[1]

INDEX







Sr. no. Contents Pg. no.
1. Introduction 2
2. Corporate governance 3
3. Scope and importance of Corporate governance 6
4. Corporate social responsibility 8
5. Corporate governance: The Indian scenario 20
6. Objective of study 22
7. Corporate social responsibility of Infosys 23
8. Corporate social responsibility of TCS 29
9. Corporate social responsibility of Microsoft 32
10. Conclusion 34
11. Bibliography 35
[2]

INTRODUCTION

Corporate governance is the set of processes, customs, policies, laws, and institutions
affecting the way a corporation (or company) is directed, administered or controlled.
Corporate governance also includes the relationships among the many stakeholders involved
and the goals for which the corporation is governed. In simpler terms it means the extent to
which companies are run in an open & honest manner.

Corporate governance has three key constituents namely: the Shareholders, the Board of
Directors & the Management. Other stakeholders include employees, customers, creditors,
suppliers, regulators, and the community at large. The concept of corporate governance
identifies their roles & responsibilities as well as their rights in the context of the company. It
emphasises accountability, transparency & fairness in the management of a company by its
Board, so as to achieve sustained prosperity for all the stakeholders.

Corporate governance is a synonym for sound management, transparency & disclosure.
Transparency refers to creation of an environment whereby decisions & actions of the
corporate are made visible, accessible & understandable. Disclosure refers to the process of
providing information as well as its timely dissemination.

In A Board Culture of Corporate Governance, business author Gabrielle O'Donovan defines
corporate governance as An internal system encompassing policies, processes and people,
which serve the needs of shareholders and other stakeholders, by directing and controlling
management activities with good business savvy, objectivity, accountability and integrity.
Sound corporate governance is reliant on external marketplace commitment and legislation,
plus a healthy board culture which safeguards policies and processes.








[3]

BACKGROUND
As mentioned earlier, the term corporate governance is related to the extent to which
the companies are transparent & accountable about their business. Corporate governance
today has become a major issue of interest in most of the corporate boardrooms, academic
circles & even governments around the globe.
In the 19th century, state corporation laws enhanced the rights of corporate boards to
govern without unanimous consent of shareholders in exchange for statutory benefits like
appraisal rights, to make corporate governance more efficient. Since that time and because
most large publicly traded corporations in the US are incorporated under corporate
administration-friendly Delaware law and because the US's wealth has been increasingly
securitized into various corporate entities and institutions, the rights of individual owners and
shareholders have become increasingly derivative and dissipated. The concerns of
shareholders over administration pay and stock losses periodically has led to more frequent
calls for corporate governance reforms.
In the 20th century, in the immediate aftermath of the Wall Street Crash of 1929, legal
scholars such as Adolf Augustus Berle, Edwin Dodd, and Gardiner C. Means pondered on the
changing role of the modern corporation in society. From the Chicago school of economics,
Ronald Coase's "The Nature of the Firm" (1937) introduced the notion of transaction costs
into the understanding of why firms are founded and how they continue to behave. Fifty
y`ears later, Eugene Fama and Michael Jensen's "The Separation of Ownership and Control"
(1983, Journal of Law and Economics) firmly established agency theory as a way of
understanding corporate governance: the firm is seen as a series of contracts. Agency theory's
dominance was highlighted in a 1989 article by Kathleen Eisenhardt ("Agency theory: an
assessment and review", Academy of Management Review).
The expansion of US after World War II through the emergence of multinational
corporations saw the establishment of the managerial class. Accordingly, the following
Harvard Business School management professors published influential monographs studying
their prominence: Myles Mace (entrepreneurship), Alfred D. Chandler, Jr. (business history),
Jay Lorsch (organizational behaviour) and Elizabeth MacIver (organizational behaviour).
According to Lorsch and MacIver "Many large corporations have dominant control over
business affairs without sufficient accountability or monitoring by their board of directors."
Since the late 1970s, corporate governance has been the subject of significant debate
in the U.S. and around the globe. Bold, broad efforts to reform corporate governance have
been driven, in part, by the needs and desires of shareowners to exercise their rights of
corporate ownership and to increase the value of their shares and, therefore, wealth. Over the
past three decades, corporate directors duties have expanded greatly beyond their traditional
legal responsibility of duty of loyalty to the corporation and its shareowners.

[4]

In the first half of the 1990s, the issue of corporate governance in the U.S. received
considerable press attention due to the wave of CEO dismissals (e.g.: IBM, Kodak,
Honeywell) by their boards. The California Public Employees' Retirement System (CalPERS)
led a wave of institutional shareholder activism (something only very rarely seen before), as a
way of ensuring that corporate value would not be destroyed by the now traditionally cozy
relationships between the CEO and the board of directors (e.g., by the unrestrained issuance
of stock options, not infrequently back dated).
In 1997, the East Asian Financial Crisis saw the economies of Thailand, Indonesia,
South Korea, Malaysia and The Philippines severely affected by the exit of foreign capital
after property assets collapsed. The lack of corporate governance mechanisms in these
countries highlighted the weaknesses of the institutions in their economies.
In the early 2000s, the massive bankruptcies (and criminal malfeasance) of Enron and
Worldcom, as well as lesser corporate debacles, such as Adelphia Communications, AOL,
Qwest, Arthur Andersen, Global Crossing, Tyco, etc. led to increased shareholder and
governmental interest in corporate governance. Because these triggered some of the largest
insolvencies, the public confidence in the corporate sector was sapped. The popular
perception was that corporate leadership was fraught with greed & excess. Inadequacies &
failure of the existing systems brought to the fore, the need for norms & codes to remedy
them. This resulted in the passage of the Sarbanes-Oxley Act of 2002, (popularly known as
Sox) by the United States.

In India however, only when the Securities Exchange Board of India (SEBI),
introduced Clause 49 in the Listing Agreement, for the first time in the financial year 2000-
2001, that the listed companies started embracing the concept of corporate governance. This
clause was based on the Kumara Mangalam Birla Committee constituted by SEBI. After
these recommendations were in place for about four years, SEBI, in order to evaluate &
improve the existing practices, set up a committee under the Chairmanship of Mr. N.R.
Narayana Murthy during 2002-2003.At the same time, the Ministry of Corporate Affairs set
up a committee under the Chairmanship of Shri. Naresh Chandra to examine the various
corporate governance issues. The recommendations of the committee however, faced
widespread protests & representations from the industry, forcing SEBI to revise them.

Finally, on the 29th October, 2004, SEBI announced the revised Clause 49, which
was implemented by the end of the financial year 2004-2005. Apart from Clause 49 of the
Listing Agreement, corporate governance is also regulated through the provisions of the
Companies Act, 1956. The respective provisions have been introduced in the Companies Act
by Companies Amendment Act, 2000.


[5]



DEFINITIONS OF CORPORATE GOVERNANCE
"Corporate governance is a field in economics that investigates how to
secure/motivate efficient management of corporations by the use of incentive mechanisms,
such as contracts, organizational designs and legislation. This is often limited to the question
of improving financial performance, for example, how the corporate owners can
secure/motivate that the corporate managers will deliver a competitive rate of return" -
www.encycogov.com, Mathiesen [2002].
Corporate governance deals with the ways in which suppliers of finance to
corporations assure themselves of getting a return on their investment.
-The Journal of Finance, Shleifer and Vishny [1997].
"Corporate governance is the system by which business corporations are directed and
controlled. The corporate governance structure specifies the distribution of rights and
responsibilities among different participants in the corporation, such as, the board, managers,
shareholders and other stakeholders, and spells out the rules and procedures for making
decisions on corporate affairs. By doing this, it also provides the structure through which the
company objectives are set and the means of attaining those objectives and monitoring
performance". OECD April 1999. OECD's definition is consistent with the one presented by
Cadbury.
"Corporate governance - which can be defined narrowly as the relationship of a
company to its shareholders or, more broadly, as its relationship to society". - From an article
in Financial Times [1997].


"Corporate governance is about promoting corporate fairness, transparency and
accountability". - J. Wolfensohn, (President of the Word bank, as quoted by an article in
Financial Times, June 21, 1999).

Some commentators take too narrow a view, and say it (corporate governance) is the
fancy term for the way in which directors and auditors handle their responsibilities towards
shareholders. Others use the expression as if it were synonymous with shareholder
democracy. Corporate governance is a topic recently conceived, as yet ill-defined, and
consequently blurred at the edgescorporate governance as a subject, as an objective, or as a
regime to be followed for the good of shareholders, employees, customers, bankers and
indeed for the reputation and standing of our nation and its economy Maw et al. [1994].
[6]



Sir Adrian Cadbury in his preface to the World Bank publication Corporate
Governance: A framework for implementation, said, Corporate governance is holding the
balance between economic & social goals and between individual & community goals. The
aim is to align as nearly as possible, the interests of individuals, corporations & society.

The Cadbury Committee U.K defined corporate governance as follows:
It is a system by which companies are directed & controlled.

SCOPE & IMPORTANCE OF CORPORATE GOVERNANCE
Corporate governance is all about ethics in business. It is about transparency,
openness & fair play in all aspects of business operations. The key aspects to corporate
governance include:

1. Accountability of Board of Directors & their constituent responsibilities to the
ultimate owners- the shareholders.
2. Transparency, i.e. right to information, timeliness & integrity of the information
produced.
3. Clarity in responsibilities to enhance accountability.
4. Quality & competence of Directors and their track record.
5. Checks & balances in the process of governance.
6. Adherence to the rules, laws & spirit of codes.

An active & involved board consisting of professional & truly independent directors plays an
important role in creating trust between a company & its investors and is the best guarantor
of good corporate governance.



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Good corporate governance is integral to the very existence of a company. It is important for
the following reasons:

1. Corporate governance ensures that a properly structured Board, capable of taking
independent & objective decisions is at the helm of affairs of the company. This lays down
the framework for creating long-term trust between the company & external providers of
capital.
2. It improves strategic thinking at the top by inducting independent directors who bring
a wealth of experience & a host of new ideas.
3. It rationalizes the management & monitoring of risk that a corporation faces globally.
4. Corporate governance emphasises the adoption of transparent procedures & practices
by the Board, thereby ensuring integrity in financial reports.
5. It limits the liability of top management & directors, by carefully articulating the
decision making process.
6. It inspires & strengthens investors confidence by ensuring that there are adequate
number of non-executive & independent directors on the Board, to look after the interests &
well-being of all the stakeholders.
7. Corporate governance helps provide a degree of confidence that is necessary for the
proper functioning of a market economy, as it contemplates adherence to ethical business
standards.
8. Finally, globalisation of the market place has ushered in an era wherein the quality of
corporate governance has become a crucial determinant of survival of corporates.
Compatibility of corporate governance practices with global standards has also become an
important constituent of corporate success. Thus, good corporate governance is a necessary
pre-requisite for the success of Indian corporates.






[8]


Corporate social responsibility

Corporate social responsibility (CSR) also called corporate responsibility is a concept where
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. CSR-focused businesses proactively promote the
public interest by encouraging community growth and development. CSR is the deliberate
inclusion of public interest into corporate decision-making, and the honouring of a triple
bottom line: people, planet, profit. Many firms believe that this focus provides a clear
competitive advantage and stimulates corporate innovation.
According to a survey conducted by Great Place to Work Institute, Standard Chartered Bank,
Intel Technology India Pvt Ltd and Infosys Technologies Ltd are leading the way forward
with their Corporate Social Responsibility (CSR) initiatives. The Great Place to Work
Institute has been assessing the world's best companies in over 40 countries since 1980 and
honors recipients according to its employees scores against the Institute's values of
credibility', respect', fairness', pride', and camaraderie'. The 2010 edition is the seventh
study in India, which received overwhelming response from more than 400 companies,
making it the largest such study in India.

Social license
Social license generally refers to a local communitys acceptance or approval of a
companys project or ongoing presence in an area. It is increasingly recognized by various
stakeholders and communities as a prerequisite to development. The development of social
license occurs outside of formal permitting or regulatory processes, and requires sustained
investment by proponents to acquire and maintain social capital within the context of trust-
based relationships. Often intangible and informal, social license can nevertheless be realized
through a robust suite of actions cantered on timely and effective communication, meaningful
dialogue, and ethical and responsible behaviour.
Local conditions, needs, and customs vary considerably and are often opaque, but have a
significant impact on the likely success of various approaches to building social capital and
trust. These regional and cultural differences demand a flexible and responsive approach and
must be understood early in order to enable the development and implementation of an
effective strategy to earn and maintain social license. Governments could facilitate the
necessary stakeholder mapping in regions for which they are responsible and provide a
regulatory framework that sets companies on the right path for engagement with communities
and stakeholders. Social media tools empower stakeholders and communities to access and
share information on company behaviours, technologies, and projects as they are
[9]

implemented around the world. Understanding and managing this reality will be important
for companies seeking social license. Voluntary measures integral to corporate-responsibility
frameworks contribute to achieving social license, particularly through enhancing a
companys reputation and strengthening its capacity for effective communication,
engagement, and collaboration. However, such measures do not obviate the need for project-
specific action to earn and maintain social license. The growing reliance on social media
tools by stakeholders and proponents alike, and the risks associated with disclosure through
them, may lead to an increase. More in Pacific Energy Summit.
Potential business benefits
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 (e.g., Deming's Fourteen Points,
balanced scorecards). Orlitzky, Schmidt, and Rynes found a correlation between
social/environmental performance and financial performance. However, businesses may not
be looking at short-run financial returns when developing their CSR strategy. Intel employs a
5-year CSR planning cycle.
The definition of CSR used within an organization can vary from the strict "stakeholder
impacts" definition used by many CSR advocates and will often include charitable efforts and
volunteering. CSR may be based within the human resources, business development or public
relations departments of an organisation, or may be given a separate unit reporting to the
CEO or in some cases directly to the board. Some companies may implement CSR-type
values without a clearly defined team or programme.
The business case for CSR within a company will likely rest on one or more of these
arguments:
Triple bottom line
People planet profit, also known as the triple bottom line, is words that should be used and
practiced in every move an organization makes. People relates to fair and beneficial business
practices toward labour, the community and region where corporation conducts its business.
Planet refers to sustainable environmental practices. A triple bottom line company does not
produce harmful or destructive products such as weapons, toxic chemicals or batteries
containing dangerous heavy metals for example. Profit is the economic value created by the
organization after deducting the cost of all inputs, including the cost of the capital tied up. It
therefore differs from traditional accounting definitions of profit.
Despite the fact that adopting this triple measure has helped some companies be more
conscious of their social and moral responsibilities, the triple bottom line has its critics. The
first criticism is that the reporting of environmental and social/moral responsibilities is
selective and ignores some real moral demands, thus substituting the adopted list for a
company or its members paying attention to its myriad moral obligations. The second
criticism is that there is no guaranteed-upon way to carry out the environmental and
[10]

social/moral audits comparable to the way that companies carry out their financial audits-
much of which is governed by government requirements. An inherent difficulty with any
social reporting is that it is not quantifiable in the way that a financial report is. There is no
quantitative method that captures what is significantly at issue and no agreed-upon way to
represent qualitative measures.
Human resources
A CSR program can be an aid to recruitment and retention, particularly within the
competitive graduate student market. Potential recruits often ask about a firm's CSR policy
during an interview, and having a comprehensive policy can give an advantage. CSR can also
help improve the perception of a company among its staff, particularly when staff can
become involved through payroll giving, fundraising activities or community volunteering.
CSR has been found to encourage customer orientation among frontline employees.
Risk management
Managing risk is a central part of many corporate strategies. Reputations that take decades to
build up can be ruined in hours through incidents such as corruption scandals or
environmental accidents. These can also draw unwanted attention from regulators, courts,
governments and media. Building a genuine culture of 'doing the right thing' within a
corporation can offset these risks.
Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition that 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, The Body Shop and American Apparel are built on ethical values. Business
service organizations can benefit too from building a reputation for integrity and best
practice.
Engagement plan
An engagement plan will assist in reaching a desired audience. A corporate social
responsibility team or individual is needed to effectively plan the goals and objectives of the
organization. Determining a budget should be of high priority. The function of corporate
social responsibility planning:
1. To add discussion and analysis of a new set of risks into corporate decision-making.
2. To represent issues within the corporation that watchdogs, NGOs and advocates
represent within society.
3. To assess the future. An organizations long term and short term future needs to be
thought of.
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4. To help prioritize consideration of socially and environmentally friendly projects that
might otherwise lack a corporate advocate.
5. To keep corporations aware of potential major societal impacts even when a negative
impact may not be immediate, and thus lessen liability.
6. To positively influence decision making where societal impacts are maximized, whilst
ensuring efforts are within a given budget.
Developing an engagement plan
Commit to coming up with and improving on your companies goals. CSR commitments
communicate the nature and direction of the firm's social and environmental activities and,
will help others understand how the organization is likely to behave in a particular situation
Do a scan of CSR commitments
Hold discussions with major stakeholders
Create a working group to develop the commitments
Prepare a preliminary draft
Consult with affected stakeholders
Revise and publish the commitments
Consider what is feasible within the budget
To ensure employee buy-in, include employees in the process of developing the vision and
values. To spark the process, create a CSR working group or hold a contest for the best
suggestions, encouraging employees and their representatives to put some thought into their
submissions.
Host a visioning session and ask participants to think about what the firm could look like in
the future as a CSR leader.
Review the CSR priorities to determine which codes of ethics or conduct fit best with the
firm's goals.
Consultants are recommended when planning for CSR activities involving small, medium
and large sized corporations. All levels of management should be on board, and the support
of high ranking corporate officials should be given.
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 as
good corporate citizens with respect to labour standards and impacts on the environment.
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Supplier relations
Businesses are constantly relying on suppliers to reduce overall costs, while improving the
quality of their goods or services. Many North American companies have downgraded the
volume of suppliers they do business with, and award contracts to a select few, in order to
lower operating costs. By establishing a strong supply chain, companies are able to push for
continuous quality improvements, and price reductions. The long-term benefits of the listed
above create a better value for stakeholders.
Some multi-national companies like General Motors can shift suppliers, if a lower offer is
made by the competition. As a result, competitiveness, and greater profits are created, in turn
contributing to a stronger market
The strategic use of supplier relations can benefit single, double and triple bottom-lines.
Corporations excelling in supply relations include Wal-Mart, Ford, General Motors, Toyota
and Nestle. All companies listed above have gained tangible results through the practice of
ensuring sound supply chains, and sourcing materials from ethical sources.
Common Types of Corporate Social Responsibility Actions
There are many aspects of corporate social responsibility; whether a company decides to
develop one area of CSR, or multiple, the end result is a more profitable company
experiencing a higher level of employee engagement. The following is a list of common ways
corporate social responsibility is implemented by organizations.
1. Environmental Sustainability: Areas include recycling, waste management, water
management, using renewable energy sources, utilizing reusable resources, creating 'greener'
supply chains, using digital technology instead of hard copies, developing buildings
according to Leadership in Energy and Environmental Design (LEED) standards, etc. There
is a business sector dedicated to specifically to environmental sustainability consulting for
businesses of any size to utilize. The highest ranked sustainability consulting firm is Ernst &
Young
2. Community Involvement: This can include raising money for local charities, supporting
community volunteerism, sponsoring local events, employing people from a community,
supporting a community's economic growth, engaging in fair trade practices, etc. Starbucks is
an example of a company that focuses on community involvement and engagement; since
these programs began the company has seen higher profits and greater employee engagement.
3. Ethical Marketing Practices: Companies that ethically market to consumers are placing a
higher value on their customers and respecting them as people who are ends in themselves.
They do not try to manipulate or falsely advertise to potential consumers. This is important
for companies that want to be viewed as ethical.


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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.
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. Some people perceive CSR as
incongruent with the very nature and purpose of business, and indeed a hindrance to free
trade. Those who assert that CSR is contrasting with capitalism and are in favour of the free
market argue that improvements in health, longevity and/or infant mortality have been
created by economic growth attributed to free enterprise.
Critics of this argument perceive the free market as opposed to the well-being of society and
a hindrance to human freedom. They claim that the type of capitalism practiced in many
developing countries is a form of economic and cultural imperialism, noting that these
countries usually have fewer labour protections, and thus their citizens are at a higher risk of
exploitation by multinational corporations.
A wide variety of individuals and organizations operate in between these poles. For example,
the REALeadership Alliance asserts that the business of leadership (be it corporate or
otherwise) is to change the world for the better. Many religious and cultural traditions hold
that the economy exists to serve human beings, so all economic entities have an obligation to
society (see for example Economic Justice for All). Moreover, as discussed above, many
CSR proponents point out that CSR can significantly improve long-term corporate
profitability because it reduces risks and inefficiencies while offering a host of potential
benefits such as enhanced brand reputation and employee engagement.






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Motives

A story of CSR promoted by Azim Premji Foundation in India
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 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. They suggest that
corporations which exist solely to maximize profits are unable to advance the interests of
society as a whole.
Another concern is that sometimes companies claim to promote CSR and be
committed to sustainable development but simultaneously engage in harmful business
practices. For example, since the 1970s, the McDonald's Corporation's association with
Ronald McDonald House has been viewed as CSR and relationship marketing. More
recently, as CSR has become mainstream, the company has beefed up its CSR programs
related to its labour, environmental and other practices All the same, in McDonald's
Restaurants v Morris & Steel, Lord Justices Pill, May and Keane ruled that it was fair
comment to say that McDonald's employees worldwide 'do badly in terms of pay and
conditions' and true that 'if one eats enough McDonald's food, one's diet may well become
high in fat etc., with the very real risk of heart disease.'
Royal Dutch Shell has a much-publicized CSR policy and was a pioneer in triple
bottom line reporting, but this did not prevent the 2004 scandal concerning its misreporting of
oil reserves, which seriously damaged its reputation and led to charges of hypocrisy. Since
then, the Shell Foundation has become involved in many projects across the world, including
a partnership with Marks and Spencer (UK) in three flower and fruit growing communities
across Africa.
Critics concerned with corporate hypocrisy and insincerity generally suggest that
better governmental and international regulation and enforcement, rather than voluntary
measures, are necessary to ensure that companies behave in a socially responsible manner. A
major area of necessary international regulation is the reduction of the capacity of
corporations to sue states under investor state dispute settlement provisions in trade or
investment treaties if otherwise necessary public health or environment protection legislation
has impeded corporate investments. Others, such as Patricia Werhane, argue that CSR should
be considered more as a corporate moral responsibility, and limit the reach of CSR by
focusing more on direct impacts of the organization as viewed through a systems perspective
to identify stakeholders. For a commonly overlooked motive for CSR, see also Corporate
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Social Entrepreneurship, whereby CSR can also be driven by employees' personal values, in
addition to the more obvious economic and governmental drivers.
Principles
The main principles involving corporate social responsibility involve economic, legal,
ethical and discretionary aspects. A corporation needs to generate profits, while operating
within the laws of the state. The corporation also needs to be ethical, but has the right to be
discretional about the decisions it makes. Levels of corporate social responsiveness to an
issue include being reactive, defensive, responsive and interactive. All terms are useful in
issues management. Selecting when and how to act can make a difference in the outcome of
the action taken.
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. Consumers are becoming more aware of the environmental and social
implications of their day-to-day consumer decisions and are therefore beginning to make
purchasing decisions related to their environmental and ethical concerns. However, this
practice is far from consistent or universal.
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 "labour
exploitation" are problems that can cost organizations millions of dollars. Some view ethical
issues as simply a costly hindrance, while some companies use CSR methodologies as a
strategic tactic to gain public support for their presence in global markets, helping them
sustain a competitive advantage by using their social contributions to provide a subconscious
level of advertising. (Fry, Keim, Meiners 1986, 105) Global competition places a particular
pressure on multinational corporations to examine not only their own labour practices, but
those of their entire supply chain, from a CSR perspective. That all government is
controlling.
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. The
extension of SRI bodies driving corporations to include an element of ethical investment
into their corporate agendas generates socially embedded issues. The main issue correlates to
the development and overall idea of ethical investing or SRI, a concept that is constructed
as a general social perspective. The problem becomes defining what is classified as ethical
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investing. The ethics or values of one SRI body will likely different from the next since
ethical opinions are inherently paradoxical. For example, some religious investors in the US
have withdrawn investment from companies that fail to fulfil their ethical expectations. The
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
behaviour. Through education and dialogue, the development of community awareness in
holding businesses responsible for their actions is growing.[68] in recent years,[when?] the
traditional conception of CSR is being challenged by the more community-conscious
Creating Shared Value concept (CSV), and several companies are refining their collaboration
with stakeholders accordingly.
Ethics training
The rise of ethics training inside corporations, some of it required by government
regulation, is another driver credited with changing the behaviour and culture of corporations.
The aim of such training is to help employees make ethical decisions when the answers are
unclear. Tullberg believes that humans are built with the capacity to cheat and manipulate, a
view taken from Trivers (1971, 1985), hence the need for learning normative values and rules
in human behaviour. The most direct benefit is reducing the likelihood of "dirty hands"
(Grace and Cohen 2005), fines and damaged reputations for breaching laws or moral norms.
Organizations also see secondary benefit in increasing employee loyalty and pride in the
organization. Caterpillar and Best Buy are examples of organizations that have taken such
steps.
Increasingly, companies are becoming interested in processes that can add visibility to
their CSR policies and activities. One method that is gaining increasing popularity is the use
of well-grounded training programs, where CSR is a major issue, and business simulations
can play a part in this.
One relevant documentary is The Corporation, the history of organizations and their
growth in power is discussed. Corporate social responsibility, what a company does in trying
to benefit society, versus corporate moral responsibility (CMR), what a company should
morally do, are both important topics to consider when looking at ethics in CSR. For
example, Ray Anderson, in The Corporation, takes a CMR perspective in order to do what is
moral and he begins to shift his company's focus towards the biosphere by utilizing carpets in
sections so that they will sustain for longer periods. This is Anderson thinking in terms of
Garret Hardin's "The Tragedy of the Commons," where if people do not pay attention to the
private ways in which we use public resources, people will eventually lose those public
resources.
Geography
In a geographical context, CSR is fundamentally an intangible populist idea without a
conclusive definition. Corporations who employ CSR behaviours are empirically dissimilar
in various parts of the world. The issue of CSR diversity is produced through the perpetual
differences embedded in the social, political, cultural, and economic structures within
[17]

individual countries. The immense geographical separations feasibly contribute to the loosely
defined concept of CSR and difficulty for corporate regulation.
Public policies
CSR has inspired national governments to include CSR issues into their national public
policy agendas. The increased importance driven by CSR, has prompted governments to
promote socially and environmentally responsible corporate practices. Over the past decade
governments have considered CSR as a public issue that requires national governmental
involvement to address the very issues relevant to CSR. The heightened role of government
in CSR has facilitated the development of numerous CSR programs and policies.
Specifically, various European governments have implemented public policies on CSR
enhancing their competence to develop sustainable corporate practices.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 themselves responsibly.
Actors engaged in CSR:
Governments
Corporations
civil societies
Recently,15 European Union countries have actively engaged in CSR regulation and
public policy development. Recognizably, the CSR efforts and policies are vastly different
amongst countries resultant to the complexity and diversity of governments, corporations,
and civil societies roles. Scholars have analysed each body that promotes CSR based policies
and programs concluding that the role and effectiveness of these actors are case-specific.
Global issues so broadly defined such as CSR generate numerous relationships between the
different socio-geographic players.
A key debate in CSR is determining what actors are responsible to ensure that
corporations are behaving in a socio-economic and environmentally sustainable manner.
Regulation
The issues surrounding corporate regulation pose several problems. The concept of
regulation is inherently difficult to address because of the numerous corporations that exist
are vastly dissimilar in terms of corporate behaviour and nature. Thus, regulation in itself is
unable to cover every aspect in detail of a corporation's operations. For example, this leads to
burdensome legal processes bogged down in interpretations of the law and debatable grey
areas (Sacconi 2004). For example, General Electric failed to clean up the Hudson River after
contaminating it with organic pollutants. The company continues to argue via the legal
process on assignment of liability, while the clean-up remains stagnant. (Sullivan & Schiafo
2005). Government regulation or public institutional regulation is difficult to achieve.
Depending on the political regime and form of government democracy, parliamentary,
presidential issues of governmental ineffectiveness may transpire. As a result, attempts at
CSR policy development and implementation may be unattainable.
[18]


The second issue is the financial burden that regulation can place on a nation's
economy. This view shared by Bulkeley, who cites the Australian federal government's
actions to avoid compliance with the Kyoto Protocol in 1997, on the concerns of economic
loss and national interest. The Australian government took the position that signing the Kyoto
Pact would have caused more significant economic losses for Australia than for any other
OECD nation (Bulkeley 2001, pg. 436). On the change of government following the election
in November 2007, Prime Minister Kevin Rudd signed the ratification immediately after
assuming office on 3 December 2007, just before the meeting of the UN Framework
Convention on Climate Change. Critics of CSR also point out those organizations pay taxes
to government to ensure that society and the environment are not adversely affected by
business activities.
The government of Canada has adopted a national position that expects Canadian
corporations to practice behaviours parallel to CSR. In 2007, Prime Minister Harper was
aware of Canadas abundant investment into the resource/mineral extractive sector and
encouraged the Canadian mining companies to meet Canadas newly developed CSR
standards and expectations. The method of developing and implementing CSR policies was
achieved through government-company consultation and government stakeholder
cooperation. The successful relationship between the CSR actors within Canadas
government and country, may advocate that cooperation amongst constituencies is the most
imperative element to CSR regulation.
The European Union has recently done extensive work to try and find the best form of
regulation. Some critics argue that the creation of a CSR organization with a democratically
appointed minister focused solely on monitoring and enforcing socially responsible behaviour
will be extremely effective.
Laws
In the 1800s,the government in the primary establishment of corporate legislation
could take away a firm's license if it acted socially irresponsible. This was due to
corporations being viewed as "creatures of the state" under the law. However in 1819, The
United States Supreme Court in the Dartmouth College vs. Woodward case established a
corporation as a fictitious being. This new ruling not only allowed corporations to be
protected under the Constitution but also limited states from enforcing restrictions on firms
that did not act in the public good. The laws legally binding the corporations behaviour and
activity are quite insignificant in relation to the global consequences. Only recently have
countries included CSR policies in government agendas legislature. Common types of
countries who have implemented legislation and CSR laws generally consist of socio-
economic and politically sophisticated countries. The level of political stability and
effectiveness is inextricably linked to a countries capacity to ensure national CSR policies.

[19]


The increasing ability and influence corporations have on the economic, political, and
social dynamics of society correlate to the recent studies by the UN Commission on Human
Rights. More research and international political instruments are being explored to protect
and prevent corporations from violating human rights.
Information on the companies policies for CSR or socially responsible investments (SRI)
Information on how such policies are implemented in practice, and
Information on what results have been obtained so far and managements expectations for the
future with regard to CSR/SRI.
In India under Companies Act, 2013, any company having a net worth of rupees 500
crore or more or a turnover of rupees 1,000 crore or more or a net profit of rupees 5 crore or
more should mandatorily spend 2% of their net profits per fiscal on CSR activities.[80] The
rules will come into effect from 1 April 2014.

















[20]



Evolution of corporate social responsibility in India
The evolution of corporate social responsibility in India refers to changes over time in
India of the cultural norms of corporations' engagement of corporate social responsibility
(CSR), with CSR referring to way that businesses are managed to bring about an overall
positive impact on the communities, cultures, societies and environments in which they
operate. The fundamentals of CSR rest on the fact that not only public policy but even
corporates should be responsible enough to address social issues. Thus companies should
deal with the challenges and issues looked after to a certain extent by the states.
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 corporates has to be in
line with their attitudes towards mainstream business- companies setting clear objectives,
undertaking potential investments, measuring and reporting performance publicly.
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. A
growing number of corporates feel that CSR is not just another form of indirect expense but
is important for protecting the goodwill and reputation, defending attacks and increasing
business competitiveness.
Companies have specialised CSR teams that formulate policies, strategies and goals
for their CSR programs and set aside budgets to fund them. These programs are often
determined by social philosophy which have clear objectives and are well defined and are
aligned with the mainstream business. The programs are put into practice by the employees
who are crucial to this process. 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.
[21]


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.
Also Corporates increasingly join hands with Non-governmental organizations
(NGOs) and use their expertise in devising programs which address wider social problems.
For example, a lot of work is being undertaken to rebuild the lives of the tsunami
affected victims. This is exclusively undertaken by SAP India in partnership with Hope
Foundation, an NGO that focuses mainly on bringing about improvement in the lives of the
poor and needy . The SAP Labs Centre of HOPE in Bangalore was started by this venture
which looks after the food, clothing, shelter and medical care of street children.
CSR has gone through many phases in India. The ability to make a significant
difference in the society and improve the overall quality of life has clearly been proven by the
corporates. Not one but all corporates should try and bring about a change in the current
social situation in India in order to have an effective and lasting solution to the social woes .
Partnerships between companies, NGOs and the government should be facilitated so that a
combination of their skills such as expertise, strategic thinking, manpower and money to
initiate extensive social change will put the socio-economic development of India on a fast
track.












[22]


OBJECTIVE OF THE STUDY

The objective and main purpose of this Project is to examine in impact of CSR activities by
these three companies in business and its performance by examining the following aspects of
corporate social responsibility in depth.
Corporate social responsibility rationale
The credibility of firm claims
Similarities and differences in the approaches of their program
. This report gives comprehensive investigation on CSR done by companies, last five year
CSR performance. Our findings will show us the exact relationship of CSR and firms
performance.

Methodology of data collection:
1. SECONDARY DATA
Websites
Articles









[23]


Infosys
Infosys (formerly Infosys Technologies) is an Indian multinational that provides
business consulting, technology, engineering and outsourcing services. It is headquartered in
Bengaluru, Karnataka. Infosys is the third-largest India-based IT services company by 2012
revenues, and the second largest employer of H-1B visa professionals in the United States, as
of 2012. On 28 March 2013, its market capitalisation was $30.8 billion, making it India's
sixth largest publicly traded company.
Infosys co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S.
Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned
from Patni Computer Systems. The company was incorporated as "Infosys Consultants Pvt
Ltd." with a capital of Rs 10000 (roughly $250) in Model Colony, Pune as the registered
office and signed its first client, Data Basics Corporation, in New York. In 1983, the
company's corporate headquarters was relocated to Bangalore
It changed its name to "Infosys Technologies Private Limited" in April 1992 and to
"Infosys Technologies Limited" when it became a public limited company in June 1992. It
was later renamed to "Infosys Limited" in June 2011.
On 1 June 2013, Mr. Narayana Murthy, one of the founding members of Infosys and its long
time CEO, returned from his retirement to assume office in Infosys as its Executive
Chairman.












[24]



Corporate Governance

Corporate governance is about maximizing shareholder value legally, ethically and on
a sustainable basis. At Infosys, the goal of corporate governance is to ensure fairness for
every stakeholder our customers, investors, vendor-partners, the community, and the
governments of the countries in which we operate. We believe that sound corporate
governance is critical in enhancing and retaining investor trust. It is a reflection of our
culture, our policies, and our relationship with stakeholders and our commitment to values.
Accordingly, we always seek to ensure that we attain our performance rules with integrity.

Our Board exercises its fiduciary responsibilities in the widest sense of the term. Our
disclosures seek to attain the best practices in international corporate governance. We also
endeavour to enhance long-term shareholder value and respect minority rights in all our
business decisions.

We continue to be a pioneer in benchmarking our corporate governance policies with
the best in the world. Our efforts are widely recognized by investors in India and abroad. We
have been audited for corporate governance by the Investment Information and Credit Rating
Agency ( ICRA) and the Credit Rating Information Services of India Limited (CRISIL) and
have been awarded a rating of CGR 1 and GVC Level 1 respectively.

We are also in compliance with the recommendations of the Narayana Murthy
Committee on Corporate Governance, constituted by the Securities and Exchange Board of
India (SEBI).







[25]





Corporate Governance Philosophy

Our corporate governance philosophy is based on the following principles:

Satisfying the spirit of the law and not just the letter of the law
Going beyond the law in upholding corporate governance standards.
Maintaining transparency and a high degree of disclosure levels.
Making a clear distinction between personal conveniences and corporate resources
Communicating externally, in a truthful manner, about how the Company is run internally
Complying with the laws in all the countries in which the Company operates
Having a simple and transparent corporate structure driven solely by business needs
Management is the trustee of the shareholders' capital and not the owner
When in doubt, disclose
Board composition

At the core of our corporate governance practice is the Board, which oversees how the
management serves and protects the long-term interests of all our stakeholders. The majority
of our Board, nine out of 16, are independent members. As active and well informed of the
board, they are fully committed to ensuring the highest standards of corporate governance. In
addition, the independent directors make up the audit, compensation, investor grievance,
nominations and the risk management committees, bringing their valuable perspective to the
board.
As a part of our commitment to follow global best practices, we comply with the Euro
shareholders Corporate Governance Guidelines 2000, and the recommendations of the
Conference Board Commission on Public Trusts and Private Enterprises in the U.S. We also
adhere to the UN Global Compact Program.
[26]

Corporate social responsibility activities in Infosys

Healthcare

Access to primary healthcare, awareness of basic hygiene, and treatment of underprivileged
patients beg attention. The Infosys Foundation advances healthcare by augmenting existing
healthcare infrastructure.
Since inception in 1996, the Infosys Foundation has constructed hospital wards and built
dharmashalas (rest houses) at the National Institute of Mental Health and Neuro Sciences
(NIMHANS) in Bangalore, India. The Foundation has also donated medicines and medical
equipment to hospitals, in addition to organizing health camps in rural India.
The Infosys Foundation has donated more than INR 50 crore to expand the capacity of
hospitals across India. The Foundation is involved in several healthcare programs:
Constructed the Infosys Super-specialty Hospital on the campus of Sassoon Hospital in Pune,
India. Donated medicines to aged and poor patients suffering from cancer, leprosy, defects of
the heart / kidney, mental illnesses and other major disorders.
Helped patients meet substantial medical expenses and ensured that they have a steady source
of income for their treatment. Installed office management software at KEM Hospital in
Mumbai. This enables the hospital to manage store requirements, keep accounts as well as
publish hospital papers and other information online. Built additional blocks at Swami
Sivananda Centenary Charitable Hospital at Tirunelveli in the southern Indian state of Tamil
Nadu and at Bangalore Diabetes Hospital. Constructed a dharmashala at Kidwai Memorial
Institute of Oncology in Bangalore. Constructed a paediatric hospital and donated a CT scan
machine at Capitol Hospital in Bhubaneswar, capital of the Indian state of Orissa. Built
additional wards at Swami Shivananda Memorial Charitable Hospital in Pattumadai, Tamil
Nadu.Built an annex to a cancer hospital in Kanchipuram, Tamil Nadu.Built a hospital for
tribals at H.D. Kote, in the southern Indian state of Karnataka.Constructed a hospital to treat
patients with brain fever in Bellary, Karnataka. Donated an air conditioner unit to the burns
ward at Victoria Hospital, Bangalore. Purchased a high-energy linear accelerator unit to treat
cancer patients at Chennai Cancer Institute in Tamil Nadu.Conducted a leprosy camp and
carried out relief work in Gulbarga, Karnataka.Constructed a hospital for Sankara Nethralaya
to make high-quality ophthalmic services accessible to poor patients. Constructed the
Standard Care & Rehabilitation Centre for mentally challenged patients at H.D. Kote,
Karnataka, under the auspices of Chittaprakash Trust. Supplied mobile incubators to hospitals
for poor patients. Provided food for leprosy, tuberculosis, HIV-positive, and blind patients in
Karnataka. Completed the construction of rest houses at the National Institute of Mental
Health and Neuro Sciences (NIMHANS), Bangalore. Donated money to hospitals as corpus
for treating poor patients. A total of 10 hospitals have benefited over the years.
[27]


Education
Education offers the youth a foundation to achieve their potential. However, millions of
children drop out of schools for financial reasons. The Infosys Foundation promotes primary
education among underprivileged children through global partnerships.
The Infosys Foundation partners with schools in rural India to enhance education and library
facilities:
Under the Library for Every Rural School project, the Foundation established more
than 50,000 school libraries across Karnataka. More than 50,000 sets of books were
donated in the Indian states of Karnataka, Andhra Pradesh, Orissa, and Kerala. Each
set has around 200 to 250 books and the cost of each set ranges from INR 8,000 to
INR 10,000. Subjects include science, history, mathematics, general knowledge,
grammar, literature, geography, vocational training, and fiction.
Set up more than 10,150 libraries in rural government schools. A minimum of 200
books, depending on the strength of the school, were provided.
A book that simplifies computer education for rural areas has been published in the
Indian languages of Hindi, Tamil, and Telugu.
Full-fledged libraries that can be accessed by underprivileged students have been
established in Hubli and Bangalore. These libraries have the latest books prescribed in
high-tech streams such as medicine and engineering. A student can pay a deposit of
INR 800 for unlimited use of the library throughout her/his education.
Donated funds for reconstruction of old school buildings. 14 government schools in
slum areas of Hyderabad in the southern Indian state of Andhra Pradesh have been
reconstructed.
Renovated Gandhinagar, Kottara St. Peter's School and Kapikad Zilla Panchayat
schools in Dakshina Kannada, Karnataka.
Contributed towards construction of additional classrooms, school /corpus funds,
school furniture, equipment and so on.
Donated an index Braille printer for the Sharada Devi Andhara Vikasa Kendra in
Shimoga, Karnataka.
Donated study material, including science kits, to 20 schools in rural Karnataka.
Worked with various organizations in Maharashtra, Tamil Nadu, and Orissa to
educate slum children.
Constructed a science center at a rural school in Kolar District of Karnataka a one-
of-its-kind center in the entire district.
Constructed toilets at a school in Pune, Maharashtra.


[28]


Rural Development
The well-being of people living in rural areas ensures sustainable development. The
Infosys Foundation works with local administration to achieve community development
goals. We construct roads, provide drainage systems and electricity, and rehabilitate flood-
affected victims in rural areas.
The Foundation has donated more than INR 40 crore for rural development and livelihood
projects such as awareness campaigns on hygiene, sanitation, vocational training and
entrepreneurship.
The Foundation undertakes programs to improve the welfare of people in rural India:
Took up relief work at tsunami-affected areas of Tamil Nadu and the Andaman
Islands, earthquake-affected areas of Kutch, cyclone-devastated areas of Orissa, tribal
areas of Kalahandi in Orissa and drought-hit areas of Andhra Pradesh.
In Karnataka, constructed 3,000 homes for flood victims of Belgaum, Gulbarga,
Dharwad, Gadag, Bagalkot, Bijapur, and Karwar.
Donated toward midday meal program of the Akshaya Patra Foundation, Bangalore,
for poor children in North Karnataka.
Offered compensation to families whose breadwinners have served in Indian Armed
Forces and laid their lives for the country.
Worked with the Red Cross Society to supply aid equipment to the physically
challenged in rural areas and economically weaker sections of Karnataka.
Improved the lives of children with leprosy and those living on the streets and in
slums.
Constructed hostel buildings for poor students at Ramakrishna Mission centers in
Tamil Nadu, Orissa, Maharashtra, and Andhra Pradesh.
Constructed orphanages in rural areas of Tamil Nadu, Orissa, Maharashtra and
Andhra Pradesh to provide shelter to the children of local communities.
Built a girls hostel at Maharshi Karve Sthree Shikshana Samsthe, Hingne, Pune; a
girls hostel for the blind in Banapur, Orissa; Jagruthi Blind School in Pune; Sri
Ramana Maharshi Academy for the Blind in Bangalore; and Sri Sharada Andhara
Vikasa Kendra in Shimoga, Karnataka.
Constructed the Sri Ramakrishna Students' Home in Chennai, Tamil Nadu.
Donated a hall for people with physical disabilities in Belgaum, Karnataka.
Trained tribal communities of Karnataka and Orissa in agriculture, horticulture,
sericulture, floriculture, apiculture, fishing, dairy, poultry, welding, and carpentry.



[29]

Corporate Social Responsibility in TCS
The guiding principle of TCS Corporate Social Responsibility programs is Impact
through Empowerment, where empowerment is a process of strengthening the future today,
so that risks are minimized, value created and certainty is experienced. We strive to ensure
that the communities engaged through our CSR initiatives also experience certainty in their
lives.
The core areas for TCS CSR programs are education, health and environment. The
choice of education as a theme flows from TCS being in the knowledge domain. Similarly,
attention to the cause of health acknowledges that health is a vital precondition for promoting
social good. Concern for the environment is in line with our belief that this global cause
demands our attention to ensure a sustainable and productive planet. These themes are
established centrally for adoption or adaptation across all geographies.
TCS' Approach
TCS has chosen the following channels to drive its CSR initiatives:
Developing innovative solutions to address large-scale societal problems by utilizing our IT
core competence. Volunteering for projects that address the felt need of communities in
which TCS operates, while aligning with the core themes of TCS CSR. Participating in
community development program championed by our clients. Partnering with select
non-government and civil society organizations and other government bodies.
Supporting large-scale causes such as disaster relief or any other cause as determined by the
Corporate CSR Council.
Key Facts And Figures
In the year 2011-12 year TCS associates volunteered 58,362 hours on CSR initiatives
and through these initiatives reached out to 57,90,604 beneficiaries.


[30]


TCS' Initiatives
Some of the initiatives include the following:
Region Sustainable Community Initiatives
India Adult Literacy Programs
University Alliances
TCS BPO Employability Program
Academic Interface Program
mKRISHI
Web Health Center
Mansuki
TCS Maitree village development initiative
TCS Maitrees Advanced Computer Training Center
Med Mantra
InsighT
Empower
CSR Technical Teams support to social organizations
North America First Book Club
goIT
UK and Europe Passport to Employability
UK School Partnerships
Stepney Football Club
Today is a Good Day
Asia Pacific InsighT- Australia
SINDA Computer Training
Go for IT!
Library Program in China
Operation Smile
Latin America Environment Leaders
Middle East and
Africa
Landmark computer training
Scholarships at CIDA City Campus
City Ambassadors Football Club
Support to Reach for Dreams






[31]

Corporate Governance

Being a part of the 144-year old Tata group, which epitomizes sustainability, we, at TCS,
have inherited a strong legacy of fair, transparent and ethical governance, as embodied in
the Tata Code of Conduct.

This is aligned with the ten principles articulated in the UN Global Compact to which TCS is
a signatory. The Tata group's Tata Business Excellence Model (TBEM) embodies
sustainability as a key aspect for measuring business excellence for group companies, and the
results of this are highlighted at the board level. TCS is on the Steering and Working
Committees of the Climate Change Group within Tata Quality Management Services
(TQMS), which drives sustainability guidelines for the group.
The CEO oversees the companys sustainability strategy and reports on the initiatives and
progress at the board meetings. A Sustainability Council has been set up to oversee the
implementation of our sustainability strategy. The council is led by the head of corporate
sustainability and reports to the CEO & MD and the Board of Directors.

It comprises the heads of internal IT, HSE, Administration, CSR, Infrastructure Planning
Department, Eco-sustainability Services and Human Resources. The goals are determined by
the senior management in line with the companys overall sustainability objectives and the
performance against these goals.





[32]

Corporate Social Responsibility in Microsoft

Corporate Citizenship

As an industry leader and the world's largest software company, Microsoft has a
responsibility to act as a good corporate citizen. Whether it is complying with local laws and
regulations, demonstrating ethical business standards, mitigating risks to the environment, or
protecting human rights, Microsoft is committed to being a global leader in corporate
responsibility.
Corporate citizenship is also core to the Microsoft business strategy and the way that we
interact with customers, partners, governments, and employees. It is a way of doing business
that recognizes the effect that Microsoft has on society and the effect that society has on our
business.
We are committed to serving communities and working responsibly. Through our
partnerships, our technology innovations, our people and our resources we are proud to help
solve societal challenges and create economic opportunities.
Fast Facts
Project Shiksha has so far equipped more than 741,000 government school teachers with IT
skills, impacting more than 36 million students across the country.
Every year 1, 00,000 people are certified through Microsoft Learning.
Microsoft Innovation Centers 1, 00,000 students reached.
Under Dream Spark, there have been over 12 million free downloads of developer and design
tools by students since 2008.
3, 50,000 Indian students have registered for Imagine Cup since it started in 2003.
Over 2,000 start-ups benefit from technology insights, software, tools, and opportunity
mapping via the BizSpark program.
Project Kshamta 30,000 jawans trained since 2009.
Project Jyoti - IT training for over 462,000 young adults, of which more than 70% are now in
formal employment.



[33]

Corporate Governance of Microsoft's
Introduction
Over the course of Microsoft's history, the Board of Directors has developed corporate
governance policies and practices to help it fulfil its responsibilities to shareholders. These
governance policies are memorialized in these guidelines to assure that the Board will have
the necessary authority and practices in place to review and evaluate the Company's business
operations and to make decisions that are independent of the Company's management.
The guidelines are subject to future refinement or changes as the Board may find necessary or
advisable to achieve these objectives.
Shareholders elect the Board to oversee management and to assure that shareholder long-term
interests are served. Through oversight, review, and counsel, the Board establishes and
promotes Microsofts business and organizational objectives. The Board oversees business
affairs and integrity, works with management to determine the Companys mission and long-
term strategy, performs the annual Chief Executive Officer evaluation, oversees CEO
succession planning, and oversees internal control over financial reporting and external audit.
Director Orientation and Continuing Education. The Governance and Nominating Committee
and management are responsible for director orientation programs and for director continuing
education programs to assist directors in maintaining skills necessary or appropriate for the
performance of their responsibilities.
Orientation programs are designed to familiarize new directors with the Company's
businesses, strategies, and policies and to assist new directors in developing the skills and
knowledge required for their service.
Continuing education programs for Board members may include a combination of internally
developed materials and presentations, programs presented by third parties at the Company,
and financial and administrative support for attendance at qualifying university or other
independent programs.
Review of Corporate Governance Guidelines. The Board expects to review these guidelines
at least every two years, as appropriate.






[34]

Conclusion
The Conclusion represents the main findings of the CSR within this project CSR
frame of reference developed by the CSR platform of NGOs played a central role. An
important element of this project was to explore and discuss both the scope of and limits to
the responsibility of companies operating in the Indian context within the light of the
principles incorporated in this frame of reference .the objective was to learn to what extent
companies are able to implement these principles and where other actors such as government
and NGOs can and do play a role
Companies operating in India in order to make a comparison possible between the
principles incorporate in the CSR frame of reference and the CSR practice of companies in
India the conclusion are grouped according to the set-up of the CSR frame of reference.



















[35]

WEBILOGRAPHY:

https://www.wikipedia.org
https://www.google.co.in
http://www.scribd.com
http://www.infosys.com
http://www.tcs.com
http://www.microsoft.com