; setting up public libraries; promotion and
development of traditional arts and handicrafts;
VI. measures for the benefit of armed forces veterans, war widows and their dependents;
33
VII. training to promote rural sports, nationally recognised sports, para olympic sports and
Olympic sports;
VIII. contribution to the Prime Minister's National Relief Fund or any other fund set up by the
Central Government for socio-economic development and relief and welfare of the
Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women;
IX. contributions or funds provided to technology incubators located within academic
institutions which are approved by the Central Government
X. Rural development projects.
34
PROBLEM STATEMENT/ RESEARCH QUESTION
35
P R O B L E M S T A T E M E N T / R E S E A R C H Q U E S T I O N
CSR Activities become very important due to the Companies Act 2013 that makes CSR
Mandatory for the companies. That makes Business world fish out of water that forced
maximum companies to follow old tradition of Alms giver. It means those expense will become
an useless expense for those companies. So the interest in the part of business entity is only to
spend the money somehow to meet the statutory requirement that will not make the social spent
sustainable hence will not make any value addition in the part of the business as well as to the
society. So it’s necessary to make business entity feel interest in CSR Activity and basic thing
that make them feel interested is profit. So CSR Activity should be like that will give it
competitive advantage.
CSR can become a source of competitive advantage. However, companies can enhance their
performance only if they use CSR properly; this means that companies should engage in
Strategic CSR. Strategic CSR is profit-maximizing strategy that may be viewed as socially
responsible. CSR practices can also have benefits for society, but they cannot be called
strategic if profit-maximization is not done.
There are many social need that can be addressed that are required to be addressed however,
any Company can’t solve all problems so a scientific approach is required to be taken by the
company in choosing area for CSR Activity. That is the main objective of the Project.
CSR can be divided into following categories on the basis of its role of influencer or influenced:
Generic social issues
(Indifferent)
From companies perspective it niter affected by the
company’s operations, nor adding value to the long-
term competitiveness of the company
Value chain social impacts
(Influenced)
Its significantly affected by activities of the company
Social dimensions of competitive
context (Influencer)
Those external factors have some impact on
competitive advantages
36
So the problem is that what Activity will be chosen and in what extent when framing its CSR
Activity. Its crucial job as it’s the factor for failure or success of business interests towards its
CSR Activity. The focus of the study is moving forward in this direction.
Generic social issues will not give any direct competitive advantages or make any damage
control due to the business but enhance prestige value of the company. Value chain social
impacts factors are very crucial and needed to address to certain extent below which effected
stockholder will become annoyed that may hamper business process, it’s one kind of defensive
CSR. Social dimensions of competitive context are those CSR that will competitive advantages
to it.
37
M E T H O D O L O G Y
38
M E T H O D O L O G Y
This Study is conducted by analyzing both primary & secondary data. In this study details of
CSR Activity of some leading companies of are analyzed in combination with primary data
collected by Serves, interviews, FGDs etc.
Following Chart is describing the structure of the research.
Collection of Secondary Data:
Secondary data are collected from the Annual report, financial statements like PL Accounts,
balance sheet of the companies submitted to several regulatory authorities (MCS, SEBI etc) or
published by those companies.
Collection of Primary Data:
39
Qualitative research is aimed at gaining a deep understanding of a specific organization or
event, rather a than surface description of a large sample of a population. It aims to provide an
explicit rendering of the structure, order, and broad patterns found among a group of
participants. It is also called ethnomethodology or field research. It generates data about human
groups in social settings.
Qualitative research does not introduce treatments or manipulate variables, or impose the
researcher's operational definitions of variables on the participants. Rather, it lets the meaning
emerge from the participants. It is more flexible in that it can adjust to the setting. Concepts,
data collection tools, and data collection methods can be adjusted as the research progresses.
Methods of observation vary with the position of the researcher, but can vary from covert to
overt. On the one hand, the researcher may begin as an overt observer only and slowly
becomes an observer-participant. However, this creates problems of reactivity to the influence
or intervention of the researcher. On the other hand, the researcher may begin as a covert
participant only, and move toward being a participant-observer. However, this creates a problem
of ethics.
Observation consists of taking field notes on the participants, the setting, the purpose, the social
behavior, and the frequency and duration of phenomena. Observations may be made of non-
verbal behavior, verbal behavior, and physical phenomena. Other sources of data may include
archival records, private records, anecdotes, erosion or accretion, etc. Problems include
sampling, reliability and validity, as well as observer influence and memory distortion.
To qualify as research, observation:
i. Serves a formulated research purpose;
ii. Relates to existing literature or theories;
iii. Is systematically planned
iv. Is recorded systematically
v. Is refined into general propositions or hypotheses
vi. Is subject to checks and controls on validity and reliability
40
Stages in Participatory Observation
1. Selection of a site and definition of problems, concepts, and indicators.
The researcher tentatively identifies the problem or phenomenon of interest, and tries to discern
what will yield the greatest understanding of that problem or phenomenon. The researcher then
identifies preliminary concepts and what data will be gathered as indicators of those concepts.
2. The researcher chooses a strategy to move into the research setting.
The researcher has to get past the "gatekeepers." This may involve an overt or a covert role for
the researcher. Issues may include how to record observations (written notes, tape recordings,
video tape, two-way mirrors, or trained observers) as well as ethical issues (privacy, anonymity,
confidentiality, etc.).
Strategies include: adopting a passive role at first, learning the ropes; don't seek data
aggressively until later; be a researcher, not a therapist; answer questions but don't be an
expert on anything; be frank and truthful; don't be forced into a particular role; and don't become
closely identified with any one person or subgroup until you are sure it will not cost you
information in the long run; be non-partisan.
3. Selecting people and events to observe.
The researcher may identify primary sources of information, known as "key informants." These
people may be relied upon in the beginning to help the researcher get acculturated to the
situation. The statements of key informants can be taken as evidence, even if their statements
are somewhat self-serving. The researcher must also be aware of possible differences between
the validity and intention of volunteered statements versus statements that are made in
response to the researcher's questions.
4. Develop relationships with the participants.
Researchers must have the trust and confidence of the informants. Researchers must speak
their "language" and have the ability to understand their "world." Researchers must also be
conscious of interpersonal and psychological dynamics. Behavior may be different between the
researcher and one informant alone, compared to the researcher and the informant within the
informant's group. The researcher can note the differences, rather than accept one and reject
41
the other. The researcher must determine whether certain things are not being said because of
his or her role as "researcher" or whether they can use their position as "neutral outsider" to
gain more information.
5. Analyzing observations.
The researcher can check whether none, all, or some proportion of behaviors or events occur
under distinct circumstances. The researcher can generate a preliminary model to explain the
data collected. Explanations place particular social facts in reference to their environment.
Further observations are then collected which can strengthen or weaken the researcher's
preliminary model.
6. Final analysis and interpretation.
Models are checked against the evidence (field notes). Advanced concepts and evidence for
their support and/or refutation are checked. The major problem is how to present the data in a
brief but meaningful form
In quantitative studies, the research methods are set before observation begins and specify the
methods of observation which may be used and the type of data which may be collected.
Observations are collected before analysis begins. After analysis is complete, no more
observations are taken.
a) Observations
b) Analysis
Comparison of Different "Field" Methods of Obtaining Information
Type of Information
Desired
Mail or Telephone
Surveys
In-person Interviews Participant
Observation
Frequency
Distributions
Best Form Less adequate Neither efficient nor
adequate
42
Generally known rules
and status
Adequate but
inefficient
Best Form Good for non-verbal
behavior
In-depth description of
events
Neither adequate nor
efficient
May be adequate and
efficient
Best form
Questionnaire
The questionnaire translates the research objective into specific questions. The answers to
those questions provide the data for testing the research hypothesis. Questions must also
interest the respondents enough that they will provide the information.
The first step in designing a questionnaire is to create a conceptual model. This includes
specifying the research problem, the purpose of the research, the research design, the variables
and hypothesis, and operational definitions and valid and reliable measures of the variables, as
well as the intended population, and the plans for data analysis.
The second step is to produce the questionnaire. This includes writing the introduction, the
statement of informed consent, and the questions and responses, as well as designing the
overall format ("look and feel") of the questionnaire.
The third step is to pre-test the questionnaire, to revise, and to conduct a pilot test of how the
questionnaire will be used.
I. Step One: Create the Conceptual Model
Research Problem:
Some supervisors are not making good decisions on the job
Research Purpose:
Determine which factors lead to better decision-making on the job
Research Design:
43
Cross-sectional survey of supervisors
Population:
Currently employed supervisors
Data Analysis:
Indicate the level of measurement needed for each question
Hypotheses:
The more training in statistics, the better the decision-making
The more recent the training in statistics, the better the decision-making
The quality of decision making will vary across departments
Variables:
Decision-making quality (ratio level)
Amount of training in statistics (ratio level)
Recency of training in statistics (ratio level)
Department of employment (nominal level)
II. Step Two: Produce the Questionnaire
A. Write the introduction
The introduction:
explains the nature and purpose of the survey
names the person to contact in case of questions
says whether the questionnaire is anonymous
says whether the information will be kept confidential
44
enumerates the respondent's rights
stresses the importance of the study
thanks the respondent for participating
B. Write the questions
1. Bring together key actors in the question and response writing session, to make sure
that the type of data that is needed will be produced by the questionnaire.
2. There must be at least one questions for every variable of importance in the study;
and there may be more than one question for each variable. For example, to measure a
worker's job satisfaction, there may be three questions: satisfaction with working
conditions, satisfaction with pay, and satisfaction with promotional opportunities.
3. Questions must be designed to elicit data measured at the desired level--nominal,
ordinal, interval or ratio--so that the appropriate statistics may be applied and the
questions posed by the research may be adequately answered.
4. Questions can elicit also different types of information: facts, values, and knowledge.
Factual questions: age, sex, marital status, annual income, job title,
education;
Value questions: attitudes, opinions, expectations;
Knowledge questions: tests, etc.
a. Closed-ended response options provide respondents with a limited set of
response choices, such as Yes or No; low, medium or high; high school,
bachelor, masters; etc.
b. Open-ended response options provide respondents with the opportunity to
respond to the question in whatever way they see fit.
III. Step Three: Pre-test and Pilot test
A. Pre-test the questionnaire
45
1. Show it to colleagues and key decision-makers. Are the questions and responses
valid and reliable? Are they appropriate? Are they both necessary and sufficient?
2. Administer the questionnaire to a small number of people who resemble or are drawn
from the population of interest, but it does not have to be a random sample. Measure
how much time it takes to complete each questionnaire. Debrief the respondents (and
the interviewers if applicable) after they complete the questionnaire. Analyze the
information provided to clarify directions, question wording, or response categories
where necessary. Revise as needed.
B. Pilot Study
A pilot study is a dress referral of the full project, including the questionnaire, the
interviewers, and all other aspects. Often a sample of 30-50 responses are obtained,
coded, and analyzed. Questions that are not providing useful data are discarded, and
the final revisions of the questionnaire are made.
Surveys
Four strategies often used in public policy and administration for data collections are:
mail surveys
telephone surveys
in-person interviews
focus group interviews
I. Mail Surveys
The idea for surveys comes from the art and practice of surveying land: to collect information to
describe and explain attitudes, beliefs, values, and behaviors that characterize a population.
A. Mail surveys seek responses directly from respondents and so the quality of the instrument is
extremely important. They are conducted in the "natural" setting of the respondent. They rely on
probability sampling for representativeness. Large numbers of surveys are needed for making
inferences to the population.
Mail surveys involve sending and receiving questionnaires through the mail. They are often
used with two types of groups:
46
1) to obtain quantitative data on questions of general knowledge or opinion from large samples
of a population; and
2) to obtain quantitative data on questions of specific knowledge from small samples of experts.
I. Mail Surveys
The idea for surveys comes from the art and practice of surveying land: to collect information
to describe and explain attitudes, beliefs, values, and behaviors that characterize a population.
A. Mail surveys seek responses directly from respondents and so the quality of the
instrument is extremely important. They are conducted in the "natural" setting of the
respondent. They rely on probability sampling for representativeness. Large numbers of
surveys are needed for making inferences to the population.
Mail surveys involve sending and receiving questionnaires through the mail. They are
often used with two types of groups:
1) to obtain quantitative data on questions of general knowledge or opinion from large
samples of a population; and
2) to obtain quantitative data on questions of specific knowledge from small samples of
experts.
B. The two major concerns with mail surveys are response quality and response rate.
A sample of non-respondents should be contacted to see if they differ from respondents
on any important characteristics which could affect the external validity of the study.
Non-respondents tend to be poorer, have greater mobility, be less well educated, etc.
There is some indication of "survey fatigue" on the part of the general public, which has
been over-saturated by surveys, so return rates in general may be falling rather than
improving.
II. Telephone Surveys
47
A. Telephone surveys involve administering questionnaires over the telephone. Telephone
surveys are increasing in popularity because of the wide availability of telephones
throughout the general public.
B. The two major concerns with telephone surveys are response quality and response rate. A
sample of non-respondents should be contacted to see if they differ from respondents on
any important characteristics which could affect the external validity of the study.
III. Personal Interviews
Personal interviews refer most often to a one-on-one situation where a single interviewer
administers an interview schedule to a single respondent. The greatest problem in interviewing
is to minimize interviewer influence on the respondent. The most important concerns in
interviewing are:
-interviewer recruitment and training;
-scheduling the interviews;
-preparing the materials needed;
-organization and supervision of field work;
-follow-ups for missed interviews;
-translation services where needed;
-coding and transcribing interviews;
-analysis and interpretation of findings.
Interviews are usually of two main types: structured or unstructured.
A. Structured Interviews
Structured interviews are usually designed to collect either quantitative or qualitative
information from a small- to mid-sized sample. Structured interviews assume that:
-there is a common vocabulary for all potential respondents;
48
-question formats are equally meaning to all;
-the context of each question is obvious.
B. Unstructured Interviews
Unstructured interviews are usually designed to collect qualitative information from a
small-sized sample. They are also sometimes called intensive interviewing or in-depth
interviewing. Unstructured or semi-structured interviewers use what is called an
"interview guide" or "interview schedule."
IV. Focus Group Interviews
Focus group interviews are open-ended interviews conducted by one or two interviewers of a
small group (3-12) of people. The interactions among the participants in the focus group
produce different data than can be gathered by either mail surveys or individual interviews.
A focus group is composed of individuals who are homogeneous on some important
characteristic, such as marital status, income level, presence of children, political orientation,
etc. The group is representative of some pre-defined segment of some population, rather than a
random sample of all the segments of that population.
49
D A T A A N A L Y S I S
50
D A T A A N A L Y S I S
Analysis of Primary Data Collected by Sample survey from MSME
Sector
MSME Sectorxii
Manufacturing Sector
Enterprises Investment in plant & machinery
Micro Enterprises Does not exceed twenty five lakh rupees
Small Enterprises More than twenty five lakh rupees but does not
exceed five crore rupees
Medium Enterprises More than five crore rupees but does not exceed
ten crore rupees
Service Sector
Enterprises Investment in equipment
Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but does not exceed two
crore rupees
Medium Enterprises More than two crore rupees but does not exceed five
core rupees
Type of Organization:
Sole proprietorship: The sole proprietorship is not a legal entity. It simply refers to a person who
owns the business and is personally responsible for its debts. A sole proprietorship can operate
under the name of its owner or it can do business under a fictitious name, such as Nancy's Nail
Salon. The fictitious name is simply a trade name--it does not create a legal entity separate from
the sole proprietor owner.
51
Partnership: Partnership is defined as the relation between two or more persons who have
agreed to share the profits according to their ratio of business run by all or any one of them
acting for all. Personal liability is a major concern if you use a general partnership to structure
your business. Like sole proprietors, general partners are personally liable for the partnership's
obligations and debts. Each general partner can act on behalf of the partnership, take out loans
and make decisions that will affect and be binding on all the partners (if the partnership
agreement permits). Keep in mind that partnerships are also more expensive to establish than
sole proprietorships because they require more legal and accounting services.
Hindu Undivided Family (HUF): HUF is a family with husband, wife and children (and children’s
spouses if any) living together. The property owned by this family will be through lineal
ascendants or any ancestors. There are a set of laws that govern property ownership,
marriages, taxation etc for a legally declared HUF. IT department of India has a format of
taxation for a HUF; tax benefits can be availed from this format.
Private limited company: A private limited company is a voluntary association of not less than
two and not more than fifty members, whose liability is limited, the transfer of whose shares is
limited to its members and who is not allowed to invite the general public to subscribe to its
shares or debentures.
Total 100 Total plant and
machinery
service
Sole proprietorship 66 20 46
Hindu Undivided Family (HUF) 13 5 8
Partnership 17 9 8
Private limited company 4 1 3
Public limited company 0 0 0
MSME enterprise
52
On Responsibility to Employees:
Observation:
As the business size small and have small number of employee so there are direct
communication and cordial relations between employee and the business owner. There
are several points that are several points that are considered for Analysis of the fact as
follows:
Provides a family friendly work environment
Due to small size of employee the relations between employees family friendly
environment exists between employee and business owners.
%of Employee Said Yes >80 60-80 40-
60
20-40 <20
Excelle
nt
Good O
K
Ba
d
V Bad
Cordial Relations Between Business owner and
Employee
42 20 13 15 10
Flexible Work Schedule 35 18 10 12 25
Generous Family Leave 40 15 7 8 30
Employee Birthdays 17 83
Family Picnics 65 16 10 9
Business Owner Birthdays 31 79
Invited at Business Owners Family Event 45 12 15 12 16
Attended Business Owners Family Event 43 11 15 10 21
Business Owners Attended Employee Family
Event
36 11 16 8 29
53
Engages in responsible human resource management
Provides an equitable reward and wage system for employees
%of Employee Said Yes >80 60-80 40-60 20-40 <20
Excellent Goo
d
OK Ba
d
V Bad
Monthly Monthly Salary According to Market
Rate
45 27 10 8 10
Happy With Monthly Monthly Salary 15 12 15 14 44
Get Reward at Business Gain 62 18 7 8 5
Engages in open and flexible communication with employees
%of Employee Said Yes >80 60-80 40-
60 20-40 <20
Excellent Good OK Bad V Bad
68 16 9 5 2
Invests in employee development
%of Employee Said Yes >80 60-80 40-60 20-40 <20
Excellent Good OK Bad V
Bad
Helps Employee In getting
Advancement 42 22 18 6 12
Helps Employee In setting up new
business 12 15 18 32 23
Encourages freedom of speech and promotes employee rights to speak up and report
their concerns at work
%of Employee Said Yes >80 60-80 40-60 20-40 <20
Excellent Good OK Bad V Bad
Can talk to owners freely 65 26 2 6 1
54
Can report owners regarding any
problem freely 59 21 15 3 2
Buisness owners respects sugessions
of Employee 48 34 14 3 1
Freely allow to join Trade unions 27 29 18 11 15
Engages in employment diversity in hiring and promoting women, ethnic minorities and
the physically handicapped
%of Employee Said Yes >80 60-80 40-60 20-40 <20
Excellent Good OK Bad V Bad
Have women Employee 42 58
Have minorities Employee 64 36
Have physically handicapped
Employee 16 84
Promotes a dignified and fair treatment of all employees
%of Employee Said Yes >80 60-80 40-60 20-40 <20
Respect Employee 32 28 15 13 12
Forced Employee to do domestic work of Biz
Owners 52 21 12 8 7
Less than 5 Miss Behave incident / Mo happened
to any Employee 29 27 17 12 15
On Responsibility to Consumers
Respects the rights of consumers
Offers quality products and services
Provides information that is truthful, honest and useful
Products and services provided are safe and fit with their intended use
Avoids false and misleading advertising
55
Discloses all substantial risks associated with product or service
Avoids sales promotions that are deceptive/manipulative
Avoids manipulating the availability of a product for purpose of exploitation
Avoids engagement in price fixing
On
Resp
on
sib
ility to
Consu
me
rs
%o
f Co
nsu
mers
Sa
id Y
es
Re
spe
cts
the rig
hts
of c
on
sum
ers
Offe
rs q
ua
lity p
rodu
cts
an
d s
erv
ices
Pro
vid
es in
form
atio
n th
at is
truth
ful,
hon
est a
nd u
sefu
l
Pro
du
cts
and
se
rvic
es p
rovid
ed
are
sa
fe a
nd fit w
ith th
eir in
ten
de
d u
se
Avo
ids fa
lse
an
d m
isle
adin
g
adve
rtisin
g
Dis
clo
ses a
ll su
bsta
ntia
l risks
associa
ted
with
pro
du
ct o
r serv
ice
Avo
ids s
ale
s p
rom
otio
ns th
at a
re
dece
ptiv
e/m
anip
ula
tive
Avo
ids m
anip
ula
ting
the a
vaila
bility
of
a p
rodu
ct fo
r purp
ose
of e
xplo
itatio
n
Avo
ids e
ng
ag
em
ent in
pric
e fix
ing
pla
nt a
nd
ma
chin
ery
Excellent >80 12 15 10 15 11 9 8 7 12
Good 60-80 10 6 2 12 9 4 7 9 11
OK 40-60 3 5 9 2 8 6 9 12 2
Bad 20-40 3 3 6 4 5 6 5 4 1
V Bad <20 7 6 8 2 2 10 6 3 9
se
rvic
e
Excellent >80 22 19 21 30 17 12 17 16 13
Good 60-80 12 13 12 12 14 8 13 15 11
OK 40-60 14 17 9 9 16 11 8 14 18
Bad 20-40 8 9 17 9 11 12 9 12 14
V Bad <20 9 7 6 5 7 22 18 8 9
56
57
Secondary Data of Big Players:
Steel Authority of India Limited (SAIL)xiii
Key Economic Indicators
Key Economic Indicators ( In billion ₹)
2010-11 2011-12 2012-13
Gross Turnover (Direct Economic Value Generated) 470.41 503.48 493.50
Net Turnover 427.19 456.54 439.61
Cost of Material Consumed including Bought out Goods 202.52 230.26 212.02
Employee Wages & Benefits 76.23 79.32 86.37
Payments to Providers of Capital :-
- Interest (Finance Cost) 4.75 6.78 7.48
- Interest (Capital-Expenditure During construction) 6.08 8.68 8.00
- Dividends 9.91 8.26 8.26
- Community Investments (CSR Exp.) 0.68 0.61 0.53
- Contribution To Government / Exchequer For Taxes &
Duties Including Dividends
111.68 110.08 121.22
Operating Profit (EBITA) 75.44 60.91 42.18
Profit After Tax 49.05 35.43 21.70
Retained Profits 31.80 23.60 9.01
58
Employees
Type of Employees at SAIL
59
Representation of SC/ST /OBCs
SC ST OBC Total No. of
employees
2010-
11
2011-
12
2012-
13
2010-
11
2011-
12
2012-
13
2010-
11
2011-
12
2012-
13
2010-
11
2011-
12
2012-
13
TOTAL 17373 16720 16281 14466 13982 13814 9904 10047 10085 110794 106004 101878
Performance Indicator 2010-11 2011-12 2012-13
Percentage (%) of employees trained 45.1 47.5 51.7
Training man hours / employee 40.8 47.8 63.2
Employees trained 53137 52967 54810
Average hour of training Executive Non-Executive Total
External training (including MTI/CPTI) 100312 43352 143664
Foreign training 19248 1048 20296
Specific areas 23352 167272 190624
Managerial Competence Enhancement 102416 221424 323840
Technical enhancement 238984 516664 755648
Fresh entrants 1225752 3241192 4466944
Other areas 178648 665048 843696
60
Accident Statistics
Responsibility to Community
(₹ Crore) 2013-14 2012-13 2011-12
Total turnover 51866 49349.69 50348
profit after taxes 2616.48 2170.35 3543
budgeted amount 40 42 64
CSR Spent 44.87 24.81 35.52
Unspend amount of past year 17.19 28.48 25.73
Major CSR Area
Healthcare, Education, Community Development,
Drinking Water, Rode Connectivity Vocational
Training and Income Generation, Sports
61
xiv
Indian Oil
It’s Business:
Refineries: 10 out
of 22 refineries in India
65.7
MMTPA capacity
Marketing: 41,640
touch points
23,993
ROs including KSK
LPG Indane Customers 8.18, crores,
Pipelines:
Network of 11,214 km of
Pipelines
Petrochemicals: World
scale Naphtha Cracker unit
2.25
MMTPA Petrochemicals capacity
Exploration & Production: 13
domestic blocks
11
overseas blocks
Gas: Co-promoter in M/s Petronet
LNG Limited
Gas
marketing
Gas
distribution
Alternate Energy: Wind: 63 MW
On-Grid Solar : 5 MW
1,265 ROs Solarized
R&D: Lube
formulations
In-house Technologies, alternate
energy Patent 292
62
Data on Employees
Employees of IOCL
Age Group Number
30 yrs 5334
30 yrs-50 yrs 15418
50 yrs 13041
Total Employees (By Gender)
63
Environment Related Data
64
Air Pollutant* 2013-14
SO2 (Tonnes) 32,254.32
NOx 29,685
Flare Gas (MT) 46,787
Ozone Depleting Substance (ODS) (Tonnes) 6.307
Responsibility to Community (₹ Crore)
Turnover PAT CSR Expanse CSR Budget
2008-2009 261849 2950
2009-2010 250065 10221
2010-2011 303695 7445
2011-2012 373926 3955
2012-2013 414909 5005 78.97 78.97
2013-2014 457553 7019 81.91 101.91
CSR Activity Education, Clean Drinking Water & Health & Medical Care
65
CSR in Power Generation, Transmission & Distribution Sector
NTPCxv
2013-14 2012-13 2011-12
PAT (₹ Crore) 10,974.74 12,619.39 9,223.73
CSR Expense (₹ Crore) 109.77 69.24
% of previous year PAT 0.87% 0.5 %
CSR Highlight’s NTPC Foundation
Rehabilitation & Resettlement
Environment Management
Torrent Power xvi
2013-14 2012-13 2011-12
PAT (₹ Crore) 94.84 384.96 1,237.46
CSR Expense (₹ Crore) 1.77 2.62
% of previous year PAT 0.46 0.21
CSR Highlight’s Donation for education, healthcare, providing relief to disaster victims
and promotion of social welfare, harmony and nationalism
Adani Power Limitedxvii
2013-14 2012-13 2011-12
PAT (₹ Crore) 595.26 1952.03 -293.92
66
CSR Expense (₹ Crore) 3.71 15.60
% of previous year PAT 0.19%
CSR Highlight’s Education Initiatives,
Community Health Initiatives, Water Resource Development,
Sustainable Livelihood Development
Projects, Rural Infrastructure Development and Community
Environment Projects.
Tata Power xviii
2013-14 2012-13 2011-12
PAT (₹ Crore) 954 7025 260
CSR Expense (₹ Crore) 25.68 23.16
% of previous year PAT 0.93% 0.84% ( on average of last 3
yr PAT)
CSR Highlight’s Coverage, Education, Employability, Employment, Entrepreneurship,
Essential Amenities,
CSR in Banking and Financial Sector in India
State Bank of Indiaxix
2013-14 2012-13 2011-12
PAT (₹ Crore) 10,891.17 14,104.98 11,707.29
CSR Expense (₹ Crore) 141
67
% of previous year PAT 1%
CSR Highlight’s Supporting Education, Supporting Healthcare by ambulances
and Medical Equipment, natural calamities, Green Banking,
Research & Development, SBI Children's The Banklfare Fund, water
purifier to schools
Allahabad Bank xx
2013-14 2012-13 2011-12
PAT (₹ Crore) 1172 1185 1172
CSR Expense (₹ Crore) 0.297
% of previous year PAT 0.025%
CSR Highlight’s Donations
IDBIxxi
2013-14 2012-13 2011-12
PAT (₹ Crore) 1,121.40 1,882.08 2,031.6
CSR Expense (₹ Crore)
% of previous year PAT 2%
CSR Highlight’s preventive healthcare and sanitation, Promoting Education,
vocational skills training, Gender Equality, Environmental
Sustainability, Sports activities, ) Contribution to Central Government
Relief and The Banklfare Funds, Technology Incubators, Rural
Development
Canara Bankxxii
2013-14 2012-13 2011-12
PAT (₹ Crore) 2438 2872 3283
CSR Expense (₹ Crore)
% of previous year PAT
68
CSR Highlight’s Rural Development, Training of unemployed rural youth, primary
health care,
HDFC Bankxxiii
2013-14 2012-13 2011-12
PAT (₹ Crore) 8,478.4 6,726.3 5,167.1
CSR Expense (₹ Crore)
% of previous year PAT
CSR Highlight’s Support Education, Library Projects, Rehabilitation of children with
special needs, EBanking
69
I N T E R P R E T A T I O N & D I S C U S S I O N
70
I N T E R P R E T A T I O N / D I S C U S S I O N
CSR in Micro Small and Medium Enterprises
I have had conducted a primary survey among 100 MSME among which 35 are plant and
machinery and rest 65 provides services.
As those enterprises are small the relationship between owner/s and employees are personal
family level and informal. The benefits the employee got are very informal level and depend on
person to person attitude.
The organizations are very small and have direct contact between the owner/s and customers. If
the business owners maintain good relationship with customers then they get good business. As
perfectly competitive so they have to respect the rights of the customers.
Sizes of business are not big enough to be under the ambit of CSR Clouse and most are not
incorporated entity. However they donated in some social cause’s reasons behind those
donations are mostly: a) Marketing, b) Social or Political pressure, c) to get some personal
prestige in the society etc.
71
CSR in Steel Authority of India Limited (SAIL)xxiv
Steel Authority of India Limited (SAIL) is one of the largest state-owned steel making company
based in New Delhi, India and one of the top steel makers in world. With an annual turnover of
49350 crore (US$7.7 billion), (FY 2012-13). It is a public sector undertaking which trades
publicly in the market is largely owned by Government of India and acts like an operating
company. Incorporated on 24 January 1973, SAIL has 101,878 employees (as on 31-Mar-
2013). Its 15 % Employees are Executive and 85% are Non-Executive. 94% Employees are
Male and only 6% are Female.
Generic social issues
(Indifferent)
Value chain social
impacts (Influenced)
Environment, Occupational Health Service, Water Sources,
Vocational Training and Income Generation, Local Community
Development:
Social dimensions of
competitive context
(Influencer)
Responsibility to Employees, Vocational Training and Income
Generation, Road Connectivity
On Responsibility to Employees:
SAIL has achieved its present level of excellence through investing in its human
resource, whose skill and knowledge constitute the basis of every initiative - be it
72
technology or innovation. SAIL recognizes contribution of its Human Resources (HR) in
providing the competitive advantage. Developing skills and capabilities of employees to
improve manpower utilization and Labour Productivity is the key thrust area of Human
Resource Management (HRM) in SAIL. SAIL's first priority is the safety and health of its
employees based on the principles of respect for human rights.
SAIL is an equal opportunity employer and recruitments made are guided by the rules of
the Company as approved by the Board of Directors in accordance with the provision of
the relevant guidelines issued by the Government of India from time to time.
Ratio of the basic salary and remuneration of women to men for each employee
category is 1:1
Women employees get maternity leave up to 12 weeks and child care leave of 1 year.
SAIL provides parental leaves to all its employees.
Benefits to SAIL employees
Statutory Benefits Non Statutory Benefits
Provident Fund Group Insurance Scheme
Gratuity Compassionate Employment
Employees' Pension Scheme Medical Facility to Employees
Life Cover Scheme SAIL Group Mediclaim Policy
Workmen Compensation Child Care Leave up to 1 year
Welfare measures under the Factories
Act Education Facilities
Maternity Benefits Conveyance, Housing and Festival Advance
Funeral Expenses
Long Service Award and Farewell to
Employees
Workmen Compensation
Scholarship Scheme
Farewell to Superannuating Employee
Life Cover Scheme
Employee Family Benefit Scheme
73
Wages and benefits for non-executive employees are decided by NJCS (National Joint
Committee for the Steel)
To ensure safe & healthy work environment, both management and workers'
representatives reiterate their commitment to develop, promote and enforce the best
standards for safety, occupational health and environment protection and maintain
specified standards of OHSAS 18001: 2008, ISO 9001:2008 & ISO 14001:2004.
Continuous education, training, counselling, prevention and risk-control programmes are
organized to assist workforce members, their families and other community are
important for its safety strategy .
Occupational Health Service: To provide comprehensive Health Care, Preventive,
Curative, Promotive and Rehabilitative Health Services are being rendered through
integrated approach. For keeping work environment friendly, compliance to the
requirements of OHSAS 18001: 2008 & SA 8000 : 2008 certification and central audit
being made. Infrastructures available for following are being effectively utilised:
Preventive: Occupational Medicine Clinic, Periodical Medical Examination, Industrial
Hygiene Survey setup, Computerized Health Information System.
Promotive: Awareness programmes, Trainings on Industrial Hygiene and First Aid,
Stress Management, AIDS Control, Life Style Diseases, Special programmes for
working women, Celebration of Special Days. Safety Welfare for SAIL Employees,
Ranchi
Curative: General OPD, Pharmacy, Plant casualty services with Disaster Management
Facility. Round the clock Ambulance services, Eye wash Fountains, Minor OT.
Rehabilitative: Disability assessment following any work injury through Disability Medical
Board. Redressal of complaint cases from work places / departments, job rotation based
on deviation found in PME & recommendations of DMB being implemented by
redeployment committee, Follow up & Feedback documented.
Facilities: Lung Function Test, Biochemical investigation, Clinical Pathology, Digital X-
Ray, Vision Test, Health Education & Training, OHS Library, ECG, Psychology, Health
Information System, Audiometry etc.
On Responsibility to Community:
74
(₹ Crore) 2013-14 2012-13 2011-12
Total turnover 51866 49349.69 50348
profit after taxes 2616.48 2170.35 3543
budgeted amount 40 42 64
CSR Spent 44.87 24.81 35.52
Unspend amount of past year 17.19 28.48 25.73
Healthcare, education, Engendering Development, Inclusive growth of
rural areas, Water Sources, Road Connectivity, Sports, Ancillary and
Local Development, Vocational Training and Income Generation,
Renewable Energy, SARANDA Action plan, Preservation of Art, Culture &
Heritage are the key focus area of CSR of SAIL.
Healthcare:
2 Lakh people get free health check-up through 4300 camps.
Primary Health Centres 53
RCH Centres 7
No. of Hospitals 23
No. of Specialty Hospitals 7
No. of beds 4,090
No. of doctors 726
No. of paramedical staff 2,655
No. of beneficiaries during the year 21,03,726
Immunization during the year 98,235
Sterilization during the year 8,069
Education:
Survival Rate in primary school 99.19%
Ratio of Girls : Boys (Overall) 1.36: 1
No. of additional classrooms built during 2012-13 95
75
Total no. of adult education centres 7
Schools within township No's Students
Primary 45 15,558
Secondary 63 21,861
Tertiary 40 17,449
Total 148 54,898
Schools outside township No's Students
Primary 477 64,343
Secondary 11 2,519
Tertiary 4 1,035
Total 492 67,897
Engendering Development:
Number of women employed 5,213
Women in senior management 111
Women in management 714
Women in non-executive position 4,411
No. of women engaged in institutions (Mahila Samaj) 1,141
Quantum of order generated in 2012-13 (Amount in million ₹) 18.756
Inclusive growth of rural areas:
79 villages have been identified for developing these villages as
"Model Steel Villages"
Water Sources:
People for whom water infrastructure created up to 2012-13
76
4137745
Total no. of people for whom facilities created during 2012-13
46,215
No. of water infrastructure created during 2012-13 1,329
Total no. of water infrastructure created up to 2012-13 7,381
Road Connectivity:
Length of road constructed /repaired during 2012-13 (km) 73.20
Total Number of beneficiaries during 2012-13
55,575
Total Number of beneficiaries 75,35,642
Total number of villages impacted 96
Sports:
Number of new sports facilities created during the year
3
Number of people for whom -training provided during the year
3,611
- from SAIL family 1,868
- from local community
1,743
Events participated during the year 110
Prizes won during the year 203
Ancillary and Local Development:
Number of units recognized 638
People employed 15,697
Quantum of orders generated in 2011-12 (Amount in billion ₹) 2.46
Vocational Training and Income Generation:
'Bhilai Ispat Kaushal Kutir' & Swayam siddha (Bhilai), Skill
Development and Self Employment Training Institute (SDSETI) at
77
Durgapur, Garment Technician Training at Salem, JHARCRAFT
centre at Bokaro and Self-employment center "KIRAN" at Kiriburu
Ore Mines are important in this aspect.
Generic social issues
(Indifferent)
Value chain social
impacts (Influenced)
Environment, Occupational Health Service, Water Sources,
Vocational Training and Income Generation, Local Community
Development:
Social dimensions of
competitive context
(Influencer)
Responsibility to Employees, Vocational Training and Income
Generation, Road Connectivity
SWOT Analysis of SAIL
Strengths Weaknesses
1) Strong Responsibility to Employee
a. Training Program
b. Safety Training
c. Occupational Health Service
d. Several benefits to the
Employee
e. Schooling Service for child of
Employees
2) Pro-Environment Infrastructure up
gradation Initiatives
3) Strong CSR Initiative:
a. Primary, Secondary Schooling
Facility for Community
b. Vocational Training and Income
Generation Program
c. Health Service
1) Added Expense/ Losses
2) Reduction of ability/ Moral of workforce/
Reduced Output from work force
78
d. Water Sources
e. Road Connectivity
Development
f. Sports
Opportunities Threats
1. Good Relation with Community
2. Availability of Low cost skilled
workforce
3. Good reputation
4. In time information to public
security, and action
1) Government Regulations for
Mandatory CSR Expense
2) Local community Dissatisfied
a. Agitation
b. Non cooperation
c. Conflict
d. Problem of Theft due to poverty
level
3) Environmental Problem
a. Health Hazards
b. Noncompliance with
Governments Regulations
Strong Responsibility to Employee of SAIL will reduce the possibility of Reduction of ability/
Moral of workforce. Its CSR Activities give it an opportunity of building good relationship with the
local community which will reduce the threat of conflict with local community and aid SAIL in
some security issues. Vocational Training and Income Generation Program helps in poverty
eradication in local area that will also ensure availability of Low cost skilled workforce and
reduce several community related threats like agitation, noncooperation, Theft etc.
79
CSR in Indian Oil
IndianOil is India's flagship national oil company with business interests straddling the entire
hydrocarbon value chain – from refining, pipeline transportation and marketing of petroleum
products to exploration & production of crude oil & gas, marketing of natural gas and
petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at
the 96th position in the year 2014.
On Responsibility to Employees:
Hiring Process:
The importance of a strong manpower cannot be undermined in any
circumstances, whatsoever. The presence of IndianOil in upstream as well as
downstream sectors explains the varied workforce it is a home to. In every field –
from exploration to production to refining to marketing, IndianOil workforce has
made a mark in every field. Petrochemicals and Gas are increasingly becoming a
part of IndianOil’s core business activities. The recruitment in all fields happens
at the entry level through campus recruitment and various competitive exams.
Last year a new grade A was introduced to induct officers at the assistant officers
level.
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Career transition:
Various sessions addressing retirement and old age concerns, psychological
aspects of retirement, investment and tax planning, post-retirement benefits and
health related issues are conducted by IndianOil. Informative conferences are
held regularly for employees as well as employees emphasizing the importance
of leading a healthy lifestyle.
Training and development:
Departmental promotions, incentives for individuals and the Performance Related
Pay (PRP), have all been linked to the ratings of the PMS. Training for better
performance has been given for better career development & Performance.
Mentoring Programs:
The mentor-mentee program is designed to meet the professional and personal
needs of the mentee. The program usually lasts for a year during which
mentoring grows into a lifelong friendship.
Capacity building:
It is an ongoing process through which individuals, groups, organizations and
societies enhance their ability to identify and meet development challenges. As
part of efforts to reinforce capabilities and build on the existing potential of the
employees, the T&D department conducted a number of programmes:
Welcome new recruits (induction trainees)
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Upgrade skills of employees on the rolls (through programmes like
strategic location management, SOP and safety, performance feedback,
etc.)
Empower superannuating employees (career transition programme).
Women Empowerment:
Indian Oil has encourage women employees to lead and represent organization
in national and international platforms. It Promote gender sensitivity, prevention
of sexual harassment at Workplace through workshops, training programs and
sessions. Various women’s Cells have also established across IndianOil, each
headed by an Apex Level WIPS (Forum of Women in Public Sector) leader. 33%
reservation for dealerships for women in the Kisan Seva Kendras.
Gender Mainstreaming: 135 Days Maternity Leave, 2
Years Child Care Leaver Without Pay, Once in Entries Service. Leave
without Pay for 3 Years one in Entire Service.
Maternal Leave 2013-
2014
2013-
2012
2012-
2011
Number of employees availing maternity leave (nos) 52 48 40
Number of employees returning to work after
availing maternity leave (nos)
35 51 35
Health & Safety:
A safety culture improvement project-SEED (Safetyin Each and Every Deed)-was
launched in 2013. 69.46% of Permanent Male Employees, 67.22% of Permanent
Women Employees, 39.35% of Permanent Employees with Disability & 84.18%
of Casual/Temporary/Contractual Employees/Contract Labor got Safety & Skill
up-gradation Training.
Employee Benefits:
Gender Mainstreaming
135 Days Maternity Leave.
2 Years Child Care Leaver Without Pay, Once in Entries Service.
Leave without Pay for 3 Years one in Entire Service.
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Performance Related Pay
Performance Linked Incentive (PLI)
Performance Incentive Scheme (PIS)
Social Security Benefits
Contributory Provident Fund
Gratuity
Group Linked Insurance Scheme
Compensation on Death
EPS 1995
Super Annulation Benefit Fund Scheme
On Responsibility to Consumers
Customer satisfaction is assessed on regular basis through Toll Free number,
IOC websites, in person/ writing or at the customer service cells of the Area
Offices. Through random calls to customers by IOC field Officers is also
important method of IOCL. Corrective action is started to fix the problem, in case
of general complaints against distributors. 99% complaint was resolved with in
30days in the financial year 2013-14. Customer survey is conducted mainly on 6
parameters viz., quality, quantity, promptness in refueling, behavior of staff,
maintenance of refuellers and redressed of customer complaints.
On Responsibility to Environment
EIA is performed at all of our installations depending upon new projects, revamp
of existing facilities, etc. It is carried out as per Environment Protection (EP)
Rules by MoEF. EIA study also includes the impact assessment and risk analysis
on biodiversity.
Environmental Impact Assessment (EIA): EIA is performed at all installations
depending upon new projects of IOCL, revamp of existing facilities, etc. It is
carried out as per Environment Protection (EP) Rules by MoEF. EIA study also
includes the impact assessment and risk analysis on biodiversity.
83
Energy Conservation (ENCON): (ENCON) projects have been contributing
enormously to bring down energy consumption and resultant reduction in carbon
emissions at our refineries. Total 126 ENCON projects are implemented during
2013-14 resulting in saving of 1,02,800 MT Standard Refinery Fuel (SRF)
equivalent to about Rs 420 Crore. It is envisaged that our investments on
ENCON projects during 2014-15 would yield approx. 1, 02,000 SRFT.
Waste: IndianOil continuously strive to minimize adverse impacts on environment
from company activities, products and services by using processes, practices,
materials and products that avoid, reduce or control pollution. Operating
installations of IOCL obtain consent from State pollution Control Boards to
operate under Water Act, Air Pollution Act, Hazardous Waste Act and Biomedical
Waste Act.
Water: Water in Refineries is sourced mainly from surface water such as canals,
lakes, rivers and ponds. Pipeline and Marketing division rely mainly on the supply
from municipality and groundwater. Specific water consumption per metric ton of
crude processed stands at 1.4 m3/MT. Implemented advanced technology to
recycle water.
Emission: tCO2 emission per MT of crude processed has been increased
slightly from last year; 0.262 tCO2 per MT of crude processed in 2012-13 to
0.264 tCO2 per MT in 2013- 14, due to installation of new technologies and
ENCON projects stabilization.
Ecological Initiative:
Barauni Refinery: turned the refinery’s eco park and art exhibition complex.
Digboi Refinery: Over 20,000 old trees flourish in the refinery complex
Bongaigaon Refinery: nurtured and developed a number of natural depressions
that turn into lakesA botanical park called Nandan Kanan was also developed
within the township.
Mathura Refinery: To keep the Taj Trapezium Zone unpolluted, Mathura refinery
planted more than 1 lakh trees in the Taj reserve forest near the monument.
84
Spread out over an area of nearly five acres and planted with 45 species of trees
and shrubs the cacophony of the birds in this area.
Gujarat Refinery: its Eco park is known for birds
Guwahati Refinery: A green belt has been developed around the refinery with an
ecological park with large water bodies having over 1 lakh trees that give shelter
to local & migratory birds.
Haldia Refinery: Its situated on the banks of Haldi river in the lush green environs
of delta and the refinery surroundings have been planted with over a hundred
thousand trees.
Panipat Refinery: About 5 lakh trees around the refinery are planted.
On Responsibility to Community:
The CSR expenditure during the current year is Rs 81.91 crore as against Rs
78.97 crore in Financial Year 2012-13. Further, an unspent amount of Rs 20.45
crore has been carried forward and would be added to the CSR Budget of FY
2014-15 for spending as some of the projects initiated during FY-2013-14 are at
various stages of finalization and expenditure against them would be effected in
FY 2014-15.
Education, Clean Drinking Water & Health & Medical Care are key focus of its
CSR program.
Scheme Benefits
IndianOil Sachal
Swasthya Seva
(ISSS)
52 Mobile Medical Units (MMU) are operational in Andhra
Pradesh, Telengana & Uttar Pradesh. During 2013-14,
14.76 lakh patients were treated & cumulatively, more
than26 lakh patients have been treated. healthcare, which
was launched in January 2012, marrying 2 concepts viz.
‘Healthcare for the poor’ and ‘Rural no-frill petrol/diesel
stations’. IndianOil’s network of 6002 ‘Kisan Seva
Kendras’ (KSK), which literally means ‘Farmers’ Service
Centres’, is an award winning ‘rural no-frill petrol/diesel-
85
station’ model, conceptualized to cater to rural Indians/
farmers’ multifarious daily needs.
Swarna Jayanti
Samudaik Hospital,
Mathura, Uttar
Pradesh
50-bed hospital. During 2013-14, 49,514 patients were
treated, Since 1999, about 7 lakh patients have been
treated.
Assam Oil School
of Nursing
(AOSN), Digboi,
Assam
Since inception, 334 students have completed the course
with 100% placement record
IndianOil
Education
Scholarship
Scheme
During 2013-14, 2600 scholarships.
IndianOil Sports
Scholarship
Scheme
150 scholarships for 19 games/ sports, players are from
14 to 19 years of age.
MoU with TATA
Medical Centre
Trust, Kolkata
IndianOil has an MoU with TATA Medical Centre Trust &
TATA Eastern Medical Trust for ‘IndianOil TATA Care
Centre at Kolkata (250 beds with complete modern
Cancer Care Centre)
SWOT Analysis of Indian Oil
Strengths Weaknesses
1) Strong Responsibility to Employee
a. Career transition Program
b. Training and development
c. Mentoring Programs
d. Capacity building
e. Occupational Health Service
f. Several benefits to the
1) Added Expense/ Losses
2) Reduction of ability/ Moral of workforce/
Reduced Output from work force
86
Employee
2) Pro-Environment
a. Infrastructure up gradation
Initiatives
b. Ecological Initiative
3) Consumers Grievance Radical System
4) Strong CSR Initiative:
a. Healthcare & Ambulance facility
b. Nursing College in Assam
c. Hospital & Health Service in
Mathura & joint venture with
TATA Medical Centre
d. 2600 Student Scholarship
e. 150 Sports Scholarship
Opportunities Threats
1. Good Relation with Community
2. Good reputation
1) Government Regulations for
Mandatory CSR Expense
2) Local community Dissatisfied
a. Non cooperation
b. Conflict
c. Environmental Problem
d. Health Hazards
Indian Oil emphasizes on Strong Responsibility to Employee that is to reduce the
chances for reduction of ability/ Moral of workforce. Indian Oil gives importance to Pro
Environment Initiatives like up gradation of equipment to reduce pollution and taking ecological
activity. It have some consumer related activity that to address consumer grievances. It have
taken some community related expenses like health care, Ambulance, mobile health care
facility, nursing college in Assam, hospital in Mathura, joint venture with Tata medical Centre,
scholarship program etc
87
.
CSR in Power Generation, Transmission & Distribution Sector
Indian power sector is mainly controlled by the Ministry of Power. There are three major pillars
of power sector: Generation, Transmission, and Distribution. Generation is mainly shared
between three sectors, Central Sector, State Sector, and Private Sector.
Central Sector or Public Sector Undertakings (PSUs), 29.78% (as on 31/12/2012). Major PSUs
involved in the generation of electricity include NHPC Ltd., NTPC Ltd.,, and Nuclear Power
Corporation of India (NPCIL).
State-level corporations contributes 41.10% (as on 31/12/2012) of overall generation , such as
Jharkhand State Electricity Board (JSEB), Maharashtra State Electricity Board (MSEB), Kerala
State Electricity Board (KSEB), West Bengal State Electricity Board etc
Private sector enterprises have 29.11% (as on 31/12/2012) share in generation; they also
contribute in transmission and distribution.
Some major issue related to the sector is stated below:
Environmental Threats:
Air Pollution: CO2, SO2, NOx, Green House Gases GHG and fly ash
Water Pollution: available quantity of fresh water is continually deteriorating
Noise Pollution: turbine, generator and auxiliaries, boilers and auxiliaries
Community/ People related Threat:
Health safety
Accidental hazards
Changes in land use pattern
88
Project-affected persons
Security Related Threat
SWOT & TOWS Analysis
After discussions with some managerial people of this sector following SWOT related to CSR
Power Generation, Transmission & Distribution Sector is designed.
Strengths Weaknesses
1) Training/ Education Program
2) More Bargaining power against employee
3) Own security Mechanism
4) Curative Health Care facility
5) Priventive health Care facility, Social
welfare, Community development initiatives
6) Upgraded Infrastructure
7) Pro Env Initiatives
1) Added Expense/ Losses
2) Reduction of ability of workforce/ Reduced
Output from work force
Opportunities Threats
3. Good Relation with Community
4. Availability of Low cost skilled
workforce
5. Good reputation
6. In time information to public security,
and action
1) Government Regulations for
Mandatory CSR Expense
2) PAP (Project-affected persons)/ Local
community Dissatisfied
a. Agitation
b. Non cooperation
c. Conflict
d. Problem of Theft due to poverty
level
3) Environmental Problem
a. Health Hazards
b. Noncompliance with
Governments Regulations
4) Power Theft
89
Strengths Weaknesses
The TOWS Matrix
(-) Negate
(<) Lesser need
(>) greater need
Strengths
Weaknesses
Opportunities
Threats
1) Training/ Education
Program
2) More Bargaining
power against
employee
3) Own security
Mechanism
4) Curative Health
Care facility
5) Priventive health
Care facility, Social
welfare, Community
development initiatives
6) Upgraded
Infrastructure
7) Pro Env Initiatives
S1 -> w1
S1 -> (-)W2-> (-)W1
S2 -> (-)W1, (-)W2
S3 -> W1,
S4 ->W1, (-)W2
S5 ->W1, (-)W2,
(<)S4
S6 -> W1 (short), (-
)W1 (long term)
1) Added Expense/
Losses
2) Reduction of ability
of workforce/ Reduced
Output from work force
Op
po
rtu
nit
ies
1) Good Relation with
Community
2) Availability of Low
cost skilled
workforce
3) Good reputation
4) In time information
to public security,
and action
S1 -> O1, O2
S1, S4, S5 ->O1
O2 -> S2
O4 -> (<)S3
O2 -> (-)W2
T1->O1
O1 -> (-)T2
T3-> (-)O1
T2c -> (-)O4
S1, S5, S5, S4 (As
Required), S6
(balancing
requirement &
Ability), S7
90
Th
rea
ts
1) Government
Regulations for
Mandatory CSR
Expense
2) PAP (Project-
affected persons)/
Local community
Dissatisfied
a. Agitation
b. Non
cooperation
c. Conflict
d. Problem of
Theft due to
poverty level
3) Environmental
Problem
a. Health
Hazards
b. Noncomplianc
e with
Governments
Regulations
4) Power Theft
T1 ->S1, S4, S5
T2 -> (>) S3
T2c, T2b -> (-)S2
S6, S7 ->(-)T3
T1->W1
T2a-> W1, W2->W1
T2c ->W3 ->W1
T2d -> W1
T3a -> W3 ->W1
T4 -> W1
The analysis suggests Training/ Education Program, Primary health Care facility, Social welfare,
Community development initiatives; Secondary / Tertiary Health Care Support, Pro
Environmental Initiatives, Up gradation of Infrastructure balancing requirement & Ability will be
required. In this analysis aspects related to Customers, Suppliers, Major part related to
Employee is not considered. Major part of the expense can be under the head of CSR Expense
and will meet the statutory requirements and will helps in building Good Relation with the local
community.
91
Case Study:
Purulia Pumped Storage Project
of West Bengal State Electricity Distribution Company Ltd (WBSEDCL)
Purulia Pumped Storage Project is an
hydroelectric project located at Ajodhya Hills,
under Bagmundi PS of Purulia district of West
Bengal. It’s an collaborative project of West
Bengal State Electricity Distribution Company
Ltd (WBSEDCL) & Japan Bank for
International Cooperation, having capacity of
900 MW (4 X 225 MW).
The area is also known for Maoist activity
however the project is not affected by Maoist activity as communication to the area is enhanced
due to the project that increased the tourism in the area resulting employment generation.
Health care facility became much better due to presence of the project.
Mongol Mahato,
Running Small Hotel
- According to him there was scarcity of drinking water and had to
travel 5-6 Km for water and income was very low only source of
income was shelling forest wood. After the project was started
drinking water is made available from the project. The area
became tourist attraction and many people like him started
business.
According to her they were very poor and had scarcity of food but she passed
class IX, Now she is working in the project.
Mimi Kisku
92
FGD at Ayaddha Hill
FGD @ Ayaddha Hill village confirms the loyalty of local people
to the projects. The Project is small and its level of giving back
to the local community is also small but that have great impact
on the people of the local community who are mainly tribal so
that the project used to get informal security of the common
people.
The CSR Activity of some major Power Sector company is also confirmatory to the results.
Company Latest
Informa
tion of
FY
PAT (₹
Crore)
CSR
Expens
e (₹
Crore)
% of
previou
s year
PAT
CSR Activity Highlight’s
NTPC 2013-14 10,974.7
4
109.77 0.87% NTPC Foundation, eradication of
poverty, skills , disabled people
Rehabilitation & Resettlement,
Environment Management, Clean
Development Mechanism, rural
electrification, CenPEEP
Torrent
Power
Limited
2013-14 94.84 1.77 0.46% Donation for education, healthcare,
providing relief to disaster victims and
promotion of social welfare, harmony
and nationalism
Adani
Power
Limited
2013-14 595.26 3.71 0.19% Education Initiatives, Community
Health Initiatives, Water Resource
Development, Sustainable Livelihood
Development, Projects, Rural
Infrastructure Development and
Community Environment Projects. 3%
of PAT will for CSR. The area of CSR
Project will be within 5Km of site
Tata
Power
2013-14 954 25.68 0.93% Coverage, Education, Employability,
Employment, Entrepreneurship,
93
Essential Amenities, 2% -3% of PAT
will for CSR. CSR activity will be done
within 5-10 km range of project
- Source Annual Reports of the companies
So CSR Expense is not a mere charitable donation to the society but an investment to the
society that led to increase in profitability if it’s done with proper planning.
Details of CSR Initiatives of some leading Players of this segment are discussed below:
NTPC Limited is an Indian Central Public Sector Undertaking under the
Ministry of Power, Government of India, engaged in the business of
generation of electricity and allied activities.
With the addition of 1,835 MW capacities (including 610 MW through JV
Companies) during the year 2013-14, the Company crossed 43,000 MW capacity
reaching a total capacity of 43,108.31 MW.
NTPC has always fulfilled its social responsibility as a part of its Corporate Governance
philosophy. It follows the global practice of addressing CSR issues in an integrated multi
stake-holder approach covering the environmental and social aspects.
NTPC has a complete Resettlement & Rehabilitation (R&R) policy covering community
development (CD) activities which has been revised and updated from time to time. CD
actions in green field area are initiated as soon as project is conceived and thereafter
extensive community / peripheral development activities are taken up along with the
project development. A separate CSR- Community Development Policy, sketched in July
2004 and revised in August 2010 in line with DPE guidelines, covers a wide range of
activities including implementation of key programmes through a trust NTPC Foundation.
The company, being a member of Global Compact Network, India, confirms its
involvement in various CSR activities in line with 10 Global Compact principles and
shares its experience with the representatives of the world through Communication on
Progress. It submits its Communication on Progress (COP) to UN Global Compact on
regular basis.
94
Expenditure incurred towards CSR Activities:
A total costs of ₹ 109.77 crore was used as Corporate Social Responsibility expenses
during the Financial Year 2013-14, which was 0.87% of the net profit after tax of the
previous year.
Awards:
The company got Golden Peacock Award 2013 for CSR, Appreciation Certificate from
ASSOCHAM CSR Excellent Award 2013 and Special Jury Commendation from FICCI
CSR Award 2012-13.
NTPC Foundation
NTPC Foundation is involved in serving and empowering the physically challenged and
economically weaker sections of the society.
Rehabilitation & Resettlement (R&R)
The company is committed to help the people affected by its projects and has been
making all its efforts to make the socio-economic status of Project Affected Persons
(PAPs), better. In order to meet its social objectives, The company is focusing on
effective R&R of PAPs and undertaking community development activities in and around
the locations.
Land availability for bulk offered projects for which award was placed during the year
was ensured through proactive redressed of R&R issues.
Initial community development (ICD) activities in the area of Health, Education,
Sanitation, Drinking water, Infrastructure facilities etc for Bilhaur project was permitted
after consultation with the stakeholders and for Khargone project, provisions for ICD
activities was enhanced during the year. Implementation of earlier approved ICD
95
activities continued at Barethi, Darlipali, Gajmara, Khargone, Jhajjar, Nabinagar
(BRBCL) and Nabinagar (NPGC) projects.
R&R activities and CD activities in the area of in the area of Health, Education,
Sanitation, Drinking water, Infrastructure facilities, capacity building etc were applied at
the new Greenfield projects after finalization of respective R&R Plan in consultation and
participation of the stakeholders at Gadarwara, Lata-Tapovan and Dulanga projects.
Provisions under R&R Plans was improved for North Karanpura, Tapovan-Vishnugad,
Pakri-Barwadih, Chatti-Bariatu and Kerandari projects. At other thermal, hydro and coal
mining projects like Barh, Bongaigaon, Dadri, Kanti, Korba, Kudgi, Lara, Mouda,
Solapur, Tanda, Vallur, Vindhyachal, Koldam, Talaipalli projects, R&R activities
continued throughout the year.
for the benefits of project affected persons and neighbouring population, Mobile Health
Clinic was deployed by Kudgi and Nabinagar (NPGC) projects. Toilets have been made
for PAPs at Kudgi and Khargone projects. Drinking water facility has been augmented
for supplying of water for project affected villages at Solapur project.
Socio-economic Survey (SES) for Bilhaur, Mouda-II and Gajmara is in progress.
Environment Management – Initiatives for preserving Environment
Vision Statement on Environment Management: Going Higher on Generation, lowering
GHG intensity
The company is following the objective of environment protection as one of its major
tasks and focuses its efforts to mitigate the impact of its operation on nearby
environment. Around 12-15% of the project cost is spent on various environment safety
equipment. To meet the environmental challenges of 21st century and beyond, the
Company has adopted complete environment management practices and advanced
environment protection system to minimize effect of power generation on environment.
The company has installed advanced and high efficiency technologies such as super
critical boilers for the future green field projects. The company is enlarging its capacity
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by installing solar power systems and micro hydel power systems to its thermal power
stations, wherever possible, so as to inspire garnering of renewable energy resources.
The Company is also designing its up-coming plants to use beneficiated coal and
imported low ash coal. These measures are meant not only to achieve reduction in
pollution and minimize use of precious natural resources but also to lead to reduction of
CO2 emissions per unit of generation thereby reducing global warming.
Control of Air Emissions: High efficiency Electro- static Precipitators (ESPs) with
effectiveness of the order of 99.97% and above, with advanced control systems have
been provided in all coal based stations to keep Suspended Particulate Matter (SPM)
below permissible limits. All up-coming new plants are being provided with ESPs
planned in such a manner that would cater to the expected future standards.
Performance enhancement of ESPs operating over the years is being carried out by
increase of ESPs fields, retrofitting of advanced ESP controllers and adoption of sound
O&M practices. Flue Gas Conditioning systems have also been provided at our old units
which are reducing of SPM emissions below statutory limits even during coal quality
variations due to blending of coal etc. Also, huge R&M program is being started to
upgrade air pollution equipment to reduce SPM emissions.
NOX control in plants is achieved by controlling its production by adopting best
combustion practices. Since tall stacks are provided in coal stations, NOx emitted
through stacks is widely dispersed and diluted. In gas based stations, NOx control
systems (hybrid burners or wet DeNOx) have been provided for good combustion
practices.
Fugitive emission from ash pond is controlled by maintaining water cover, tree
plantation on abandoned ash ponds, water spray and earth cover in inactive lagoons.
Providing dust suppression and extraction system in CHP area has further added to
reduction in fugitive dust in the vicinity of power stations.
Control of water pollution and promotion of water conservation: Various water
conservation measures are taken to decrease water consumption in power generation
by using 3Rs (Reduce, Recycle & Reuse).
97
Facility of mirandized treatment facilities such as Liquid Waste Treatment Plants
(LWTP), Recycling Systems for Ash Pond Effluent named Ash Water Recirculation
System (AWRS) and closed cycle condenser cooling water systems with higher Cycle of
Concentration (COC), rain water harvesting are some of the measures implemented in
most of the stations. All these measures results in reduction of effluent discharge from
the NTPC power plants.
Ash Management: Ash dykes in the stations have been engineered to ensure that all
safety and environmental issues are addressed at design stage itself.
Water sprinklers have been provided in the ash pond areas for spraying water in dried
up portion of lagoons for control of fugitive dust. Efforts are made to maximize use of ash
through use of Dry Ash Extraction System (DAES).
used ash is sent to ash pond by making ash slurry. The decanted water in Ash Pond is
recycled back with the help of Ash Water Recirculation System (AWRS).
Automation of environment measurement system: 67 continuous ambient air quality
monitoring stations (AAQMS) have been installed to get the real data and access thereof
viz., PM 10, PM 2.5, SOx, NOx and access has been provided to the Central Pollution
Control Board and State Pollution Control Boards. Additional ozone analyzers for
ambient air are also being provided at the stations. Continuous Emission Monitoring
Systems (CEMS) to monitor SOx, NOx and CO2 in all its units are installed in all units of
the Company.
Environmental Studies: The company has taken a number of studies for better
environment protection and to develop strong scientific database.
Tree Plantation: The company has planted about 21 million trees till date in and around
its projects as a measure of massive afforestation.
The afforestation has not only contributed to the aesthetics but also helped in carbon
sequestration by serving as a sink for CO2 released from the stations and thereby
protecting the quality of ecology and environment in and around the projects.
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ISO 14001 & OHSAS 18001 Certification: NTPCs stations have been certified with ISO
14001 and OHSAS 18001 by reputed National and International certifying agencies as a
result of sound environment management systems and practices.
Clean Development Mechanism
The company is proactively taken responsibility on the issues of climate change. The
super critical technology prepared by NTPC viz. consolidated base line and monitoring
technique for new grid connected fossil fuel fi red power plants using less GHG intensive
technology has been approved by United Nations Frame Work Convention on Climate
Change (UNFCCC) under Approved Consolidated Methodology 13 (ACM0013).
Two of its solar projects namely 5MW each solar PV project at Dadri and Port Blair,
Andaman & Nicobar had already been registered with UNFCCC. Another two projects
namely 5MW solar PV project at Faridabad and 8MW Small Hydro Power Project at
Singrauli are in advanced stage of validation for submission to UNFCCC for CDM
registration. Verification/ issuance of CERs for 5 MW solar power PV project at Dadri
and 5MW solar power PV project at A&N are in process.
In addition, The companys projects namely North Karanpura, Tapovan Vishnugad
HEPP, energy effi ciency projects at Singrauli and Dadri have got host Country Approval
from National CDM Authority.
Ash Utilisation
During the year 2013-14, 57.83 million tons of ash was made and 25.37 million tons of
ash had been utilized for various productive purposes. This was 43.88% of the total ash
generated.
Important areas of ash use are – cement & asbestos industry, ready mix concrete plants
(RMC), road embankment, mine filling, ash dyke raising & land development. 7.19
million tons of ash has been delivered to cement, RMC and other industries in the
financial year 2013-14.
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RURAL ELECTRIFICATION
NTPC, through its subsidiary NESCL, is carrying out the implementation of rural
electrification work in 5 States namely Madhya Pradesh, Chhattisgarh, Odisha,
Jharkhand and West Bengal under Government of India, During this period, 1,442
villages were electrified and 24,742 Below Poverty Line (BPL) connections were
provided under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY. till 31st March
2014 is 33,807 villages and 26,27,485 BPL connections).
CenPEEP – towards enhancing effi ciency and protecting Environment
NTPC initiated a unique voluntary program of GHG emission reduction by founding
Center for Power Efficiency and Environmental Protection (CenPEEP) and under this
program, it is estimated that over 37 million tons of CO2 has been avoided since 1996.
CenPEEP is also coordinating the implementation of Perform, Achieve & Trade (PAT)
Scheme under Prime Ministers National Mission on Enhanced Energy Efficiency
(NMEEE) in NTPC where all 22 stations of NTPC are designated Consumers. Based on
gap analysis, a joint action plan is prepared with Station for improvement of efficiency
and auxiliary power to achieve the PAT targets in the year 2014-15.
Under Indo-US bilateral program Partnership to Advance Clean Energy – Deployment
(PACE-D) being implemented with support of USAID, assessment of efficiencies has
been done for two State utilities namely Haryana and Maharashtra and action plans
were formulated for them. A Best practices manual for super critical units has been
prepared jointly with US experts and was released by Secretary (Power) Govt of India on
the occasion of NTPC International O&M Conference 2014. Work on benchmarking
methodology document, coal blending impact studies and pilot program on Advanced
Pattern recognition (APR) is underway with the help of US experts.
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Torrent Power Limited is an India-based company involved in
the electricity generation, transmission and distribution. Its
current operations are in the states of Gujarat and
Maharashtra. It is expanding into Uttar Pradesh. The company is the sole distributor of
electricity to consumers in the cities of Ahmedabad, Gandhinagar and Surat.
Concern for Society and Environment is a deeply rooted core value of the Company. As
a part of its CSR, the Company makes concentrated efforts in the felds of Community
Healthcare, Sanitation & Hygiene, Education & Knowledge Enhancement and Social
Care & Concern. During the year, the Company was involved in following CSR activities
taken up on its own or along with other Torrent Group Companies:
On its own
- The Company continued to cater to the needs of locals (as of date 9,500 patients)
from surrounding 26 tribal villages around SUGEN through SWADHAR, the Medical
Centre. SWADHAR is equipped to provide treatment for general ailments and in
specialities such as obstetrics, gynaecology and paediatrics. Various awareness
sessions on oral hygiene, adolescent health, anti-natal health and communicable
diseases as well as health camps were conducted for residents of nearby villages and
contract workers of SUGEN.
- Various initiatives like cleanliness drives, distribution of dustbins etc. have been
undertaken at villages surrounding SUGEN to create general awareness and a hygienic
environment.
- Constructed 4 classrooms and 2 toilet blocks as part of expansion work at Akhakhol
School near SUGEN.
At Group level
- Shiksha Setu – Teaching Learning Enhancement Programme in its third year included
more than 4,800 students and more than 200 teachers as benefciaries. Outcomes
included increase in participation of parents in parents- teachers meetings especially in
101
rural areas, 55% cumulative learning level improvement over baseline year, enhanced
learning interest in ICT based adaptive tool and improvement in attendance. 523
employee volunteers participated in the project activities during the year.
- Construction work is in progress for new building for high school comprising 24 class
rooms, science & computer lab, library, administrative block, assembly & dining hall,
kitchen area, sports complex, etc. for accommodating 1,500 students of class 9 - 12 at
Chhapi village in Gujarat.
- Reconstruction activities at Memadpur school were completed during the year which
included renovation of existing school building and construction of new facilities including
assembly hall and utility facility.
- A survey of 1,769 households was conducted by 154 employee volunteers to
understand women health issues and child health aspects, in order to conceptualize and
design a community healthcare programme in the vicinity of Sabarmati area in
Ahmedabad.
Besides the above, the Company has also made donations to the tune of ₹ 1.77 Crore
(Previous Year – ₹ 2.62 Crore) to various organizations involved in education,
healthcare, providing relief to disaster victims and promotion of social welfare, harmony
and nationalism.
In line with the provisions of the Companies Act, 2013 and rules made thereunder, a
CSR Committee has been formed by the Board of Directors. The Board of Directors at
their meeting held on 12th May, 2014 approved the CSR Policy as recommended by the
CSR Committee which includes, inter alia, the CSR activities falling under the purview of
Schedule VII of the Companies Act, 2013.
ENVIRONMENT, HEALTH AND SAFETY
The Company accords the highest priority to Environment, Health and Safety. The
developments during the FY 2013- 14 in this context include:
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SUGEN 40 integrated with IMS certification of SUGEN covering ISO 9001:2008, ISO
50001:2011, ISO 14001:2004 and BS OHSAS 18001:2007.
Renovation and Modernisation (R&M) work completed at E and F stations at AMGEN.
The increased efficiency on account of such R&M work will result into reduction of
greenhouse gases. Electro Static Precipitators (ESPs) were modifed at E station of
AMGEN to reduce the emission of suspended particulate matter.
AMGEN is certified for Energy Management System ISO 50001:2011 (EnMS) from
August 2013.
Adoption of safety improvement measures including undergrounding of overhead lines
at Bhiwandi & Agra, replacement of old oil type switchgears with SF6 switchgears,
replacement of old relays with protective relays and provision of DTC fencing and
earthing.
Adani Power Limited is the power business subsidiary of Indian
conglomerate Adani Group with head office at Ahmedabad, Gujarat.
Focus area of CSR of Education with special focus on quality education and girl child
education, Community Health, Sustainable Livelihood Development and Rural
Infrastructure Development. It lays a special focus on the marginalized sections of the
communities. Adani Foundation spreads to 7 States, more than 1400 villages or towns
and nearly 275000 families.
CSR schemes is generally implemented around the villages within 5 km of the location.
Education: It supports Government Primary Schools for infrastructure improvement and
material support.
Community health: health Checkup camps, promoting the Kitchen Garden concept to
improve nutritional status
Sustainable livelihood projects: Main Focus are
1) increase income if they are already earning
2) equip them to earning if they are unemployed
3) encourage savings
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Rural infrastructure development: Installation of hand pump, repairing public wells,
anganwadi buildings, overhead water tank, water pipe lines construction etc are major
part of such development.
CARE FOR ENVIRONMENT
They are developing plantation and greenery not only to reduce CO2 emission but also
to become a responsible corporate citizen and to create an environment friendly setup to
have one of the greenest power plants.
Their power plants operate at higher temperatures and pressures that results higher
efficiencies (above 40%) than conventional power plants (32%). The use of supercritical
technology results significant CO2 emission reductions (above 20%).
A distinct department of hoticulture enables the following:
- Aid in developing Eco-friendly Power Plants.
- Reduce the effect on environment and create a healthy climate
- green building concept in to help CO2emission
Tata Power is an Indian electric utility company based in Mumbai,
Maharashtra, India and is part of the Tata Group. The core business of
the company is to generate, transmit and distribute electricity. The firm
started as the Tata Hydroelectric Power Supply Company in 1911, which
amalgamated with the Andhra Valley Power Supply Company in 1916. It commissioned
India’s first large hydro-electric project in 1915 in Khopoli for 72 MW.
CSR Stat 2012-13 2013-14
No. of Volunteers 1393 1462
Employees Volunteering Hours 6974 9722
CSR Expenses in ? Million 231.6 256.8
CSR Expenses for Social Capital and Infrastructure
(in ? Million)
56.80 54.13
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At Their 2014-15 Mandated Programs has ₹ 24.20 crore and Location specific Programs
has ₹ 5.80 crore for work.
Tata Power Initiatives are:
a) Sustainable agriculture and livelihood initiatives for farmers, fishermen
b) Employability training for youths
c) Water Security
d) Education initiatives at schools, computer education and e-learning,
improving school based infrastructure
e) Promoting SHG for women empowerment through income generation, Bank
linkage for Micro-credit
f) Health Initiatives through mobile health units, rural health camps
g) Behavioural change communication for promoting safe health behavior
h) Specialized health initiatives for women
i) SHG mobilisation for enhancing awareness on health care
j) Promoting HIV AIDS awareness through schools, colleges
k) Enhancing access to safe drinking water at schools and household level
l) Mahseer Conservation, Club Enerji for energy conservation, promotion of
renewable energy, Greenolution - an inhouse initiative to promote green
initiatives
It is a signatory to UNGC, IBBI. Local partnership with civil society, academia for
organisational learning and collective program management. Sustainability Reporting as
per GRI and CDP.
Managing Relocations: Tata Power has tried to ensure minimal impact on the
environment, wildlife and neighborhood for minimal relocation, as far as possible at their
projects sites.
Affirmative Action: Tata Power intended to help to create an inclusive society through
focused and sustained Affirmative Action, for creating a positive impact on the lives of
SC and ST communities
105
AA Framework
Coverage Objective Major
Programs
Short Term
Major Programs
Long Term (> 2
years)
Measures/
Indicators
Education To improve
support services
and
infrastructure in
schools for
increase in
access and
quality of
education
•
Supplementary
Education
• Scholarship,
• Distance
Learning Centre
• Mentoring
• No. of
SC/ST students
supported
• No. of
students
passing
matriculation
Employability To enhance the
skill/competency
level of SC/ST
persons
• Career
counselling
• ITI
• Skill
Development
Centre
• Finishing
Initiative - Special
Coaching Centre,
• Rural BPO
• Rural
Livelihood
• No. of
persons
supported
• No. of
persons
employed (and
self
employment)
• Increase in
income ( ?)
Employment To provide
gainful
employment to
meritorious
SC/ST
candidates
• Recruitment
as GETs/MTs,
etc.
• Increasing
employment
through business
associates
• Training
placement
committees in
colleges
• No. of
persons
recruited by the
Company and
business
associates
106
Entrepreneur
ship
To promote
inclusive growth
through
entrepreneurshi
p among SC/ST
Communities
• Promote AA
Vendors -
Local Services
• Vendor
Development
(DICCI)
• Developing
entrepreneur and
Market
• No. of
vendors
developed
• Volume of
business given
to Vendors
Essential
Amenities
To meet the
basic needs for
living
• Caste / Tribe
certificate
• Drinking
water
• Health care
• Sanitation
programmes
• Rural energy
• No. of
persons
covered
The company firmly believes in making a positive impact on the community in the vicinity
of its operations.
Tata Power Skill Development Institute
The Indian Power sector is poised for significant capacity additions in the 12th and 13th
Plan Period needing large scale adequately skilled workforce. There exist skill gaps
across the entire value chain. With more and more services being obtained from Service
Providers, ensuring that they deploy adequately skilled manpower has become crucial
for the industry in general and The company in particular.
The company has set up Tata Power Skill Development Institute (TPSDI) to ensure that
workforce deployed by the contractors is adequately skilled. TPSDI would be involved in
imparting modular power skills training, testing, certification and accreditation, in a
phased manner. To begin with, it would focus on the contractors'' workforce of Tata
Power and would over time, cater to other companies in the power sector.
Care for Environment
Environment management is a value that is embedded in The company’s DNA and
helps in incubating a culture of acting responsibly towards the environment. The
company addresses various aspects of resource conservation, energy efficiency, carbon
107
footprint, renewable power generation, biodiversity and green buildings. The company
also follows various measures like Environmental Compliance, Corporate Sustainability
Protocol Index (CSPI), Green Manufacturing Index (GMI) to keep track of the initiatives
and their impact. The following key
initiatives were taken up during FY14:
Measurement, tracking and reduction of Specific Water Consumption
Development of Green Belt at Mundra and Maithon Sewage Treatment Plants at Hydro
stations
Promoting E-Bill subscription by consumers in Distribution business.
These initiatives are expected to improve the performance of individual units on
important environmental aspects.
The company has focussed its initiatives for sustained ash utilization at all its generating
plants using coal. Trombay, Jojoberaand Maithon achieved 100% fly ash utilization
whereas CGPL achieved 25% in its first year of full operation, which is in line with
regulatory requirements. Special attention has been given for developing new uses of
ash and creating value added products from ash.
The company has started water foot-printing exercise at its operating locations. This will
help in better understanding of watershed, impact of its water discharges and future
proofing of water requirements for Company’s operations.
The company strives to create environmentally responsible employees by promoting
and showcasing individual efforts in green initiatives through Green solution.
108
CSR in Banking and Financial Sector in India:
The economic reforms in India about have changed several sectors of the Indian economy. The
Indian banking sector is not exclusion. This sector is going through major changes as a result of
economic reforms. The role of banking industry is very key as one mostly necessary service
sector. India is the largest economy in the world having more than 120 crore population. Today
in India the service sector is contributing half of the Indian GDP and the banking is most popular
service sector in India. The significant role of banking industry is essential to speed up the social
economic development.
The economic reforms have generated powerful customers i.e. the Indian middle class and new
mix of players like public sector units, private banks, and foreign banks. The emerging
competition has generated new expectations from the existing and the new customers. There is
an urgent need to introduce new products. Existing products need to be delivered in an
innovative and cost effective manner by taking advantage of emerging technologies. The
biggest opportunity for the Indian banking system today is the Indian consumer.
Change in income levels and lifestyle are changing the profile of the Indian consumer. The
Indian consumer now seeks to fulfil his lifestyle ambitions at a younger age with an optimal
mixture of equity and debt to finance consumption and asset creation. This is leading to a
growing demand for competitive, sophisticated retail banking services. This paper explains the
changing banking scenario, the impact of economic reforms and analyses the challenges and
opportunities of national and commercial banks.
So the biggest challenges to the banks are to grab the market for that retention of old customers
and getting new customer are key objective in this regards. Modifications in Companies act
make CSR Expense Mandatory (at least 2% of the average net profits of the company). That un
109
avoidable threat can be converted in to opportunity to develop certain strength to get
competitive advantage.
SWOT & TOWS Analysis
With some Brainstorming sessions with professionals in banking sector following SWOT related
to CSR in banking sector is designed.
Strengths Weaknesses
1) Having New Technology for Quaker service
2) Good reputation
3) CSR Initiatives
4) Added Income
1) Added Expense
2) Low employee moral to serve customer
better
3) Slow Time consuming service
Opportunities Threats
1) New Customer
a) First Time Customer like students,
Kids
b) New Entrepreneur
c) Get Access to the community didn’t
used banking service
2) Development in Tech
1) CSR Expense Mandatory
2) Old Customer attracted by other bank
Strengths Weaknesses
The TOWS Matrix
(-) Negate
(<) Lesser need
(>) greater need
Strengths
|Weaknesses
Opportunities
Threats
1) Having New
Technology for Quaker
service
2) Good reputation
3) CSR Initiatives
4) Added Income
S1(installation)-> W1
S1(long run) -> (-)
W1
S3 -> W1
W1 -> (-)S2
S1 -> (-)W3
1) Added Expense
2) Low employee
moral to serve
customer better
3) Slow Time
consuming service
110
Op
po
rtu
nit
ies
1) New Customer
a) First Time
Customer like
students, Kids
b) New
Entrepreneur
c) Get Access to
the community didn’t
used banking service
d) Customer of other
bank
2) Development in
Tech
S2 -> O1 (a,b)
S3 -> O1 (a,b,c)
O2 -> S1
S1 -> O1d, O1b,
O1a
O1 -> S4
W2 -> (-) O1
W3 -> O1
[T1 -> S3]
So S3 is fixed and
W1 for S3 is fixed
So S3 -> O1
(a,b,c), S2 &
S1(installation) and
(-) W2 will be the
best.
Th
reats
1) CSR Expense
Mandatory
2) Old Customer
attracted by other bank
[T1 -> S3]
S1 -> (-) T2
S3 -> (-) T
[T1 -> W1]
W2, W3 -> T2
The TOWS Matrix suggest that if CSR Initiatives are designed in a way that will aided in getting
new Customer i.e
a) First Time Customer like students, Kids
b) New Entrepreneur
c) Get Access to the community didn’t used banking service
d) Customer of other bank
It should create good reputation of the bank and make their well known to new customer having
111
friendly look and create both way accessibility.
The CSR Program should develop in a way that may bear at least certain part of Technological
up gradation may be in the name of environmental protection.
The CSR Program should aid to develop employee morale and attitude to serve the customer
the best.
Asked to 300 New customer of Banks in program of young persons
Bank
Latest
Informa
tion of
FY
PAT (₹
Crore)
CSR
Expen
se (₹
Crore)
% of
previou
s year
PAT CSR Activity Highlight’s
SBI 2013-14
10,891.
17 141 1%
Supporting Education, Supporting
Healthcare by ambulances and Medical
Equipment, natural calamities, Green
Banking, Research & Development, SBI
Children's The Banklfare Fund, water
purifier to schools
Allaha
bad
Bank 2013-14 1172 0.297 0.03% Donations
112
IDBI
Bank 2013-14
1,121.4
0 2%
preventive healthcare and sanitation,
Promoting Education, vocational skills
training, Gender Equality,
Environmental Sustainability, Sports
activities, ) Contribution to Central
Government Relief and The Banklfare
Funds, Technology Incubators, Rural
Development
Canara
Bank 2013-14 2,438
Rural Development, Training of
unemployed rural youth, primary health
care,
HDFC
Bank 2013-14
8,478.4
0
Support Education, Library Projects,
Rehabilitation of children with special
needs, E Banking
- On the basis of Annual Report, Director reports etc. published by the bank
It seems that CSR Initiatives of the banks are mainly on supporting Education or Training,
Community Development, Community Health care and Environment.
Details of CSR Initiatives of some leading banks are discussed below:
State Bank of India
State Bank of India is an Public Sector banking and financial
services company. It is a government-owned corporation with its headquarters in
Mumbai, Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000
branches, including 190 foreign offices, making it the largest banking and financial
services company in India by assets.
The Bank recorded a good growth in Operating Profit during the fourth quarter of the
year as compared to previous quarters. The Operating Profit of the Bank for 2013-14
was higher at ₹ 32,109.24 crores, as compared to ₹ 31,081.72 crores in 2012-13, an
increase of 3.31%. The Bank posted a Net Profit of ₹ 10,891.17 crores for 2013-14
113
The Bank has a complete Corporate Social Responsibility (CSR) Policy, approved by the
Executive Committee of the Central Board in August 2011 and earmarks 1% of the
previous year's net profit as CSR spend budget for the year.
Focus areas of our CSR activities are:
Supporting education.
Supporting healthcare.
Assistance to poor & underprivileged.
Environment protection.
Entrepreneur development programme.
Assistance during natural calamities like foods/droughts etc.
Supporting Education:
To support school education and provide relief from heat to millions of school children
specially the under privileged children, Bank has provided 1,40,000 electric fans to
14,000 schools across the country during 2013-14.
Infrastructure support by way of furniture, computers and other educational accessories
and donation of large number of school buses/vans to the physically/ visually challenged
children and children belonging to economically the weaker section of society.
Supporting Healthcare:
Bank donated 210 medical vans/ambulances with an expenditure of ₹ 18.38 crores
during the year. Medical equipment have been provided at 90 centres worth ₹ 8.87
crores. Bank installed more than 30,000 water purifiers in schools ensuring clean & safe
drinking water for millions of school going children.
Assistance during natural calamities:
During the current fiscal the Bank has donated ₹ 6.00 crores to the Chief Minister''s
Relief Fund of three states.
114
Green Banking:
Bank has adopted energy efficient measures.
SBI is the largest deployed of solar ATMs.
Bank has installed windmills in three states for its own energy needs.
Paperless Banking is promoted and implemented across the country.
Gives project loans at concessionary rate of interest to encourage reduction of
green house gases by adopting efficient manufacturing practices.
Research & Development Fund
The Bank makes an annual contribution of GBP 100,000 towards a Chair set up by the
Bank jointly with RBI at the Asia Research Centre at London School of Economics. Our
R&D Fund donations amounted to ₹ 1.03 crores during 2013-14.
SBI Children''s The Banklfare Fund
The Bank constituted SBI Children''s The Banklfare Fund as a Trust in 1983 which
extends grants to institutions engaged in the the Banklfare of underprivileged children
like orphans, destitute, mentally/physically challenged, etc. The Corpus of the Fund is
made up of contributions by staff members and matching contribution provided by the
Bank. During the FY 2013-14, 12 projects assisted with ₹ 34.70 lakhs.
Allahabad Bank
Allahabad Bank is a nationalised bank with its
headquarters in Kolkata, India. It is the oldest joint stock bank in India. On 24 April 2014,
the bank entered into its 150th year of establishment. It was founded in Allahabad in
1865.
During the financial year 2013-14 it made total Business of ₹ 331748 crore with Net
Profit of ₹ 1172 crore. During the financial year 2013-14 Bank provided financial support
aggregating to ₹ 29.68 lac under Corporate Social Responsibility (CSR) to various
organizations/activities as detail below.
115
Organisations/Activities Amount Spent (₹ in lac)
Saroj Gupta Cancer Centre & Research Institute 2.89
Udyan Shalini Fellowship Prog 0.24
Water Purifier & Sewing Machine (Distributed by ZO
Guwahati)
0.55
Bhawna Aj O Kal 1.00
Repairing/ Renovation of Girl''s Hostel of Sabarmati
Harijan Ashram Trust, Ahmedabad
10.00
Centurian University of Technology and Management,
Bhubaneshwar
15.00
Industrial Development Bank of India
During 2013-14, IDBI Bank's gross income amounted to ₹ 29,576
crore, comprising interest income at ₹ 26,597 crore and other income at ₹ 2,979 crore.
The Bank's operations resulted in Profit Before Tax (PBT) of ₹ 1,741 crore. After a
provision of ₹ 620 crore towards tax, Profit after Tax (PAT) amounted to ₹ 1,121 crore.
IDBI Bank shall allocate a Budget for CSR initiatives for each financial year equivalent to
2% of its average net profits made during the last three financial years.
IDBI Bank has adopted the following core areas for its CSR initiatives, all of which are
culled from the activities spelt out under Schedule VII of the Companies Act 2013:
(i) Promoting Healthcare (including preventive healthcare and sanitation) and Poverty
Eradication
(ii) Promoting Education(including specialized and employment oriented vocational
skills) and Livelihood enhancement projects
(iii) Promoting Gender Equality and Socio-economic Empowerment
(iv) Ensuring Environmental Sustainability
(v) Protecting and Preserving National Heritage, Culture and Art
(vi) The Banklfare measures for Armed Forces Veterans and their Dependents
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(vii) Promotion of Sports activities
(viii) Contribution to Central Government Relief and The Banklfare Funds (as admissible
under the Act)
(ix) Contribution/Funding to GOI approved Technology Incubators
(x) Rural Development Projects
The focus of the Bank’s CSR interventions will largely be in the areas of healthcare,
education of downtrodden including girl child, sustainability & climate change and rural
development through adoption of some villages.
To restore the economy and infrastructure of the adopted village Taru and its
transformation into a “Model Village”, based on a unique community participation and
ownership model, through a set of pre-determined programme activities, involving
strengthening of community mechanisms and capacity building, among other initiatives.
Canara Bank
Operating profit of the Bank increased by 15.4%
to ₹ 6796 crore compared to ₹ 5890 crore last
year. Due to higher provisions and contingencies from ₹ 3018 crore last year to ₹ 4358
crore, the Bank earned a net profit of ₹ 2438 crore for 2013-14 compared to ₹ 2872
crore last year.
CORPORATE SOCIAL RESPONSIBILITY
the Bank is engaged in varied Corporate Social Responsibility (CSR) activities. CSR
initiatives of the Bank are diverse, like training unemployed rural youth, providing primary
health care, drinking water, community development, empowerment of women and other
social initiatives.
Rural Development
The Bank, through its Canara Bank Centenary Rural Development Trust (CBCRDT),
has established 34 exclusive training institutes, including 26 Rural Self Employment
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Training Institutes, 5 Institutes of Information Technology and 3 Artisan Training
Institutes to help entrepreneurship development among rural youth and encourage for
self-employment activities. During 2013-14, these Institutes trained 26521 candidates,
taking the tally to 2.16 lakh unemployed youth since beginning.
The Bank has co-sponsored another 27 Rural Development and Self Employment
Training Institutes (RUDSETIs) across 17 States, involved in training of rural youth for
taking up self-employment programmes. During 2013-14, these Institutes trained 23861
candidates, taking the tally to 3.45 lakh unemployed youth, with a settlement rate of
73%.
The Bank has co-sponsored
Andhra Pradesh Bankers Institute for Rural and Entrepreneurship
Development (APBIRED) at Hyderabad
Canara Bank Deshpande RSETI at Haliyal, Karnataka, Karnataka
Farmers Resource Centre (KFRC) at Bagalkot,
Karnataka and Bharat Ratna Shri M Visvesvaraya Training Institute at
Bangalore.
During the year, the Bank set up 3 Training Institutes., viz.,
a) RSETI at Bahora, Purnea district, Bihar inaugurated by Shri Jawahar Thakur, CGA,
Government of India on 08.03.2014.
b) RSETI at Masauli, UP opened on 22.06.2013 and
c) Canara Bank Institute of information Technology (CBIIT) at Badagaon, Barabanki
District,
Bank has sponsored / co-sponsored 65 training institutes, which have trained 5.67 lakh
unemployed youth so far. The Bank has a noble Scheme of Rural Clinic Services at
remote villages, lacking basic medical facilities.
The Bank has donated a hi-tech, custom built, solar powered ''Retail Mobile Marketing
Van'' to assist women entrepreneurs, SHGs and artisans to market their products.
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- De-fluoridation- Reverse Osmosis plants in villages: The Bank has undertaken an
ambitious project of providing De-fluoridation - RO plants for pure drinking water facility
in 217 villages of Kolar and Chickaballapur districts. The estimated cost of the project is
about ₹ 17.36 crore.
- Construction of Toilets for Girls in 130 Schools in Lead Districts:
The Bank has sponsored construction of toilets for girls in 5 Schools in each Lead
District. The project costing ₹ 3.52 crore.
- Canara Vidya Jyothi Scheme: Scheme of extending financial assistance to SC/ST girl
students from rural areas named as Canara Vidya Jyothi Scheme was launched under
CSR initiative. Each rural branch of the Bank was mandated to extend financial
assistance to 6 girl students of their command area. Amount of assistance was fixed at ₹
2500 per student for students of class 5th to class 7th and ₹ 5000 per student for
students of class 8th to class 10th.
- Integrated development of villages: onsidering the vast rural and semi-urban client
base, the Bank has adopted 65 villages and 3 slums for their integrated development
under Canara Gramodaya Scheme.
- Assistance to Endosulfan affected people in Kasargod district of Kerala
- Safe drinking water facility to fluoride affected villages in Nalgonda District of Andhra
Pradesh
- Support to persons with disability to lead a better life: The bank support persons with
disability through ngo, Associations of people with disability, conducting
Entrepreneurship Development Trainings for people with disability, in association with
Enable India.
- Extending financial support for procuring equipment by reputed hospitals to serve/treat
deserving needy people.
- The Bank has associated with Bhagawan Mahaveer Viklang Sahayata Samiti,
Rajasthan to provide ''Jaipur Foot'', an artificial limb to the disabled. The Bank provided
financial support of ₹ 99.57 lakh during the year for organizing ''Jaipur Foot'' Camps in 7
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different centres and sponsoring of the artificial limbs to the needy persons. Over 2800
disabled persons are benefitted during the camps.
- The Bank provided a financial support amounting to ₹ 60 lakh to undertake repairs of
Somnath Chhatralaya in Sabarmati Ashram, Ahmedabad, started by Gandhiji.
HDFC Bank
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. It is the fifth largest bank in India
by assets, incorporated in 1994.
The Bank continues its endeavors to build a sustainable business philosophy through
three platforms namely governance, social responsibility and environmental
responsibility.
The Bank has started several community interventions/ projects through the year to
create a positive impact on society. These projects take shape in many ways from
corporate philanthropy to employee driven projects. The Bank has partnered with over
18 NGOs and over 70,000 lives helped through those actions.
In keeping with its mission for community interventions its projects/programs have
largely focused in the areas as outlined below.
Education
Education is one of the building blocks of any nation, one of the core focuses of the
CSR strategy is the promotion of education. The Bank's programs aim at mainstreaming
out of school children and strengthening the quality of education. In order to meet these
objectives the Bank have initiated a multitude of programs reaching out to about 5,500
students.
1. Integration of out of school children: Integration of first time learners into mainstream
education through pre-primaries within the community.
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2. Improving the reading and learning ability of children: Through programs such as
Grow with Books, 'Library Projects’, and Mobile Science Lab.
3. Rehabilitation of children with special needs: In continuation of our inclusive
approach the Bank support efforts of mainstreaming/rehabilitation differently abled
children with special needs such as physiotherapy treatment, speech therapy etc. In
addition to providing ongoing assistance the Bank have also established an Audiology
room for children with hearing impairments.
4. Educational assistance: In addition to initiatives that directly impact the learning
ability of the child, The Bank also sponsors the educational expenses of disadvantaged
or destitute children in institutional care, schools, colleges and professional courses.
Currently close to 1,000 students receive educational assistance through direct or
institutional support. In addition to these The Bank also differentiates positively in favor
of the Girl Child through a special sponsorship for education of the girl child.
5. Special educational sponsorships: The Bank launched the Educational Crisis
Scholarship Support (ECSS) in 2011. ECSS aims to provide assistance to students to
tide over difficult situation / personal/family crisis / without any adverse impact on their
education. In the year 2013-14, 338 students in schools and colleges is supported for
completing their education.
Financial Literacy
The Bank supports Financial literacy projects in 600 schools across Andhra Pradesh
and Odisha, inculcating social and financial habits among students aged 8 to 14. So far
the Bank have reached out to over 63,000 students studying in Government schools. In
addition through our Sustainable Livelihood Initiative (SLI), Bank also offers non-financial
services such as credit counseling and financial literacy training. The Bank also
conducts rural financial literacy initiatives across the country to complement its efforts to
support inclusive growth. Under its ''Power of Banking Program'' the Bank continues to
train school children on basic concepts of Finance such as the origin of money, role of
banks, importance of savings, etc. Driven by employee volunteers, the program covered
over 3,300 children in 2013-14.
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Training
The Bank consistently strives to empower and provide occupational training to people at
the bottom of the pyramid, which in turn will create employment opportunities for them.
Bank’s livelihood initiatives are aimed at training and capacity development of youth and
women from economically the Banker sections of society and to empower them to gain
access to opportunities and growth. Bank’s livelihood support programs are aimed at
empowering competency-based, skill-oriented technical and vocational training.
Community Initiatives
The Bank has supported a number of need-based projects within the community to
make a difference to more than 4,900 lives. These have ranged from infrastructural
support to community based campaigns. In response to the water crisis in Maharashtra,
the Bank sponsored the constructing of rain water harvesting structures in three villages
in Maharashtra. Another project implemented in Mangaon aimed at creating sanitation
and water storage facilities for tribal children.
Traffic safety is another concern area the Bank is funding. It have installed branded
boards with messages on traffic safety such as ''Wear a helmet'', ''Wear a seatbelt'',
''Don''t use The mobile while driving'', etc.
One of Bank’s largest community based initiatives is organizing blood donation drives.
In 2007, the Bank introduced the idea of a one-day nationwide blood donation drive and
encouraged people to support a single social cause across the Bank’s vast network.
Engaging the community as a team proved to be an important success factor in the
years that follow the Bank. The seventh edition of the event was held from December 5,
2013 to December 8, 2013. 86,774 units of blood were collected during the campaign.
The HDFC Bank Blood Donation Drive of 2013 set a GUINNESS WORLD RECORD™
as the organizer of the Largest Blood Donation (across multiple venues) in a single day
in the world. The campaign involved 61,902 participants donating blood at 1,115 camps
across 709 locations in India on December 6, 2013.
Response to Disasters:
The Bank has always helped those affected by natural disasters such as flood,
landslides, drought, etc. During times of crisis the bank has extended its support to
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provide relief to victims of such disasters and support the rehabilitation efforts of the
state.
Employee Volunteering:
The Bank continues to encourage employees to participate and contribute to society
through both time and funds. Through the employee payroll giving program employees
continues to donate on a monthly basis. Currently 5,464 employees are active payroll
donors. The Bank supports this gesture by donating a matching amount
Sustainable Livelihood Initiative:
The Bank is committed to reaching out to the unbanked and under banked people at the
bottom of the pyramid, particularly in rural India and bringing them into the banking fold.
It involves a holistic approach - from offering training and enhancing occupation skills to
provide credit counseling, financial literacy and market linkages . About 9 lac families it
covered this year and about 27 lac families have so far benefitted from this initiative.
Environmental Responsibility
The Bank regards climate change mitigation and environmental improvements as
essential elements of a sustainable business. This belief embodies the Bank’s approach
on reduction of carbon emissions. The Bank has taken various steps to manage GHG
emissions, through Multi-channel delivery such as ATMs, Phone Banking, Net Banking
and Mobile Banking which have cut down customers'' need to commute to our branches.
The bank has ensured that many of its main locations have energy efficient lighting
systems in place.
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C O N C L U S I O N S
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C O N C L U S I O N S
CSR Clauses of Companies Act 2013 make CSR Activity mandatory for companies of certain
sizes, which make companies think about social welfare sector. Schedule VII of the act
specified certain field for CSR Expense such as preventive healthcare, sanitation, providing safe
drinking water, protection of national heritage, rural development projects, measures to benefit
armed forces veterans, rural development projects, promoting rural sports, nationally recognized
sports, setting up homes and hostels for women, orphans and senior citizens, reducing
inequalities in socially and economically backward groups and support to technology incubators
in academic institution etc.
CSR Expense should not only be a philanthropic activity but based on holistic responsibility of
business organization towards its shareholders, employees, consumers, related communities
and environment that will ultimately enhance the competitive advantages. To get profit from it a
proper planning for CSR Activity is required.
In this study MSME Segment & Some core industry have had been studied. Business entities of
MSME Segment are mostly out of the ambit of the act as well as the clause however they have
taken some CSR activities. Those Activities give those advantages in security and marketing
perspective.
Through CSR Activities SAIL ensures success in defensive strategies of CSR for that it is
activities like Water Sources, Road Connectivity, Sports, health care facility, reduction of
pollutions etc. helps in building faith and friendship with local community that have had aided it
in security perspective. Education, Training, Occupational Health Care enhances Employee
morale & Education, Training programs ensures availability of skilled work force in local
community level and gives it competitive advantages.
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Indian Oil’s CSR Activities are prioritize towards environment, employee morals and efficiency.
It has taken some activities like community health care; scholarships etc aided it in building
good relations with community.
Defensive strategy of CSR is important Power Generation Transportation and distribution
section. They are majorly concern with Education, Employability, Health Care of PEP and local
community. They also have concern for environment.
Banking Sector is in Education, Vocational training, Healthcare for CSR that enhance the
access to prospective clients. Their Pro environment activities like E-Banking, Mobile banking,
green banking etc reduces transaction costs and make banking process faster.
Annual reports of most industries are showing that CSR Expenses are much lesser than 2%
PAT. Companies are facing difficulty in doing CSR Expenses. It indicates weakness of
companies in operational & planning perspective.
Recommendations:
a) Proper research on CSR policy is required to be done by companies that address
holistic approach towards all stockholders so that they can get maximum utility.
b) Companies should develop optimum CSR Activity Planning
c) Continues impact Analysis and flexibility of CSR Program is essential success the
success.
d) To reduce the inability to do the CSR expenses, companies should be serious
regarding operational & controlling part of CSR Activities.
Limitations of My research:
1) Major limitation of the study is inability to do primary research in much bigger dimension
among all type of stockholders of major market players due to lack of financial resource.
2) The study was done by relying the fact that the companies are publishing accurate
information and they are not tampered however there was inability in investigating
regarding it.
3) True Impact analysis was required that couldn’t be done due to lack of resources.
4) Action Research was required to get more accurate information and situational analysis
however that was not possible
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Future Study: A proper impact analysis of CSR Activities is required to be done that include
primary study on all stockholders is required to be done so that the study yields a proper road
map for CSR Activities so that all stockholders will get optimum benefits.
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R E F E R E N C E S
i http://www.unido.org/
ii www.unglobalcompact.org/
iii http://www. ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
iv http://www.ilo.org/
v Social Responsibilities of the Businessman - Bowen (1953)
vi Multiple Levels of Corporate Sustainability - Marcel van Marrewijk, Marco Were (2003)
vii Genius becomes rare: A comment on the doctrine of social responsibility Pt. 1 - Votaw, D. (1972)
viii Citation Classics from the Journal of Business Ethics by Alex C. Michalos, Deborah C Poff
ix The Companies Act 2013 Government of India
x Companies (Corporate Social Responsibility Policy) Rules, 20I4
xi MCA, General Circular 21/2014 Dt. 18th June,2014
xii http://msme.gov.in/
xiii http://www.sail.co.in/
xiv https://www.iocl.com/
xv www.ntpc.co.in
xvi www.torrentpower.com
xvii www.adanipower.com
xviii www.tatapower.com/
xix https://www.sbi.co.in/
xx https://www.allahabadbank.in/
xxi www.idbi.com
xxii https://www.canarabank.in/
xxiii www.hdfcbank.com/
xxiv http://www.sail.co.in/