CORPORATE SOCIAL

RESPONSIBILITY
“A Cornerstone of our Enduring Success"

NAME : UMANG NARSARIA

SUPERVISOR : SIDDHARTHA
CHATTOPADHYAY
COLLEGE : ST. XAVIERS COLLEGE
GUIDE : Dr. S.K. BASU

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 CONTENTS
Sl. No. TOPIC Pg No.

I. Abstract 4

II. Introduction 5-6

III. Why CSR ??? 7

IV. CSR Development 8-9

a. CSR Strategy
b. CSR Management System
c. CSR Reporting
Stakeholder Engagement & Communication

V. Literature Review 10-11

VI. Why should business companies engage in CSR? 12

VII. Evolution of corporate social responsibility in India 13-14

VIII. Research and Methodology: 15-28

IX. Critics & Concerns 29-32

a. Nature of business
b. Motives
c. Ethical Consumerism
d. Globalization & market forces
e. Ethics training
f. Laws & regulation
g. Crisis & their consequences
h. Stakeholder priorities
i. Industries considered void of CSR
j. Social awareness & education
k. Arguments for including disability in CSR

l. CSR Stratergies Focusing on Protection rather than

Competitive Advantage

X. Issues & Challenges 33

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 XI. RELIANCE-“ exposure to wide spectrum of ideas”Limitation 34-39
of the project work
XII. Limitation of the project work Conclusion

XIII. Conclusion 40

1. Abstract:

Corporate social responsibility (CSR) is emerging as a new field in the

management research. In India,many firms have taken the initiatives of CSR
practices which have met with varying needs of the society.The present study
has made an attempt to understand the status and progress and initiatives made
by large firms of India in context to CSR policy framing and implementation.
Data has been collected from the official websites of the firms, in-person
interviews and through structured questionnaire. The CSR initiatives in context
to health, education and environment sector to be rated by the interviewee were
identified from the literature.

Based on the information and discussions mentioned a matrix of various policy

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factors has been prepared. All initiatives factors have been rated on the scale of
1 to 5. Results of the study depicts that IT and Auto industry is more going for
taking up CSR initiatives while FMCG sector has focused yet not too much into
the social responsibility initiatives. Although India has entered or taken a
transformational change by involving into new CSR initiatives, but still a lot has
to be done in this area.

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2. INTRODUCTION
The concept of CSR was established in the 1950s. It is a way of managing a company
and making relati onships with partners which contributes to improving the reputati on
and credibility of a company. The European Union supports CSR acti viti es in the
Europe. This issue has been worked on since the 1990s.
A host of other such ideas have given rise to the concept of Corporate Social
Responsibility (CSR). The emerging concept of Corporate Social
Responsibility (CSR) goes beyond charity and requires the
company to act beyond its legal obligati ons and to integrated social,
environmental and ethical concerns into company’s business process.
Business for Social Responsibility defi nes CSR as “achieving commercial
success in ways that honor ethical values and respect people, communiti es, and the
environment.
Corporate Social Responsibility (CSR) is about a commitment to communiti es in
which an organisati on operates. CSR is an important contributor to long-term business
success, and should be viewed in a strategic business sense rather than simply for its
“feel-good” factor.

CSR INCLUDES THE FOLLOWING :

 Conducti ng business in an ethical way and in the interests of the wider
community.
 Responding positi vely to emerging societal prioriti es and expectati ons.
 A willingness to act ahead of regulatory confrontati on.
 Balancing shareholder interests against the interests of the wider community.

There are four main parts to CSR:

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Economic Responsibility to earn profi t for owners

Legal Responsibility to comply with the law

Ethical Not acti ng just for profi t, but doing what is right, just and fair

Voluntary and Promoti ng human welfare and goodwill

philanthropic Being a good corporate citi zen contributi ng to the community and
quality of life
The key components of CSR would therefore include the following:

 Corporate Governance: Within the ambit of corporate governance, major

issues are the accountability, transparency and conduct in conformity with the
laws.
 Workplace and  labour relati ons: Human resources are most important and
criti cal to a company.
 Affi rmati ve acti on/good practi ces:  Equal opportunity employer, diversity of
workforce that includes people with disability, people from the local s etc.
 Supply Chain: The business process of the company is not just limited to the
operati ons internal to the company but to the enti re supply chain involved in
goods and services.
 Customers: The products and services of a company are ulti mately aimed at
the customers.
 Environment: Merely meeti ng legal requirements in itself does not comprise
CSR but it requires company to engage in such a way that goes beyond
mandatory requirements and delivers environmental benefi ts.

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3.WHY CSR ???
When research makes clear how important corporate social responsibility is for
the planet, communities, your customers and employees,  the question
shouldn’t be ‘why CSR?’ We should instead ask ‘why not?’

NEW CUSTOMERS – 83% of people will trust a company more if it’s socially
responsible (USA Today)

INVESTORS – Companies with public commitment to ethics perform better on 3

out of 4 financial measures than those without. These companies also have
18% higher profits on average (Institute of Business Ethics)

GROWTH - Corporate Social Responsibility encourages professional (and

personal) growth and positions your business as an employer of choice

TOP TALENT - 49% of 18-24 year olds would take a pay cut to work for a
socially responsible company (Burson-Marsteller)

GREAT GRADUATES - 50% of young people would turn away from an employer
that lacked good CSR policies (Personnel Today)

DRIVE PURCHASE - Social responsibility remains a differentiator for products

and brands with 50% of customers prepared to pay an extra 5% for a product
that supports a certain cause when choosing between otherwise similar items
(Landor Associates).

SPREAD THE WORD - customers want to hear the message of social

responsibility. 75% are more likely to buy the products of a company with a CSR
section on their website (Corporate Eye).

PR - CSR offers high visibility awareness opportunities through editorial content.

FOOTFALL - New ways to tap into target audiences and drive business at
designated times of year.

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4.CSR DEVELOPMENT
The development of CSR is discussed from the second half of the 20th century.
The year 1953 was a break through because the book Social Responsibilities of
the Businessman was published. Bowman first defined social responsibility in
this book. His definition is more about the responsibility of the businessman
than the responsibility of the company. But his definition is still valid: “… to
realise such procedures, take such decisions or follow such ways of  behaviour
which are required for the goals and values of our society.” The problem is that
his definition and others insufficiently identify the requested behaviour of the
businessman and company.
The following idea became very popular in the 1960s: a company has not only
economic and legal obligations but also obligations to society. If a company
does not follow these obligations to society, society can close down or limit the
enterprise. The problem here is that the idea does not define who or what is a
part of the company. The answer is the stakeholders’ concept. Developing the
stakeholders concept started at  the beginning of the 1970s.

(a). CSR Strategy

The CSR Strategy should be the starting point of the organizational CSR
practice. This strategy needs to be defined as clear as possible with a future
goal in mind.

Internal Aspects:
We will need to build solid support for the strategy before we go about defining
what we want to achieve with this strategy. It is key to this strategy to get the
support and participation from as many high profile executives in the
organization and to identify and engage these people that are passionate about
CSR within the business.

External-Aspects:
The CSR Strategy will act as the positioning document for the responsible
business practice of the company. The stakeholders and the public will expect a
visionary document that shows ambition and goals.

(b). CSR Management System

After defining the strategy our next task will be to set up the CSR Management
system. The management system of CSR within our business will outline what
we actually need to do to make our strategy happen and to produce results.

Internal Aspects:
This is where we need to engage even more individuals in our business. Try to
gather information on how the CSR Strategy has been received and then build
on that to engage the most positive people. Once we have gathered a good
team that supports our cause we can pool their knowledge and build a sound

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management plan on how to deliver the different elements of the strategy. The
CSR management system is the customized tool to successful CSR.
External Aspects:
This will be the CSR tool we will be asked about a lot once we have it set up.
The CSR management system is the vehicle to get more external recognition of
our activities.

(c). CSR Reporting

The next step after the successful set up of the management system is the
reporting of the first results of your companies CSR activities. This is called
CSR reporting. Companies usually report on an annual basis. This CSR
reporting is really the first test whether you and your team have created
something interesting and worth reporting for your stakeholders .

Internal Aspects:
Internally this CSR reporting is really a tough task. It will test our CSR
management and coordination skills. The goal is to produce a meaning full
publication that will be of interest to the stakeholders. The challenge we will
face inside of the company is that it will be very hard to get all the numbers and
the signed of text in time to be still up to date and relevant.
External Aspects:
CSR Reporting is a very important tool once you start out with CSR as an
organization. Externally this CSR Report together with the CSR management
system will be your CSR face of the organization. So the more professional you
can make it the better. 

(d). Stakeholder Engagement & Communication

Stakeholder Engagement and Communication is the area, which keeps all of
these areas together and connected. Without engaging your stakeholder on a
continuous basis there is no real long term value in building a CSR Strategy, a
report or communicating what you as an organization have been doing. So what
do you need to take into account to practice suc cessful stakeholder
engagement?

Internal Aspects:
Key to Stakeholder Engagement is to be as transparent within the company
about what we and our team do as the CSR team. This will be the first question
colleagues will ask: “But what do you actually do?” Effective stakeholder
engagement starts in our own backyard first. Once you have that running your
can turn to the external perspec tive of stakeholder engagement.

External Aspects:
Once we have the internal stakeholder engagement and communication running
smoothly you can turn your focus to the external aspects. Here we should look
to include interest groups such as NGO’s, the local community around your sites
and other stakeholder groups that you have identified as being important to your
organization.

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5.LITERATURE REVIEW

Can shareholder money be used for a company's corporate social

responsibility (CSR) practices? Shouldn't shareholders have a say in the
CSR activities of the company they are invested in?

As per ACCSR’s State of CSR in Australia Annual Review report Full

understanding of CSR still emerging;There are many obstacles are emerging
while adopting successful CSR strategies include the difficulty in making a
business case for CSR, difficulty in integrating CSR with organizational values
and practices, and the lack of organizational buy-in and commitment to CSR.

Other obstacles reported is the lack of time and financial resources to pursue
CSR practices are directly related to the above three. When an organization
finds it hard to make a business case for CSR or link it to core organizational
operations, it will be reluctant to commit and allocate resources or time to such
practices. Moreover, these obstacles also point to another set of findings in the
report: respondents view CSR more so as a means to manage regulatory
impacts, reduce risk, and respond to stakeholders concerns, and to a lesser
extent as a strategic source of competitive advantage.

(A) Study by Maon et al :: suggest an integrative framework of corporate social

responsibility design and implementation. The research proposed integrative
framework for designing and implementing corporate social responsibility incorporates
nine steps: raising corporate social responsibility awareness inside the organization,
assessing corporate purpose in a societal context, establishing a working definition
and vision for corporate social responsibility, assessing current corporate social
responsibility status, developing an integrated corporate social responsibility strategic
plan, implementing the corporate social responsibility integrated strategic plan,
maintaining internal and external communication, evaluating corporate social responsibility
related strategies and communication and institutionalizing corporate social
responsibility policy.

(B) According to John Simmons :: The concept of the responsible organization and
ethical business conduct is also a very important. Main focus of the study is on
operationalizing corporate social responsibility in the context of employee
governance with a purpose is to evaluate critically the ethics of “mainstream”
human resource management (HRM) and to propose an alternative stakeholder
systems model of human resource management.

(C) Research by Hanke and Stark :: proposed a conceptual framework as a basis

to develop a company’s CSR strategy. This paper provides measures and
instruments to make complex CSR processes more visible and manageable. The

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conceptual framework separates the two factors: legitimation and sense making/sense
giving in the one dimension and the organizational system is separated from the
organizational environment. It also suggests that conceptual framework enables a
process to understand whether the engagement is more driven by legitimation or by
sense making and whether the fundamental addresses is the inner
world or the organizational environment.

(D) Study by Chaudhri and Wang :: examines CSR communication undertaken by

the top 100 information technology (IT) companies in India on their corporate Web
sites, with an analytical focus on the dimensions of prominence of communication, extent
of information and style of presentation. The findings indicate that the number of
companies with CSR information on their Web sites is strikingly low and that these leading
companies do not leverage the Web sites to their advantage in terms of the quantity and
style of CSR communication. It also seems that IT companies in India are lagging
behind in creative and effective CSR communication on their Web sites.

(E) Saeed :: depicts that CSR initiatives in India are now taken by many
corporate firms. Especially for the FMCG companies, where the major challenge
is reduction of packaging materials, these companies are doing work in the field
of Environment care, Health care, Education, Community welfare, Women's
empowerment and Girl Child care. Companies like Hindustan Unilever started
work on CO2 reduction also. Banerjee et al, suggests that environmental
orientation is the recognition by managers about the importance of
environmental issues faced by their firms. Today corporate social responsibility
is emerging as a core focus area for an increasing number of organizations,
which are looking at new and innovative ways to contribute to the communities
they operate in Chopra .

This study has been undertaken as a part of a much wider study relating to
CSR- Corporate social responsibility: A passion of large organizations or a
commitment to the society. The overall study focused on the importance of
company’s age viz. with respect to the Corporate Social Responsibility initiatives
undertaken bythe firm. Here CSR age means CSR leaders, CSR initiators and
CSR newcomers. And identify the corporate social responsibility practices with
reference to health, education and environment for large firms of North-West
region of India .

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6.Why should business companies engage in
CSR??
Businesses are turning to CSR to become more ethical, environmentally-
conscious and respectful to their people and communities. In recent decades the
concept of Corporate Social Responsibility (CSR) turned out to be a vital
strategy for companies to survive in a ruthless market environment. In a
condition where market’s shift and customers’ preferences becomes more
unpredictable and complex, adopting CSR strategy could be a powerful tool for
survival.
CSR-Asia defined Corporate Social Responsibility 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.
Many companies all over the world are now starting to see the benefit of
practicing CSR in their bottom lines. European countries are now seriously
engaged in this concept on different levels and even in interpretation of how the
concept works.
The concept is quite ambiguous for some did not see its difference from
corporate philanthropy. The latter is the most popular as it is easy to
comprehend and implement. Other would try to adopt the concept but their
involvement limited only to their core business. This is understandable, because
it is easier for companies to formulate interventions on a concept they can easily
understand and are cost-effective to them. Example, a food manufacturing
company would normally prefer to implement interventions that are related to
nutrition, and call this as their CSR project, but in reality is still very similar to
corporate philanthropy. Despite the wide spectrum of approaches to CSR, there
is a large consensus among practitioners on its main features.
First, is that, CSR is behavior by business over and above legal requirements,
voluntarily adopted because business deem it to be in their long-term interest.
Second, CSR is intrinsically linked to the concept of sustainable development:
businesses need to integrate the economic, social and environmental impact in
their operations. Third, CSR is not an optional “add-on” to business core
activities – but about the way in which business is managed.
Following the above line, CSR could not be equated to Philanthropy. It is a
complete business strategy that aims to ensure the long-term viability of the
business, by assuming an active role in the development of the community, the
economy, and the environment through good business practices. It is not
different from being a “good citizen” of a country!

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CSR brings full load of benefits aside from “ego-trip” as others thought. I will tell
you why.

7. Evolution of corporate social responsibility

in India:

Among other countries  India has one of the most richest traditions of CSR .Much
has been done in recent years to make Indian  Entrepreneurs aware of social
responsibility as an important segment of their business activity but CSR in
India has yet to receive widespread recognition. If this goal has to be realised
then the CSR approach of coroporates has to be in line with their attitudes
towards mainstream business- companies setting clear objectives, undertaking
potential investments, measuring and reporting performance publicly.

The Four Phases of CSR Development in India

The history of CSR in India has its four phases which run parallel to India's
historical development and has resulted in different approaches towards CSR.
However the phases are not static and the features of each phase may overlap
other phases.
The First Phase
In the first phase charity and philanthropy were the main drivers of CSR.
Culture, religion, family values and tradition and  industrialization had an
influential effect on CSR. In the pre-industrialization period, which lasted till
1850, wealthy merchants shared a part of their wealth with the wider society by
way of setting up temples for a religious cause

The Second Phase

In the second phase, during the  independence movement, there was increased
stress on Indian Industrialists to demonstrate their dedication towards the
progress of the society. This was when Mahatma Gandhi  introduced the notion
of "trusteeship", according to which the industry leaders had to manage their
wealth so as to benefit the common man. According to Gandhi, Indian
companies were supposed to be the "temples of modern India". Under his
influence businesses established trusts for schools and colleges and also
helped in setting up training and scientific institutions.  

The Third Phase

The third phase of CSR (1960–80) had its relation to the element of "mixed
economy", emergence of  Public Sector Undertakings  (PSUs) and laws relating
labour and environmental standards. During this period the private sector was
forced to take a backseat. The public sector was seen as the prime mover of
development. However the public sector was effective only to a certain limited
extent. This led to shift of expectation from the public to the private sector and
their active involvement in the socio-economic development of the country. They
emphasized upon transparency, social accountability and regular stakeholder
dialogues. In spite of such attempts the CSR failed to catch steam.

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The Fourth Phase
In the fourth phase (1980 until the present) Indian companies started
abandoning their traditional engagement with CSR and integrated it into a
sustainable business strategy. In 1990s the first initiation
towards globalization and economic liberalization  were undertaken. 

Current State of CSR in India

As discussed above, CSR is not a new concept in India. Ever since their inception,
corporates like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name
a few, have been involved in serving the community.Through donations and charity events,
many other organizations have been doing their part for the society. The basic objective of
CSR in these days is to maximize the company's overall impact on the society and
stakeholders. CSR policies, practices and programs are being comprehensively integrated
by an increasing number of companies throughout their business operations and processes.
CSR programs ranges from community development to development in education,
environment and healthcare etc.
For example, a more comprehensive method of development is adopted by some
corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India Limited,
and Hindustan Unilever Limited. Provision of improved medical and sanitation facilities,
building schools and houses, and empowering the villagers and in process making them
more self-reliant by providing vocational training and a knowledge of business operations are
the facilities that these corporations focus on.Many of the companies are helping other
peoples by providing them good standard of living.
On the other hand, the CSR programs of corporations like GlaxoSmithKline
Pharmaceuticals’ focus on the health aspect of the community. They set up health camps in
tribal villages which offer medical check-ups and treatment and undertake health awareness
programs. Some of the non-profit organizations which carry out health and education
programs in backward areas are to a certain extent funded by such corporations.

Spend 2% Profits on CSR

The profit-making private sector companies will be asked to spend a minimum of two per
cent of their profits on CSR activities in the new Companies Bill, the Union Minister of State
for Corporate Affairs. The Government will not be specific on what to be done, but post the
activities, disclosures will be made compulsory, he said, while speaking at the valedictory
function of the 32nd annual convention of the Kerala Management Association here.

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8.Research and Methodology:
The present study is based on inputs from 12 large scale organizations basically
covering IT Sector, FMCG and Auto sector. The detailed study of CSR Initiatives by all
these firms has been taken and then scores compiled for all three sectors undertaken for
the study viz. Education, Health and Environment Using a combination of case
studies and industry- wise matrices for all three sectors, i.e. Education , Health
and Environment Sector the results are discussed. Thus this gives a
comprehensive view of sector-wise initiatives by different industry groups. In order to
collect the data and information about the initiatives and undergoing CSR
practices following categories of professionals were contacted and
interviewed: i) senior manager, ii) HR manager, iii) CSR manager. An attempt has been
made to understand the status and progress and initiatives made by large firms of India
in context to CSR policy framing and implementation.
These firms have been chosen carefully keeping in view the following factors:

 These firms are into the taking of CSR initiatives,

 These firms constitutes Auto, FMCG and IT sector,
 These firms are experiencing CSR practices in the health, education and
environment sector.

Data was collected from the official websites, in-person interviews and
through structured questionnaire . The CSR initiatives in context to health, education
and environment sector to be rated by the interviewee were identified from
the literature. Based on the information and discussions mentioned above a
matrix of various policy factors has been prepared. All initiatives factors have been
rated on the scale of 1 to 5.

Analysis & Result ::

(i)TCS: Tata consultancy services is India’s largest software service

company and has won the Asian CSR award for initiating community
development work and implementing various programs and devoting leadership and
sincerity as ongoing commitment in incorporating ethical values.

Major focus of the company is on education sector Company is working upon

literacy program that cares designed computer based literacy model to teach adults
and this program is known as a adult literacy program. Company is also working
upon environment policy and has been developing environment friendly products
and services. TCS has also taken some footprints into the health sector too i.e. its

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actively supporting children’s hospital in Mumbai. Success of all
these CSR practices is shared by company with a three dimensional framework
that comprises employees, management and work place.

I(ii) IBM : BM is software company that posse’s highest standards of

social responsibility in our country. Company has been growing its footstep in
India - and has in over 200 cities and towns across the country. IBM in India has
clearly established as a one of the leaders in the Indian Information Technology (IT)
sector. IBM holds frequent awards for its industry-leading employment
practices and policies. Company has different department for the operation of
CSR initiatives as one of them is Indian women’s leadership council the main
objective of this council is to provide, technical, professional and personal
development to the women. This is to attract and retain women employees at IBM.
Company issued its first corporate policy on environmental affairs in the year 1971
and till date its working on go green and preserving natural resources.

Key Values : IBM has developed a system that aligns the company’s values with
social responsibility initiatives and maximizes its impact as a global enterprise. With
this aim company is working on specific societal issues like environment, community
development, health care, education etc.
Company is committed towards the implementation of its environmental
policy in all of the company’s business activities. Company has integrated in
organizing many health services that constitutes providing medicines,
industrial work area hygiene and safety. Company is working with the
motive of providing transparent system and proactive engagement with
employees, customers and the communities/society where they operate and work,
with this aim they are trying to better equipped with better products and services
for a smarter planet.

(iii) Infosys: As a leading software company Infosys is into the providing

language and computer education. Company has special program for

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unprivileged children by which company teaches them various skills and
change their outlook too. Company also donates carom chess board, chocolates
etc. to the needy ones. One of the Infosys team has been working with
Kaliyuva mane that is an informal school for dropouts. Company believes that
business have direct impact upon the environment through the use
of energy, use of environmental resources and other operations. Business firms
have to work accordingly so that they can minimize adverse effects of
technology on local community and employees.
Company is working on the concept of reengineering the process and to
align them with green goals. Manufacturing of products and services has been
done in such a way that the harmful impact on environment can be reduced to minimal
possible level.

CSR Activities Include: Blood donation camp, eye donation camp and Infosys
foundation has been working in the sectors of health care, education, environment
preservation and social rehabilitation.

(iv).WIPRO: The women of Wipro (WOW), council of the company has taken
various initiatives to empower women . Three main CSR activities include
environment sector, education sector and energy conservation. In the last few
years company ensured consistent increase in women empowerment as ten
percent increase has been observed in the year of 2004 to 2010. Basic motive of
the company is ‘we live in the community and community lives in us.’

Wipro Cares: Focus area of Wipro cares is on taking educational and health care
initiatives for migrated communities and environmental issues and disaster
rehabilitation

(v) Nestle Multinational: In 1921 Nestle build first factory in the developing
world. For the success first Nestle had to work with the farmers, helping them to be
productive and successful so that they could supply high quality milk, coffee and
other raw materials. Today, Nestlé’s milk district in Brazil is larger than the
country of Switzerland and it has made a major difference in economic
development and improved standards of living for area farmers and their
families. In 1962 Nestle wanted to enter Indian market and it received
government’s permission to build a dairy in the northern district of Moga.
Poverty in the region was severe; people were without electricity,
transportation, telephones, or medical care. A farmer typically owned
less than five acres of poorly irrigated and infertile soil. Many kept a single
buffalo cow that produced just enough milk for their own consumption.
Nestle came to Moga to build a business, not to engage in CSR. But Nestlé’s
value chain, derived from the company’s origins in Switzerland, depended
on establishing local sources of milk from a large, diversified base of small
farmers Establishing that value chain in Moga required Nestle to transform the
competitive context. This created tremendous shared value for
both the company and the region. Nestle built refrigerated dairies as collection points

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for milk in each town and send its trucks to the dairies to collect the milk. When
Nestle milk factory first opened, only 180 local farmers supplied milk.

Today, Nestle buys milk from more than 75,000 farmers in the region. As the
quality has improved, Nestle has been able to pay higher prices to farmers than
those set by the government. Today, Moga has a significantly higher standard of
living than other regions in the vicinity. Nestlé’s commitment to working with
small farmers is central to its strategy. It enables the company to obtain a stable
supply of high-quality commodities without paying middle man. In this way
Nestle invested heavily to strengthen their supply chain and found many ways to
tie local needs and opportunities to their business objectives. Business is the
sole creator of wealth and the origins of all income and tax revenues as well as
charitable contributions. In a sound economy, people can afford both the
necessities and the pleasure of life.

Nestle looks at corporate social responsibility in terms of creating shared

value. ‘creating shared value’ is a very different approach to CSR, because it is
not focused on meeting a set of standard external criteria, or on philanthropy.
The idea of winners and losers does not fit this model of CSR: business can
help societies progress and all sectors can help business to improve and
flourish.

Nestle Creating Shared Value System

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(vi) Coca-Cola Multinational: Today, Coca-Cola Enterprises (CCE) is
among the world’s third-largest Coca-Cola bottler by volume and serves the
countries of Belgium, France, Great Britain, Luxembourg, the Netherlands,
Norway and Sweden, with leading positions in the non alcoholic ready-to-drink
category products in each nation. Coca-Cola Enterprises provides products and
services all over the world that meet the beverage demand and business needs
of thousands of retail customers. As Coca- Cola is the third largest bottler in the
world and the company’s portfolio encompasses a full range of beverage
categories, including energy drinks, still and sparkling waters, juices, sports
drinks, fruit drinks, coffee-based beverages and teas. Coca-Cola Enterprises'
product portfolio includes the world's renowned greatest brands and beverages.
Working closely with their customers, the company ensures availability in the
right place at the right moment with outstanding marketplace execution.
Major focus of the company is on customer relationships that are central to
company’s effort to generate superior marketplace execution, which is a
cornerstone of Coca-Cola Enterprises’ operating philosophy and strategy.
Companies dedicated employees, empowered and accountable for decisions at
the local level, work side-by-side with the customers every day in the stores,
shops and markets where ever products are sold.

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 In 1986 first listed on the New York Stock Exchange (NYSE: CCE), company
roots go back to the birth of the Coca-Cola bottling business in the 19th century.
CCE first expanded from its North American roots to Europe in 1993 with the
purchase of bottling rights in the Netherlands. In 2010, The Coca-Cola Company
acquired the North American operations and today, company serves customers
and consumers in Belgium, Great Britain, France, Luxembourg, the Netherlands,
Norway and Sweden. In each nation and local community, company strive to be
an outstanding corporate citizen `

The Best Brands in the World: Coca-Cola Enterprises' continually working

towards the exciting new innovations, extensive brand portfolio includes the
best, most popular beverage brands in the world, as well introduced regularly
new range of products. top ten brands of the CCE company are: Coca- Cola,
diet coke, fanta, coca-cola zero, Capri sun, Schweppes, Sprite, Chaudfontaine,
Minute Maid, Dr. Pepper.

Major Focus of Coca-Cola for Csr Practices: As it’s very clear from the above
shown Figure 2, major key focus areas of the Coca- Cola multinational. For
maintaining the good quality standards company has ISO 9000 certification. For
environment ISO 14001 certification is required. Further for occupational survey
company implements OHSAS 18001. Last but not the least major focus of the
company is on the food safety and for maintaining quality of the food Coca-Cola
is ISO 22000 certified.

20
Building Gap between Theory and Practices: Coca-Cola is world renowned
bottler; company’s portfolio encompasses a full range of beverage categories. In
the changing world markets companies are trying hard to maintain their social
and profitable image. Coca- Cola is among the most successful companies of
the world. The reason behind this success of Coca- Cola is whatever company
promises as a theory, it tries to implement or achieve that in practically. This is
clearer from the Figure 3, showing the linkage between the company’s
theoretical assumptions with their practical achievement.

(vii) ITC: ITC Limited (ITC) is among one of India's leading private sector
companies having a assorted portfolio of businesses. The company has been
into the corporate social responsibility initiatives over the past many years and
has gained appreciation worldwide. ITC is in the business of Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods &
Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products.

Objectives: ITC Limited Has Following Broad Objectives:

 Providing information technology (IT) computer education across the

different villages.
 Major focus of the company is on creating and continuous women
empowerment

CSR Philosophy: ITC is working with the concept of ‘Triple bottom line’ that will
contribute to the growth of economy, environment and social development.
Major focus area of the company is on raising agricultural productivity and
helping the rural economy to be more socially inclusive. Agenda of the company
revolves around sustainable development and inclusive growth. Company has
taken many educational, environmental and social initiatives to ensure

21
sustainable growth. Some key initiatives are as follows:

 ITC has a history of working for social developments in collaboration

with communities and government to exchange productivity and helping in
overall development.
 Company is working towards managing water soil level and forest
resources to maintain the balance and ecological security.
E-Choupal project has been specifically designed to benefit the Indian
agriculture. As ITC’s agribusiness is among the India’s largest exporters of
agriculture goods. E- Choupal is a stepping stone towards achieving more
efficient supply chain aimed at delivering best services and products to the
customers around the world. This will be helping the farmers in knowing about
market demand, relative important information will provide customized
knowledge and secure quality and productivity. And e-Choupal will eliminate
waste information and multiple handling of crops by virtually linking to the
‘Mandy’ system for price discovering .

E-Choupal project has been launched in 2000 year and been

successfully executed in over 40,000 villages. Basic problem encountered
during the implementation of the project was infrastructure inadequacy, telecom
connectivity and bandwidth. As India’s ‘Kissan’ company, ITC has taken to involve the
farmers in the management of whole e-Choupal initiatives. This project is considered as a
success as its acting as a win-win opportunity for the farmers and company too. In the
coming few years this project will be extended to 15 more states and also plans to
channelize other services along with, related to health and education sector through the
same e-Choupal infrastructure.

(viii) Britannia Industries Ltd: Britannia one of the India’s largest food
brands recognized for its best and innovative products, services and marketing.
In the year 1892 the company was started in Calcutta with just Rs. 295 and
today the company is known as Britannia. In context to CSR initiatives has
focused upon health care sector, by providing healthy food products at minimal
prices and with best quality.

Corporate Citizenship: Britannia industry is very much committed towards to

be a good corporate citizen not only by obliging the terms and conditions of the
law but also actively participate in the development of society and working
towards the improvement of quality of life of the people where industry
operates. Company has undertaken community development issues as by
organizing health and family welfare programs, clean
drinking water, providing free education to the poor people. Company has integrated these
social responsibility practices with the business plan of the company. Britannia industry has
been engaged in developing social accounting programs and to carry out social audit of their
social initiatives.

22
(ix) ONGC: Oil and Natural Gas Corporation Limited (ONGC) is founded on 14 August
1956 is a state owned company. Oil and natural gas Company contributes 77% of India's
crude oil production and 81% of India's natural gas production. Company is ranked as a
second highest profit making Business Corporation of India. Indian government has 74.14%
equity stake in this company.
‘ONGC is Asia's largest and most active company involved in exploration and production of
oil. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of
India. It owns and operates more than 11,000 kilometers of pipelines in India.’

CSR Major Focus Areas:

 The 2009 CSR guidelines define ONGC's role on corporate social responsibility
emphasizing transformation of the organization from "Philanthropy" to "stakeholder
participation". The concept of CSR has gained importance with the emergence of
globalization and liberalization. As this,brings the awareness among the investors and
customers too regarding the preserving the environment and benefiting the society.

 ONGC actively participate in the corporate social responsibility practices. Company has
received the‘Golden Jubilee Award’ for practicing and initiatingnew corporate social
responsibility.
 Company is working towards water management and project Sarswati has been
launched in North-west Rajasthan in the year 2005. Basic aim of the project isto locate
fresh water unexploited deep ground water resources. And in progress to bring water to
the people in draught areas.

 Promoting health care remedies by providing support through 20 mobile Medicare units
to almost over two lakhs elderly persons across the country.

 ONGC is also taking education initiatives in Dehradun andhra Pradesh and north
Eastern states.Educational initiatives includes activities like providing financial support
for Bal bhavan, Tamana school for computer education for disabled children, given Bralle
machine for blind children provides scholarship to unprivileged girl students affected by
tsunami and have undertaken many more such initiatives.
 ONGC has taken a foremost step towards providing urban amenities in rural areas this
project named as PURA and as envisioned by former President A.P.J. Abdual Kalam.
ONGC produces oil and gas and with this PURA project will provide the availability of
isolated gas in each state:
 Tripura - already launched
 Assam
 Andhra Pradesh
 Tamil nadu
 Gujarat
 ONGC has won Golden Peacock award for excellence in corporate social responsibility
in emerging economies’ in the year 2006- by world council for corporate governance,
UK.

23
(x) Bajaj Auto Ltd: Bajaj Auto Limited (Bajaj Auto) is the manufacturer of scooters,
motorbikes and three-wheeler vehicles and provides spare parts too. The Company
works in two segments: Automotive and Investments Bajaj auto is world’s fourth largest
two and three wheeler manufacturers

 Bajaj CSR Areas:

 Education sector
 Health sector
 Women Empowerment
 Self Reliance
 Rural Development projects
 Environment & Natural Resources preservation.

(xi) MRF: MRF is a public limited company having main objective to attain
global standards with ongoing continuous improvement by improving the
quality of products and services

CSR Focus Areas: Health care and Education sector Company having own
coaching centers and career guidance seminars, for children of the weaker
section of the society. Also awards academic scholarships to the students of
local government schools. Main objective behind initiating educational initiatives is to
ensure better quality of life to the future citizens of India. Special focus is on women
empowerment and social awareness

MRF Company works with the motto of prevention of dieses rather than cures
and covers the sections like gynecology, dubieties, dental clinic, organizes awareness
program for aids, alcoholism and de-addiction etc.

(xii) Maruti :As a responsible corporate citizen, Maruti Suzuki India Limited works
as a most responsible corporate citizen. Company has always believed in
having the highest standards of Corporate Governance. Company has key
focus upon its employees and commitment towards providing best services
to the customers and maintain the standards of corporate governance.

Maruti Suzuki a automobile industry works upon global warming and global
issues like climate change. Company has been strongly investing on
environmental friendly products and manufacturing best products for the society.
Maruti Suzuki is working upon conserving environment and preserving
natural environment Concept of reduce, reuse and recycle has been
promoted by company in all the manufacturing units. Maruti Suzuki also
introduced the road safety program to prevent accidents and also have
own Maruti driving school to promote safe driving.

24
Above shown table shows that there is a significant difference between the
corporate social responsibility practices opted by the firms with respect to
sectors undertaken for the study. Again the leading firm’s comprises IT
and Auto sector. Although ITC a known FMCG brand is much known for its social
responsibility initiatives but have much focused upon educational initiatives and
has been lacking in the other sectors. Same with the nestle leading brand known
for its social initiatives in the region but yet has very much focused in the CSR
initiatives as in the health sector only.

Importance/ Significance of Initiative Factors- Study of Initiatives Specific

to It, Fmcg and Auto Sector: Based on the information collected
and discussion as mentioned in Table 1 , a matrix of various initiative
factors has been prepared has been depicted above. The maximum possible
score for any factor is 60 when added for all firms. The average scores at a scale of
5 have also been calculated and mentioned against each factor.

As per the importance accorded by the companies to different initiatives in context to

the health sector, the highly relevant factors are: i) Directing the consumers by offering them
good service and quality products, ii) Focusing upon healthcare initiatives, iii)
counseling sessions, iv) Awareness program regarding the use of Alchol/ Drugs, v)
Organizing medical camps in the rural areas.

25
26
Similarly the least importance has been given to the factors which are: i) HIV/
AIDS awareness programs in and around the community, ii) supplementary
nutrition programs, iii) By minimizing water wastage and planting more trees,
iv) weekly clinics, v) Treat some minor ailments and casualties.

These sectors IT, FMCG and Auto has been selected on the basis of earlier
available literature and by taking care that these three sectors are more into the
initiation of corporate social responsibility projects. These sectors have earned
widespread appreciation for their ability to positively implement the social
responsibility program. Result shows that firms are more into providing good
service and quality products to the customers, Focuses upon healthcare initiatives
and different counseling sessions for the employees. There is a need for reinforced
thrust for a planned and participatory initiative for CSR framework.

As per the importance accorded by the companies to different initiatives in

context to the education sector, the highly relevant factors are: i) Organizing
training programs, ii) Organizing educational camps in the rural areas, iii) Working
with educators or schools, iv) Run firms school.

Similarly the least importance has been given to the factors which are: i) Give
computers to promote IT education in the neighbouring area, ii) Opening a school
for free education of children and old people in nearby rural area, iii) Helping any
NGO’s for this, iv) Inspiring the lives of the underprivileged.

As per the importance accorded by the companies to different initiatives in

27
context to the environment sector, the highly relevant factors are: i) Recycling of
products, ii) Control over water wastage, iii) Waste minimization and recycling, iv)
Pollution prevention.Similarly the least importance has been given to the
factors which are: i) Protection of the natural environment, ii) Tree plantation,
iii) Helping any Ngo for this, iv) Energy conversion, v) Proper disposal of
chemicals.

Company Wise CSR Initiatives :

Analysis of above collected data shows that with respect to health care
initiatives firms those are going for CSR initiatives are: Nestle, TCS, ITC and
Maruti. With respect to education sector firms named: Infosys, TCS, IBM and
ONGC
are taking initiatives. With respect to environment initiatives firms promoting
the same are: IBM, Maruti and Escorts. Thus its very much clearer from the
results that IT and Auto sector is common in the three sector that is health, education
and environment, while FMCG sector has focused yet only upon health care
initiatives.
Hence it can be concluded that IBM, MRF and TCS are the leading firms with
respect to CSR initiatives. And this also shows that Auto and IT sector are more into
the implementation of CSR initiatives. FMCG is somewhat lagging behind in the
initiation of social responsibility practices. Although ITC is the leading firm with respect
to CSR initiatives but still incomparision to other sectors and firms FMCG sector is only
into health care initiatives. Government has to take some steps to impose or motivate
auto firms, so that they can also start investment in the social responsibility
initiatives.

The results of the study are depicted in Fig 1.

28
9.CRITICISMS AND CONCERNS
Critics of CSR as well as proponents debate a number of concerns related to it. These
include CSR's relationship to the fundamental purpose and nature of business and
questionable motives for engaging in CSR, including concerns about insincerity and
hypocrisy.

a.Nature of business
Milton Friedman and others have argued that a corporation's purpose is to maximize returns
to its shareholders, and that since only people can have social responsibilities, corporations
are only responsible to their shareholders and not to society as a whole. Although they
accept that corporations should obey the laws of the countries within which they work, they
assert that corporations have no other obligation to society.

b. Motives
Some critics believe that CSR programs are undertaken by companies such as British
American Tobacco (BAT), the petroleum giant BP (well known for its high-profile advertising
campaigns on environmental aspects of its operations), and McDonald's (see below) to

29
distract the public from ethical questions posed by their core operations. They argue that
some corporations start CSR programs for the commercial benefit they enjoy through raising
their reputation with the public or with government.

c.Ethical consumerism
The rise in popularity of ethical consumerism over the last two decades can be linked to the
rise of CSR. As global population increases, so does the pressure on limited natural
resources required to meet rising consumer demand (Grace and Cohen 2005, 147).
Industrialization, in many developing countries, is booming as a result of both technology
and globalization.

d.Globalization and market forces

As corporations pursue growth through globalization, they have encountered new challenges
that impose limits to their growth and potential profits. Government regulations, tariffs,
environmental restrictions and varying standards of what constitutes "labor exploitation" are
problems that can cost organizations millions of dollars.

e.Social awareness and education

The role among corporate stakeholders is to work collectively to pressure corporations that
are changing. Shareholders and investors themselves, through socially responsible
investing are exerting pressure on corporations to behave responsibly. Non-governmental
organizations are also taking an increasing role, leveraging the power of the media and the
Internet to increase their scrutiny and collective activism around corporate behavior.

f.Ethics training
The rise of ethics training inside corporations, some of it required by government regulation,
is another driver credited with changing the behavior and culture of corporations. The aim of
such training is to help employees make ethical decisions when the answers are unclear.

g.Laws and regulation

Another driver of CSR is the role of independent mediators, particularly the government, in
ensuring that corporations are prevented from harming the broader social good, including
people and the environment. CSR critics such as Robert Reich argue that governments
should set the agenda for social responsibility by the way of laws and regulation that will
allow a business to conduct them responsibly.

30
h.Crises and their consequences
Often it takes a crisis to precipitate attention to CSR. One of the most active stands against
environmental mismanagement is the CERES Principles that resulted after the Exxon
Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include thelead
poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally
and caused the company to initiate new risk management and quality control processes.

i.Stakeholder priorities
Increasingly, corporations are motivated to become more socially responsible because their
most important stakeholders expect them to understand and address the social and
community issues that are relevant to them. Understanding what causes are important to
employees is usually the first priority because of the many interrelated business benefits that
can be derived from increased employee engagement.

j.Industries Considered Void of CSR

Several industries are often absent from CSR research. The absence is due to
the presumption that these particular industries fail to achieve ethical considerations of their
consumers. Typical industries include tobacco and alcohol producers ("sin industry"
manufacturers), as well as defense firms.

k. Arguments for Including Disability in CSR

31
 In recent years CSR is increasingly becoming a part of a large number of companies. It is
becoming an important activity for businesses throughout the globe.
Basically, CSR means that a company's business model should be socially responsible and
environmentally sustainable. By socially responsible, it means that the company's activities
should benefit the society and by environmentally sustainable it means that the activities of
the company should not harm the environment.

l. CSR Strategies Focusing on Protection rather than Competitive

Advantage:

A CSR strategy that is focused on avoiding regulatory liability and maintaining a

license to operate in the current business will neither lead to current competitive
advantage nor an imagination of future business models.

Managing regulations, risk and legitimacy (license to operate) is also reflected

in the main capabilities emphasized by the respondents: ethical behavior, social
accountability and stakeholder engagement.In order to leverage its
CSR/sustainability strategy for competitive advantage, an organization needs
the advanced capabilities of organizational learning and sustainable innovation.
These two capabilities are critical for building sustainable business models that
will lead to future sustained competitive advantage.

In the article on Corporate Social Responsibility in India – Putting Social-

Economic Development on a Fast Track by Ramya Sathish mentioned that many
CSR initiatives are executed by corporate in partnership with Non-governmental
organizations (NGOs) who are well v.ersed in working with the local
communities and are experts in tackling specific social problems.

For example, SAP India in partnership with Hope Foundation, an NGO that
works for the betterment of the poor and the needy throughout India, has been
working on short and long-term rebuilding initiatives for the tsunami victims.
Together, they also started The SAP Labs Center of HOPE in Bangalore, a home
for street children, where they provide food, clothing, shelter, medical care and
education.

CSR has come a long way in India. From responsive activities to sustainable
initiatives, corporate have clearly exhibited their ability to make a significant
difference in the society and improve the overall quality of life. In the current
social situation in India, it is difficult for one single entity to bring about change,
as the scale is enormous. Corporate have the expertise, strategic thinking,
manpower and money to facilitate extensive social change. Effective
partnerships between corporate, NGOs and the government will place India’s
social development on a faster track.

32
10.Issues & Challenges:
Many companies think that corporate social responsibility is a peripheral issue
for their business and customer satisfaction more important for them. They
imagine that customer satisfaction is now only about price and service, but they
fail to point out on important changes that are taking place worldwide that could
blow the business out of the water. The change is named as social responsibility
which is an opportunity for the business.
Some of the drivers pushing business towards CSR include:

The Shrinking Role of Government

In the past, governments have relied on legislation and regulation to deliver
social and environmental objectives in the business sector. Shrinking
government resources, coupled with a distrust of regulations, has led to the
exploration of voluntary and non-regulatory initiatives instead.

Demands for Greater Disclosure

There is a growing demand for corporate disclosure from stakeholders, including
customers, suppliers, employees, communities, investors, and activist
organizations.

Increased Customer Interest

There is evidence that the ethical conduct of companies exerts a growing

33
influence on the purchasing decisions of customers. In a recent survey by
Environics International, more than one in five consumers reported having either
rewarded or punished companies based on their perceived social performance.

Competitive Labour Markets

Employees are increasingly looking beyond paychecks and benefits, and
seeking out employers whose philosophies and operating practices match their
own principles. In order to hire and retain skilled employees, companies are
being forced to improve working conditions.

Supplier Relations
As stakeholders are becoming increasingly interested in business affairs, many
companies are taking steps to ensure that their partners conduct themselves in
a socially responsible manner. Some are introducing codes of conduct for their
suppliers, to ensure that other companies' policies or practices do not tarnish
their reputation.

Dr Ratnam said the concept of CSR had different meanings depending on the
stakeholder and that depending on the specific situation of the enterprises
expectations can also vary. A CSR project can begin in response to a crisis or
adverse publicity that a company may suffer. The motive for launching CSR can
vary between philanthropy or notions of corporate citizenship. In India, over
time, the expectations of the public has grown enormously with demands
focusing on poverty alleviation, tackling unemployment, fighting inequality or
forcing companies to take affirmative action.

34
11.

Dhirubhai Ambani Foundation (DAF)

Dhirubhai Ambani Foundation (DAF) was established in 1995 by Shri DhirubhaiA
mbani, the Patron Trustee of the Foundation. A public charitable trust registered
under the Bombay Public Trusts Act,  1950,

DAF has for its objectives a broad spectrum of worthy causes ranging from

health and environment, to promotion of  social and economic welfare, and rural
development. However, its main thrust hasbeen on education and  public
healthcare.DAF systematically pursues philanthropic activities to promote
national welfare andsocial good. Reliance lends valuable support to DAF in
terms of financial contributionand wherever necessary, infrastructural support.
Reliance also draws on the DAFexpertise in evolving and coordinating the
Corporate Social Responsibility Initiativesand other group companies also help
DAF initiatives wherever possible. Thus, DAFinitiatives reinforce Reliance’s
commitment to social responsibility.

35
 Social Responsibility & Community Development

Social welfare and community development is at the core of Reliance’s

Corporate Social Responsibility (CSR) philosophy and continues to be a top
priority for the Company.It revolves around the Company’s deeply-
heldbeliefintheprincipleof  symbiotic relationship with the local communities, reco
gnizing that business ultimately has a purpose - to serve human needs. Close
and continuous interaction with the people and communities in and around the
manufacturing divisions has-been the key focus while striving to bring around
qualitative changes and supporting the underprivileged.

Reliance’s contributions to the community are in the area of health,  education,
infrastructure development (drinking water, improving village infrastructure,
construction of schools etc.), environment (effluent treatment, tree plantation,
treatment of hazardous waste), relief and assistance in the
event of a naturaldisaster, and miscellaneous activities such as
contribution to other socialdevelopment  organizations etc. The Company’s CSR t
eams at all manufacturingdivisions interact with the neighbouring community on
regular basis. The Company takes pride in the fact that its CSR representatives
are known by their first names in the regions that it operates.

Education

‘Teach them young’ is the very motto of Reliance as the Company believes that
the quality of inputs received by an individual at an early age contributes to his
or her growth as a capable human being. To ensure high quality of teaching,
Reliance has made significant efforts towards value enhancement of  teachers
through professional and institutionalized training.

Dahej Manufacturing Division conducted educational and excursion

tours of students and teachers from the primary schools of neighbouring
villages, and also organized ‘Balmela’ and Science and Mathematics Fair.
To provide training in the field of effective techniques and modern methods of te
aching to high school teachers in the Hazira area, the Company organized
training of teachers in  various subjects.

Reliance has launched the “Sky is the limit” programmed at Hazira, to address
the problem of school drop-outs in the local community.  The Company also
provides opportunities to engineering and management institute students to
undergo in-plant training/projects as part of their academic curriculum, thus
enabling them to appreciate application of theoretical knowledge and get an
exposure to the industrial practices. Efforts were made to enhance
employability/skill development of local youths. This was done by giving
opportunities to them to work in the  Company’s operating plants

36
Executive Development Programs for officers of neighbouring industries wereorg
anized in coordination with PRIA (Patalganga Rasayani Industries
Association). The Company’s major manufacturing locations provide good
quality education to
the children of all employees and also cater to the needs
of surrounding villages. Jamnaben Hirachand Ambani School, Kokilaben
Dhirubhai Ambani Vidya Mandir, and  Jamnaben

Hirachand Ambani Saraswati Vidya Mandir are schools near the
Company’s manufacturing locations at Patalganga, Hazira and Jamanagarrespec
tively. A modern educational infrastructure coupled with extra-curricular
activities and recreational facilities distinguish all these  schools. To encourage
school children from neighbouring villages, Nagothane Manufacturing Division
based CSR cell – MGCC Area Development Research Foundation
(MADER) Trust took following initiatives:·

i. Felicitated meritorious students from neighbouring villages and tribal hamlets

ii. Each student received a set of note books, stationary items and a school bag
iii. There are several Zilla Parishad schools located on the hilltop near Nagothane
Manufacturing Division where all the children who are attending school are tribal.
iv. With an objective to encourage the tribal students, Reliance also provided school
uniforms.

Barabanki Manufacturing Division renovated a primary school in an adjoining

village.
Hoshiarpur Manufacturing Division provided free uniform (winter and
summer),books, bags, shoes and stationery to the school-going
children of neighbouring village.

Community Development

Jamnagar Manufacturing Division continues to extend a helping hand to

surroundingvillages and the community at large. Activities during the year
focussed on improvingvillage infrastructure, supply  of drinking water, education
support etc.During the year, in a unique initiative to improve rural housekeeping
and sanitation,a totally fresh approach was adopted to beautify Moti Khavdi;
Reliance’s adoptedvillage. Cleaning and sanitation drive at Moti Khavdi was
taken up as an ongoing project.

Three MoUs were finalized with the State Government of Gujarat for
development of Dwarka during the year. They are to:-

i. Develop the temple square in front of the famous Dwarkadheesh temple

ii. Construct ‘Sudama Setu’-a bridge to connect boththe banks of Gomati
river behind Dwarkadheesh temple

37
iii. Develop ‘Panch-kui’ area on the sea-shore where five wells, believed
to be dug by Pandavas, still givefresh potable water right on
the seashore.

To maintain and support village cows in surrounding villages, two more brand
new cow-sheds for Kanalus and Kanachikari were constructed and handed
over to therespective villages. These cows and cow-sheds (“Gaushala”)
receive regular fodder supply from the  Company’s Jamnagar Manufacturing
Division. Construction of a public lavatory, water tank and avedo (common
drinking waterfacility for villagers) was done at Nani Khavdi during the year
under
report.Drinkingwater  through water tankers was supplied during a crisis perio
d in Sikka, NaniKhavdi, Meghpar and Padana. At Kanachikari, Drinking
water pipelines were laid during the year. A new primary school building at
Navagam was constructed and repairing of some village schools was
taken up. Participation and distribution of sweets in village schools during
the Independence Day and the Republic Day; support to Government of
Gujarat’s drive for girls’ education; distribution of gifts to girls of villages
during Navratri festival; supporting Navratri
celebrations in Jamnagar were some of the salient aspects
of Jamnagar Manufacturing Division’s Community Welfare Cell as  part of
routine and regular activities. In a major initiative to celebrate Navratri, the
world’s longest dance festival on a large scale; Jamnagar manufacturing
division took a lead to form Gujarat Industries Navratri Festival.

A gala festival was organized and celebrated at state capital

Gandhinagar’s helipad ground for nine days jointly with leading industries of
Gujarat. The event brought to fore the  role of industries, handicrafts, art
and culture etc in thedevelopment of Gujarat as a vibrant state. The event
evoked tremendous responseand applause from every quarter of  the society
at large.

38
 Skill Up-gradation

Reliance runs special training programs to equip the young people of

neighbouring villages  with life and work skills necessary for sustaining
livelihood. Nagothane Manufacturing Division conducted training in fashion
designing courses for the ladies to upgrade the skills of those women who are
already trained in basic tailoring. This division also conducted computer
education courses and nursing assistant training courses. The trainees also
received hands on training at the local hospitals and primary health centres at
Nagothane. The Company also trains the youth in vehicle driving courses and
also helps them in getting a driver’s license so that they can earn a livelihood by
starting their own business as motor drivers.  The Company’s Polymer business
division organized technical training programmes at 50 Industrial Training
Institutes (ITIs) all over India to enhance skills of artisans’ fornew and advanced
technique of plumbing with PPR pipes. The Company also offers plumbing kits,
free of cost, to various plumbers as well as to ITIs to promote this new energy
efficient application in the building industry. PPR pipes are faster to install than
metal pipes. This results in improving daily productivity of plumbers
there by increasing in their earnings. This initiative
covered many plumbers across the country.

Packaging solution to farmers (Leno bags)

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Reliance organised extensive awareness programmes on improved packaging
solutions for potato and other vegetables for farmers all over India. This
included demonstration on use of Leno bags, which
are more durable, functionally  moreefficient and cheaper than
traditional materials. This programme helped the farmersreduce the cost of
packaging of potato. These bags also helped farmers to reducewastage while
keeping in cold storage. The Company’s efforts helped the farmers toimprove
their earnings. The programme covered more than 10,000 farmers acrossIndia.

Polyethylene (PE) Biogas Domes for   Renewable Energy Source

Biogas technology for rural development has been a focus area for Government
of India. Ministry of New and Renewable Energy (MNRE) promotes family-type
biogasplants under the National Project on Biogas Development (NPBD). The
project waslaunched in 1981-82 with the objective of producing clean and
alternate renewable energy for cooking and lightining, enriched organic
manure for agricultural usage, improving sanitation and hygiene and reducing
drudgery of women. The two cubicmetre “Deenabhandu” model is the most
popular family type fixed dome biogas plant  developed  with  conventional
brick and  cement. Many of these plants get
defunct due to dome cracks leading to gas leakages. The Company
has developed a100 per cent leak-proof  Roto
molded PE Dome, which gives end-users  a unique combination of
properties like good strength, stiffness, light weight, seamless construction,
ease of installation and very little maintenance. The PE-based dome has been
developed by Reliance and has been approved by the Ministry of New and
Renewable Energy, Government of India.

Eco-friendly Initiatives
In addition to the above initiatives, the Company also focuses on the
development of the eco-system and improvement of the green belt across its
manufacturing and E&P sites.

CSR AREAS

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 13. Conclusion :
It is good that the CSR spend would be mandatory for companies that have a
net worth of Rs.500 crore or more, or turnover of Rs. 1,000 crore or more or a
net profit of Rs. 5 crore or more during a Financial Year. Every such company
shall now constitute a CSR Committee of the board consisting of three or more
directors. Also, companies will have to give preference to local area and areas
around which they operate for spending the amount earmarked for CSR
activities. It is welcoming that the provision says that where the company fails to

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spend such amount, the Board shall in its report specify the reasons for not
spending the amount. It is also encouraging that under the new legislation,
companies will be creating employees’ welfare fund.

Thus, in a major leap forward, in regards to the welfare of the society, the
enactment of The Companies Bill, 2011 will make India the only country that has
mandated CSR spend through statutory a root. But if we go by the sense of
good economics, this spending on CSR will ultimately benefit Corporates in the
long run, facilitating their sustainable growth besides benefitting the society in
general.

Indeed, the need of the hour is the Business models where making
profits & doing social environmental good go hand-in-hand.

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