Professional Documents
Culture Documents
RESPONSIBILITY
SUBMITTED BY:
ANKITA BAGE
B.COM(H) 3rd YEAR
SHRI RAM COLLEGE OF COMMERCE
DECLARATION
I, Ankita Bage hereby declare that this project report entitled
CORPORATE SOCIAL RESPONSIBILITY OF COMPANIES is
based on original research work carried out by me under the guidance of
Ms. Rachna Jawa in lieu of paper No.XXXVII B.Com(H) 3rd year, Shri
Ram College of Commerce, University of Delhi. I have duly
acknowledged all the resources used by me in the preparation of this
project report.
Signature of Student
Ankita Bage
B.Com(H) 3rd year
ACKNOWLEDGEMENT
I feel immense pleasure in taking opportunity to express my sincere
indebtness and deep sense of gratitude towards my academic mentor Ms.
Rachna Jawa for her constant guidance and valuable advice throughout
the project. The Project Report (Paper No.XXXVII) has been introduced
for the first time by Delhi University, yet her guidance at every step
made us feel, that it was just another regular course activity. I would like
to thank Teacher in-charge and commerce faculty of Shri Ram College
of Commerce for their constant co-operation and encouragement. I wish
their friendly approach towards me forever.
Ankita Bage
CONTENTS
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MEANING:
Corporate Social Responsibility is defined as operating a business that meets or exceeds the
ethical, legal, commercial and public expectations that society has of business.
Corporate social responsibility (CSR, also called corporate responsibility, corporate
citizenship, responsible business and corporate social opportunity) is a concept whereby
organizations consider the interests of society by taking responsibility for the impact of their
activities on customers, suppliers, employees, shareholders, communities and other stakeholders,
as well as the environment. This obligation is seen to extend beyond the statutory obligation to
comply with legislation and sees organizations voluntarily taking further steps to improve the
quality of life for employees and their families as well as for the local community and society at
large.
DEVELOPMENT:
Business ethics is a form of the art of applied ethics that examines ethical principles and moral or
ethical problems that can arise in a business environment.
In the increasingly conscience-focused marketplaces of the 21st century, the demand for more
ethical business processes and actions (known as ethicism) is increasing. Simultaneously,
pressure is applied on industry to improve business ethics through new public initiatives and
laws (e.g. higher UK road tax for higher-emission vehicles).
Business ethics can be both a normative and a descriptive discipline. As a corporate practice and
a career specialization, the field is primarily normative. In academia, descriptive approaches are
also taken. The range and quantity of business ethical issues reflects the degree to which business
is perceived to be at odds with non-economic social values. Historically, interest in business
ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and
within academia. For example, today most major corporate websites lay emphasis on
commitment to promoting non-economic social values under a variety of headings (e.g. ethics
codes, social responsibility charters).
Corporate philanthropy refers to the practice of companies of all sizes and sectors making
charitable contributions to address a variety of social, economic and other issues as part
of their overall corporate citizenship strategy.
Obeying the letter and spirit of the law; mitigating or remedying operational harm; and
sustainable development of natural resources.
Achieving commercial success in ways that honor ethical values and respect people,
communities, and the natural environment.
Addressing the legal, ethical, commercial and other expectations society has for business,
and making decisions that fairly balance the claims of all key stakeholders
Companies that consciously integrate strategies that seek to maximize the creation of
environmental and social value within their core business models, operations and supply
chains.
SOCIAL
COMPLIANCE
SOCIAL
ACCOUNTABILITY
increasing accountability generally allow the company to be inclusive, responsive and engaged
with its stakeholders.
2.CORPORATE ACCOUNTABILITY:
Accountability in its basic sense implies render-ing of accounts and, by extension, indicate
answer-ability to an external agency or group and, further, implies ensuring propriety, legality
and safeguarding public interest in satisfaction of the expectations of the external agency or
group. Social Accountability suggests accountability to the people; this is a core value in a
democratic set-up. In a decentralised democracy the basic objec-tive is power to the people.
Corporate accountability today spans emerging CSR issues like business ethics, diversity,
marketplace behaviour, governance, human rights and labour rights as well as more traditional
areas of financial and environmental performance. Therefore, an increasing number of
companies are reporting publicly on their social, environmental and ethical performance, both as
a communication to stakeholders and as a management tool. However, as this practice has only
become more widespread since the mid-1990s, there are as yet no standard formats to address the
type of information companies choose to report, or how that information is collected, analysed
and presented.
Effective and accountable management systems help companies shape cultures that support and
reward CSR performance at all levels. As part of this effort, many companies are working to
increase accountability for CSR performance at the Board level. This can lead to changes in who
serves on the Board, how Directors handle social and environmental issues, and how the Board
manages itself, and fulfils its responsibilities to investors and other stakeholders. Companies are
also seeking to build accountability for CSR performance at the senior management level, in
some cases by creating a dedicated position responsible for broad oversight of a companys CSR
activities. Finally, many companies are working to integrate accountability for CSR performance
into actions ranging from long-term planning to everyday decision-making, including rethinking
processes for designing products and services and changing practices used to hire, retain, reward,
and promote employees.
At the same time, many stakeholders are becoming increasingly sophisticated in the type and
quality of information they are demanding from companies. In an effort to meet these demands
as well as to strengthen the credibility of their social and environmental reportssome
companies are choosing to have their reports externally verified. In doing so, the companies
recognise that verification by a third party can add value to the overall social and environmental
reporting process by enhancing relationships with stakeholders, improving business performance
and decision-making, aligning practice with organisational values, and strengthening reputation
risk management.
3.CSR AND GOOD GOVERNANCE:
One of the most significant issues within the CSR agenda concerns the dynamic relationship
between CSR and good public governance. The limits both to corporate accountability through
law and to voluntary CSR-related actions by businesses lie with the public good governance
agenda. Legislation to deal with worst case instances of irresponsible behaviour and to set a
minimum floor for business conduct will not work in the absence of effective drivers for
business implementation and enforcement, whether they are market-based, or a result of
enforcement through the state..
The need is to implement social, ethical and environmental policy (commonly known as codes of
conduct) through the development of objectives, programmes and mechanisms for monitoring
social compliance performance.
One very important aspect of ensuring social accountability is establishing social compliance
through continuous audit and monitoring. The demand for increased corporate accountability
today comes from all sectors. Thus social accountability ensures transparency, reduces leakages,
forces proper spending of funds, generates trust and peace, and creates demand led improvement
in services. In a sense, it is a continuing audit and a constant check on malfeasance.
BENEFITS OF CSR:
The scale and nature of the benefits of CSR for an organization can vary depending on the nature
of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting
business
to
adopt
measures
beyond
financial
ones
found
correlation
between
3.BRAND DIFFERENTIATION:
In crowded marketplaces, companies strive for a unique selling proposition which can separate
them from the competition in the minds of consumers. CSR can play a role in building customer
loyalty based on distinctive ethical values. Several major brands, such as The Co-operative
Group and The Body Shop are built on ethical values. Business service organisations can benefit
too from building a reputation for integrity and best practice.
4.LICENSE TO OPERATE:
Corporations are keen to avoid interference in their business through taxation or regulations. By
taking substantive voluntary steps, they can persuade governments and the wider public that they
are taking issues such as health and safety, diversity or the environment seriously, and so avoid
intervention. This also applies to firms seeking to justify eye-catching profits and high levels of
boardroom pay. Those operating away from their home country can make sure they stay
welcome by being good corporate citizens with respect to labour standards and impacts on the
environment.
Incorporating a clear CSR policy into mission, vision and values statement
Mentoring programs
FIRST, the companies have to decide to look at CSR and accountability as a core part of their
business. Many more companies are looking at the world that way today than they were ten years
ago, but it probably still is a minority opinion and so part of the challenge is simply about the
political will on the part of companies to look at their impact through the prism of sustainability.
SECONDLY, there are two communities out there that exert immense influence on business
across all sectors: consumers and financial institutions. Financial institutions have actually
started to move significantly over the last couple of yearsa very important development
because its remaking the way markets work.
The THIRD actor is the government.Whether its through global trade agreements and the WTO
or whether its their own enforcement of laws or smart regulation that looks at creating
incentives to engage the business community as a partner, the government remains an incredibly
significant actor and can be a net negative, net positive, or neutral in terms of influencing the
kinds of decisions that businesses make.
2.CHALLENGES TO SOCIAL COMPLIANCE:
Though many multinational retailers can now boast of a Code of Conduct, only a few have been
able to roll out a full scale and independent monitoring programme. The issues involve from
finding resources to conflicts with short-term business objectives. On the other hand, most
suppliers consider compliance programmes a new burden resulting in poor and untrustworthy
partnership with their buyers when it comes to implementing the code of conduct.
External challenges include cultural diversity, understanding the local law and at times finding
the local law, finding local language and dialect skills, finding local audit and monitoring
professionals who are well conversant with the local issues, involving workers, local
communities, NGOs and other stakeholders.
DRIVERS:
1.CONCERN FOR PROFIT:
Corporations like all other social institutions are an integral part of society and must depend on
it for their existence, continuity, and growth. As organizations usually behave in response to
market forces, they initiate certain socially responsible activities that may have a direct impact
on their economic performance .Although these activities are social in nature and aim for
community welfare and societal development somewhere they have a hidden concern for profits.
Here the management cares only about its companys gains, profitability and organizational
success at any price. Their main strategy to have these activities is to exploit opportunities for
corporate gain. These activities have a direct economic benefit that is clearly visible. Activities
that are undertaken to improve the image or reputation of an organization can be included in this
category. As the criteria for legitimacy for such activities is economic in nature the cost that is
incurred in implementing these activities is treated as an investment. This is the also termed as
the required behaviour of any organization. Such activities are undertaken after a detailed
planning and doing a thorough cost benefit analysis. These activities generally become an
investment that helps the organization in improving long-term economic performance.
Organizations following these activities are called as Economic Citizens.
2.CONCERN FOR LAW:
Organizations prefers to conduct its operations within the legal framework imposed by social
system within which it operates. Those activities that are driven in response to legal constraints
fall under this category. Responsible behaviour that is driven by legal concern aims either at
compliance with the existing laws or to avoid any litigation. As the criteria for legitimacy here is
legal in nature it implies that bringing corporate behaviour to a level where it is congruent with
the prevailing legal framework. These activities intend not to violate laws and equate social
responsibility with fulfilling minimum legal requirements. This is the expected behaviour of any
organization. And those organizations that do not abide with the legal framework are termed as
illegal organizations. Organizations following these activities are called as Legal Citizens.
2) use the process to understand the local culture (for example, internalthe workforceor
externalthe community) at all stages of implementing CSR;
3) create a sense of ownership between the staff who set up a project and those who implement
it.
Beyond including CSR in the HR management system, our role as a change agent continues
through keeping the CEO and other members of the senior management team informed of human
capital initiatives, the status of community relations, measurements of employment activities and
development of partnerships for CSR programmes, both inside and outside the organisation.
NIKE:
Nike has become one of those global companies targeted by a broad range of campaigning
NGOs and journalists as a symbolic representation of the business in society. In Nikes case, the
issues are those of human rights and conditions for workers in factories in developing countries.
In the face of constant accusations, Nike has developed a considered response, supported by
corporate website reporting. It now has a well developed focus for its corporate responsibility on
improving conditions in contracted factories, aiming for carbon neutrality, and making sports
available to young people across the world. The criticism continues, however.
ISSUES - Nike has around 700 contract factories, within which around 20% of the workers are
creating Nike products. Conditions for these workers has been a source of heated debate, with
allegations made by campaigns of poor conditions, with commonplace harassment and abuse.
CRITICS OPINION - Critics have suggested that Nike should publicise all of its factories, and
allow independent inspection to verify conditions there. Any auditing carried out by Nike should
be made public. A lot of focus is given to wage rates paid by the companys suppliers. By and
large, audits have found that wage rates are above the national legal minimum, but critics
contend that this does not actually constitute a fair living wage
CSR OF TATA:
Tata Group is a pioneer in promoting CSR in India. The Tata Group is a giant family
of businesses that dominates Indian markets. And Tata Steel is one of twenty-eight
major corporations within the Tata Group. Founded in 1907, it is the largest private
sector steel company in India, with a capacity of 3.5 million tones per annum crude
steel production. Operations are spread across the country, with steel manufacturing
and mining activities situated in the states of Jharkhand and Orissa at eight
locations. The company employs approximately 48,000 people as at April 2002.
Tata Steels CSR activities started as early as its inception. Initially, these activities
were only philanthropic in nature and the company believed more in giving back to
the society.
CSR activities are now ranging from community development, improving health care,
reducing poverty, occupational health and safety risk control and protecting the
environment that means covering almost all the stakeholders.
The ideals and philosophy of the TATA Group originated from the founding father,
Jamshedji Nusserwanji Tata (1839-1904). In 1895 he explained:
We do not claim to be more unselfish, more generous or more philanthropic than
others, but we think we started on sound and straightforward business principles
considering the interests of the shareholders, our own and health and welfare of our
employeesthe sure foundation of prosperity.
These sound and straightforward principles carried through the generations of
Tatas still has influence on the prevailing businesses and practices. With such a
strong tradition of corporate responsibility, it is no surprise that very recently Ratan
Tata has been honoured with Carnegie Medal of Philanthrophy in Pittsburgh on
Wednesday October 22, 2007
1.TATA STEEL:
SHARING WEALTH TO DIMINISH DISPARITIES
With the understanding that the hunger for employment can never be satisfied despite its best
efforts, the Company took an enlightened decision to address the needs of those who migrated to
its vicinity in search for employment. It first stimulated entrepreneurship and economic
development in the Steel City and then reached out to the rural poor, empowering them with the
means to create better livelihoods within their own villages.Tata Steel is Indias acknowledged
Corporate Social Responsibility leader and is recognised as a most humane organisation. Every
lesson learned, every piece of knowledge gathered, the Company offers to all those who wish to
work alongside it to "improve the quality of life of the communities it serves."
EDUCATION
Tata Steel has influenced the integration of tribals in the economy in a less obvious and
immediate way by propping up the education of tribal children and youth of various ages and at
various stages of their academic career.The TCS bears the entire expense of two tribal students
who secure admissions for management education at the Tata Institute of Social Sciences. An
unusual project called Sahyog, implemented in five schools, helps tribal students to develop selfesteem and plan their future.The Xavier Institute for Tribal Education near Jamshedpur has also
been supported by Tata Steel.
TRIBAL CULTURE
Efforts to support tribals may well leave them at the doorstep of development without a sense of
belongings and their cultural heritage. This Centre showcases the tribal legacy of four major and
five minor tribes of Jharkhand and Orissa and evokes a lot of interest amidst scholars,
researchers and even laypersons. TCC not only documents relevant research but also enables the
continuation of the tradition by sharing it with the youth and non-tribals.Additionally, a Santhali
Language Laboratory has also been initiated in the Centre since 2002-03.
3.TATA CHEMICALS:
TATA CHEMICALS SOCIETY FOR RURAL DEVELOPMENT
Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to
promote its social uplift projects for communities in and around Mithapur (in the state of Gujarat
in western India), Babrala (in the state of Madhya Pradesh in northern India) and Haldia (in the
state of West Bengalin eastern India).
Through TCSRD, Tata Chemicals works to improve the quality of life of the people and
communities around its operations, and to support sustainable development, a theme that is
central to the company's corporate philosophy.
The initiatives that TCSRD is involved in include:
Agricultural development
Education
Women's programmes
Animal husbandry
Rural energy
Watershed development
Relief work
TSRDS covered 32 villages around Jamshedpur (in the state of Jharkhand in eastern India) in its
first year of operation. Today, the Society has seven separate units, six in Tata Steel's operational
areas, and covers 600 villages in the states of Jharkhand and Orissa (also in eastern India).
TSRDS is actively involved in the spheres of livelihood generation, health and hygiene, and
people empowerment.
4.TATA MOTORS:
TECHNICAL AND VOCATIONAL TRAINING FOR YOUTH MEMBERS
179 youth members having the minimum qualification of SSC passed were given four months
intensive training in technical skills like electrician, fitter, turner and welder at Ram Krishna
Shilpa Mandir. 18 other youth members who were ITI passed underwent a reorientation
programme for six months at our manufacturing unit at Jamshedpur
TOWARDS COMMUNITY DEVELOPMENT - MMV TRADE COURSE AT SAKWAR
The chief CSR project in Thane is the Motor Mechanic Trade Course (MMV) at Sakwar. The
MMV Trade course is carried out in association with the Ramakrishna Mission, Mumbai. The
students selected for the MMV Trade Course are tribal youth members who have passed at least
Class VIII and are eager to learn the trade
INDUSTRY PARTNERSHIPS
While grappling with the issue of withstanding the threat of reservations being introduced in the
private sector, the company commits itself to better the present status of the SC/ST populations
by taking measures to improve their educational status, enhance employability and create
entrepreneurs through mentoring and promoting leadership amongst the SC/ST community.
AID TO NGOs
The Donations Committee reviewed several applications from NGOs and institutions and after
determining their need and merit, approved donations. A sum of Rs. 1.17 million was disbursed
in the last year towards donation of Tata vehicles to organisations (list attached as Annexure I)
working in the field of health, education and road safety. Donations in kind to the organisations
help the company to forge relationships with the social sector by playing an important role in
sustaining the work of such organization.
ONGC.s Support
ONGC has supported this project by providing 100 beds to the mentally ill road-side
destitutes so as to provide some comfort to these destitutes along with a Diesel Generator
for use during power cuts.
Beneficiaries
At present there are about 60-65 destitutes in the rehabilitation centre, it is understood that
in the city of Mumbai there are around 500 such road-side destitutes aimlessly roaming in
the metropolis of Mumbai. Such a project can help the society and the nation at large.
Beneficiaries
The Camp provided 175 calipers/Jaipur foot to 115 nos. of needy and downtrodden
people in and around Karaikal, who could not afford to spend money for the same. The
Asset organized another Camp with the association of Rotary Club wherein 167
calipers/Jaipur foot and crutches were provided to 97 nos. of persons from 12 to 17th
February 2008.
by ONGC.
As ONGC focuses on healthcare under its CSR, it has been supporting a number of
hospitals, mobile vans, primary health centres and medical camps. ONGC decided to
collaborate with Rotary, which is a reputed organization and they are rendering yeomen
services to the marginalized by providing the blood to the poor and needy at a meager
processing charge. Hence, ONGC felt it appropriate to provide this equipped vehicle for
helping them to collect blood from various donees by reaching them directly at their
place of their stay.