Enriching Academic Corporate Loop (ACL)A CSR Initiative

Enriching Academic Corporate Loop (ACL)

A CSR InitiativeGSCSR 2015

Prepared by: Mahima Gupta | Dr B K Som | Dr Ritu Bajaj

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Need of the study

Jagan Institute of Management Studieswww.jimsindia.org

Corporate sector utilises societal resources.

It is thus the duty of corporate sector to give back to the society in any form, which is understood as ‘corporate social responsibility’

CSR generally takes into account activities like educating the poor, helping old age homes, going green, reducing waste, sponsoring sports activities, giving donations etc.

In this paper we propose a new dimension to corporate social responsibility – ‘Enhancing employability’.

By this the academia-corporate loop (ACL) can be enriched

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Introduction

• classroom teaching not applicable to real business environment

• role of CSR in education is mitigating the skills• Experimentation• learning-by-doing along the way

• bridging the gap between academic delivery and corporate requirement

• study makes an attempt to check the feasibility of Academic Corporate Loop (in context of enhancing employability)


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Introduction

• This loop explains that majority of corporate shall understand the importance of making society more employable

• Shall put strong footstep to bridge the gap between academia and corporate

• By doing so, corporate will be able to cut on their cost of training as they will get ready to use manpower

• The paper, showcases and adds this dimension to corporate social responsibility and proposes a way for the better implementation of this concept.


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Research Methodology

• A non-probabilistic quota sampling was adapted to get a sample of size 30 companies• fall under the control categories i.e. a net worth of 500 Cr or an annual turnover of greater than 1000 Cr or a profit of 5

Cr or more

• 10 companies each falling in all the 3 categories as mentioned were a part of the sample in the study

• These companies need to spend 2% of the average of last 3 years profits towards CSR activity

• The respondents are top or middle level managers who are a part of the CSR committee• part of Government of India inclusive growth strategy in order to implement CSR through corporate sector, a separate 3

member CSR committee needs to be formed

• A scheduled interview was used for filling up questionnaires from the companies in Delhi and NCR


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Objectives

To examine the dimensions of CSR adopted by companies

To examine the feasibility of Academic Corporate Loop

To examine the challenges for corporate while taking CSR initiative for Academic Corporate Loop


Questionnaire Flow

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Demographic Details Generic perception about CSR

Involvement of organization in CSR

Perception about knowledge of

PGDM/MBA campus recruits

Opinion on existence & suitability of proposed ACL

enrichment techniques

Challenges faced during adoption of

CSR


Data Analysis & Interpretation

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Data analysis - Involvement in CSR

• The table represents that the corporate professionals give ‘Social factor’ the maximum weightage while considering CSR.

• This is followed by Economic and Environmental dimension.

• This states that the corporates want to serve the social aspect before benefitting the stakeholders economically or the environment.

Dimension Cumulative %

Social 100

Economic 83

Environmental 77

Stakeholder 37

Voluntary 0

Table 1: Ranking of CSR dimensions


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Enviro

nmen

t Pro

tectio

n

Assista

nce D

uring

Natu

ral C

alamitie

s

Educa

ting U

nderp

rivile

ged

Commun

ity D

evelo

pmen

t

Free M

edica

l Fac

ilities

Promoti

ng S

ports

and F

itnes

s

Fundin

g R &

D

Offerin

g Sub

sidies

Free V

ocati

onal

Trainin

g

Others

Fundin

g Nati

onal

Secur

ity In

teres

ts

Fundin

g Poli

tical

Parties

0.0

10.0

20.0

30.0

40.0

50.0

60.0

0%

20%

40%

60%

80%

100%

120%

53.350.0

46.743.3 43.3

36.733.3 33.3

30.0

23.3

6.7 3.3

13%

26%

37%

48%

59%68%

76%84%

92%98% 99% 100%

Data analysis – Linking education with CSR initiatives

• 46.7% of the organizations mentioned that educating the under-privileged is a part of their existing CSR practices.

• This shows the importance of linking education with CSR in the corporate environment.

• The activities which fall to the left of the vertical line – Environmental protection| Assistance during natural calamities| Educating underprivileged and Community development programs alone form approximately half the CSR activities list

Figure 1 – Proportion of specific CSR activities through Pareto Chart representation


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Data analysis - Linking academia and corporate

• 96.7% respondents mentioned that their organization hires PGDM/MBA students.

Figure 2 : Proportion of PGDM/MBA recruits through ring representation

96.7

3.3

Hire PGDM/MBA Don’t hire PGDM/MBA

Average Score of satisfaction from PDGM/MBA recruits

If a significance of even 10% is assumed then the variation of 1.6 (5.0-3.4) is too high.

3.4/5


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• Corporate is not satisfied with the level of knowledge on the mentioned skills.

• On skills such as initiative taking, problem solving, commitment, self-management, analytical decision making and team work the respondents are not even ‘somewhat satisfied’ with the hiring.

Table- 2 : Mean scores of students assigned by corporate professionals on various skills

Skills Mean Score (Out of 5)

Flexibility 3.2

Technical Strength 3.1

Integrity 3.1

Willingness to learn 3.0

Planning & Org 3.0

Communication Skills 3.0

Leadership 3.0

Initiative taking 2.8

Problem Solving 2.8

Commitment 2.8

Self-Management 2.8

Analytical Decision making 2.7

Teamwork 2.7Jagan Institute of Management Studieswww.jimsindia.org

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• positive correlation

• represents improvement in skills will positively impact the level of satisfaction from the knowledge of students

Table 3: Correlation between Skills & satisfaction level

SkillsCorrelation between score on skill & satisfaction from knowledge of

PGDM/MBA

Technical Strength (TS) 0.52

Leadership (L) 0.42

Planning & Org (P&O) 0.31

Communication Skills (CSs) 0.24


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• Sensitivity analysis strengthens the correlation analysis

• depicts that the value of satisfaction from knowledge of PGDM graduates (y axis) increases with increasing mean satisfaction scores of different correlating factors.

Figure 2: Sensitivity analysis of skills affecting satisfaction

X1 -Planning & Org (P&O)

X2 - Technical Skills (TS)

X3 - Communication Skills (CSs)

X4 - Leadership (L)1 1.2 1.4 1.6 1.8 2 2.2 2.4 2.6 2.8 3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 5

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

X1 X2 X3 X4


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Proposition of ACL enrichment concept

• From the analysis presented above, it is comprehensible that the corporate give prime importance to the societal aspect of CSR.

• While almost each organization hires PGDM/MBA graduates, they scored them low on most of the skill sets.

• Thus there exists a gap between corporate and academia which needs to be bridged.

• It has also been recorded that the corporate is ready to take the onus of increasing students’ employability thereby helping in bridging the gap.

• appointing industry mentor• organizing corporate workshops for students• faculty employee exchange programs• students to work on 2 selected jobs for 3 months each• faculty involvement on real time industry projects

For bridging this gap, through our paper, certain techniques are proposed. These techniques include:


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Presence of proposed techniques

• Chart depicts that the presence of proposed techniques in any form is less than even 50%.

Appoin

ting i

ndus

try m

entor

Organ

izing

Cor

p.

Wor

ksho

ps

Facult

y

emplo

yee e

xcha

nge p

rogr

am

3-3 m

onths

traini

ng

Facult

y on

real ti

me

indus

try pr

ojects

0.0

10.0

20.0

30.0

40.0

50.0

60.0

26.7

43.3

36.7

46.4

31.0

56.7

46.750.0

42.9

51.7

16.7

10.013.3

10.7

17.2

Exist Don’t Exist DKCS

Figure 3: Proportion of respondents admitting the presence of proposed techniques of ACL enrichment through bar graph.


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Suitability of proposed techniques

Table 4: Mean score of respondents on suitability of proposed techniques of enriching ACL out of 3

Proposed TechniquesMean Score

(Out of 3)

Appointing full time industry mentor 2.0

Organizing Corporate workshop 2.5

Faculty employee exchange program 1.9

3-3 months training in 2 job profiles of choices 2.3

Involving faculty on real time industry projects 2.3

High suitability


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Challenges faced

• lack of time, manpower and funds are the major challenges faced by corporate in adoption of CSR

• the average amount of time period spent in training an employee is 2.36 months

• the level of student knowledge will go up there by reducing the average training time

Lack of time Lack of funds Burdensome Lack of manpower Not mandatory Others0

5

10

15

20

25

30

0%

20%

40%

60%

80%

100%

120%

24

11

6

14

6

1

39%

56%

66%

89%

98% 100%

Figure 4: Cumulative effect of challenges through Pareto chart representation


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Conclusion and Recommendations

• The study shows strong intent of corporate towards adopting CSR and benefitting society.

• They also agree that it is the responsibility of the corporate to make students more employable.

• Thus the study shows that establishment of ACL is possible.• However some challenges posed are : lack of time , money & manpower• Trade off between time | manpower & money spent on training resources deployed in enriching ACL

• The techniques to enrich ACL have been much appreciated and deemed suitable for corporate implementation.

• The proposed techniques can thus be adopted by corporate as their CSR activities in order to create a win-win situation for both corporate as well as academia


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The Shift

The shift


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References

• G. Riga, Acquiring Corporate Social Responsibility Approach through business study process‖, summary of the promotion paper for promotion to the degree of Doctor Branch - The Science of Management, sub-branch -Educational Management, University of Latvia, 2007.

• L. P., Hartman, R. S. Rubin, and K. K. Dhanda, ―The communication of corporate social responsibility: United States and European Union multinational corporations‖. Journal of Business Ethics, vol. 74, no. 28,pp. 373-389, 2007.

• M. Porter, and M. Kramer, ―Strategy & society: The link between competitive advantage and corporate social responsibility, Harvard Business Review, vol. 84, no. 12, pp. 78-92, 2006.

• A. Carroll, ―The Pyramid of Corporate Social Responsibility Business Horizons, vol. 34, no. 5, pp. 39-48, 1991.

• Perez, A. and Bosque, D, R, Ignacio., 2014, How customers construct corporate social responsibility images: Testing the moderating role of demographic characteristics, Business Research Quarterly.


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References

• Mattera, M., Baena, V., Cervino, J., 2012, Analyzing social responsibility as a driver of firm’s brand awareness, Procedia-Social and behavioural sciences, vol. 58, pp. 1121 – 1130.

• Khandelwal R, and Bakshi S. , 2014, The new CSR regulation in India: The way forward, Procedia Economics and Finance, vol. 11, pp. 60-67.

• Broomhill, Ray., 2007, Corporate social responsibility key issues and debates, Dustan paper.

• Hesselbarth C., and Schaltegger S., Educating change agents for sustainability- learning from the first suitability management master of business administration.

• Dahlsrud A. 2008, How corporate social responsibility is defined, An analysis of 37 definitions, Corporate Social Responsibility and Environmental Management, vol. 15, 1-15.


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