Definition A family-owned business in India can be defined as a business governed and/or managed on a sustainable potentially cross generational, basis to shape and perhaps pure the formal or implicit vision of the business held by members of the same family or a small number of families

(Chua, Chrisman, and Sharma, 1999).

Indian Scenario 40% of world GDP is from the family run firms More than 50% belong to the SMEs. In developing countries, SMEs account for more than 90% of all the jobs. (UN1992) Enterprises up to 25 Crore come under SMEs.

CSR Reasons They see a long-term benefit in being responsible, They want to abide with the prevailing law and Genuine concern for the society.

http://www.isb.edu/FamilyBusinessConference/D evelopmentofCorporateSocialResponsibilityinIndi anFamilyBusiness.pdf

Corporate Social Responsibility Commission in 2007 ( Corporate Social Responsibility in SMEs - SMEs Good practice ) CSR can positively influence SMEs competitiveness in numerous ways SMEs can provide with improved products High customer loyalty Motivated employees Innovative and creative employees Cost savings Inceased profitability Enhanced networking with business partners Improved company image

Corporate social responsibilityCSR in Different areasEducation Health Women Empowerment Donation Desaster relief Children welfare Blood Donation HIV Others

20%

54%

15%

3% 3% 2% 2% 1%

0%

CSR Region wise35.68%

11.62% 9.66% 9.17% 7.04% 6.71% 6.55% 3.27%

Maharashtra

Gujarat

Delhi

Tamil Nadu

Andhra pradesh

West Bengal

Rajasthan

Karnataka

CSR By Family Business In India there are some Family business they do the CSR Activities, some Examples Reliance Tata Group Bajaj Group Mittal group

These company s CSR Activities Tata Relief committee Hospitals Education Environment protection Women empowerment

Benefits for these businesses CSR can positively influence Company s competitiveness in numerous ways Leadership with trust High customer loyalty Motivated employees Innovative and creative employees Enhanced networking with business partners Improved company image

Reasons for not opting CSR Informality Turnover Promoters are seeking quick wealth and immediate success. Businesses owned for generations are more cautious about their money Don t fall into government formed norm Growth Paternalistic (Control is centralized and influenced by tradition)(Malini Goyal, ET Bureau Nov 29, 2011)articles.economictimes.indiatimes.com/2011-11-29/news/30454695_1_family-ownedbusinesses-john-l-ward-standardgovernance-ds