1

INDEX
Sr.No
Chapter1

Chapter2

Topic
Corporate social responsibility
1.1
Introduction
1.2
CSR Policy As Per Companies Act 2013
1.3
Core Elements
1.4
Implementation Guidance
1.5
Issues And Challenges
1.6
Cost Benefit Analysis
1.7
Triple Bottom Line
1.8
Brand Differentiation
1.9
CSR In India
1.10
CSR Strategies Focusing On Protection Rather
Than Competitive Advantage
Corporate Social Responsibility In Amul
2.1
Introduction Of Amul
2.2
History
2.3
Corporate Social Responsibility Held By Amul
2.4
CSR Sensitive Organization Structure
2.5
CSR Sensitive Business Philosophy
2.6
CSR Oriented To Distributors & Retailers
2.7
Earnings Of GCMMF
2.8
CSR Oriented To Staff
2.9
Blood Donation
2.10
Amul Relief Trust
2.11
Tree Plantation
2.12
Tribhuvandas Foundation
2.13
Rural Sanitation
2.14
Swarnajayanti Gram Swarozgar Yojana
(SGSY)
Conclusion
Bibliography

CORPORATE SOCIAL RESPONSIBILITY

INTRODUCTION

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Corporate social responsibility (CSR, also called corporate conscience, corporate

citizenship or sustainable responsible business/ Responsible Business) is a form of
corporate self-regulation integrated into a business model. CSR policy functions as
a self-regulatory mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards and international norms.
With some models, a firm's implementation of CSR goes beyond compliance and
engages in "actions that appear to further some social good, beyond the interests of
the firm and that which is required by law." CSR aims to embrace responsibility for
corporate actions and to encourage a positive impact on the environment and
stakeholders including consumers, employees, investors, communities, and others.
The term "corporate social responsibility" became popular in the 1960s and has
remained a term used indiscriminately by many to cover legal and moral
responsibility more narrowly construed.

Proponents argue that corporations increase long term profits by operating with a
CSR perspective, while critics argue that CSR distracts from business' economic
role. A 2000 study compared existing econometric studies of the relationship

between social and financial performance, concluding that the contradictory results
of previous studies reporting positive, negative, and neutral financial impact, were
due to flawed empirical analysis and claimed when the study is properly specified,
CSR has a neutral impact on financial outcomes.
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR or
that CSR is merely window-dressing, or an attempt to pre-empt the role of
governments as a watchdog over powerful multinational corporations.
Political sociologists became interested in CSR in the context of theories of
globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as
a form of capitalist legitimacy and in particular point out that what began as a
social movement against uninhibited corporate power was transformed by
corporations into a 'business model' and a 'risk management' device, often with
questionable results.
CSR is titled to aid an organization's mission as well as a guide to what the
company stands for to its consumers. Business ethics is the part of applied ethics
that examines ethical principles and moral or ethical problems that can arise in a
business environment. ISO 26000 is the recognized international standard for CSR.
Public sector organizations (the United Nations for example) adhere to the triple
bottom line (TBL). It is widely accepted that CSR adheres to similar principles, but
with no formal act of legislation.

DEFINITIONS

Corporate Social Responsibility is the continuing commitment by business

to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of
the local community and society at large.
Operating a business in a manner that meets or exceeds the ethical, legal,
commercial and public expectations that society has of business.

CSR POLICY AS PER COMPANIES ACT 2013

CORE ELEMENTS
The CSR Policy should normally cover following core elements:

1. Care for all Stakeholders: The companies should respect the interests of, and
be responsive towards all stakeholders, including shareholders, employees,
customers, suppliers, project affected people, society at large etc. and create value
for all of them. They should develop mechanism to actively engage with all
stakeholders, inform them of inherent risks and mitigate them where they occur.
2. Ethical functioning: Their governance systems should be underpinned by
Ethics, Transparency and Accountability. They should not engage in business
practices that are abusive, unfair, corrupt or anti-competitive.
3. Respect for Workers' Rights and Welfare: Companies should provide a
workplace environment that is safe, hygienic and humane and which upholds the
dignity of employees. They should provide all employees with access to training
and development of necessary skills for career advancement, on an equal and nondiscriminatory basis. They should uphold the freedom of association and the
effective recognition of the right to collective bargaining of labour, have an
effective grievance redressal system, should not employ child or forced labour and
provide and maintain equality of opportunities without any discrimination on any
grounds in recruitment and during employment.
4. Respect for Human Rights: Companies should respect human rights for all and
avoid complicity with human rights abuses by them or by third party.

5. Respect for Environment: Companies should take measures to check and

prevent pollution; recycle, manage and reduce waste, should manage natural

resources in a sustainable manner and ensure optimal use of resources like land and
water, should proactively respond to the challenges of climate change by adopting
cleaner production methods, promoting efficient use of energy and environment
friendly technologies.
6. Activities for Social and Inclusive Development: Depending upon their core
competency and business interest, companies should undertake activities for
economic and social development of communities and geographical areas,
particularly in the vicinity of their operations. These could include: education, skill
building for livelihood of people, health, cultural and social welfare etc.
particularly targeting at disadvantaged sections of society.

IMPLEMENTATION GUIDANCE

The CSR policy of the business entity should provide for an implementation
strategy which should include identification of projects/activities, setting
measurable physical targets with timeframe, organizational mechanism and
responsibilities, time schedules and monitoring. Companies may partner
with local authorities, business associations and civil society/nongovernment organizations. They may influence the supply chain for CSR
initiative and motivate employees for voluntary effort for social
development. They may evolve a system of need assessment and impact
assessment while undertaking CSR activities in a particular area.
Independent

evaluation

may

also

be

undertaken

for

selected

projects/activities from time to time.

Companies should allocate specific amount in their budgets for CSR
activities. This amount may be related to profits after tax, cost of planned
CSR activities or any other suitable parameter.
To share experiences and network with other organizations the company
should engage with well established and recognized programmes/platforms
which encourage responsible business practices and CSR activities. This
would help companies to improve on their CSR strategies and effectively
project the image of being socially responsible.
The companies should disseminate information on CSR policy, activities and
progress in a structured manner to all their stakeholders and the public at
large through their website, annual reports, and other communication media.

ISSUES & CHALLENGES

Many companies think that corporate social responsibility is a peripheral issue for
their business and customer satisfaction more important for them. They imagine that
customer satisfaction is now only about price and service, but they fail to point out on important
changes that are taking place worldwide that could blow the business out of the water. The
change is named as social responsibility which is an opportunity for the business.
Some of the drivers pushing business towards CSR include:
The Shrinking Role of Government: In the past, governments have relied on
legislation and regulation to deliver social and environmental objectives in
the business sector. Shrinking government resources, coupled with a distrust of
regulations, has led to the exploration of voluntary and non-regulatory initiatives
instead.
Demands for Greater Disclosure: There is a growing demand for corporate
disclosure from stakeholders, including customers, suppliers, employees,
communities, investors, and activist organizations.
Increased Customer Interest: There is evidence that the ethical conduct of
companies exerts a growing influence on the purchasing decisions of customers. In a
recent survey by Environics International, more than one in five consumers reported
having either rewarded or punished companies based on their perceived social
performance.
Growing Investor Pressure: Investors are changing the way they assess
companies' performance, and are making decisions based on criteria that include
ethical concerns. The Social Investment Forum reports that in the US in 1999, there
was more than$2 trillion worth of assets invested in portfolios that used screens linked
to the environment and social responsibility. A separate survey by Environics
International revealed that more than a quarter of share-owning Americans took into
account ethical considerations when buying and selling stocks. (More on socially

10

responsible investment can be found in the 'Banking and investment' section of the
site.)
Competitive Labour Markets: Employees are increasingly looking beyond
paychecks and benefits, and seeking out employers whose philosophies
and operating practices match their own principles. In order to hire and
retain skilled employees, companies are being forced to improve working

conditions.
Supplier Relations: As stakeholders are becoming increasingly interested in
business affairs, many companies are taking steps to ensure that their partners conduct
themselves in a socially responsible manner. Some are introducing codes of conduct
for their suppliers, to ensure that other companies' policies or practices do not tarnish
their reputation. Dr Ratnam said the concept of CSR had different meanings
depending on the stakeholder and that depending on the specific situation of
the enterprises expectations can also vary. A CSR project can begin in response to a
crisis or adverse publicity that a company may suffer. The motive for launching CSR
can vary between philanthropy or notions of corporate citizenship. In India,
over time, the expectations of the public has grown enormously with demands
focusing on poverty alleviation, tackling unemployment, fighting inequality or forcing

companies to take affirmative action.

Lack of Community Participation in CSR Activities: There is a lack of
interest of the localcommunity in participating and contributing to CSR
activities of companies. This is largely attributableto the fact that there exists
little or no knowledge about CSR within the local communities as no seriousefforts
have been made to spread awareness about CSR and instil confidence in
the local communitiesabout such initiatives. The situation is further
aggravated by a lack of communication between thecompany and the
community at the grassroots.

11

Need to Build Local Capacities: There is a need for capacity building of the
local non-governmentalorganizations as there is serious dearth of trained and
efficient organizations that can effectivelycontribute to the ongoing CSR
activities initiated by companies. This seriously compromises scaling upof CSR
initiatives and subsequently limits the scope of such activities.
Issues of Transparency: Lack of transparency is one of the key issues brought
forth by the survey.There is an expression by the companies that there exists lack of
transparency on the part of the localimplementing agencies as they do not make
adequate efforts to disclose information on their programs,audit issues,
impact assessment and utilization of funds. This reported lack of
transparency negativelyimpacts the process of trust building between companies
and local communities, which is a key to thesuccess of any CSR initiative at the local
level.
Non-availability of Well Organized Non-governmental Organizations:
It is also reported that thereis non-availability of well organized nongovernmental
organizations in remote and rural areas that canassess and identify real needs of the
community and work along with companies to ensure successfulimplementation of
CSR activities. This also builds the case for investing in local communities by wayof
building their capacities to undertake development projects at local levels.

COST-BENEFIT ANALYSIS

12

In competitive markets cost-benefit analysis of CSR initiatives, can be examined

using a Resource-Based View (RBV). According to Barney (1990) "formulation of
the RBV, sustainable competitive advantage requires that resources be valuable
(V), rare (R), inimitable (I) and non-substitutable (S)." A firm introducing a CSRbased strategy might only sustain high returns on their investment if their CSRbased strategy could not be copied (I). However, should competitors imitate such a
strategy, that might increase overall social benefits. Firms that choose CSR for
strategic financial gain are also acting responsibly.
RBV presumes that firms are bundles of heterogeneous resources and capabilities
that are imperfectly mobile across firms. This imperfect mobility can produce
competitive advantages for firms that acquire immobile resources. McWilliams and
Siegel (2001) examined CSR activities and attributes as a differentiation strategy.
They concluded that managers can determine the appropriate level of investment in
CSR by conducting cost benefit analysis in the same way that they analyze other
investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only
sustain an abnormal return if it could prevent competitors from imitating its
strategy.

TRIPLE BOTTOM LINE

13

"People, planet and profit", also known as the triple bottom line form one way to
evaluate CSR. "People" refers to fair labour practices, the community and region
where the business operates. "Planet" refers to sustainable environmental
practices. Profit is the economic value created by the organization after deducting
the cost of all inputs, including the cost of the capital (unlike accounting
definitions of profit).
This measure was claimed to help some companies be more conscious of their
social and moral responsibilities. However, critics claim that it is selective and
substitutes a company's perspective for that of the community. Another criticism is
about the absence of a standard auditing procedure.
BRAND DIFFERENTIATION
CSR can help build customer loyalty based on distinctive ethical values. Some
companies use their commitment to CSR as their primary positioning tool,
e.g., The Co-operative Group, The Body Shop and American Apparel.
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 as another form of advertising.

14

CSR IN INDIA
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. Provision of improved medical and sanitation facilities, building schools
and houses, and empowering the villagers and in process making them more selfreliant by providing vocational training and a knowledge of business operations are

15

the facilities that these corporations focus on. Many of the companies are helping
other peoples by providing them good standard of living.
Also, corporates increasingly join hands with non-governmental organizations
(NGOs) and use their expertise in devising programs which address wider social
problems.
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.

16

CSR STRATEGIES FOCUSING ON PROTECTION RATHER THAN

COMPETITIVE ADVANTAGE
A CSR strategy that is focused on avoiding regulatory liability and maintaining a license to
operate in the current business will neither lead to current competitive advantage nor
an imagination of future business models. Managing regulations, risk and
legitimacy (license to operate) is also reflected in the main capabilities emphasized
by the respondents: ethical behavior, social accountability and stakeholder engagement.In
order to leverage its CSR/sustainability strategy for competitive advantage, an
organization needs the advanced capabilities of organizational learning and
sustainable innovation. These two capabilities are

building sustainable business

models that will lead to future sustained competitive advantage.

An Article On Corporate Social Responsibility In India:
Putting Social-Economic Development on a Fast Track by Ramya Sathish mentioned that
many CSR initiatives are executed by corporate in partnership with Non-governmental
organizations (NGOs) who are well versed in working with the local communities
and are experts in tackling specific social problems. For example, SAP India in partnership
with Hope Foundation, an NGO that works for the betterment of the poor and the needy
throughout India,has been working on short and long-term rebuilding
initiatives for the tsunami victims. Together, they also started The SAP Labs Center of
HOPE in Bangalore, a home for street children, where they provide food, clothing, shelter,
medical care and education. CSR has come a long way in India. From responsive activities to
sustainable initiatives, corporate have clearly exhibited their ability to make a significant
difference in the society and improve the overall quality of life. In the current social
situation in India, it is difficult for one single entity to bring about change, as the scale is
enormous. Corporate have the expertise, strategic thinking, manpower and money to facilitate

17

extensive social change. Effective partnerships between corporate, NGOs and the government
will place Indias social development on a faster track.
An Article On Trust And Corporate Social Responsibility:
Lessons from India, authors mentioned Spirituality and Corporate Social Responsibility have
had a deep-rooted connection in India. A phenomenon that has preceded the coining of the term
CSR, the link between the karma as espoused by sacred Indian texts and initiatives
anchoring corporate as responsible citizens has been amply evident in India since the early
days.
This is widely divergent from the perspective of corporate social responsibility in
Western economies as reflected in the observation by Arthur Page, vice president of public
relations at AT&T for around 20 years and former advisor to the US President: all business
in a democratic country begins with public permission and exists by public approval .
Viewed from this perspective, public relations professionals are the custodians of trust for the
corporate world. While the global spotlight today focuses on debates on corporate trust, India
can proudly flaunt a head start in this arena. Yet, before we present Indias case, lets
briefly scan some recent happenings, particularly in the US, that led to an erosion of
trust in Corporate Inc. worldwide.
Education is the most preferred area of CSR for Indian companies, with 85% of the companies
surveyed engaged in it, followed by health (67.5 per cent) and rural development and
livelihoods (57.5 %).

18

CORPORATE SOCIAL RESPONSIBILITY IN AMUL

INTRODUCTION OF AMUL

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
The word AMUL is derived from the Sanskrit word Amulya, meaning rare,
valuable. The co-operative was initially referred to as Anand Milk Federation
Union Limited hence the name AMUL.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly
owned by 3 million milk producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's
largest producer of milk and milk products. In the process Amul became the largest
food brand in India and has ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years
(19732006), is credited with the success of Amul.

19

HISTORY
Amul the co-operative registered on 1 December 1946 as a response to the
exploitation of marginal milk producers by traders or agents of the only existing
dairy, the Polson dairy, in the small city distances to deliver milk, which often went
sour in summer, to Polson. The prices of milk were arbitrarily determined.
Moreover, the government had given monopoly rights to Polson to collect milk
from mikka and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar
Vallabhbhai Patel under the leadership of local farmer leader Tribhuvandas K.
Patel. He advised them to form a cooperative and supply milk directly to the
Bombay Milk Scheme instead of Polson (who did the same but gave them low
prices). He sent Morarji Desai to organise the farmers. In 1946, the milk farmers of
the area went on a strike which led to the setting up of the cooperative to collect
and process milk. Milk collection was decentralized, as most producers were
marginal farmers who could deliver, at most, 12 litres of milk per day.
Cooperatives were formed for each village, too.
The cooperative was further developed and managed by Dr.Verghese Kurien with
H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk
(for the first time in the world) and a little later, with Kurien's help, making it on a
commercial scale, led to the first modern dairy of the cooperative at Anand, which
would compete against established players in the market. Kurien's brother-in-law
K.M. Philip sensitized Kurien to the needs of attending to the finer points of
marketing, including the creation and popularization of a brand. This led to the

20

search for an attractive brand name. In a brainstorming session, a chemist who

worked in the dairy laboratory suggested Amul, which came from the Sanskrit
word "amulya", which means "priceless" and "denoted and symbolised the pride of
swadeshi production."
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat. Within a short span, five unions in
other districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set
up.To combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing body of these
district cooperatives, was set up in 1973. The Kaira Union, which had the brand
name Amul with it since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Adding to the success, Dr. Madan Mohan Kashyap (faculty Agricultural and
Engineering Department, Punjab Agricultural University Ludhiana), Dr. Bondurant
(visiting faculty) and Dr Feryll (former student of Dr Verghese Kurien), visited the
Amul factory in Gujarat as a research team headed by Dr. Bheemsen. Shivdayal
Pathak (ex-director of the Sardar Patel Renewable Energy Research Institute) in
the 1960s. A milk pasteurization system at the Research Centre of Punjab
Agricultural University (PAU) Ludhiana was then formed under the guidance of
Kashyap.

21

CORPORATE SOCIAL RESPONSIBILITY HELD BY AMUL

Corporate social responsibility (CSR) has been defined as the commitment of business to
contribute to sustainable economic development working with employees, their
families, the local community, and society at large to improve their quality of life,
in ways that are both good for business and good for development.
To meet with the CSR it is expected that a business in its entire procurementproduction-processing-marketing chain should focus on human development
involving the producer, the worker, the supplier, the consumer, the civil society,
and the environment. Indeed, a very tough task. Most businesses would certainly
flounder in not being able to achieve at least one or many of those expectations.
But AMUL has shown the way.
CSR-SENSITIVE ORGANISATIONAL STRUCTURE
AMUL is a three tier co-operative organisation. The first tier is the co-operative
society at the village, of which; milk producers are voluntary members, managing
the co-operative through a democratically elected 9-member managing committee,
and doing business by purchasing milk from members and selling it to the district
level co-operative. There are more than 11,000 co-operatives in villages of Gujarat.
The second tier is the district co-operative that processes milk into milk products,
markets locally and sells surplus to the state co-operative for national and
international marketing. There are 12 district co-operatives each being managed by
a 15-member board elected by the college comprising the nominated
representatives or chairmen of the village co-operatives. Third tier is the state level
co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF)

22

responsible for national and international marketing of milk and milk products
produced and sold to it. The GCMMF is managed by the boar democratically
elected by and from amongst the chairmen of the district co-operatives. The entire
three-tier structure with the GCMMF at its apex, is a unique institution because it
encompasses the entire chain from production of raw material to reaching the
consumer with the end product. Every function involves human intervention: 23.60
lakh primary milk producers; 35,000 rural workmen in more than 11,400 village
societies; 12,000 workers in 15 dairy plants; 750 marketing professionals; 10,500
salesmen in distribution network and 600,000 salesmen in retail network.
Accumulation of human capital is sine qua non for the development and growth of
any enterprise or economy. The GCMMF is sensitive towards CSR. It believes that
technology and capital are replicable inputs but not the human capital. Since men
are the basis for achieving the CSR, the GCMMF lays emphasis on their
development

into

competent,

communicators and performers.

courteous,

credible,

reliable,

responsive

23

CSR-SENSITIVE BUSINESS PHILOSOPHY

The first step towards discharging the CSR is the business philosophy of the
GCMMF. It is two-fold: one, to serve the interests of milk producers and second, to
provide quality products to consumers as value for money. Evolution of an
organisational system has ensured that the corporate social responsibility towards
the primary milk producers, village and the ecological balance is fulfilled. The
milk producers are paid for their milk in accordance with market forces and
realisation of value for their produce. Invariably the price paid to the memberproducers in Gujarat is higher by 15 per cent than the national average.
CSR-ORIENTATION TO DISTRIBUTORS & RETAILERS
The GCMMF has identified the distributors and retailers are its important link in
its vendor supply chain. Through surveys the GCMMF found that 90% of the
distributors do not get any opportunity of exposure to latest management practices.
The GCMMF realised that it was a corporate social responsibility to strengthen the
core business processes of its distributors so as to keep them in mainstream
business and compete with those with formal training in management. The
GCMMF has developed and trained all its distributors through Value-MissionStrategy Workshops, competence building, Amul Yatra, Amul Quality Circle
meetings, computerisation, and electronic commerce activities. Competency
Building Module of the GCMMF is meant to infuse professional selling skills by
making the distributors and their salesmen aware of latest sales management tools

24

and techniques; enhance their knowledge of products; positioning and

segmentation strategies for various products. Under Amul Yatra the distributors
and their salesmen are taken on a visit to Anand. During this visit they are shown
dairy plants, their upkeep, international standards of hygiene and quality; the
practices adopted for clean milk production, and above all the cooperative
philosophy. Through one to one talk with the farmers, the distributors and salesmen
realise AMUL is a large business of small farmers. The visit leaves an everlasting
impression on their minds that by selling AMUL products, they are discharging a
social responsibility towards a large number of poor farmers whose livelihood
depends upon their skill and integrity. They feel proud that they are participants in
development of rural society and thus in nation building.

25

EARNINGS OF GCMMF
Nurturing its primary members - the milk producers - is the first mission of the
GCMMF. Discharge of this responsibility is reflected in the manner in which the
GCMMF conducts its business and shares its earnings. The milk from the village
co-operatives is purchased at an interim price. So as to maximise the earnings of
the milk producers the GCMMF changes the product profile during the fiscal and
directs its sales and marketing activities towards those products that would bring in
maximum returns. True! Every business organisation follows the same principle.
But the GCMMF follows it with the central interest of the producers. During the
fiscal, as the GCMMF finds that from its earnings it is possible to pay more to the
producers for milk, the final price is declared higher than the interim price being
paid. Before the GCMMF closes its financial accounts the co-operatives are paid
price difference, the amount between the interim price and the final price. Thus profit of
the GCMMF is very low. The net profit (PADT) of the GCMMF during 2003-04
was Rs 7.31 crore against a turnover of Rs 2,947 crore, a meagre 0.25%. Further
out of the net profit of Rs 7.31 crore, Rs 4 crore was given as share dividend to the
co-operatives. To fulfill its corporate social responsibility towards its milk
producers and co-operatives the GCMMF works on razor thin profits and retention
of funds.

26

CSR-ORIENTED TO STAFF
The GCMMF hires and trains people to take advantage over its competitors. It has
developed in-house modules for training and competence building to improve and
upgrade of their knowledge; communication skills to understand the customer, be
responsive to customer requirements, and communicate clearly for trouble
shooting of problems. They are expected to be courteous, friendly, respectful, and
considerate to the customer. To improve the credibility and trustworthiness of the
managers it is important they perform consistently and accurately every time and at
all times. The structure of salary and perquisites is altogether different. The first
and foremost the staff must get satisfaction from the job they. They are recognised
for their contribution (Climate Survey) CSR-AMUL WAY.
BLOOD DONATION
Amul in association with the Indian red cross society aim to inspire, encourage and
initiate humanitarian services to minimize, alleviate and prevent human suffering
at all times to contribute for humanity to peace. Towards this objective Amul
initiated blood donation campaign since 1987. Blood donation camps are organized
regularly in rural areas through village dairy co-operative societies. Similarly
camps are organized in Amul dairy campus wherein employees and their family
members join in donating blood. In addition, Amul organizes donation of blood on
emergency. Amul has made a trend in donating blood to the society.

27

AMUL RELIEF TRUST

A devastating earthquake (Richter scale 7.9) hit Gujarat on 26th January 2001.
The epicenter of the quake was located in Kutch district. It caused death of
thousands of people, tens of thousands were injured, hundreds of thousands were
rendered homeless and damage of billions of Rupees was done. GCMMF formed a
specific organization named "Amul Relief Trust" (ART) under the Chairmanship of
Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction of the
school buildings damaged in the 2001 earthquake in the Kutch area. The Trust
reconstructed 6 schools damaged by the above earthquake at a cost of Rs. 41.1
millions in Kutch area. Four of these schools started re-functioning from the last
two academic sessions and the other two schools from the current session.
A school reconstructed by Amul Relief Trust in the earthquake affected
Ratadia Village in Mundra Taluka of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected
Nana Asalia Village in Mundra Taluka of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected
Devpar Village in Mandvi Taluka of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Toda
Village in Mundra Taluka of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Moti
Bhadai Village in Mandvi Taluka of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected
Kathada Village in Mandvi Taluka of Gujarat.

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TREE PLANTATION
Green Gujarat Tree Plantation Campaign By Milk Producers Of Dairy Cooperatives
Amul Co-ops plant more than 311.98 lakhs trees.
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL
have been celebrating the nation's Independence Day in a novel manner by
planting lakhs of saplings across Gujarat and have taken up an ambitious plan to
save the environment by planting trees, making India green and thereby reducing
the effects of global warming. The milk producers of Gujarat Dairy Cooperatives
are conducting mass tree plantation drive every year on Independence Day for last
five years. In last five years (2007 to 2011) the milk producers have planted around
311.98 lakhs trees). The most striking feature of these entire programmes was that
it has been initiated by milk producer members of the dairy cooperatives. The
unique fact about the programme was that the milk producer members took up the
oath to protect tree saplings till it survives and grows into tree. Over the years, due
to intensive agriculture and dairying various natural resources are getting
consumed at faster pace in Gujarat state of India. The state level apex body of dairy
farmers in Gujarat gave a serious thought in this direction and discovered a novel
idea for giving back to nature. The idea was "one member one tree" plantation on
our 60th Independence day - 15th August 2007.To put this idea in to the practice a
design team constituting of representatives of member unions were formed. The
team accepted the idea by heart and immediately decided to spread it among
farmer members of village dairy cooperative societies. Then the idea was
communicated to farmer members and they all welcomed it and enthusiastically
agreed to implement the idea. For smooth implementation of the idea, the design

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team chalked out the road map for various activities. Execution teams were formed
at district union level to give final shape and put the plan in action. Village level
coordinators were identified and they were trained to streamline activity of tree
plantation. Various awareness materials were prepared. Through various
communication media farmer members were made aware of benefits of tree
plantation and tree plantation activity schedule.
The entire plantation activity was coordinated at all the three tiers of Anand pattern
at village, district and state level dairy cooperatives. On 15th August, 2007, after
the flag hoisting ceremony, each member took an oath to plant saplings and ensure
that they grew in to trees. Then individually they planted sapling on their own at
their identified locations like their farm, near their home, on Farm bunds, etc. They
have taken necessary care to ensure that this sapling survives and they also
reported regarding the survival to village level coordinator and district milk unions
after five months. In this way, 18.9 lakh trees were planted on 15th August 2007.
This was just the beginning. Henceforth, the Village Dairy Cooperative Societies
of Gujarat as a mark of respect for our nation decided to conduct such event on
every Independence Day and accepted 15th August (Independence Day) as a
"Green Revolution Day by Afforestation to Protect Mother Earth from Pollution,
Climate change and Global Warming".

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TRIBHUVANDAS FOUNDATION
Tribhuvandas Foundation is an Integrated Rural Health & Development
Programme of Amul. Inspired by the great success of round the clock health care
services to the livestock of dairy farmers of Kaira, Shri Tribhuvandas Patel, the
Founder Chairman of Amul felt the need of such a service to the rural populace too
as he could learn and experience the afflictions brought to them by absence of
medical services in rural villages of Kaira. He donated the prize money of his
Ramon Magsaysay Award and the fund he received from kaira farmers on his
retirement, for his life time service to them, to set up this Foundation. Dr V. Kurien
also played an active role in this set up. It was registered as a Charitable Trust
under the Public Trust Act 1950, on July 1975.
The Foundation derives its uniqueness from the fact that it is a need-based
programme for villagers and is run by the villagers themselves. It fulfills the basic
health care needs of the villages. Apart from providing primary treatment for
various common ailments, the Foundation is also actively involved in promoting
preventive health practices. It is headquartered at Anand with sub-centers spread
over the district Anand and Kheda. The Foundation has a dedicated Team of
Medical Officers, Nurses, Administrative staff, Dais (Traditional Birth Attendants)
and Village Health Workers to provide the following services:
Treatment of common ailments; Immunization through vaccination BCG, Triple
Vaccine, Polio, Measles, Tetanus, Anti rabies at subsidised rate; Treatment of
tuberculosis and anaemia ; Antenatal,postnatal care, neonatal and infant care ;
Nutritional rehabilitation centers for undernourished children and vulnerable

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mothers; Identification of suspected cases of cancer and referrals ; Education and

counseling on reversible and permanent methods of family planning, health
education sessions and referral of critical cases to secondary and tertiary care
centers; Building partnership with government for family planning programmes in
rural areas; Distribution of contraceptive tablets and condoms through regular
camps; Laparoscopic TL and minilap operations, insertion of Copper-T (IUD), and
Tubectomy; Cancer awareness programme, detection camp and treatment at Shri
Krishna Hospital, Karamsad; Balwadis (Day Care Centres) for pre-school play and
learning activities for children of three to five years.
It also provides continuous training and retraining to Village Health Workers who
are chosen from villages with the help of the Dairy Co-operative Societies. This
enables the Village Health Workers to carry out health education and primary
health care from door-to-door, in groups and at the Dairy Co-operative Societies
Centres with confidence. The training focuses on primary health care, waterborne
disease, know your body, pregnancy and the delivery period, new born care and
care of the weak child, growth monitoring, breast feeding, common disease of
childhood, malaria, tuberculosis. Training is also imparted on other topics as the
need arises.
The Foundation has pioneered in large scale implementation of the concept of
Safe Delivery Kit in India ensuring a hygienic and safe delivery of pregnant
mother. The Foundation in partnership with Government of Gujarat, has made
Safe Delivery Kits accessible to inhabitants of remote rural interiors who had
been unable to access such services from state or private agencies. The Safe
Delivery Kit is supplied to various health centres of the government of Gujarat The
success of the initiative has been manifested by drastic fall in neonatal tetanus, and
maternal, neonatal, and infant mortality.

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In association with Sankara Eye Hospital, the Foundation has helped in performing
2000 surgeries free of cost for the vision impaired patients. The efforts on to
organise camps for detection and improvement of vision of the rural people. The
Foundation has been identified by Government of Gujarat providing training inputs
to members of Village Health and Sanitation Committees of Village Panchayats of
all the villages of Umreth, Anklav and Anand talukas of Anand District and
Balasinor and Virpur talukas of Kheda District for a period of one year from 20092010.
Tribhuvandas Foundation has become one of Asias largest community healthcare
service providers covering more than 700 villages. The Foundation still strives to
extend its services to as much villages as possible.

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RURAL SANITATION CAMPS

Amul Dairy has launched a novel scheme for total rural sanitation and set a target
for itself whereby not a single milk producer will attend to natures call in the
open. The Dairy with the support of District Rural Development Agency (DRDA)
will provide interest free loans to its milk producers in Anand and Kheda districts
to set up pucca toilet blocks, which will not only help women milk producers
avoid embarrassment but will also ensure hygiene.
The mission is not just about bringing a cultural change by imbibing good habits
among milk producers but also targeted towards encouraging hygienic practices in
the milk supply chain.
Amul has prepared a model low-cost toilet block that costs Rs.11,500 per unit.
While DRDA will support this initiative through subsidy ranging between Rs.4500
and Rs.4600 for BPL/APL families, Amul will provide its members an interest free
loan worth Rs.4300 returnable in four years time. A member can pay up this loan
by getting Rs.100 per month deducted from his/her bill.

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SWARNJAYANTI GRAM SWAROZGAR YOJANA (SGSY)

Amul in its continued endeavor to improve the socio-economic conditions of rural
people extended its expertise in implementation of the Swarnjayanti Gram
Swarozgar Yojana (SGSY) of The Government of India (Ministry of Rural
Development) on their Special Project on Improving Socio-economic Conditions
of BPL Families of Kheda District through Animal Husbandry and Dairying
DAIRYING AS A TOOL FOR POVERTY ALLEVIATION.
The Swarnjayanti Gram Swarozagar Yojana is a holistic self-employment
programme for the rural poor of India. The basic objective of the programme is to
bring below poverty line families above poverty line by providing them in
generating assets to become self-employed. The purchase of assets is facilitated
through a mix of government subsidy and bank credit.
It is a holistic self-employment programme as it supports all facets of selfemployment like organizing them into Self Help Groups, helping them in selection
of key activities, building their capacities, providing them appropriate training and
exposure, building infrastructure, introducing them to new technology, and
providing them marketing support. The programme is implemented through
District Rural Development Agencies (DRDAs) with active involvement of
Panchayati Raj Institutions, banks, line departments of the Government and
development institutions.
Amul has covered under this programme more than 8,755 beneficiaries to whom
milch animals were distributed in the District of Kheda and stood as guarantor for
the bank loans. These beneficiaries were then given membership of dairy cooperatives in order to bring these poor households into mainstream economy by
transforming dairying into active income-generation enterprises. As part of this

35

programme 12,647 women and men were trained in dairy husbandry in addition to
construction of number of cattle sheds, development of green fodder plots,
distribution of chaff cutters and stainless steel cans.
To provide ground water availability, 56 bore wells were dug. More than 50 mobile
Artificial Insemination units are pressed in operation for these farmers to deliver
services at the doorstep. A Mobile Diagnostic Laboratory has also been put in
operation to provide effective health services along with round the clock service of
veterinary doctors. This initiative has considerably helped in improving the socioeconomic conditions and quality of life of a large number of BPL families.

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CONCLUSION
Corporate Social Responsibility (CSR) is about how companies manage the
business processes to produce an overall positive impact on society. Thus
companies 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 is seen to extend beyond
the statutory obligation to comply with legislation as organizations are 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. If a company chooses to
follow the way of CSR, it will integrate ethical concerns in its activities and in its
interaction with all the stakeholders. This implies that the corporate units function
in such a way that their CSR activities in all likelihood actually reach out to the
beneficiaries the society in general. It would be useless to even try to initiate
action where the response generated would be negative. This is why prior to
corporate social responsibility lies the work of preparing the society for the same,
which should be the joint efforts of corporates, non-governmental organisations
and definitely the monitoring authority, that is the government. Such concerted
efforts can expectedly produce the desired results. The groundwork is essential,
since an unresponsive, obstructive unwilling, suspicious recipient, in this case the
society, will actually deter all efforts directed towards development and cause
unnecessary delay and confusion. Providing employment and spreading literacy
will actually see the commencement of CSR.

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BIBLIOGRAPHY

http://en.wikipedia.org/wiki/Corporate_social_responsibility
https://www.google.co.in/search?q=csr+companies+act+2013
http://en.wikipedia.org/wiki/Amul
http://www.amuldairy.com/index.php/csr-initiatives
www.amuldairy.com