CONTENTS

1. Acknowledgement

2. Title of the Study

3. Objectives of the study

4. Scope of the study

5. Introduction

6. Conclusion

7. Bibliography

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Title of the study

The title of the project study is “Corporate Social Responsibility: How far should a company

go?” This project report shows the Social Responsibility done by corporate sector to pay the

certain debts that it owes to the society.

Objective of the study

The primary objective of this project study is to know what Corporate Social Responsibility

exactly is. And up to what extent companies are playing their role in society and further how can

they help in welfare of society. Some other objectives are:

To study & analyze the Corporate Social Responsibility.

To know up to what extent society is being benefited by Corporate Social Responsibility?

To know whether CSR accounts for brand image of a company or not?

To study different CSR programmes accomplished by companies?2

To compare the effectiveness of CSR programmes in different companies.

Scope of the study

The scope of this project is not restricted in particular area or industry but it’s open for all the

different kind of sectors like FMCG, RETAIL, PHARMA, TELECOME etc. because the Social

Welfare is the responsibility of every industry as the business takes place in the society, So it

becomes the duty to pay their obligations towards society.

CORPORATE SOCIAL RESPONISIBILITY

Introduction:

Business depends on the society for the needed inputs like money, men and skills. Business also

depends on the society for market where products may be sold to their buyers. Thus, business

depends on society for existence, sustenance and encouragement. Dependence of business on

society is so complete that as long as the latter wants the former, business has reason to exist.

Once society ceases to have any use for business, it has no place and reason to live. Being so

much dependent, business has definite responsibility towards society.

Definition 1: European Commission

• “A concept whereby companies integrate social and environmental concerns in their business

operations and in their interaction with their stakeholders on a voluntary basis”

Definition 2: World Business Council for Sustainable Development

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• “The continuing commitment by business to behave ethically and contribute to economic o

development while improving the quality of life of the workforce and their families as well as of

the local community and society at large.”

Definition 3: AIESEC

• “Business taking an active role in addressing economic, social, and environmental issues at

both global and local community levels.”

Definition 4: PHILIPPINES CSR is about business giving back to society.

Definition 5: INDIAN NGOs.com

Corporate social resbonsibility is a business process wherein the institution and the individual

within,are sensitive and careful about the direct and indirect effect of their work on internal and

external communities,nature and outside world.

Definition 6:

CSR is concerned with treating the stakeholders of the firm ethically or in a societally

responsible manner.Stakeholder exist both within a firm and outside.Consequently behaving

socially resbonsible will increase the human development of the corporation.A process-and

dialogue baesd approach to treat stakeholders with respect by consistently monitoring their

interests and status and taking those into accounts in corporate decision making.

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EVENTS THAT FELT THE NEED OF CORPORATE SOCIAL

RESPONSIBILITY

The dominant thinking of business firms, till around the mid twentieth century, was only

to earn profit for the shareholders (owners). The paradigm of thinking changed as the

expectations of society from business altered from 1960s onward. This change was

triggered because of the occurrence o Bhopal Gas Tragedy , 1984 and Corporate bad

behavior (Shell, Nike, Exxon Mobile, Enron and WorldCom) became common place

from the 1990s

f certain events like:

The coming of Rachel Carson’s, book Silent Spring in 1962 and Ralph Nader’s consumer

safety and environment movement in the 1960s

Stockholm conference, 1972

Bhopal Gas Tragedy , 1984 and Corporate bad behavior (Shell, Nike, Exxon Mobile,

Enron and WorldCom) became common place from the 1990s

Earth Summit (Rio de Janeiro, 1992)

Formulation of Kyoto Protocol 1997 and institutionalization of the Global Warming

movement.

World Summit on Sustainable Development (Johannesburg, 2002)

Many such events along with the events mentioned changed the business and society equation.

Business firms were expected to take responsibility of the harm the firm activities caused to

environment and society.

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EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

The concept of social responsibility has broadened and changed over time. As the values and

norms of society has changed. During the industrial revolution the corporation was seen solely as

an economic entity whose primary objectives were to maximize profit, provide jobs and protect

the interest of its shareholders. The doctrines of self interest prevailed during the 1920’s before

the stock market crash

In the 1930’s the concept of CSR moved into its second stage, trusteeship management which

lasted until the 1960’s. During this stage the number of private companies declined due to the

great depression and the remaining organization had to please group both outside and within the

company. Manager had to balance the interest of all stakeholders, some of whom pressured

companies into using their wealth to meet the needs of society. This stage marks the first time

that organization had to become social responsible in order to survive.

As the 1960’s approached, once again society values and expectations changed, and the concept

of social responsibility moved into it’s 3 phase. This period was marked by quality of life

management, in which managers were expected to manage the quality of life by helping to solve

such problems, as pollution and poverty at local and national levels and to become involved in

activities that improve the quality of life in their communities. Quality of life management is the

stage at which social responsibility is today. According to DUNHAM and by PIERCE, two

principles provide the basis for current views on social responsibilities.

1. Principle of charity.

People who have should give to those who don’t.

2. Principle of stewardship.

Corporations are obligated to meet the need of society because they gain there power and

wealth through operating within society.

Large Corporation are being asked not only to support social causes but to solve society’s

problems as well. In addition to pursuing traditional economic goal, corporation are protecting

and improving the welfare of the community.

According to Gorman : Three factors have led to the latest concern for social responsibility.

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1. Deregulation of industries: The Reagan administration cut the budgets of the federal

Trade Commission and the Consumer Product Safety Commission.

2. Hostile takeover and buyouts: While many bankers and CEOs became rich, thousands

of employees lost their jobs, which eroded the credibility of business.

3. Accidents: The Chemical spill in Bhopal, India reminded people of the destructive

effects that the carelessness of companies can cause.

The public believes that corporations will not follow regulatory requirements if left to do son

on their own and will try to get away with whatever they can, which is why government

intervention is justified. Charter is permission granted to a corporation by a state to operate

under its laws. The government is supposed to represent what the people want and therefore

can intervene in business activities if they affect society negatively.

Government intervention reflects the belief that businesses have a responsibility to their

constituencies other than shareholders.

Even religious institution can influence what business activities are considered legitimate.

Consumers have also taken matters into their own hands. Today’s consumers not only check

the prices of items, but check for social responsibility as well. Many consumers use shopping

for a better world, published by the council on economic priorities.

In an effort to be heard, consumers are investing in corporation that they feel are

socially responsible and are boycotting those that are not.

RESPONSIBLE BUSINESS

• “One that has built-in to its purpose and strategy a commitment to deliver sustainable

value to society at large, as well as to shareholders, and has open and transparent business

practices that are based on ethical values and respect for employees, communities, and the

environment.”

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RESPONSIBLE ENTREPRENEURSHIP

A concept and a process whereby entrepreneurial enterprises integrate social and

environmental concerns in their business operations and in their interactions with their

stakeholders.

BUSINESS BENEFITS OF CSR

Human resources:

A CSR programme can be seen as an aid to recruitment and retention, particularly within the

competitive graduate student market. Potential recruits often ask about a firm's CSR policy

during an interview, and having a comprehensive policy can give an advantage. CSR can also

help to improve the perception of a company among its staff, particularly when staff can become

involved through payroll giving, fundraising activities or community volunteering.

Risk management:

Managing risk is a central part of many corporate strategies. Reputations that take decades to

build up can be ruined in hours through incidents such as corruption scandals or environmental

accidents. These events can also draw unwanted attention from regulators, courts, governments

and media. Building a genuine culture of 'doing the right thing' within a corporation can offset

these risks.

Brand Differentiation:

In crowded marketplaces, companies strive for a unique selling proposition which can separate

them from the competition in the minds of consumers. CSR can play a role in building customer

loyalty based on distinctive ethical values. Several major brands, such as The Co-operative

Group and The Body Shop are built on ethical values. Business service organizations can benefit

too from building a reputation for integrity and best practice.

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License to Operate:

Corporations are keen to avoid interference in their business through taxation or regulations. By

taking substantive voluntary steps, they can persuade governments and the wider public that they

are taking issues such as health and safety, diversity or the environment seriously, and so avoid

intervention. This also applies to firms seeking to justify eye-catching profits and high levels of

boardroom pay.

WHY HAS CORPORATE SOCIAL RESPONSIBILITY BECOMEIMPORTANT

“In the flat world, with lengthy global supply chains, the balance of

Power between global companies and the individual communities in

Which they operate is tilting more and more in favor of the companies….

As such these companies are going to command more power,

Not only have to create value but also to transmit valued, than any other institution on the planet.

Many factors and influences have led to increasing attention being devoted to the role of

Companies and CSR. These include:

• Sustainable development: United Nations’ (UN) studies and many others have underlined the

fact that humankind is using natural resources at a faster rate than they are being replaced. If this

continues, future generations will not have the resources they need for their development. In this

sense, much of current development is unsustainable—it can’t be continued for both practical

and moral reasons. Related issues include the need for greater attention to poverty alleviation and

respect for human rights. CSR is an entry point for

Understanding sustainable development issues and responding to them in a firm’s business

strategy.

• Globalization: With its attendant focus on cross-border trade, multinational enterprises and

global supply chains—economic globalization is increasingly raising CSR concerns related to

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human resource management practices, environmental protection, and health and safety, among

other things.

CSR can play a vital role in detecting how business impacts labor conditions, local communities

and economies, and what steps can be taken to ensure business helps to maintain and build the

public good. This can be especially important for export-oriented firms in emerging economies.

• Governance: Governments and intergovernmental bodies, such as the UN, the Organization

for Economic Co-operation and Development (OECD) and the International Labor Organization

(ILO) have developed various compacts, declarations, guidelines, principles and other

instruments that outline norms for what they consider to be acceptable business conduct. CSR

instruments often reflect internationally-agreed goals and laws regarding human rights, the

environment and anti-corruption.

• Corporate sector impact: The sheer size and number of corporations, and their potential to

impact political, social and environmental systems relative to governments and civil society,

raise questions about influence and accountability. Even small and medium size enterprises

(SMEs), which collectively represent the largest single employer, have a significant impact.

Companies are global ambassadors of change and values. How they behave is becoming a

matter of increasing interest and importance.

• Communications: Advances in communications technology, such as the Internet and mobile

phones, are making it easier to track and discuss corporate activities. Internally, this can facilitate

management, reporting and change. Externally, NGOs, the media and others can quickly assess

and profile business practices they view as either problematic or exemplary. In the CSR context,

modern communications technology offers opportunities to improve dialogue and partnerships.

• Finance: Consumers and investors are showing increasing interest in supporting responsible

business practices and are demanding more information on how companies are addressing risks

and opportunities related to social and environmental issues. A sound CSR approach can help

build share value, lower the cost of capital, and ensure better responsiveness to markets.

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• Ethics: A number of serious and high-profile breaches of corporate ethics resulting in damage

to employees, shareholders, communities or the environment-as well as share price—have

contributed to elevated public mistrust of corporations. A CSR approach can help improve

corporate governance, transparency, accountability and ethical standard.

• Consistency and Community: Citizens in many countries are making it clear that corporations

should meet the same high standards of social and environmental care, no matter where they

operate. In the CSR context, firms can help build a sense of community and shared approach to

common problems.

• Leadership: At the same time, there is increasing awareness of the limits of government

legislative and regulatory initiatives to effectively capture all the issues that CSR address. CSR

can offer the flexibility and incentive for firms to act in advance of regulations, or in areas where

regulations seem unlikely.

• Business Tool: Businesses are recognizing that adopting an effective approach to CSR can

reduce the risk of business disruptions, open up new opportunities, drive innovation, enhance

brand and company reputation and even improve efficiency.

STAKEHOLDER MANAGEMENT

Stakeholders are those parties impacted by the company and upon whom its ultimate success

depends

Major stakeholders in addition to investors:

Employees

Customers

Business partners

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Communities

Environment

Shareholders / Owners

RESPONSIBILITY TOWARDS EMPLOYEES

The employees should be treated as human beings and their cooperation must be achieved for the

realization of organizational goals. The management of a business should fulfill the following

obligations towards its employees.

1. Fair wages-every business should pay reasonable wages and salaries to its employees so that

they may satisfy their needs and lead a good life.

2. Good working conditions-since workers spend about eight hours on every working day at the

workplace, they must be provided with good working conditions.

3. Adequate service benefits-Workers should be provided service benefits such as housing and

medical facilities, insurance cover and retirement benefits.

4. Cooperation – It is the responsibility of the management to win the cooperation of the

workers by creating the condition in which workers are willing to put forward their efforts

towards the common goal of business.

5. Recognition of workers rights - The management should recognize the workers right to fair

wages , to participate in decision affecting their working life, to form trade unions to collective

bargaining and to go on strike of their demands are not accepted.

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6 Opportunity for growth-The workers should be helped by training and other means to

improve their skills. Management should give the workers adequate to opportunities to develop

their capabilities through training education and the enjoyment of freedom to the greatest

possible extent.

Responsibility towards customers

Customer satisfaction is the ultimate aim of all economic activities. This involves more the over

of products at lowest possible price. Adulteration of goods, poor quality, failure to give fair

measure, lack of service and courtesy to the customers, misleading of dishonest advertising are

some of the examples of violation by business of it obligations towards the customers of its

products. Therefore, it is the duty of management to take care of following points.

Need satisfaction-the company should produce those goods which meet needs of different

classes, tastes and with different purchasing power.

Regular flow of goods-The business should make goods of right quality available to the right

people at the right time and place at reasonable price.

Courteous service-The business should provide a prompt adequate and courteous service to

customers, and handle their grievances carefully.

Fair trade practices-The management should not indulge into unethical practice such as black-

marketing, hoarding, adulteration etc.

Right information-The manager should assure that advertisements ad statements issued by the

business are true and fair.

RESPONSIBILITY TOWARDS SUPPLIERS

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1. Provide accurate information regarding the financial health of the organization.

2. Ensure a reasonable price for the articles supplied, and make prompt payments there should

be fairness in transactions.

3. Promote a healthy atmosphere where creditors, suppliers and other interest groups are treated

as patterns in a cooperative endeavor.

RESPONSIBILITY TOWARDS SHAREHOLDERS OR OWNERS

There is a separation of ownership and management in the case of joint stock companies. The

shareholders are empowered to appoint directors and seek regularly accurate and full financial

information about the company are responsible for safeguarding the interests of shareholders.

But in case of sole readership and partnership concerns, the owners can look after their interests

themselves.

1 Reasonable dividend –shareholders are a source of fund for a company. They expect a high

rate of dividend on the money invested by them and also the maximization of the value of their

investment in the company.

2 Soundness- it is duty of management to see that financial position of the company is sound

and the company always look for growth.

3 Information- It is the responsibility of the management to keep the shareholders well informed

about the progress and financial position of the company.

4 Protection of the assets- The assets of the company are purchased with the funds provided by

the shareholders. The management is able to safeguard these assets.

COMMUNITY INVOLVEMENT

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Peter Drucker suggested that business should be so managed that to make the public good the

private good of the enterprise. Thus every business owes an obligation to the society at large.

The specific responsibilities of business towards society are as follows-

1 Socioeconomic objectives – Management must be guided by the socioeconomic objectives of

the society. It should not indulge in any practice which is not fair from social point of view.

Society expects that the business uses the factor of production effectively and efficiently to the

satisfaction of needs of the society. If the business fulfills these expectations its goodwill and

reputation will increase.

2 Improvement of local environment- good management can develop surrounding area for the

well being of the workers and the general public. Management has certainly great responsibility

to keep the healthy environment conditions where production is being carried on. It should take

preventive measures against air and water pollution and should contribute should contribute to

the development activities.

3 Employment opportunities- it is the responsibility of the management to help increase direct

and indirect employment in the area where it is functioning.

4 Efficient uses of resources- the resources at the command of the business belong to the

society. Therefore the management should make best efforts of use of capital, raw material and

other resources for the well being of the society.

5 Welfare activities- The business should contribute to the weaker sections of the society. It

should cooperative in welfare activities of the community.

ENVIRONMENT

ECO-EFFICIENCY

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Waste reduction

Pollution avoidance

Recycling

Reducing materials, energy, water

Lower packaging costs

Certification

LIFE-CYCLE MANAGEMENT

GREENING THE SUPPLY CHAIN

PUBLIC PROCUREMENT

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TATA’S CORPORATE CITIZENSHIP

Co-operatives to generate leather industry-related employment for women at Indore and

Mhow.

Maintenance of a public children's park in Dewas town.

Public library in Dewas supervised by workers as a volunteer activity.

Marketing consultancy and computer classes for NGOs as a volunteer activity.

Tata Public School in Dewas.

Provides training to women in the manufacture of leather articles at a Vocational

Training Centre, the Leather & Jute Training Centre at Indore, in collaboration with the

Madhya Pradesh Handicraft Development Board (Hasta Shilp Vikas Nigam).

Donation of finished leather to a leprosy hospital every year for making shoes for

patients.

Tata International is also a member of the Tata Council for Community Initiatives and

participates in regional programmes.

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ENVIRONMENT PROTECTION

200 000 trees planted at the leather factory at Dewas.

Reforestation of Tekri hillock in Dewas town.

Sophisticated effluent treatment plant at the leather factory.

Reverse Osmosis plant for liquid waste.

Biomethanation pilot plant.

R&D projects like processes for chrome free leather, process changes study for eco labeling of

leather products.

ENERGY CONSERVATION

One of India's largest solar thermal water heating systems at the leather factory.

FINANCIAL ASSISTANCE TO NGOS Education.

Environmental consciousness.

Healthcare.

Medical research.

Social welfare.

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Projects of Tata

Tata Projects step towards corporate social responsibility

Keeping the tradition of the Group to do service to the society apart from the business, Tata

Projects has taken a step forward by donating and installing a 1000 litres per hour “de-

fluoridation unit” at Gangadevapalli village in Warangal district of Andhra Pradesh through The

Federation Of Andhra Pradesh Chambers of Commerce and Industry (FAPPCI) in October

2004. 

The Gangadevapalli village has been adjudged as an ‘ideal’ village by the Andhra Pradesh

Government and same was adopted by FAPPCI. This Village has a population of 1,200 with 230

dwelling units and the ground water contains 2.8 – 3.2 mg/litre fluoride level. While a Canadian

NGO offered their assistance for the bore well, water storage and distribution network, the “de-

fluoridation unit” was installed by Tata Projects in the distribution system to enable the villagers

to collect the potable drinking water to WHO standard. The unit supplied by Tata Projects is

working well and the villagers are happy with the services rendered by Tata. 

The skid mounted de-fluoridation unit is an in-house developmental project of Tata Projects

which converts water containing fluoride and arsenic into potable water.

Profile

Tata Projects is a professionally managed engineering, procurement and construction company

with operations in the core sectors of power generation, transmission and distribution, industrial

infrastructure, oil, gas and hydrocarbons, and quality services.

Tata Projects is one of the few companies that have earned the ISO 9001, ISO 14001 and

OHSAS 18001 certifications for all its operations.

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The company's quality services backed by well-integrated inspection centers within and outside

India, offer best-in-class third-party inspection and expediting services in the fields of power,

cement, steel, pharmaceutical, telecom, oil and gas, petrochemicals and windmills.

Areas of business

Power generation

The company's power generation strategic business unit undertakes turnkey engineering,

procurement and construction (EPC) projects in the fields of captive power plants, balance of

plants for super thermal plant utilities; installation works of steam generators, turbine generators

and auxiliaries up to 660 mw.

As an EPC contractor the company has a knowledge base of the latest technologies and skills

available in project management. The unit's offerings are based on a deep understanding of both

domestic and international customer needs in order to achieve the best possible solution.

Transmission and distribution

The company is a key player in the extra high voltage (EHV) sector with capabilities of turnkey

execution of high-voltage transmission lines and substations, execution of distribution

substations and substations, and survey of transmission lines using satellite imagery and other

modern technology. Backed by a dedicated workforce, the company is teaming with leading

global companies in their efforts to execute mega projects in power generation, transmission and

distribution.

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Industrial infrastructure

The company's infrastructure business unit, besides its main business of setting up seawater

desalination and water-related treatment plants, is aggressively working on an end-to-end

sustainable solution for providing potable drinking water in rural areas, a problem that afflicts

most states in India. The company is also working towards creating a sustainable solution for

treating arsenic infestation of water, particularly in the state of West Bengal and Bihar.

Oil, gas and hydrocarbons

The oil, gas and hydrocarbons sector has been identified as another thrust area and a new

strategic business unit has been set up to handle the new line of business. At present, it is

handling EPC projects for downstream oil, gas and hydrocarbon sector, establishment of crude

oil and chemical storage terminals and handling facilities, installation services for main plants,

and equipment and piping for refinery and petrochemical projects.

Quality services

This strategic business unit offers third-party inspection and expediting services in the fields of

power, cement, steel, pharmaceuticals, telecom, oil and gas, petrochemicals and windmills. It

also offers consultancy services for ISO 9001, ISO 14001 and OHSAS 18001, besides self-

certification capabilities assessment of suppliers.

Fifteen inspection centers with e-connectivity spanning major industrial cities in India provide

fast and cost-effective services.

In the international arena, the company is currently providing these services in Abu Dhabi,

Sharjah, Dubai, Bahrain, Saudi Arabia, China, Korea and Malaysia.

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Community initiatives

As part of corporate social responsibility, the company is involved in finding a sustainable

solution to the acute problem of fluorosis (excessive fluoride concentration in ground water) in

the state of Andhra Pradesh, where the company's corporate office is located. In this regard, the

company, by networking with the Federation of Andhra Pradesh Chamber of Commerce and

Industry, has donated defluoridation units to provide safe drinking water in the Gangadevapalli

village of Warangal district and Chinnakandakur village of Nalgonda district, both in Andhra

Pradesh. The company has also adopted a village to provide education to all children up to

primary school and for adult literacy.

The company, along with the Tata Relief Committee, took part in the relief operations of

tsunami-affected villagers by deploying its mobile /skid-mounted desalination plant for safe

drinking water at Nagapattinam, TamilNadu. The unit is operated by a team of company

personnel.

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ROLE OF ITC IN CORPORATE SOCIAL RESPONSIBILITY

ITC has won the prestigious Corporate Social Responsibility Award 2004 from The Energy

and Resources Institute (TERI) for its celebrated e-Choupal initiative. The Award provides

impetus to sustainable development and encourages ongoing social responsibility processes

within the corporate sector.

ITC e-Choupal, the single-largest information technology-based intervention by a corporate in

rural India, has already received several national and international accolades as a unique

transformation model for rural India. ITC has earlier won the inaugural `World Business

Award' instituted in support of the United Nations' Millennium Development Goals and also the

Wharton-Infosys 'Enterprise Business Transformation Award 2004' for the Asia-Pacific

region. The curriculum of the Harvard Business School now includes a case study on the ITC e-

Choupal movement and how it is enabling a paradigm shift in Indian agriculture.

ITC is also one of the first Indian companies to pioneer the concept of 'Triple Bottom Line'

reporting, covering not only the economic dimension, but also the environmental and social

dimensions as well. ITC's Sustainability Report is the only one in India certified to be fully in

accordance with GRI (Global Reporting Initiative) Guidelines.

ITC e-Choupal empowers over 3.1 million farmers by enabling them to readily access crop-

specific, customized and comprehensive information in their native village habitat and language.

Vernacular websites relating to each agricultural crop that ITC deals in, created by the Company,

provide ready and real-time information to even marginal farmers on the prevailing Indian and

international prices and price trends for their crop, expert knowledge on best farming practices,

and micro-level weather forecast. This significantly improves the farmer's decision-making

ability, thereby helping him better align his agricultural produce to market demand, secure better

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quality, productivity and improved price discovery. The e-Choupal model and movement helps

aggregate demand by creating a virtual producers' co-operative, thus facilitating access to higher

Quality farm inputs at lower costs for the farmer. ITC e-Choupal also creates a two-way direct

marketing channel for rural India, eliminating wasteful intermediation and multiple handling,

thus significantly reducing transaction costs and improving logistical efficiency. Over the next

decade, the ITC e-Choupal network aims to cover over 100,000 Indian villages, representing

1/6th of rural India, and create more than 10 million e-farmers.

Bet on corporate social responsibility portfolio: ITC

"CSR can be a value proposition for companies," said Mr. Y.C. Deveshwar, Chairman, ITC Ltd.

He spoke of a business model where customers would choose products based on the corporate

social responsibility (CSR) portfolio of the company.

This model, he said, would result in sustaining the bottom-line of the company as well encourage

social work.

"Profit is a by-product of business. The real aim is to do good for the society," he said.

He added that instead of contributing to charity, one could buy products from companies doing

charitable work.

Mr. Deveshwar was in Chennai to receive the Dr M.S. Swaminathan Award for

Environmental Protection - 2006 on behalf of ITC.

The citation said ITC had been a water positive corporation (recycling water from waste)

for the third consecutive year.

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Through agro-forestry programmes, ITC has made about 30,000 hectares of wasteland

cultivable and planted over 10 crore saplings.

The company is poised to achieve zero solid waste through recycling techniques,

The Tamil Nadu Governor, Mr. Surjit Singh Barnala, who presented the award, instituted

by the Rotary Club of Madras East and CavinKare Pvt Ltd, said media must make space

for stories on environmental issues and show work done by people in positive light.

The Dr M.S. Swaminathan award for environmental protection is given to individuals or

organizations implementing environment-friendly practices.

ARGUMENTS IN FAVOUR OF ITC MAKING CIGGRATES

Corporate Social Responsibility

One of the comments to against ITC was that Social Responsibility of Business is to

Increase its Profits. The gist of the point made was that "ITC makes money by smoking,

hence its CSR(Corporate Social Responsibility) is crap"

ITC may sell cigarettes, but does not ask people to choose smoking at gunpoint. It is a

responsible corporate citizen, because it plays by the rules defined in the world of

business. If ITC spends money on an initiative like e-choupal, should we say "good" or

should way shoo away ITC from the e-choupal initiative and let the villages be in the

dark ages of middlemen and price information asymmetry?

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In an offline discussion, it was argued that smoking is inherently evil, but sugar is not,

hence the two cannot be equated. But poison consumed in micro quantities can be good,

while too much of good food can lead to bad. The other question is who decides that

smoking is evil? It is the perception held by a certain set of people. There is no

Generalization of what is evil and what is good when it is consumed by humans. For example,

according to Jains, potatoes and onions and anything that grows below the ground must be

avoided, so if we followed Jainism (a true pacifist religion), we could say that CSR by a potato

chip company is crap.

KVIC Mangaldeep project 

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the

Company has commenced marketing agarbattis (incense sticks) sourced from small-scale and

cottage units. This business leverages the core strengths of ITC in nation-wide distribution and

marketing, brand building, supply chain management, manufacture of high quality paperboards

and the creation of innovative packaging solutions to offer Indian consumers high quality

agarbattis.

ITC has also entered into an MOU with the Khadi & Village Industries Commission

(KVIC) to source agarbattis from KVIC approved units, and to distribute agarbattis

through the Khadi Bhavan / Khadi Bhandar outlets across the country. This collaborative

venture is expected to result in employment generation, particularly in the semi-urban

and rural areas.

ITC is also supporting an 'Agarbatti Community Participation Programme' run by the

Vyakti Vikas Kendra, a non-profit organization founded by the renowned spiritual guru

Sri Ravishankar and located near Bengaluru. Over 100 village women are gaining from

the training that this organization imparts in rolling agarbattis. ITC is also beginning to

extend similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu, who

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are also setting up agarbatti units, training village women in rolling agarbattis and

employing these women in these units.

COCA COLA’s ROLE IN CSR

ENGAGING IN UNITED STATE GLOBAL COMPACT

The Coca-Cola Company Commits to Engage in the United Nations Global Compact   The

Coca-Cola Company today confirmed its support for the United Nations Global Compact,

publicly expressing the Company’s serious commitment to taking a corporate leadership role in

the focus areas of the Global Compact: human rights, labor rights, protection of the environment,

and anti-corruption.

Coca cola support to the United Nations Global Compact is a formal expression of The Coca-

Cola Company's commitment to conduct business with the utmost respect for universal

principles around human rights, workplace standards, responsible environmental practices and

anti-corruption,. "This is a natural evolution of Company's long-held commitment to responsible

corporate citizenship. There's much we can and will continue to do to help advance the

development goals and principles of the UN and the international community."

SOME OTHER ACTIVITIES TAKEN BY COCA COLA FOR CSR

 The company’s general CSR activities linked to developing the areas around its plant sites will

continue as it is. It has 45 plants across the country and involves itself with community

education, health & sanitation projects. The annual spend on these activities ranges between Rs

4-5 crore, informed Agarwal.  Apart from this, Coca-Cola is also pumping back the entire three

million cubic meters (mcm) of water that it currently consumed for its operations back into the

water cycle through rain water harvesting (RWH) structure.  Currently, it had 350 such structures

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in the country, and is planning to add 80 more by the end of this year. Coca-Cola is conserving

2.7 mcm of water now. It targeted 100 per cent conservation by 2009, said Agarwal.  It would

spend $25-30 million a year on the water conservation structures including rain water harvesting

(RWH) and check-dams. The cost of putting up a RWH structure varies between Rs

60,000 and Rs 15 lakh, depending on the technical requirements and collaborations

formed with community partners, added Agarwal.  In another significant move, Coca-

Cola had forged tie-ups with International Crops Research Institute for Semi-Arid

Tropics (ICRISAT) and Bharatiya Agro Industries Foundation (BAIF), Pune, for

sustainable and equitable management of rural water resources infrastructure and other

natural resources management (NRM) through watershed interventions in villages near

Jaipur in Rajasthan.  Bags Golden Peacock Award Beverages Company Coca-Cola

India has been awarded the ‘Golden Peacock Global Award for Corporate Social

Responsibility - 2008’.  The award has been given in recognition to the company’s efforts

in water conservation and management, and its community development initiatives.  Ola

Ullsten, former Prime Minister of Sweden and Chairman of the awards jury presented the

award to the company at the 3rd Global Conference on Social Responsibility in

Vilamoura, Portugal.  Coca-Cola India has installed 320 rain water harvesting (RWH)

structures in 17 states and has restored several traditional water bodies such as the Sarai

Bawari and Kale Hanuman ki Bawari and several check dams across the country for

water conservation.  The company has a target to reach a “net zero” balance with respect

to groundwater usage till 2009. It has also undertaken a project “Elixir of life” to provide

drinking water to nearly 30,000 children in 100 primary and panchayat schools in and

around Chennai. The company is also planning to provide clean drinking water in 1000.

India: Coca-Cola attacked for 'toxic' fertilizer gifts to farmers

According to a BBC report broadcast on its Radio 4 'Face the Facts' programme, the Coca-Cola

plant in Kerala has been providing commercial waste to local farmers as fertilizer which has pr-

oved to be contaminated with toxic substances.

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The programme said it had discovered dangerous levels of cadmium and lead in the sludge pro-

duced by the plant which was lying on the fields of local farmers. It was alleged that the substa-

nce was actually useless as a fertilizer. BBC reporters also said they had seen waste leaving the

factory to be dumped directly into a local river.

The Vice-President of Coca-Cola in India, Sunil Gupta, said that the fertilizer was absolutely

safe.

However, Professor John Henry, consultant at St Mary's Hospital in London, said that the levels

of toxins found in water samples taken near to the plant would cause serious problems of pollut-

ion that could have "devastating consequences".

Meanwhile, Coca-Cola is suffering a call for a boycott from unions across the world over the pe-

rsistent allegations of involvement in the use of violence and intimidation by bottlers against wo-

rkers in Colombia.

A current lawsuit had seen Coke removed by the judge from the case, with the process continui-

ng against the bottlers. However, campaign groups have not been similarly satisfied that the co-

mpany bears no responsibility.

Coca-Cola honoured with 'Best Management Award' by the Government of Andhra

Pradesh

Hindustan Coca-Cola Beverages Pvt. Ltd. has been honoured with the 'BEST

MANGEMENT AWARD' in the State by the Government of Andhra Pradesh for its

people's management practices following a review by the State Labour Department. Mr.

Y.S. Rajasekhara Reddy, Honourable Chief Minister of Andhra Pradesh will present the

award to the company at a simple function in Hyderabad on the occasion of Labour Day,

May 1, 2005.

In addition to the professional growth of the employees, the Company also focuses on

personal and social growth by involving employees in various corporate social

responsibility projects undertaken in Andhra Pradesh.

These include blood donation camps, health camps for local communities around the

bottling plant, education support to local community, etc in association with NGOs like

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Red Cross and Hyderabad Round Table. In addition to the above, the Andhra Pradesh

team came forward to donate generously to Chief Minister's Relief Fund during the

tsunami tragedy besides working on location to help the victims.

ROLE OF HUL IN CORPORATE SOCIAL RESPONSIBILITY

GREEN BARREN.

Water conservation and harvesting

HUL's Water Conservation and Harvesting project has two major objectives:

a. to reduce water consumption in its own operations and regenerate sub-soil water tables at

its own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew;

b. help adjacent villages to implement appropriate models of watershed development.

Water scarcity is one of the biggest crises facing India in terms of spread and severity. Water

conservation and harvesting in HUL's own operations will help conserve and regenerate this

scarce resource. An attendant benefit will be reduction in the consumption of energy that

would have been spent in converting and using that water. The support to communities in

developing watersheds will help in the economic development of areas adjacent to HUL

sites.

Water management is a focus area for all HUL factories. Water conservation has been made

one of the key performance indicators of an HUL factory. Through a series of technology

innovations and novel processing routes HUL has reduced its ground water consumption by

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over 50%. HUL has also applied technologies that recycle effluent water after treatment –

70% of HUL sites are now zero discharge sites. There are many other measures - Reverse

Osmosis Plants and Solar Evaporation Ponds to name a few. A simultaneous benefit is saving

in energy that otherwise would have been consumed in drawing, pumping or converting

Water into steam - HUL's energy consumption per unit of production has come down by 61%

since 1996. Since 2003, all HUL sites have begun to harvest rain water. Rain water falling on

factory premises is accumulated in ponds, thereby renewing sub-soil water tables.

PROJECT SHAKTI - Changing Lives in Rural India

Shakti is HUL's rural initiative, which targets small villages with population of less than 2000

people or less. It seeks to empower underprivileged rural women by providing income-

generating opportunities, health and hygiene education through the Shakti Vani programmed,

and creating access to relevant information through the iShakti community portal.

In general, rural women in India are underprivileged and need a sustainable source of income.

NGOs, governmental bodies and other institutions have been working to improve the status of

rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organized in

Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides

critically needed additional income to these women and their families, by equipping and training

them to become an extended arm of the company's operation.

Shakti already has about 25,000 women entrepreneurs in its fold. A typical Shakti entrepreneur

earns a sustainable income of about Rs.700 -Rs.1, 000 per month, which is double their average

household income. Shakti is thus creating opportunities for rural women to live in improved

conditions and with dignity, while improving the overall standard of living in their families.

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HUL's vision for Shakti is to scale it up across the country, covering 100,000 villages and

touching the lives of 100 million rural consumers by 2005.

LIFEBUOY SWASTHAYA CHETNA

Health & Hygiene Education

Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in

2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra,

Orissa) with the objective of spreading awareness about the importance of washing hands with

soap.

The need for a program of this nature arose from the fact that diarrheal diseases are a major

cause of death in the world today. It is estimated that diarrhea claims the life of a child every 10

seconds and one third of these deaths are in India. According to a study done by the London

School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and

water can reduce diarrhea by as much as 47%. However, ignorance of such basic hygiene

practices leads to high mortality rates in rural India.

FAIR AND LOVELY FOUNDATION

Economic Empowerment of Women

The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of

women across India. It aims to achieve this through providing information, resources, inputs

and support in the areas of education, career and enterprise. It specifically targets women

from low-income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on

the economic empowerment platform and the Foundation is an extension of this promise. The

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Foundation has renowned Indian women, from various walks of life, as its advisors. Among

them are educationists, NGO activists, physicians. The Foundation is implementing its

activities in association with state governments.

Some foreign social responsible Organizations-

HYUNDAI MOTORS – Hyundai motors the Korean automaker, set up a training center in

South Central Los Angeles to train high school graduate to become auto mechanics. The training

Program run for eighteen weeks, after that the graduates were eligible for jobs at any of the seven

Hyundai dealership in Los Angeles area. One reason why Hyundai started this program was in an

effort to improve relations between the black and Korean communities.

TOYOTA- Toyota Japan leading manufacturer, is helping make dreams come true in run down

American neighborhoods through a program called “Christmas in April” which offers financial

and volunteer support. The program is a non profit organization dedicated to renovating and

repairing homes for poor, elderly and handicapped. It now operate in 150communities.Toyota

support is more than just financial. The company gets many volunteers to participate in these

neighborhood projects. For example in Santa Ana, California, 87 Toyota volunteers renovated

the Mercy House Transitional Living Center, a shelter for homeless men. They painted the entire

house and installed new windows and floor coverings.

RUSSELL CORPORATION-Russell manufacturer’s athletic wear and sweatshirts. Instead of

laying the staff during the recent downturn, the company focused on cutting costs. One way that

they are able to do so was by eliminating all solid wastes headed for landfills.Fr example Russell

spent $100 on new machinery over five years, which demonstrated their long term commitment.

MATTEL-Mattel, the second largest toy company, has shown its commitment to urban renewal

through an effort to share some of its prosperity with its customers and the community. This

commitment has grown even stronger since the riots Los Angeles. One such project,” Mattel

Learning Centers” focuses on preschool and elementary school children, but provides service to 33

everyone. The center offers preschool classes for everyone and programs for their parents.

Programs at the centers are available to members of the community free of charge.

ENVIROMENTALY CONCERNED COMPANIES

Many companies whose activities effect the environment are forming what are called

eco efficient corporate initiatives. As concern for the environment grows among the public,

business must expand its efforts to recognize their environmental responsibilities. On side

following examples

1. McDonalds- in 1991, McDonalds launched a waste reduction plan which is a comprehensive

environmental policy that concentrates the companies efforts on reducing the waste generated at

its 8500 restaurants and its distribution centers. McDonalds studied ways to reduce, reuse,

recycle and composite materials .The Company now uses recycled carryout bags and small paper

napkins, has eliminated the use of Styrofoam containers, recycles all corrugated cardboard and

contains to work on other ways to reduce waste.

2. S.C.Johnson- S.C.Johnson implemented an incentive program to encourage suppliers to

reduce their packaging and manufacturing waste. The company promotes recycling and reducing

waste.” ignorance in the workplace costs. I t reduces productivity and can lead to expensive

errors that cost a loss in sales, customer locality, and the ability to attract new customers.

3. Polaroid-Polaroid stopped using mercury in its batteries, which were not recyclable. by doing

so the company eliminated environmentally dangerous chemical and created batteries that are

recyclable.

4. Northern Telecom-Northern Telecom provided the technology to help Mexican industries cut

their use of ozone depleting solvent.

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5. AT&T-AT&T redesigned its circuit board cleaning process to eliminate the use of ozone-

depleting chemicals. In addition to preventing environmentally destructive emissions, the

company also achieved annual savings of $3 million.

ROLE OF PHARMACEUTICAL COMPANIES IN CSR

LUPIN India Ltd. India’s third largest manufacturer of pharmaceutical has started a

project for providing sustainable development in 154 villages across Rajasthan. The

scheme instead of providing piece-meal assistance that does not lead to effective

includes an Agricultural Income Generation Schemes, land cultivation and fruit

plantation programs, fodder preservation schemes, sericulture and water-recycling

programs, establishment of medical and educational centers, adults literacy programs and

credit schemes.

CIPLA , another Indian pharma major has found a novel approach to fulfill its CSR

obligations by offerings to sell a cocktail of three anti-HIV drugs, stavudine, Lamivudine

and Nevirapine, to the Nobel Prize-winning voluntary agency Medicines Sans Frontiers

(MFS) at a rate of $350, and at $600 per patient per year to other NGOs over the world.

This offer has to lead to a significant decrease in the prices of these drugs worldwide

increasing the accessibility of these drugs especially in the developing countries.

RANBAXY , one if the India’s major pharmaceutical firms operate seven mobile

healthcare vans and two urban welfare centers that reach over a lakh people in various

parts of northern and central India as part of its CSR initiative.

ROLE OF SOME OTHER COMPANIES IN CSR TCS has set up a fully equipped computer training laboratory for children from the

society for the welfare of the Physically Handicapped And Research Center, in Pune for

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importing basic computer knowledge. NIIT has launched a highly popular ‘hole-in-the-

wall’ scheme where it place a computer on a public wall in urban and rural areas so that

neighborhood children can learn computer basics using the play-way method.

BHARAT Electronics Ltd built cyclone proof houses for the victim of the super cyclone

in with the help of the victims themselves so that the houses are built according to their

needs.

Ion Exchanges has founded a profitable venture for environmental protection through

water treatment, a forestation and organic farming.

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CONCLUSION

As the public demands greater corporate social responsiveness social issues such as equal

employment, business ethics, environment protection and consumer relations are becoming an

important part of corporate decision making .Economic concerns as a primary emphasis of a

business is a thing of past. Business must address both social and economic concerns and work

to improve the overall quality of life.

By being more socially responsible business also avoid further government regulation, such

regulation limits the freedom of business and in turn limits everybody’s freedom. Business must

work to avoid blanket government regulations bought on by social pressure.

The future of business depends on its ability and willingness to respond to the changing

expectations of the society. Companies may not wait until they are attacked by the public before

becoming socially responsible. They must continuously present themselves as being committed

to social causes. Those companies do not get involved in the social issues will not survive.

As multinational organizations becoming more global in their operations a growing trend

towards global sensitivity is developing. Although management behaviors are starting to base on

cultural assumptions there is need to develop management theories that are effective and

functional when applied in multiple settings.

In speaking about the future, Donna wood raises some interesting points. One is that

management must be able to see opportunities where others see threats and problems. Another is

what she calls the input output view which means that a company must take on what is need to

meet its objectives but must also take on something on value to person or group external to itself.

This helps a firm center its sight on how its actions effect its environment.

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Bibliography

Internet:

www.google.com

www.wikipedia.com

www.co-op.co.uk

www.credoadvisors.com

www.adonisconstruction.co.uk

Journals:

HR Review

MERI Journal of Management and IT, Vol. 3

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