http://www.thefreelibrary.com/Corporate+Social+Responsibility+practices+in+India:+a+study+of+top...

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a0229991936
Corporate Social Responsibility practices in India: a study
of top 500 companies.
Introduction 

The broad rationale for a new set of ethics for corporate decision making, which clearly constructs and
upholds a organization's social responsibility, arises from the fact that a business enterprise derives
several benefits from society, which must, therefore, require the enterprise to provide returns to society as
well. This, therefore, clearly establishes the stake of a business organization in the good health and well
being of a society of which it is a part. More importantly, in this age of widespread communication and
growing emphasis on transparency, the managers should help their company in development of
a CSR management and reporting framework. 

The more the concepts of CSR are fostered and integrated into the business process, the easier it will be
to benefit from alternative thinking and perhaps handle the occasional problems that for certain will occur.
The more integrated the business process within the value chain, the more opportunity there will be for
organizations to influence the approaches of others on whom they depend. The concept of CSR includes
the openness or transparency of companies as well as taking into consideration the will and expectations
of their stakeholders. 

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Social responsibility means a doctrine that claims that an entity whether it is government, Private
Corporation or public organization has a responsibility to society. CSR is a concept that reduces costs
and risks, increases the brand value and reputation, effectiveness and the efficiency of employees,
improves transparency, and clarity in the working environment of the business house. 

In early 1950's & 60's the literature was not heavily represented in CSR discourse. However, this decade
'marked a significant growth in attempts to formalize, or more accurately, state what CSR means' (Carroll,
1999). According to Carroll, "CSR encompasses the economic, legal, ethical and discretionary
(philanthropic) expectations that society has of organizations at a given point in time." 

Some of the most prominent writers during that time were Keith Davis, Joseph W McGuire, William C
Frederick and Clarence C Walton. Frederick wrote that 'Social responsibility in the final analysis implies a
public posture toward society's economic and human resources and a willingness to see that those
resources are used for broad social ends and not simply for the narrowly circumscribed interests of
private persons and firms'(Carroll 1999) 

Howard Bowen in 1953 argued that since social institutions shaped economic outcomes it was to be
expected that business firms as an economic outcome of societal interests should consider the social
impact of business activity. According to Bowen, "CSR refers to the obligations of businessmen to pursue
those policies to make those decisions or to follow those lines of relations which are desirable in terms of
the objectives and values of our society." CSR implies some sort of commitment, through corporate
policies and action. This operational view of CSR is reflected in a firm's social performance, which can be
assessed by how a firm manages its societal relationships, its social impact and the outcomes of its CSR
policies and actions (Wood, 1991). Social reporting and social audits are examples of how firms can
assess their social performance. In 1960's Keith Davies argued that CSR refers to 'the firm's
consideration of, and response to, issues beyond the narrow economic, technical and legal requirements
of the firm' (Davies, 1973). Frederick 1960 stated 'Social responsibility means that businessmen should
oversee the operation of an economic system that fulfills the expectations of the people. And this means
in turn that the economy's means of production should be employed in such a way that production and
distribution should enhance total socio-economic welfare' (Fredrick, 1960). Thus, the definitions of CSR in
1960's were an attempt to link society and businesses, defining society in broadest terms. 

In 1970's there was one and only one social responsibility of business--to use its resources and engage in
activities designed to increase its profits so long as it stays within the rules of the game, which is to say,
engage in open and free competition, without deception or fraud. The idea and inclusion
of stakeholder began to appear. Harold Johnston 1971 stated that 'a socially responsible firm is one
whose managerial staff balances a multiplicity of interests instead of striving only for larger profits for its
stockholders. A responsible enterprise also takes into account employees, suppliers, dealers, local
communities, and the nation. Carroll 1979 offered the following definition of CSR. The social responsibility
of business encompasses the economic, legal, ethical, and discretionary (or philanthropic) expectations
that society has of organizations at a given point in time (Turner, 2006). European Commission described
CSR as "a concept whereby companies integrate social and environmental concerns in their business
operations and in their interaction with their stakeholders on a voluntary basis". World Business Council
for Sustainable Development defined CSR as "the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the workforce and
their families as well as of the local community and society at large." 

In 80s & 90s there were fewer definitions but more efforts to measure and conduct research for the
purpose of operationalizing CSR. New concepts which were closely related to CSR were
introduce; stakeholder theory, business ethics, corporate governance, responsiveness, corporate social
performance, and corporate citizenship. These concepts are closely related but not identical. Lee 1997
stated CSR refers to a company's commitment to operate in an economically and environmentally
sustainable manner, while acknowledging the interests of a variety of stakeholders and maximizing
economic, social and environmental value. It is holistic concept that can mean different things to different
groups and stakeholders. Gray, Owen, & Maunders in 1987 defined CSR as "the process of
communicating the social and environmental effects of organizations economic actions to particular
interest groups within society and to society at large". Similarly, Perks 1993 defined corporate social
reporting as "the disclosure of those costs and benefits that may or may not be quantifiable in money
terms arising from economic activities and substantially borne by the community at large or other
stakeholders". 

A term 'corporate social innovation' was first introduced by Rosabeth Moss Canter in 1999 who argues
that firms should use social issues as a learning laboratory for identifying unmet needs and for developing
solutions that create new markets. Large corporations began to go public about corporate social
responsibilities and publish some of their efforts, but they also made public that 'any approach to
corporate responsibility must begin with the practical recognition that the corporation must be profitable
enough to provide shareholders a return that will encourage continuation of investment' (Wilson, 2000).
Another trend appearing in literature is the increasing dialogue between stakeholders. Companies are
augmenting their discussions with labor unions, environmental groups and other relevant stakeholders
and the implementation of certification solutions by corporations, which is the establishment of codes of
conduct (Kapstein, 2001), monitoring and reporting. Kingston and Wagner 2004 suggest that leadership
on sustainability and CSR are important to set priorities and to ensure that commitments are achieved. 

Bebbington et al.(2008) use the term CSR reporting, which highlights the link between the reporting
function and the organizational functions and operations that are concerned with, and impacted by,
activities associated with CSR. CSR and CSR (or sustainability) reporting are inextricably intertwined
across an organization, and at various levels, impact on strategic planning, governance, stakeholder
engagement, risk management, decision making, data collection and management systems, performance
measurement, performance management, public relations and communications. The CSR movement was
an early response to an article published in 1970 by Friedman stating that 'social responsibility of
business is to increase its profits'. CSR has emerged as the business issue of the 21st century and has
been studied for over 50 years. To this day academics do not have a consensus on its definition (Wood,
1991; Carroll, 1991). Bowen's definition of social responsibility of businessmen was 'it refers to the
obligations of businessmen to pursue those policies to make those decisions, or to follow those lines of
relations which are desirable in terms of the objectives and values of our society (Carroll, 1999). Due to
Bowen's concern with social responsibility and his leadership role in the topic, Bowen should be seen as
father of CSR. 

The main drivers for CSR have been the shrinking role of government, demands for greater disclosure,
increased customer interest, growing investor pressure, competitive labor markets, and supplier relations.
The companies enjoy several benefits like improved financial performance, lower operating costs,
enhanced brand image and reputation, increased sales and customer loyalty, product safety, material
recyclability, and greater use of renewable resources etc. 

Codes / Standards / Principles on CSR 

Universal Declaration of Human Rights: Adopted by United Nations, this declaration paved way for many
international human rights standards for all sectors entities. 

UN Global Compact: An international multi-constituent, voluntary initiative based on internationally

accepted ten principles in pursuit of a more sustainable inclusive global economy. The ten principles
covers human rights forced labor, child labor, environmental challenges and responsibility, non
discrimination, freedom of associations, collective bargaining, corruption, etc. Global Reporting Initiative
(GRI): Since its founding in 1997, the GRI has been addressing the need for standardized approaches to
corporatesustainability reporting. In 2006, GRI published Version 3.0 (G3) of its Sustainability Reporting
Guidelines emphasizing performance indicators, which contain a separate section titled "Human Rights"
with nine performance indicators. 

Organization for Economic Co-operation and Development (OECD): OECD guidelines contains
recommendations on core labor, environmental standards, human rights, competition, taxation, science
and technology combating corruption and safe guarding, consumer rights. 

Social Accountability 8000: 'SA 8000' standard for social accountability, created in 2000 by the Council on
Economic Priorities Accreditation Agency (CEPAA). SA8000 developed by an international coalition of
businesses, trade unions and non-governmental organizations (NGOs) on the basis of International Labor
Organization (ILO) conventions--the Universal Declaration of Human Rights and the UN convention on
the Rights of the Child. The SA8000 code of practice is broken down into nine key areas child labor,
management systems, working hours, compensation, disciplinary practices, forced labor, health & safety,
freedom of association & collective bargaining and discrimination. 

Principles for Responsible Investment (PRI): A set of global best practice principles for responsible
investment. It provides a framework for achieving better long term investment returns and more
sustainable markets. 

Equator Principle: Equator principle is a set of environmental and social benchmarks for managing
environmental and social issues in development project finance globally. They were developed by private
sector banks-led by Citigroup, ABN AMRO, Barclays and WestLB and were launched in June 2003. 

Role of International Labor Organization (ILO): ILO seeks the promotion of social justice and
internationally recognized human and labor rights. It formulates international labor standards in the form
of conventions and recommendations setting minimum standards of basic labor rights. International
Organization for Standardization (ISO) 26000: ISO an International Standard setting body is developing a
new standard on Social Responsibility namely ISO 26000 to be published in Nov., 2009. ISO 26000 is
intended for use by all types of organizations and in all countries and to assist organization to operate in a
socially responsible manner. 

Occupational Health & Safety Advisory Services (OHSAS) Standard: OHSAS 18001 is applicable to any
organization which aims to establish a health and safety management system at work. 

CSR in Asia 

In Asia, the concept of CSR is taking firm hold. Like India, there are a number of good examples of
alliances and networks promoting the essence of CSR amongst businesses and the general public alike.
Partners in Change of the South Asian Alliance for Responsible Business: building networks and alliances
in the South Asia region, Partners in Change is a founder member of South Asian Alliance for
Responsible Business (SARB), in partnership with CII. SARB seeks to further the cause of CSR in South
Asia. The group comprises participants from Nepal, Pakistan, India, Bangladesh and Sri Lank and is in
the process of developing a CSR Self-Appraisal Toolkit for use by corporate sector. The larger
stakeholder and intermediary consultation which this exercise would entail is being affected through an e-
group route. CSR Asia was founded inHong Kong in 2004 to provide information and develop tools for
CSR in the Asia-Pacific Region. CSR Asia, in association with its partners (such as Centre for Social
Markets, CSR in China, etc.), publishes specialized reports, provides training and education on CSR
issues, facilitates stakeholder dialogues and undertakes customized contract research for multinational
and NGO clients. CSR Asia also informs people about CSR issues as they arise through their daily
internet news service, online news database and online weekly CSR Asia Newsletter. 

The Asia-Pacific CSR Group 

The Asia Pacific CSR Group was launched in July 2004, bringing together 9 CSR organizations in the
region. Members of the Asia Pacific CSR Group engage in active learning exchanges and practices,
networking and sharing of information with the aim of supporting each other to achieve the vision of the
members or goals of the group. Goals include the recognition of standards and benchmarks that may
commonly apply like governance as well as good business practices in the fields of environmental
protection/conservation, equitable human resource management amongst others. The Group plans to
undertake a study of a CSR Index for the region to raise the level of CSR across the region and facilitate
and enhance consumer confidence through acceptable benchmarks. 

CSR in India 

CSR History 

India has a long rich history of close business involvement in social causes for national development. In
India, CSR is known from ancient time as social duty or charity, which through different ages is changing
its nature in broader aspect, now generally known as CSR. From the origin of business, which leads
towards excess wealth, social and environmental issues have deep roots in the history of business. India
has had a long tradition of corporate philanthropy and industrial welfare has been put to practice since
late 1800s. Historically, the philanthropy of business people in India has resembled western philanthropy
in being rooted in religious belief. Business practices in the 1900s that could be termed socially
responsible took different forms: philanthropic donations to charity, service to the community, enhancing
employee welfare and promoting religious conduct. Corporations may give funds to charitable or
educational institutions and may argue for them as great humanitarian deeds, when in fact they are
simply trying to buy community good will. The ideology of CSR in the 1950s was primarily based on an
assumption of the obligation of business to society. 

In initial years there was little documentation of social responsibility initiatives in India. Since then there is
a growing realization towards contribution to social activities globally with a desire to improve the
immediate environment (Shinde, 2005). It has also been found that to a growing degree companies that
pay genuine attention to the principles of socially responsible behavior are also favored by the public and
preferred for their goods and services. This has given rise to the concept of CSR. 

After Independence, JRD Tata who always laid a great deal of emphasis to go beyond conducting
themselves as honest citizens pointed out that there were many ways in which industrial and business
enterprises can contribute to public welfare beyond the scope of their normal activities. He advised that
apart from the obvious one of donating funds to good causes which has been their normal practice for
years; they could have used their own financial, managerial and human resourced to provide task forces
for undertaking direct relief and reconstruction measures. Slowly, it began to be accepted, at least in
theory that business had to share a part of the social overhead costs of. Traditionally, it had discharged its
responsibility to society through benefactions for education, medical facilities, and scientific research
among other objects. The important change at that time was that industry accepted social responsibility
as part of the management of the enterprise itself. The community development and social welfare
program of the premier Tata Company, Tata Iron and Steel Company was started the concepts of "Social
Responsibility." (Gupta, 2007) 

The term corporate social performance was first coined by Sethi (1975), expanded by Carroll (1979), and
then refined by Wartick and Cochran (1985). In Sethi's 1975 three-level model, the concept of corporate
social performance was discussed, and distinctions made between various corporate behaviors. Sethi's
three tiers were 'social obligation (a response to legal and market constraints); social responsibility
(congruent with societal norms); and social responsiveness (adaptive, anticipatory and preventive)
(Cochran, 2007). 

The last decade of the twentieth century witnessed a swing away from charity and traditional philanthropy
towards more direct engagement of business in mainstream development and concern for disadvantaged
groups in the society. This has been driven both internally by corporate will and externally by increased
governmental and public expectations (Mohan, 2001). This was evident from a sample survey conducted
in 1984 reporting that of the amount companies spent on social development, the largest sum 47 percent
was spent through company programs, 39 percent was given to outside organizations as aid and 14
percent was spent through company trusts (Working Document of EU India CSR, 2001). In India as in the
rest of the world there is a growing realization that business cannot succeed in a society which fails. An
ideal CSR has both ethical and philosophical dimensions, particularly in India where there exists a wide
gap between sections of people in terms of income and standards as well as socio-economic status
(Bajpai, 2001). 

According to Infosys founder, Narayan Murthy, 'social responsibility is to create maximum shareholders
value working under the circumstances, where it is fair to all its stakeholders, workers, consumers, the
community, government and the environment'. Commission of the European Communities 2001 stated
that being socially responsible means not only fulfilling legal expectations, but also going beyond
compliance and investing 'more' into human capital, the environment and the relation with
stakeholders(Bajpai, 2001). Over the time four different models have emerged all of which can be found
in India regarding corporate responsibility (Kumar et al., 2001). 

CSR needs to be understood within this context captured in the development oriented CSR framework
given below: 

CSR Initiatives: 

Industry Association Initiative: Leading Chambers of Commerce and Industry of India are traditionally
active in social and environmental norms. Federation of Indian Chambers of Commerce and Industry
(FICCI), CII works closely in partnership with Government. CII in partnership with UNDP set up India
Partnership Forum to promote multi stakeholders approach to CSR. Social Development Council (SDC)
set up by CII, ensures corporate participation in social development and provides an institutional base for
social activities of the corporate sector. Progress, Harmony and Development chambers of commerce
and Industry (PHDCCI) has major interventions in family welfare and rural development. Associated
Chambers of Commerce and Industry of India (ASSOCHAM) through their members provided drinking
water in 110 villages by 1996 on occasion of its platinum Jubilee. Bombay Chambers of Commerce and
Industry (BCCI) have been consistently on issues of populations and civic conditions in Mumbai. 

Company Initiatives: An internet-based survey was conducted to understand the philosophy &
deployment of CSR as practiced (innovatively and in a sustained manner) for National and International
organizations. 
Roundtables and Networks in India: Corporate Roundtable on Development of Strategies for the
Environment and Sustainable Development--Business Council for Sustainable Development (CoRE-
BCSD) of India is a grouping of Indian corporate trying collectively and individually to build in sustainable
development concepts into their operations. The British Council's CSR Network: Towards promoting CSR
and generating awareness and interest amongst young future business leaders. 

CSR Surveys: In the context of India, CSR studies were few and limited. Singh and Ahuja 1983
conducted the first study in India on CSR of 40 Indian public sector companies for the years 1975-76 and
found that 40 percent of the companies disclosed more than 30 percent of total disclosure items included
in their survey. Raman (2006) used content analysis technique to examine the chairman's message
section in the annual reports of the top 50 companies in India to identify the extent and nature of social
reporting. This study concluded that the Indian companies placed emphasis on product improvements
and development of human resources (Raman, 2006). According to a survey done by Partners in Change
2000, which covered 600 companies and 20 CEOs for judging Corporate Involvement in Social
Development in India 85 percent agreed that companies need to be socially responsible; only 11 percent
companies had a written policy; over 60 percent of the companies were making monetary donations;
health, education and infrastructure were most supported issues. 

From 2000 onwards, 4 important surveys have been conducted, which give significant macro level
conclusions about Indian corporate. The first and second surveys were carried out in 2001 and 2002 by
Business Community Foundation for TERI-Europe. The survey sought to explore the perception of
workers, company executives and general public about social, economic and environmental
responsibilities. It was found that all companies irrespective of size or sector have awareness of CSR and
its potential benefits. Many companies were collaborating with NGOs, have labor and environmental
policy guidelines in place. 

A third survey was jointly conducted in 2002 by CII, United Nations Development Program
(UNDP), British Council (BC) and Price Water Coopers (PWC). The most striking features of the
responses to the survey is that the respondents are in near unanimity that CSR is very much a part of the
domain of corporate action and the passive philanthropy is no longer sufficient. A significant proportion of
respondents, recognize CSR as the mean to enhance long-term stake holder value. 

The fourth survey, the Karmyog CSR rating 2007-08 is for the largest 500 companies. Karmayogis a
platform for the Indian non-profit sector providing research on CSR activities of Indian companies. It rated
the 500 largest Indian Companies based on their CSR activities. The companies were rated on 0 to 5
levels based on criteria's like products & services, reach of CSR activities, expenditure on CSR, harmful
processes etc. 

CSR Study 

Karmayog's research (fourth survey) was kept as base & further research was extended to find out the
current scenario of CSR activities in India. For this, firstly the social aspects by organizations like OHSAS,
GRI, and ISO etc were streamlined for compilation & better understanding. Then, a list of 500 companies
taken by Karmayog from Dun & Bradstreet's 2006 edition of 'India's Top 500 companies' was made.
Karmayog rated these companies on a '0-5' scale based on information from the company's website and
latest annual report. Out of 500 companies, 229 companies got a '0' rating and thus were filtered out for
not showing any CSR activity or producing cigarettes/tobacco products &liquor. For the rest 271
companies annual reports / CSR reports were downloaded & its content analysis was done. It was found
that around 26 companies are reporting on environment in the name of CSR. These were dropped out
from the list, so a final list of 245 companies was obtained on which the further work was performed like
downloading CSR related reports from the websites and studying the same, etc. 

The assessment of 245 companies was done by mapping their reported aspects against the 18 GRI
social aspects which are globally accepted & most widely used. The GRI social aspects were clubbed as
Society Performance Indicators, Human Rights Performance Indicators, Labor Practice & decent
work Indicators, and Product Responsibility indicators. The CSR reports (245 companies) were
thoroughly examined & its content analysis was done to find out the use of GRI aspects, CSR initiatives &
special innovations. A binary code of '0' & '1' was allocated for 'not using' & 'using' the particular indicator
respectively. The assessment was based on four criteria: the social indicators tracked by the company,
the innovativeness in CSR on a 5 point scale, linkage of CSR initiatives to business, and focus area of
CSR in each company. The results have been presented graphically in Table 2. 

[TABLE 2 OMITTED] 

Observations 

It was observed that 46% companies got zero rating (no reporting), around 8% scored 3/5 & 4/5
Karmayog rating (Table 3). Around 49% companies out of 500 largest Indian companies were reporting
on CSR. Most of the companies report on donations, renovating schools in villages, mid day meals etc. It
is expected from a company to at least spend a minimum of 0.2% of income on CSR activities annually.
But in most reports there is no mention of the amount spent in any of their balance sheets or annual
reports. Well defined expenditure on CSR has been shown by very few companies. Companies reach for
CSR activities was also unsatisfactory in the sense only 25% companies CSR activities were for
employees & rest were focusing on vicinity & society at large. Many companies are only making token
gestures towards CSR in tangential ways such as donations to charitable trusts or NGOs, sponsorship of
events, etc. believing that charity and philanthropy equals to CSR. Most companies use CSR as a
marketing tool to further spread the word about their business, for instance, donation of a token amount to
some cause on purchase of a particular product. The fact that companies are hiring advertising agencies
for their CSR further highlights this. Companies hesitate to state the processes followed by them, the
damage caused by these processes, and the steps taken to minimize this damage. 

[FIGURE 1 OMITTED] 

Very few companies have a clearly defined CSR philosophy. Most implement their CSR in an adhoc
manner, unconnected with their business process. Most companies spread their CSR funds thinly across
many activities, thus somewhere losing the purpose of undertaking that activity. Special CSR initiatives
were taken by some companies like structured CSR etc. Generally speaking, most companies seem
either unaware or don't monitor their company's CSR. However, all companies can be considered to be
an upward learning curve with respect to CSR. The overall approach still seems to be driven by
philanthropy rather than integrating it with business as has been happening in the west. 

The results suggest that CSR is often guided by the commitment of the top management. With
compliance and enforcement slack, employee's care is just employers'benevolence, environment care
and total quality management are driven by market forces and legislation, CSR is considered as an
additional activity of Human relation and public relation department. Table 4 provides a glimpse of CSR
focus areas and methodology adopted by 30 companies. 

Conclusion 

Business houses all over the world are realizing their stake in the society and engaging in various social
and environmental activities. The need of the hour is to formulate effective strategic policies and adopt
various instruments according to the company history, its content, peculiarity in relationship with its
different stakeholders so that CSR can be best implemented towards its goals--sustained environmental,
social and economic growth. 

This research explores the existing literature available on CSR. The literature review shows trends,
definitions starting from the early days of 1950s when CSR was in itsbudding stage. As of now, the trends
have changed and CSR affects not only the company's reputation and goodwill but also govern the
financial performance. It was analyzed that the reporting practices range from the very sophisticated and
well-established system to "a brief mention of CSR" in the annual report. CSR reporting will continue to
improve globally, but the information it contains would need to be standardized. A feature noticed in the
development of CSR reporting is the influence of several international and local organizations with
different frameworks, indices, directives and initiatives etc. Many of these initiatives are voluntary but are
likely to hinder rather than assist the development in the reporting systems. India's markets continue to
exhibit a profusion of negative externalities where the costs of resource use, environmental degradation,
or community disruption are neither paid by those who incur them nor are reflected in actual prices.
Today's economic framework gives little encouragement for companies to consider the long-term--the
essence of true sustainable development. 

There are several companies in India involved in diverse issues such as healthcare, education, rural
development, sanitation, microcredit, and women empowerment. Analysis of several surveys in India
suggest that though many companies in India have taken on board the universal language of CSR, CSR
seem to be in a confused state. Individual companies define CSR in their own limited ways and contexts.
The end result being that all activities undertaken in the name of CSR are mainly philanthropy, or an
extension of philanthropy. It seems that CSR in India has been evolving in domain of profit distribution.
There is a need to increase the understanding and active participation of business in equitable social
development as an integral part of good business practice. 

Corporate no doubt have made significant contributions towards the sustainable development of our
country. Considering the limitations of the corporate in their CSR activities, some recommendations which
can be used towards satisfaction like companies should extend their CSR activities in less privileged
states rather than concentrate in resource rich states. It is essential that companies develop an effective
value chain system of their products through their CSR activities, which is essential for competing in the
global market. It will give better results if activities are based on a more practical & participatory approach
and touch the grassroots level. Voluntarism among employees should be encouraged
and institutionalized through recognition and incentives. There is also need for public-private partnership
with well-defined controls and process for the best use of resources for social change. Special training
needs to be given to business managers in working with social issues. Participation of small and medium
business should be encouraged. Experience has shown that working with NGOs is more worthwhile and
result-oriented. Joining hands with related NGOs is therefore advisable. 

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Corresponding Author 

Richa Gautam can be contacted at: [email protected] or [email protected] 

Richa Gautam and Anju Singh 

Industrial Safety & Environment Management Group, National Institute of Industrial Engineering (NITIE),
India
Table 1: The four models of Corporate Responsibility
(Arora & Puranik 2004)

Model Focus Champions

Ethical Voluntary commitment by companies M.K Gandhi

to public welfare

Statist State ownership and legal Jawahar Lal Nehru

requirements determine Corporate
responsibility

Liberal Corporate responsibilities limited Milton Friedman

to private owners (shareholders)

Stakeholder Companies respond to the needs of R. Edward Freeman

stakeholders-customers, employees,
communities, etc.

Table 3: Summary of CSR Ratings of top 500 companies

No. of Companies with

Karmayog CSR Rating Companies given rating

0/5 231 46%

1/5 92 18%
2/5 138 28%
3/5 35 7%
4/5 4 * 1%
5/5 0 0

Total 500 100%

* HDFC, Infosys, Tata Steel, Titan Industries

Table 4: The CSR focus, methodology, and impact and business

linkage of 30 companies

Business
Company Type Focus Area Linkage

Bajaj Auto Auto Development of Indirect

weaker sections of
society

Castrol India Chemicals Strengthens link Indirect

between business &
social investments

Mahindra & Auto-mobile Sharing wealth and Indirect

Mahindra promote primary
education

Infosys IT Support and Indirect

encourage
underprivileged
sections

ITC FMCG "Citizen First" Indirect

watershed
development program;
Empowering Farmers;
Greening Wastelands
and Irrigating dry
lands

L & T Engg. Enhancing Indirect

shareholder value
and responsibility
for welfare of
society at large

Dabur India Pharma FMCG Give back some part Indirect

of what Dabur has
gained from
community

BHEL Engg. Community and Direct

Product development

Tata Steel Engg./Metal "Improve the quality Indirect

of life of the
communities it
serves."

Wipro IT Learning Enhancement Indirect

Disaster
rehabilitation
Nestle India FMCG Integrated Indirect
communities where it
runs industrial and
commercial
operations

ICICI Financial Empower millions Direct

economically &
socially challenged
Indians.

Colgate- FMCG Colgate care for the Direct

Palmolive community where they
live & work

Britannia FMCG Wadia Group Direct

Industries Community conscious,
desire to share
prosperity with
community.

BPCL Petrochemicals Community Indirect

development

Godrej Engg & FMCG Promoting education, Indirect

housing, social
upliftment,
conservation,
population
management and
relief of natural
calamities

Grasim Textile Social and economic Indirect

Industries Engg Chemicals development of the
communities in which
we operate

Cipla Pharma Cipla Care Direct

Johnson & Pharma Support good works Direct

Johnson FMCG and charities.

Hero Honda Auto-mobile Do something for Indirect

community from whose
land we generate our
wealth

NIIT IT Narrowing the Direct

digital divide
across the world,

Zee Telefilms Entertainment being successful is Direct

to be socially
responsible

Dr Reddy's Lab Pharma Prosperity of Direct

 communities integral
to success of
companies

Satyam Computer IT Contributing to the Indirect

Service well-being and
development of
society

Novartis Pharma Treatment for Direct

Leprosy

TCS IT Flexible Global Indirect

business practices

Citi group Financia l Women empowerment Direct

Services

NTPC Power Rehabilitation & Direct

Resettlement policy,
community work,
gender equality,
Policy of grant of
paternity leave,

SAIL Manuf. Community Direct

development

Hindalco Manuf. Poverty Alleviation Direct

Program

Methodology
Company Adopted Impact

Bajaj Auto Trust Undertakes long-term Community

projects in rural areas. Development

Castrol India Rehabilitation of earthquake Community Service

affected victims in Gujarat.
Castrol Drive for Safety
Initiative College
establishment

Mahindra & College establishment Nanhi Community

Mahindra Kali (underprivileged girl Development
child) 1% Profit after tax for
CSR activities
Free education for girls
Lifeline Express: medical
facility Free surgeries

Infosys Infosys Foundation provide Successfully

medical facilities to remote implemented
rural areas, organizing novel projects
pension schemes and aiding
orphans and street children
and rural education program
 titled "A library for every
school", Human Capital
Education index for its
employees

ITC Through "e-choupal" organizing Supplier and

farmers into water user groups community
that plan and build water- development
harvesting structures Primary
education Livestock
development Social forestry
Integrated watershed
development First to be
certified SA 8000 standard

L & T Eco Friendly approach; Create Community Service

awareness on HIV/AIDS; and and environment
waste minimization, Health One protection
of the first corporate to
launch HIV/AIDS program

Dabur India Establishment of Sundesh, NGO RM Supplier

Programs for ecological development
regeneration & protection of
endangered plant species
Promoting health and hygiene
amongst the underprivileged
through Trust and Create
environmental awareness
amongst young minds

BHEL Adopted 56 villages and Benefited over

provided infrastructure for 80,000 people.
schools for physically
challenged children near its
units
Launched wind electric Minimize
generators, solar heating environmental
systems, solar photovoltaic impact of fossil
systems, solar lanterns and energy products,
battery powered road vehicles

Tata Steel Through "Green Millennium" Settling

campaign planted 1.5 million Sustainability
surviving trees Through Standards
Employment Generation,
Building people, education,
health and hygiene

Wipro Through trust: Provide Community Service

rehabilitation to survivors
of natural calamities and
Enhancing learning abilities
of children from
underprivileged sections.

Nestle India Through Water Conservation, Environment

 Natural refrigerants replaced protection and
ozone depleting. Also include community services
Nutrition & health projects,
agricultural assistance,
education and training, arts
and culture, HIV/AIDS
prevention and donations

ICICI Through initiatives Give Community

India; Shop; Volunteer; development
and Info change.

Colgate- Free oral care education Community

Palmolive Through different community development
programs

Britannia Welfare of its workers through Employee

Industries trust Health care facilities development
Support

BPCL Through Health, Rain water Community services

harvesting, Infrastructure
development, education, HIV
Health care and prevention.

Godrej Three Foundations/Trusts to Employees'

contribute to Social, involvement
Environmental, and Educational in Group's
causes. philanthropic
efforts.

Grasim Through "Aditya Birla Centre Community

Industries for Community Initiatives and Development
Rural Development".
Includes education, Health &
family welfare, Sustainable
development & livelihood &
agriculture & watershed
development, Infrastructure
development & Social causes

Cipla Cipla Foundation Through Dr. Community service

K. A. Hamied Institute & Cipla
Cancer Palliative Care Centre

Johnson & Through donations of time, Community Services

Johnson money and goods. Women's and
Children's Health Community
Responsibility Access to Care
Advancing Health Care
Knowledge Global Public Health

Hero Honda Through Integrated Rural Community

Development Centre including development
: Hospital, Sports complex,
Vocational Training Centre,
Adult Literacy Mission,
 Marriages of underprivileged
girl, Rural Health Care

NIIT Through launch of Community services

International Women's Month
uplifting Indian women,
Computer literacy. Developed
I-Learn Create awareness
about AIDS

Zee Telefilms Public Service Ads/Fillers Community Service

telecast to date are:
Campaigns on TV

Dr Reddy's Lab Through Environmental: Water Environmenta

Usage Energy Usage Wastewater l Protection
Discharge COD & TDS Load
Discharge HW-hazardous waste
disposal GHG emissions

Satyam Computer Specific services through Community Service

Service various development projects

Novartis Free Multi Drug therapy. Community

Cured 4.5 million patients services

TCS Global delivery model: Global 35 Countries

deployment & delivery of high benefited
value services

Citi group Rehabilitation Education Community services

Health Benefited statesAP,
TN, Karnataka,
Kerala,
Maharashtra, MP

NTPC Founded Global Compact Society Community services

for India in 2003

SAIL AIDS awareness Education Community

Medical facilities and health development
Development of small scale/
ancillary industries

Hindalco Agriculture, poultry, Community

fisheries Asian CSR award for development
Integrated Rural Poverty
Alleviation Program

IT: Information Technology, Pharma: Pharmaceuticals, Manuf.:

Manufacturing, FMCG: Fast moving consumer goods.