INTERNATIONAL CONFERENCE ON INNOVATIVE TRENDS IN BUSINESS

PRACTICES FOR SUSTAINABLE DEVELOPMENT

CSR and Sustainable Development Models

Introduction
Business sustainability is all about serving the needs of ones customers, clients, and
stakeholders across the globe in a socially responsible and, thus, concomitantly an economic
efficacious manner. Business is expected to achieve its core economic value in conformity with
the values of morality and legality. That is, business must act in a profitable, legal, and moral
manner. Today, moreover, above and beyond the responsibility to act legally and morally in the
pursuit of profit is the notion of social responsibility, which typically is called corporate social
responsibility (CSR).
A widely cited definition of CSR in the business and social contest has been given by the
European Union (EU). It describes CSR as the concept that an enterprise is accountable for its
impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly
and responsibly, and contribute to economic development while improving the quality of life of
the work force and their families as well as of the local community and society at large1
In other words, CSR refers to ensuring the success of the business by inclusion of social and
environmental considerations into a companys operations. It means satisfying your
shareholders and customers demands while also managing the expectation of other stakeholders
such as employees, suppliers and the community at large. It also means contributing positively to
society and managing your organizations environmental impact. Hence, CSR sustainable
development, implying the way a company balances its economic, environmental and social
objectives while addressing stakeholder expectations and enhancing shareholder value. CSR not
only includes the activities that a company undertakes development, but also includes the
methods that a responsible investments, and transparency to various stakeholders among others.
Realizing the importance and they have incorporated socially responsible business practices. The
basic objective of CSR is to maximize the companys overall impact on the society and
stakeholders while considering environment and overall sustainability.
Literature Review
The concept of CSR originated in the 1950s in the USA but it became prevalent in early 1970s .
During the 1980s to 2000, corporations recognized and started accepting a responsibility
towards society. Corporate social responsibility (CSR) focuses on the wealth creation for the
optimal benefit of all stakeholders including shareholders, employees, customers, environment

and society. The term stakeholder means all those on whom an organization's performance and
activities have some impact either directly or indirectly. This term was used to describe corporate
owners beyond shareholders as a result of a book titled Strategic management: a stakeholder
approach by R. Edward Freeman in the year 1984.
Evolution in India
India has a long tradition of paternalistic philanthropy. The process, though acclaimed recently,
has been followed since ancient times albeit informally. Philosophers such as Kautilya from
India and pre-Christian era philosophers in the West preached and promoted ethical principles
while doing business. The concept of helping the poor and disadvantaged was cited in several
ancient literatures.
In the pre-industrialized period philanthropy, religion and charity were the key drivers of CSR.
The industrial families of the 19th century had a strong inclination toward charity and other
social considerations. However, the donations, either monetary or otherwise, were sporadic
activities of charity or philanthropy that were taken out of personal savings, which neither
belonged to the shareholders nor did it constitute an integral part of business. During this period,
the industrial families also established temples, schools, higher education institutions and other
infrastructure of public use. The term CSR itself came into common use in the early 1970s. The
last decade of the twentieth century witnessed a shift in focus from charity and traditional
philanthropy toward more direct engagement of business in mainstream development and
concern for disadvantaged groups in the society. In India, there is a growing realization that
business cannot succeed in isolation and social progress is necessary for sustainable growth. An
ideal CSR practice has both ethical and philosophical dimensions, particularly in India where
there exists a wide gap between sections of people in terms of income and standards as well
socio-economic status (Bajpai, 2001).Currently, there is an increased focus and a changing
policy environment to enable sustainable practices and increased participation in the socially
inclusive practices.
Purpose
To understand the concept and scope of corporate social responsibility and getting an insight in
CSR practices in the light of the case study of the TVS Group.
Objectives of the study
To understand the concept of CSR
To find out the scope of CSR
To know how the TVS group has fulfilled its responsibility towards all stakeholders; what
specific activities, programs and strategies it has set, devised and implemented for the
same.

Research Methodology Exhaustive literature survey regarding the topic and related concepts
has been done. Secondary data inclusive of quantitative and qualitative data as well collected
from various sources including books, research papers, newspapers, magazines, and websites is
used for the purpose of study.
Social Responsibility Models
There are some models which describe the evolution and scope of social orientation of
companies. Notable ones include Carrolls model, 8 Halals model 9 and Ackermans model 10.
(a) Carrolls Model
Archie B. Carroll has defined CSR as the complete range of duties business has towards the
society. He has proposed a 3-d conceptual model of corporate performance. According to Carroll,
a firm has the following four categories of obligations of corporate performance.D

HIERARCHY OF RESPONSIBILITIES OF BUSINESS

Economic: The firm being an economic entity, its primary responsibility is to satisfy economic
needs of the society and generation of surplus for rewarding the investors and further expansion
and diversification.
Legal: The laws of the land and international laws of trade and commerce has to be followed
and complied with.
Ethical: Ethical responsibilities are norms which the society expects the business to observe like
not resorting to hoarding and other malpractices.
Discretionary: Discretionary responsibilities refer to the voluntary contribution of the business
to the social cause like involvement in community development or other social projects
pertaining to health and awareness of the masses.

b) Ackermans model This model defines CSR in three different phases

First phase - Top management recognizes social problem
Second phase The company appoints staff specialists to look into the issue and find measures
to tackle it
Third phase - Implementation of the strategy derived by the specialists
Limitations While preparing this research paper Legal aspects like corporate governance , labor
and employee welfare related laws have not been undertaken.

THE LEGACY OF SERVICE

The challenge is to make development sustainable through the active participation of
communities the true agents of change Mr. Venu Srinivasan .Management Trustee.
TVS, a leader in public transport in south India,was founded by Shri T.V. Sundaram Iyengar. A
trailblazer and a philanthropist, Shri Sundaram Iyengar was inspired by Gandhis ideals of
service to society and the TVS Group was amongst the first to integrate corporate social
responsibility (CSR) into its business culture and philosophy.
This legacy of social service was carried forward by Shri T.S. Srinivasan, the youngest son o
Shri T.V. Sundaram Iyengar, who earned the love and affection of his employees for his
humane approach and unique empathy.
Starting out with the philanthropic model of charity and service, SST has now moved on
toa more in-depth model of trying to bring about sustainable change through motivating
communities to become agents of change them selves.
This is a process that demands more involvement from SST as well as the communities
which are the beneficiaries.
It involves a change of attitude, taking responsibility as well as development of social
leadership. The results though are more long lasting and impactful.
Businesses need to continuously invest in their relationship with society. Not only does it make
good business sense to have healthy and vibrant communities, but it is also part of our duty as
responsible citizens to give back to society and to help create models of sustainable
development. At TVS, we have remained committed to working closely with communities to
help empower them, both socially and economically. Srinivasan Services Trust (SST), the social
arm of the TVS Motor Company, has been working with national and state governments to help
alleviate poverty and bring about sustainable and scalable development in rural India. The
challenge has been to create models that lead to long lasting, sustainable change. This has
often meant, a transformation of attitude of the communities we work in, as without that, no
change would be able to sustain and therefore any intervention would always remain short term.

Our focus has been on driving and encouraging communities to become the owners of the
process of change. We work with communities in five states of India, across 2500 villages,
affecting the lives of over 1.60 million people.
We work closely with state and local governments to ensure that government schemes are
effectively implemented and last-mile-connectivity and delivery challenges are overcome. We
are pleased that our schemes and focus areas are in harmony with and aligned to the GOI vision
of a vibrant and self-reliant India. The Swach Bharat Abhiyan, launched by the Honourable
PrimeMinister, finds resonance in the work we have been committed to for years. Toilets,
sanitation andhygiene have remained prime focus areas for us and so far, with help and ersuasion
from SST,communities have constructed about 103,000 toilets in villages, 93 community toilets
and 778school toilets. Nutrition, Integrated Child Development Schemes and Infant & Maternal
Mortality remain key to our work.
Introduction of innovative techniques of cultivation, water management and new
technology in the areas of agriculture and livestock have ensured increased prosperity in the
villages that we work in. Gender equality and the empowerment of women remain at the center
ofour work. It gives us immense satisfaction to note that social equations are changing and
women are emerging as social and even political leaders in the rural landscape of India.
This year we have been approached by several corporate for assistance in their CSR
programmes. Many companies have adopted our system. We have received several requests to
assist them with village development. It is heartening to note the enthusiasm amongst the
business community to participate in meaningful CSR activities
SST does not treat the community as recipients of the development effort. In fact, they are
active partners in the development process. The community makes financial and physical
contributions and the people own the programmes. Ownership helps to make the change
sustainable. This paper briefly describes work in the following sections:
IS
ENDOWMENT
SOCIAL

INFRASTRUCTU
RE

HOLISTIC
DEVELOPMENET

ECONOMIC

EDUCATION

HEALTH

 Economic Development
Health
Education
Infrastructure
Environment
Social & Cultural Development
SST does not treat the community as recipients of the development effort. In fact, they are
active partners in the development process. The community makes financial and physical
contributions and the people own the programmes. Ownership helps to make the change
sustainable.

MEASURABLE, TRANSPARENT, DEVELOPMENT PROCESS

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SST NET WORK
Since its inception, 19 years ago,SST projects have spread fromtwo villages in Tamil Nadu to
2501villages across 5 states: Tamil Nadu, Karnataka, Maharashtra, AndhraPradesh and
Himachal Pradesh.

ECONOMIC DEVELOPMENT-Building Prosperity

SST's primary focus in the villages is the alleviation of poverty as this affects all aspects of
an individual's life: health, nutrition, education, living conditions and earning power. SST
helps to provide all sections of society with livelihood that can give them a sustainable
income to live with dignity. SST organises income generation projects run by women selfhelp
groups, focuses on an inclusive strategy of agricultural growth and livestock
improvement that provides income for farmers and empowers the youth through skill

development.

Key Achievements:
213,627 (61%) families have regular income of more than Rs. 15,000 per month.
105,097 are involved in various income generating activities and earn more than Rs.
3,000 per month.
Income generated by SHG members through micro enterprises: Rs. 408.63 crores per
annum.
123,944 farmers have enhanced their crop yields and income through improved
agricultural practices.
129,702 livestock owning families earn more than Rs. 3,000 per month through livestock.
35,979 are gainfully employed and earn more than Rs. 5,000 per month.
HEALTH-Health for All
Preventive and curative are two-fold approaches to healthcare. SST's experience is that
preventive healthcare results in long-term benefits at a low cost. Preventive healthcare is a
major focus area for SST. It attempts to reduce anemia, eliminate infant and maternal
mortality, introduce proper sanitation and hygiene in homes and invite communities in
ensuring cleanliness and high environment standards.
Key Achievements:
Infant mortality rate down to 0.24 per 1000 live births.
Maternal mortality down to 11.8 per lakh live births.
Over 103,000 individual toilets have been constructed in SST villages.
84% of SST villages now have access to safe drinking water.
298,293 women have been freed of anemia.
EDUCATION-Opening Minds
Over 126,000 students go to school in villages adopted by SST. It works with 1215
government schools. SST stresses on quality education. Our belief is that quality education
should lead to the development of life skills and improved job prospects.
Key Achievements:
89% of the students pursue higher education after passing school level exams.
53% of the students passing board exams are enrolled in professional courses.
Number of girls per 100 boys enrolled in schools: 98.
INFRASTRUCTURE-Investing in Infrastructure
One major factor for social and economic transformation in remote rural areas is provision
of basic infrastructure in the form of roads and transport. The Millennium Development
Goals aim to provide quality education and health facilities in the country. Such facilities
depend very largely on the availability of basic infrastructure.

Key Achievements
956 anganwadis and 851 schools have attractive, safe and secure structures.
2097 villages have access to safe drinking water.
935 water harvesting structures created.
100% utilisation of the common structures maintained by the community.
Maintenance cost of the created structures is largely borne by the community.
ENVIRONMENT-Planting a Green Future
India has 2.4% of the world's land which supports about 16% of the world's population.
Degradation of the environment is creating constraints on the development of the country.
Over-exploitation of natural resources, erosion of soil, disruptive water cycle and the loss of
bio-diversity have caused environmental degradation. Wet land lakes are disappearing and
deforestation is taking place at a rapid pace. Many areas have started experiencing the
shortage of fresh water. This is adversely affecting the health of people and agricultural
production.
Key Achievements
205,482 households have solid waste collection system.
104 tons of vermi compost generated per month.
201,697 households liquid waste disposed properly.
12,938 Ha of degraded land has been brought under watershed development projects.
175,205 Ha covered under afforestation. Wildlife is returning to these reforested areas.
305 villages cover of sparrow conservation efforts.
SOCIAL DEVELOPMENT-Towards Harmonious Communities
Ownership by communities is essential for sustainable development. SST works to involve
the community in all its efforts. People participate whole-heartedly in all the SST projects.
SST's experience is that when people see the change they develop pride for their achievements.
SST also has an exit policy. On reaching the desirable levels of economic development,
health, education and environment, SST actively encourages people to take ownership of
the projects in the village. By the time the village reaches its desirable development status,
the community is confident and is ready to take the responsibility of continuing with their
effort. Till date 589 villages have crossed this level and the communities have taken on the
ownership of development in their respective villages.
4,176 social leaders developed.
2,155 grama sabha meetings held.
Findings
As business is an integral part of the social system it has to care for varied needs of the
society
Business which is resourceful has a special responsibility to the society.
Social involvement of business would enhance a harmonious and healthy relationship
between the society and business seeking mutual benefit for the both.

 Social involvement may create a better public image and goodwill for the company
which further becomes instrumental in attracting customers, efficient personnel and
investors.
Significance of the study
1. This study encourages Private Public Partnership (PPP) for CSR promotion
encompassing infrastructure, pollution, child labor, labor productivity & morale.
2. Development of infrastructure i.e. parks, water purification, education etc.
Environment protection
Uplifting of the rural populace
Bringing the tribes into the mainstream of the country
3. Strategic CSR at political and corporate level can make the country a better investment
destination .
4. Innovation should essentially be a matter of concern ; be it searching the untouched areas
and scope of CSR or the formulation of CSR strategy or the implementation thereof.
5. NGOs should be encouraged to act in collaboration for the CSR activities under different
schemes and projects as they play a crucial role in the upliftment of the masses.
Conclusion
For bringing back and maintaining the general balance in the economic and social arena it is
evident to think deeply and act wisely about CSR. Every business house owe some responsibility
towards the society, nation and world in general which provide it with all human , material and
natural resources. Considering the long run growth and sustainable development following the
norms of CSR , devising new policies and effective implementation is inevitable to bring and
sustain a balance between corporate world and society, present generation and upcoming
generation, man and nature . As far as the TVS group is concerned , it has gone a long way in
fulfilling its duty and responsibility towards the society and the nation. It has reached the masses
to elevate their lives, to nurture their dreams and to hone their skills justifying the statement of
the founder We do not claim to be more unselfish, more generous and more philanthropic than
other people. But we think we started on sound and straightforward business principles,
considering the interests of the shareholder, our own, and the health and welfare of others.

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