Project Report

On

Role of HR on CSR (IT sector)

Submitted By
Annu Yadav
Roll No 09
Section-B

Under the Supervision of

Mrs Shruti Gupta

In the partial fulfillment of the requirement for the award of Degree of

Master of Business Administration
Of
GGSIP University, Delhi Batch 2007-09

Army Institute of Management & Technology

Greater Noida-201306
 Acknowledgement

It gives me great pleasure in acknowledging the invaluable assistance

expended to me by various personalities in the successful completion of this

report. My debts are due to many individuals who provided me guidance,

guidance, advice and useful comments that helped me in the successful

completion of this report. As usual the debts can be only warmly

acknowledged but never fully recompensed. I am thankful to Prof.

A.K.Vadehra officiating head of department, management studies, AIMT

Greater Noida with ease & for their continous motivation, encouragement and

firmly guidance for the successful completion of this project report.

My thanks are due to Mrs Shruti Gupta, faculty, management studies, AIMT,

Greater Noida, who provided me the knowledge about the field and the timely

guidance which help me a lot on the way for completion of this project. Above

all I owe a debt of gratitude to my parents for their encouragement.

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 TABLE OF CONTENT

CHAPTER I HISTORICAL BACKGROUND

Introduction

Criteria for successful programme

CHAPTER II Current practices

-Satyam

-Infosys

-Wipro

-TCS

CHAPTER III implementing CSR

Role of hr in CSR

Risk involved in HR in CSR

CHAPTER IV CSR & standard

Barriers to CSR

Future of CSR

CHAPTER V CONCLUSION

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 Introduction-

All organisations have an impact on society and the environment through their operations, products

or services, and through their interactions with key stakeholder groups including employees,

customers/clients, suppliers, investors and the local community. While traditional business models

primarily emphasise the economic aspects of organizational activity (e.g. profitability and growth),

more modern conceptions of organizational behaviour lay equal stress on social, ethical and

environmental impacts as exemplified by the notion of ‘corporate social responsibility’. It would be

fair to say that while some business organisations remain to be convinced that social responsibility is

compatible with value creation, a growing number accept that they can and should manage their

social and environmental impacts in ways which benefit both the organisation and the wider society.

Social Responsibility is the recognition that organisations have significant influence on the social

system and that this influence must be properly considered and balance in all organisational actions.

This new social value goes by the name of Corporate Social responsibility, Social responsiveness or

Social involvement. Corporate Social responsibility is seriously considering the impact of the

company's actions on society. Social responsiveness is the ability of a corporation to relate its

operations and policies to the social environment in ways that are mutually beneficial to the

company and to society.

What business Leaders say about CSR: philosophy

"In a free enterprise the community is not just another stakeholder in business but is in fact the very

purpose of its existence" said by Sri. Jamsetji N. Tata, Founder of Tata Group of companies.

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Milton Friedman famously proclaimed in 1963 "There is 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 within the rules of the game many in business swear" by Friedman.

Jack Welch, who said in 1999 after extolling the virtues of legitimate" profit-making "these times

will not allow companies to remain aloof and prosperous while the surrounding communities decline

and society. The idea of social responsibility of business is based upon the concept that business is

something more than a purely economic institution as Daniel Bell has observed.

Peter Drucker has observed, under any circumstance, we are moving in the

direction of demanding that our institutions take responsibility beyond their performance and beyond

their own contribution. We will demand this as well-the university, the hospital, the Govt. agency,

the school and even charitable organisations and places of worship.

Doctrine of social responsibility:

The concept of social responsibility is merely a first step towards social effectiveness of business.

The desirable and is achieved through a sequence of philosophy process and functions are as shown

in the Figure.

Philosophy -)Process -)Function -)End or Goal

In the area of business and society, the philosophy is social responsibility and the

process is creative decision-making by business creative decisions lead to the function of social

action by business, which produces the desirable end of a better society. Social responsibility is only

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the beginning of the sequence. The fact is that business is a major social institution and as such, it is

importantly involved in social values.

Infact, most respondents in a study Harward Business Review readers consider,

social responsibility a legitimate and achievable aim for business, still the mission of the

organisation must be taken into account.

Criteria for a successful programme

Programmes are a complex of goals, policies, procedures, rules, task assignments,

steps to be taken, resources to be employed and other elements necessary to carryout a given course

of action; they are ordinarily supported by budgets. According to Peter Drucker,

criteria for a successful programme are a) Mission b) Vision, c) Environment and d) Social

esponsibility.

Other Criterions are:

i) Transparency:

The principle of transparency assures that firms should publicly disclose details of their

philanthropic portfolio.

ii) Stability:

A pattern of consistent philanthropic activity avoids the appearance of ingivatiation, since it provides

countra factual evidence that decision makes engage in philanthropy on an opportunistic or

capricious basis; it shows that the commitment by a firm to doing good continues through time

iii) Responsiveness:

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Responsiveness means that decisions about philanthropic activities and allocations

should change as economic or social conditions change.

iv) Involvement and Voluntary:

People within and outside organisation should be involved. Volunteers, well-wishers and patrons are

invited to get involved by various social programmes successful implementation of CSR

Programmes in various organisations.

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CURRENT PRACTICES-

CSR of Satyam Computers in India- Satyam is a leading global business and information

technology company, delivering consulting, systems integration, and outsourcing solutions to clients

in over 20 industries. Creating value for the society is an integral part of Satyam’s business, and

contributing to the well-being and development of the society is considered as an extension of what

Satyam does.

CSR Programme is based on two factors. i.e.

a) Ethical behaviour and

b)Goodwill

Emergency Management Research Institute (EMRI) is a non-profit organisation and a learning

centre. The motto of this instituted is "Your Right to Safety". It is a voluntary driven and rural

transformation funded by Byraju Foundation (Brothers of Raju) like in USA No.911.

The philosophy of CSR encompasses:

* Involving people -> Leadership

* Applying Knowledge -> Innovation

* Making things happen -> Execution

Mission:

To save lives in emergencies by leveraging leaderships.

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3 phases of CSR Programme : a) Sense b) Research and Care medical, police and

Fire-108 Emergency. Automatic Vehicle launching Travels (AVLT) within 20 minutes in any part of

Hyderabad, India. So far saved more than 1200 lives from various emergency situations.

Transforming Lives

Reaffirming its role as a contributing member of the social and economic communities it inhabits,

Satyam believes in aligning its business operations with social values. As a responsible Corporate

Citizen, Satyam is committed to leverage the power of IT to bridge the ‘digital divide’ that limits

opportunities for success and prosperity, and thereby, transform lives of the less privileged.

Investing in the Society

Satyam renders specific services through various development projects delivered by its Corporate

Social Responsibility (CSR) arm, Satyam Foundation. Established in October 2000, Satyam

Foundation is committed to transforming the lives of the underprivileged in urban areas.

Discouraging mere cheque book charity, and to encourage involvement in CSR activities, Satyam

Foundation follows a voluntary model for its operations. Satyam’s associates volunteer to contribute

their time and share their knowledge with the underprivileged.

The Foundation works through various forums viz.

• Environment

• Education

• Healthcare

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 • HIV/AIDS

• Livelihoods

• Street Children

• Informal Settlements

• Disaster Management (Need-based)

b). Activities at Infosys-

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250.

Today, we are a global leader in the "next generation" of IT and consulting with revenues of over

US$ 3 billion.

Infosys defines designs and delivers technology-enabled business solutions that help Global 2000

companies win in a Flat World. Infosys also provides a complete range of services by leveraging our

domain and business expertise and strategic alliances with leading technology providers.

Infosys Foundation is a public charitable trust founded in 1996. Sudha Murty, Mrs. Sudha

Gopalakrishnan and Mr. N S Raghavan are the trustees of this foundation. The foundation got the

prestigious ET Corporate Citizens Award [2000-2001]. The main activities of the Infosys Foundation

are:

Healthcare

o Conducting rehabilitation camps at tribal areas, drought hit areas, etc.

o Construction of Hospitals

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o Upgrading the hospitals with significant equipment like ultrasound scanners, ambulance,

significant drugs in certain cases, etc

Social Rehabilitation and Rural Upliftment.

o Construction of Orphanages

o Construction of common halls at Orphanages, Old age homes, etc

o Rehabilitation of Devadasis in Karnataka

o Rehabilitation of mentally retarded through other local organisations

o Rehabilitation of children on platforms, streets and slums

o Assisting the promotion of social awareness among the tribals or other backward communities

where evil practices are followed

o Donation of passenger vans to certain rehabilitation centers

Learning & Education

o Setting up libraries for Every Rural Kannada Medium School by donating a set of about 200

books worth about Rs.2,000-00, under our educational project called 'Shalegondu Granthalaya'

o Donating Corpus Fund to good but economically weak schools

o Donating for the construction of additional classrooms or re-construction of old

classrooms/school building

o Donation of other equipments to schools like Computers, Furniture, etc

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o Construction of Science Laboratories

o Assisting the promising students of economically weaker sections by means of scholarships or

contributing to pay their annual fees

Art

o Promotion of deprived art or culture by organising stage-shows

o Donating for such organisation which promotes such a talent

c) Activities at wipro-

Wipro Technologies is a global services provider delivering technology-driven business solutions

that meet the strategic objectives of their clients. Wipro has 40+ ‘Centers of Excellence’ that create

solutions around specific needs of industries. Wipro delivers unmatched business value to customers

through a combination of process excellence, quality frameworks and service delivery innovation.

Wipro is the World's first CMMi Level 5 certified software services company and the first outside

USA to receive the IEEE Software Process Award.

*Applying thought in Schools- The Applying Thought in Schools project - 80 schools across 10

cities. So far, it has trained 1,800 teachers at a cost of Rs 1.44 crore. All this is outside of the work

done by Wipro Cares and chairman Azim Premji's own foundation.

* Various Educational Programmes for children-Wipro Cares has initiated Learning Enhancement

Programmes at schools catering to the children from the under privileged section of the society. The

main objectives of this programme is to improve the standards of learning, build confidence, ignite

curiosity, broaden their awareness levels, improve their communication skills in English , build a

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healthy self-esteem and help them break through self imposed limits to achieve his/her greatest

potential.

d) Activities at Tata Consultancy Services (TCS)-

At TCS, it means achieving real business results that allow you to transform, and not just maintain,

your operations. Their IT services, business solutions, and outsourcing bring you a level of

certainty that no other competitor can match. You'll experience requirements that are met on-time,

within budget, and with high quality; greater efficiency and responsiveness to your business; and

the ability to shift investment to strategic initiatives rather than tactical functions.

IT major Tata Consultancy Services (TCS) has structured its corporate social responsibilities (CSR)

on two distinct tiers - impacting communities directly in line of its business and concern for

preservation of the environment. The company also has formed 'Maitree', an association of

employees and their families across the globe, and is acting as an important vehicle of CSR. Maitree

initiatives include for the socially underprivileged. The company in its report to share holders said it

is involved with communities directly making use of its core competence to address societal

problems.

With regard to environment policy, company's commitment is towards environment-friendly

development and delivery of products and services. "These initiatives are being monitored

periodically through audits and checks. In FY05, Maitree partnered with 'Sanctuary Asia', a non-

government organisation (NGO) that promotes wildlife preservation and support of nature," report

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said. TCS has aligned itself with the Tata Council of Community Initiatives (TCCI), which is the

apex body coordinating social cause across all Tata companies.

The company is involved with the tsunami relief with Tata Relief Committee. TCS is also actively

supporting Children's Hospital in Mumbai which aims at providing good medical facilities.

Overseas, the company employees have been involved in community work in libraries, fund raising

for charity, assisting the elderly, 'at-risk' communities, and blood donation camps. Company's second

generation CSR includes reaching out to the academic community and professional societies in the

form of faculty upgradation programmes, part time teaching by TCS employees in university

programmes and sponsorship of research.

TCS' third generation CSR is exemplified as brand of Computer Based functional Literacy (CBFL)

which has been proven as a delivery model for achieving functional literacy in as quick as 40 hours

using low-end machines. "Computer Based functional Literacy (CBFL) has been globally acclaimed

and the company has been listed in the India segment of the Unesco Meta-survey on the use of

technologies in education," said the company in its report to share holders. This initiative is being

enthusiastically adopted in South Africa. Similar initiatives include development of websites for

NGOs, creation of database for childline which supports children in distress in 54 centres in India.

* A feeling of healing funded by Tata Trusts, the Foundation for the Revitalization of local health.

* Involved in developing tribal communities around Jamshedpur in India.

* Started the path-breaking Social Audit report.

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Implementing CSR: Key steps

CSR is about common sense policies that represent a means of integrating a complete ‘social

perspective’ into all aspects of operations. The goal is to maximize true value and benefit for an

organization, while protecting the huge investments corporations make today in their brands. CSR

asks companies to ensure their business operations are clean and equitable, and contribute positively

to the society in which they are based. Otherwise, they leave themselves open to too much danger

from a potential consumer backlash.

CSR is good business sense, and a total approach to doing business, in a globalizing world where

companies are increasingly relying on brand strength (particularly global lifestyle brands) to add

value and product differentiation, and where NGO-driven consumer activism is increasing. Many

believe the issue of how corporations integrate CSR into everyday operations and long term strategic

planning will define the business marketplace in the near future. It will become a key point of brand

differentiation, both in terms of corporate entities and the products that carry their brands. Key steps

on the road to integrating CSR within all aspects of operations include:

• Ensure the commitment of top management, and particularly the CEO, is communicated

throughout the organization

• Appoint a CSR position at the strategic decision-making level to manage the

development of policy and its implementation

• Develop relationships with all stakeholder groups and interests (particular relevant

NGOs)

• Incorporate a Social or CSR Audit within the company’s annual report

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• Ensure the compensation system within the organization reinforces the CSR policies that have been

created, rather than merely the bottom-line

• Any anonymous feedback/whistle-blower process, ideally overseen by an external

ombuds person, will allow the CSR Officer to operate more effectively

Corporations today are best positioned when they reflect the values of the constantly shifting and

sensitive market environment in which they operate. It is vital that they are capable of meeting the

needs of an increasingly demanding and socially-aware consumer market, especially as brands move

front and center of a firm’s total value. Global firms with global lifestyle brands have the most to

lose if the public perception of the brand fails to live up to the image portrayed. Integrating a

complete ‘social perspective’ into all aspects of operations will maximize true value and benefit for

an organization, while protecting the huge investments companies make in corporate brands.

Importance of CSR

CSR as a strategy is becoming increasingly important for businesses today because of three

identifiable trends:

• Changing social expectations

Consumers and society in general expect more from the companies whose products they

buy. This sense has increased in the light of recent corporate scandals, which reduced

public trust of corporations, and reduced public confidence in the ability of regulatory

bodies and organizations to control corporate excess.

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• Increasing affluence

This is true within developed nations, but also in comparison to developing nations. Affluent

consumers can afford to pick and choose the products they buy. A society in need of work and

inward investment is less likely to enforce strict regulations and penalize organizations that might

take their business and money elsewhere.

• Globalization

The growing influence of the media sees any ‘mistakes’ by companies brought immediately to the

attention of the public. In addition, the Internet fuels communication among like-minded groups and

consumers—empowering them to spread their message, while giving them the means to co-ordinate

collective action (i.e. a product boycott).

These three trends combine with the growing importance of brands and brand value to corporate

success (particularly lifestyle brands) to produce a shift in the relationship between corporation and

consumer, in particular, and between corporation and all stakeholder groups, in general. The result of

this mix is that consumers today are better informed and feel more empowered to put their beliefs

into action. From the corporate point of view, the market parameters within which companies must

operate are increasingly being shaped by bottom-up, grassroots campaigns. NGOs and consumer

activists are feeding, and often driving, this changing relationship between consumer and company.

CSR is particularly important within a globalizing world because of the way brands are built—on

perceptions, ideals and concepts that usually appeal to higher values. CSR is a means of matching

corporate operations with stakeholder values and demands, at a time when these values and demands

are constantly evolving. CSR can therefore best be described as a total approach to business. CSR

creeps into all aspects of operations. Like quality, it is something that you know when you see it. It is

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something that businesses today should be genuinely and wholeheartedly committed to. The dangers

of ignoring CSR are too dangerous when it is remembered how important brands are to overall

company value; how difficult it is to build brand strength; yet how easy it can be to lose brand

dominance. CSR is, therefore, also something that a company should try and get right in

implementation.

Role of HR in CSR

Companies increasingly need to co-ordinate their CSR activities and demonstrate their commitment

to CSR. Effective CSR depends on being seen as important throughout an organization. Delivery, not

rhetoric, is the key to stakeholders developing trust in an organisation.

HR has a key role in making CSR work. CSR without HR runs the risk of being dismissed as PR or

shallow ‘window-dressing’. And CSR is an opportunity for HR to demonstrate a strategic focus and

act as a business partner.

CSR needs to be embedded in an organization’s culture to make a change to actions and attitudes and

the support of the top team is critical to success. HR already works at communicating and

implementing ideas, policies, cultural and behavioral change across organizations. Its role in

influencing attitudes and links with line managers and the top team mean it is ideally placed to do

the same with CSR.

HR is also responsible for the key systems and processes underpinning effective delivery. Through

HR, CSR can be given credibility and aligned with how business run. CSR could be integrated into

processes such as the employer brand, recruitment, appraisal, retention, motivation, reward, internal

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communications, diversity, coaching and training.

The way a company treats its employees contributes directly to it being seen as willing to accept its

wider responsibilities. Building credibility and trusting their employer are being increasingly seen as

important by employees when they choose who they want to work for.

Risks in HR’s involvement with CSR

The trust built through successful CSR is hard to regain if lost. HR needs to ensure that their

organisation’s CSR can stand up to the inevitable scrutiny by stakeholders, and that training and

communication mean it’s embedded throughout the culture of an organisation.

HR needs to be an active business partner working with other functions, for example finance,

PR/marketing etc. It will need to look beyond the boundaries of usual practice and arguably work on

its own PR. CSR is a strategic opportunity which is market-led and is restrained by bureaucracy. It

needs dynamism, creativity, imagination and even opportunism.

CSR & Standards

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• Broadly relate to ‘outcome’ i.e. Product and ‘process’

• Types

1. Quality (for example, appearance, cleanliness, taste, and facilities)

2. Safety (for example, pesticide or artificial hormone residue, microbial presence, and use of

safety features in hotels)

3. Authenticity ( for example, guarantee of geographic origin or use of traditional process)

4. ‘Goodness’ of the production process (for example, worker health and safety, environmental

contamination, resource conservation, or ethical trade)

Barriers to CSR

• Absence of clear linkage between CSR and financial success

• Low voluntary adoption of CSR- Leads to ‘green washing’-as few companies are adopting CSR

practices so, it is not considered as a point of competition so leads to green washing

• Lack of mechanisms to measure, monitors evaluate and report

impacts

• Two myths

– Smaller companies think it the responsibility of the bigger ones

and

– It is mainly a philanthropic exercise

• High ‘overheads’ of implementing and sustaining CSR efforts.

• No universally accepted frameworks.

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The Indian challenge

• Three generations of challenges

– ‘first generation’: conflicts between companies and communities over the control of natural

resources is widespread

– ‘second generation’: relating to hazards of industrial activity affecting Air, Water, Land and

humans

– ‘third generation’: issues related to products and services,’

Future of CSR initiative-

In a globalizing world where companies are increasingly relying on brand strength to add value and

product differentiation, and where NGO-driven consumer activism is increasing, the role of CSR

will be inevitable as it makes good business sense. Malcom-Baldrige and EFQM models of Business

Excellence have already positioned CSR as one of the core business processes. Companies following

these models have to integrate CSR in to their business culture. Still, CSR is in evolving process and

therefore there is no uniformity in understanding and approach. CSR has been understood and

articulated differently – continents to continent; country to country; companies to companies and

even individually.

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CONCLUSION

Corporate social responsibility has much broader implications for the nation as a whole. It reduces

dependency on the Government for social change. Most Governmental programmes quickly become

embroiled in political manipulation, corruption, communal overtones and bitter infighting. Social

reforms driven by the community will bring people together, turn the attention of the masses to tasks

that benefit society and reinforce peace and harmony.

CSR is an important business strategy because, wherever possible, consumers want to buy products

from companies they trust; suppliers want to form business partnerships with companies they can

rely on; employees want to work for companies they respect; and NGOs, increasingly, want to work

together with companies seeking feasible solutions and innovations in areas of common concern.

Satisfying each of these stakeholder groups allows companies to maximize their commitment to

another important stakeholder group—their investors, who benefit most when the needs of these

other stakeholder groups are being met:

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The businesses most likely to succeed in the globalizing world will be those best able to combine the

often conflicting interests of its multiple stakeholders, and incorporate a wider spectrum of opinions

and values within the decision-making process and objectives of the organization. Lifestyle brand

firms, in particular, need to live the ideals they convey to their consumers:

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