CORPORTAE SOCIAL RESPONSIBILITY ON INDIAN COMPANIES

Introduction of the topic:
CSR – Overview:

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms 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. The UN has developed the Principles for Responsible Investment as guidelines for investing entities. 1

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 employ 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:

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

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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.

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.

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 3

people perceive CSR as in-congruent 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 favor 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.

Motives
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

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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 labor, 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 Social Entrepreneurship, whereby CSR can also be driven by employees' personal values, in addition to the more obvious economic and governmental drivers.

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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 "labor 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 labor practices, but those of their entire supply chain, from a CSR perspective. 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. 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 behavior. Through education and dialogue, the development of community awareness in holding businesses responsible for their actions is growing. In recent years, the traditional 6

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 behavior 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 behavior. 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.

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Laws and regulation Another driver of CSR is the role of independent mediators, particularly the government, in ensuring that corporations are prevented from harming the broader social good, including people and the environment. 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. The issues surrounding government regulation pose several problems. Regulation in itself is unable to cover every aspect in detail of a corporation's operations. 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 cleanup remains stagnant. (Sullivan & Schiafo 2005). 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 that organisations pay taxes to government to ensure that society and the environment are not adversely affected by business activities. Denmark has a law on CSR. On 16 December 2008, the Danish parliament adopted a bill making it mandatory for the 1100 largest Danish companies, investors and state-owned companies to include information on corporate social responsibility (CSR) in their annual financial reports. The reporting requirements became effective on 1 January 2009.[34] The required information includes: 8

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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.

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CSR/SRI is still voluntary in Denmark, but if a company has no policy on this it must state its positioning on CSR in their annual financial report. More on the Danish law can be found at CSRgov.dk Crises and their consequences Often it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental mismanagement is the CERES Principles that resulted after the Exxon Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally and caused the company to initiate new risk management and quality control processes. In another example, Magellan Metals in the West Australian town of Esperance was responsible for lead contamination killing thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a cleanup. Odwalla also experienced a crisis with sales dropping 90%, and the company's stock price dropping 34% due to several cases of E. coli spread through Odwalla apple juice. The company ordered a recall of all apple or carrot juice products and introduced a new process called "flash pasteurization" as well as maintaining lines of communication constantly open with customers. Arguments for Including Disability in CSR In recent years CSR is increasingly becoming a part of a large number of companies. It is becoming an important activity for businesses throughout the globe. Basically, CSR means that a company's business model should be socially responsible and environmentally sustainable. By socially responsible, it means that the company's

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activities should benefit the society and by environmentally sustainable it means that the activities of the company should not harm the environment. But currently what we can see is that there is an outburst of enthusiasm for environmental causes only. For example, controlling pollution, global warming, deforestation, mitigate carbon emissions, etc. Whereas it can be said that the same enthusiasm is not seen for social welfare. This is because most of the social welfare activities of the companies contribute to the welfare of us able bodied people but do not take into account the disabled people who are also a part of the society in which the company exists and who amount to at least 10% of the population. Therefore, disability must be made a part of CSR policies of the companies and people with disabilities must be allowed to become stakeholders. There should be non-discrimination or diversity management awareness-raising and training for employees in the companies, that include disability treatment. They should include the disability factor in employment/HR indicators (age distribution, gender, contract type, professional categories and/or activity areas, rotation) so that the situation of people with disabilities can be compared with that of other employees. The companies should take into account the characteristics of people with disabilities when managing human resources (recruitment, selection, contracting and induction, promotion, training, prevention of risks at work). Customer care staff training should be carried out by the companies aimed at guaranteeing appropriate treatment of people with disabilities. They should have a policy or directive aimed at considering or favouring suppliers and subcontractors that employ people with disabilities, including Sheltered Workshops. Thus, carrying out business practice which includes disabled people will help improve the company's reputation and image in an increasingly competitive environment. Finally, disability is one of the factors that can contribute to "Diversity" and Diversity is a rising value within companies’ management. However, disability is often pushed behind in favour of other diversity criteria, thus disability needs to be specifically included within the CSR.

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Companies indulge in csr activities:
Sr. No. Name Of Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 CSR Head Phone No. E-mail ID

Dr. Yogendra 0120Jubiliant life science ltd kumar saxena 2516601 Jubiliant organo system 0120ltd A.K ghose 4361845 079Arvind Mills Niraj lal 22200817 020Kirloskar brother ltd Pradip Khishti 27214255 022Uncle chips V.C Berry 28702425 022Bajaj electronics Minal Bajaj 22023626 022ONGC Manish Soni 26599114 90999321 SGNCO Sandeep garg 03 0120EDCIL Dr. Morarji 2515281 022Green Path technology C.V gupta 42156516 Gaurav 022Ascent co malhotra 30988267 Tata Consultancy Mr. Pradipta 022 6778 Services Ltd. Bagchi 9999 Yogesh Chander 033ITC Company deveshwar 22889371 Indian Oil Corporation 022Limited Sonal Desai 28636627 022Welpsun Company Mangla tambe 66136000 JSW Works Limited Mr. Naresh 022 4019 Jet Airways Goyal 1000 Aircel Jubiliant life science ltd Arvind ltd. HCL company Brinda Malhotra Yogendra 0120kumar saxena 2516601 079Niraj lal 22200817 Ajay chaudhary

[email protected] m [email protected] m neeraj.lal@arvindmills. com [email protected] m minal@jamnalalbajajfo undation.com [email protected] [email protected]

[email protected] [email protected] m [email protected] sonal.desai@indianoil. com mangla_tambe@welps un.com [email protected] om brinda_malhotra@airce l.com neeraj.lal@arvindmills. com

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22 23 24 25 26 27 28 29 30

Dr. Pragnya 022-6652 Hindalco Industries Ltd. Ram 5000 Voltas Ltd. Mr. A J Gole Thirumalai Chemicals 022ltd. S.Sridhar 24017841 Infosys Technologies Srimathi 044 – Ltd. Shivashankar 44463225 Dr. Pragnya 022-6652 Grasim Industries Ltd. Ram 5000 Deepak S. 022 6665 Indian Hotels Co Ltd. Bhatia 1221 Hindustan Unilever 022limited Prasad Pradhan 39830000 Dr. Pragnya 022Aditya Birla Group Ram 66525000 020 Yashashree -2613528 Avantha Group Gurjar 9

pragnya.ram@hindalco .com

[email protected] m [email protected] om deepak.bhatis@tajhotel s.com Prasad.Pradhan@unile ver.com pragnyaram@adityabirl a.com y.gurjar@avanthagroup .com

Impact of CSR on companies share:
The companies have been engaged in various CSR activities such as promotion of primary and higher education among adults and economically disadvantaged sections of society, improving health care infrastructure and increasing environmental consciousness in the country. Interestingly, as much as 86 per cent of stakeholders feel that countering terrorism should also be taken up by companies under their CSR activities apart from the regular activities in the fields of education, health, infrastructure from corporates. "Public expectations of corporations are on the increase as stakeholders see significant impact they are having in various spheres, be it education, health infrastructure, environment conservation," The Nielsen Company Associate Director Consumer Research Vatsala Pant said. The survey titled "Nielsen India Corporate Image Monitor 2008" was conducted for 27 companies based on their market capitalization, sales and assets. 12

The report said CSR is an effective way of "building goodwill" for a company. Over 50 per cent of respondents felt that corporate are honest towards their CSR activities. But the motive behind these activities is seen to be many, ranging from economic and tax benefits (47 per cent), to enhanced corporate reputation (45 per cent) and to build a competitive advantage (30 per cent), it said. The Nielsen said top three social issues that stakeholders expect corporates to tackle are better health infrastructure, fighting diseases like HIV AIDS, Malaria, TB, Cancer and immunization programs and primary, higher education and adult literacy. "It is interesting to note that seven out of 10 members of general public are willing to pay a premium for products and services to enable a company fulfill its CSR commitments. Considering impact of CSR activities on a firm's reputation, organizations will have to plot a developmental path for CSR integrating it with the rest of the business," Pant said. Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits. See the page in this guide on how to benefit from corporate social responsibility. Building a reputation as a responsible business sets you apart. Companies often favour suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers. Some customers don't just prefer to deal with responsible companies, but insist on it. The Co-operative Group, for instance, place a strong emphasis on its corporate social responsibility and publishes detailed 'warts and all' reports on its performance on a wide range of criteria - from animal welfare to salt levels in its pizzas. Reducing resource use, waste and emissions doesn't just help the environment - it saves you money too. It's not difficult to cut utility bills and waste disposal costs and you can

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bring immediate cash benefits. For more information read our guide on how to save money by reducing, reusing and recycling waste. There are other benefits too:
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A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining. Employees are better motivated and more productive. CSR helps ensure you comply with regulatory requirements. Activities such as involvement with the local community are ideal opportunities to generate positive press coverage. Good relationships with local authorities make doing business easier. See the page in this guide on how to work with the local community. Understanding the wider impact of your business can help you develop new products and services. CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognise this and are more willing to finance you.

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Your business affects many different people - employees, customers, suppliers and the local community. It also has a wider impact on the environment. Even the simplest energy efficiency measures, like switching off lights and equipment when they aren't needed, makes a real difference. Reducing the use of water also directly cuts your costs. For more information, see our guides on how to save money by using energy more efficiently and use water efficiently - the basics. Minimising waste can also make a big difference. Simple steps like reducing the amount of paper you waste can immediately cut costs. You can save even more by thinking about waste implications when you design new products and production processes. For more information, read our guides on ecodesign for goods and services and how to save money by reducing, reusing and recycling waste. 14

Caring about the environment can increase revenue too. Many customers prefer to buy from responsible companies. There are all sorts of ways in which you can reduce the environmental impact of your business. For example:
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creating recyclable products sourcing responsibly (eg using recycled materials and sustainable timber) minimising packaging buying locally to save fuel costs creating an efficient (and fuel-efficient) distribution network working with suppliers and distributors who take steps to minimise their environmental impact

You could reduce the environmental impact of your business by using environmental assessment techniques such as lifecycle assessment and setting up an environmental management system. See our guides on how to carry out an environmental review of your business and environmental management systems (EMS) - the basics. Make the most of your corporate social responsibility (CSR) activities by publicising them. Ensure that customers, suppliers and the local community know what you are doing. CSR lends itself to good news stories. For more information, see our guide on PR: the basics. Publicity like this can be a key part of using CSR to win contracts. People want to buy from businesses they respect. CSR can be particularly effective for targeting ethical companies, the public sector and not-for-profit organisations. At the same time, you should see CSR as part of a continuing process of building longterm value. Everything you do should help improve your reputation and encourage customers and other stakeholders to stay involved with you. A business that buys recycled paper - but exploits its customers and ignores the community - has missed the point.

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You could consider working towards a management standard which you can then use to publicise your ethical, environmental or social responsibility. For example, many businesses have already achieved the environmental management standard ISO 14001. A new voluntary standard is being introduced later in 2010 to help businesses manage their corporate social responsibility. Effective CSR like this helps you continue to differentiate yourself. Even with dozens of competitors, a real commitment to CSR lets you stand out. As an example, John Lewis department stores are well known as a business owned by its employees. Its commitment to CSR feeds through into customer service, sales and profits.

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LITERATURE REVIEW
The literature review includes the academic books, journals, internet access, magazines etc.

(1) The European Commission defines CSR as: "a concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis" (2) According to Andy Lockett, investigate the status of corporate social responsibility (CSR) research within the management literature. In particular, we examine the focus and nature of knowledge, the changing salience of this knowledge and the academic influences on the knowledge. the theoretical research has been primarily non-normative; the field is driven by agendas in the business environment as well as by continuing scientific engagement; and the single most important source of references for CSR articles was the management literature itself. (3) According to Marne L. Arthaud, Comparatively few studies have analyzed the social behavior of multinational corporations (MNCs) at a cross-national level. To address this gap in the literature, we propose a "transnational" model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adaptability demanded by international research. The model is tridimensional in that it juxtaposes: 1) Bartlett and Ghoshal's (1998, 2000) typology of MNC strategies (multinational, global, "international," and transnational); 2) the three conceptual domains of CSR (human rights, labor, and the environment) proposed by the UN Global Compact (Compact 2003); and 3) Zenisek's (1979) description of three CSR perspectives (ideological, societal, and operational). The end result is a multidimensional typology that permits the organization and development of empirical CSR research in an international setting.

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(4) According to Donald S. Siegel, Recent theories of the strategic use of corporate social responsibility (CSR) emphasize the role of information asymmetry and how CSR is likely to be incorporated into a firm's product differentiation strategy. A key empirical implication of these theories is that firms selling experience or credence goods are more likely to be socially responsible than firms selling search goods. Using firm-level data, we report evidence that is consistent with this hypothesis. (5) According to Andy Lockett, In this paper investigate the status of corporate social responsibility (CSR) research within the management literature, the changing salience of this knowledge and the academic influences on the knowledge. the theoretical research has been primarily non-normative; the field is driven by agendas in the business environment as well as by continuing scientific engagement; and the single most important source of references for CSR articles was the management literature itself. (6) According to Abagail McWilliams, describe a variety of perspectives on corporate social responsibility (CSR), which use to develop a framework for consideration of the strategic implications of CSR. Based on this framework, an agenda for additional theoretical and empirical research on CSR. (7) According to Min-Dong Paul Lee 6 DEC 2007, This study aims to trace the conceptual evolutionary path of theories on corporate social responsibility (CSR) and to reflect on the implications of the development. The retrospection has revealed that the trend has been a progressive rationalization of the concept with a particular focus on tighter coupling with organizations’ financial goals. Rationalization involves two broad shifts in the conceptualization of CSR. First, in terms of the level of analysis, researchers have moved from the discussion of the macro-social effects of CSR to organizationallevel analysis of CSR's effect on profit. (8) According to ZHOU Yan-feng, 2007, This paper conducts the empirical study on the relationship between corporate social responsibility and consumer response from three areas of charitable contributions,environmental protection and treat their staff.It

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shows that three areas of corporate social responsibility have a significant impact on consumers' purchase intention and product quality perception.The relationship between corporate social responsibility and consumer response is affected by personal characteristic and price signal.In addition,this paper also found that different areas of corporate social responsibility have different impact on consumer response. (9) According to Dilek Cetindamar, dec 2007, The aim of this paper is to shed some light on understanding why companies adopt environmentally responsible behavior and what impact this adoption has on their performance. This is an empirical study that focuses on the United Nations (UN) Global Compact (GC) initiative as a Corporate Social Responsibility (CSR) mechanism. (10) According to Dima Jamali 14 OCT 2008,This paper seeks to explore the interrelationships between corporate governance (CG) and corporate social responsibility (CSR): first, theoretically, by reviewing the literature and surveying various postulations on offer; second, empirically, by investigating the conception and interpretation of this relationship in the context of a sample of firms operating in Lebanon. Accordingly, the paper seeks to highlight the increasing cross-connects or interfaces between CG and CSR, capitalizing on fresh insights from a developing country perspective. (11) According to Laura Albareda, 27 AUG 2008, The research compares CSR initiatives and public policies in three European countries: Italy, Norway and the United Kingdom, and focuses on governmental drivers and responses. The preliminary results demonstrate that governments are incorporating a common statement and discourse on CSR, working in partnership with the private and social sectors. For governments, CSR implies the need to manage a complex set of relationships in order to develop a win–win situation between business and social organizations. However, the research also focuses on the differences between the three governments when applying CSR public policies. These divergences are based on the previous cultural and political framework, such as the welfare state typology, the organizational structures and the business and social and cultural background in each country.

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(12) According to Francesco Ciliberti Oct 2008, this paper analyzes the practices adopted and difficulties experienced by Small and Medium-sized Enterprises (SMEs) to transfer socially responsible behaviors to suppliers that operate in developing countries. In particular, a multiple case study was conducted on five Italian socially responsible SMEs. It was found that companies use different strategies as well as diverse management systems and tools to address Corporate Social Responsibility (CSR) issues along their supply chains (SCs). The paper is innovative mainly since few are the existing studies that investigate the CSR practices adopted by SMEs in the SC. Furthermore, it is argued that our research can be helpful to SME managers willing to deal with CSR issues along their SCs, especially when developing countries are involved. (13) According to Lorraine Sweeney 19 Mar 2008 Findings show that there is a significant difference between how organisations in different industries report on CSR consistent with a stakeholder view of CSR, and that this reporting follows for the most part the expectations of the CSR communications literature. It is suggested that firms report on CSR in line with what their key stakeholders expect, thus giving evidence for CSR reporting as another tool in the marketing communicators toolbox. (14) According to Ans Kolk April 2010 While attention to the social and environmental impacts of international business (IB) is not new, the past years have seen renewed interest due to pressing global problems such as climate change and poverty. Multinational enterprises (MNEs) are regarded as playing a specific role given their global influence and activities in which they are confronted with a range of issues, stakeholders and institutional contexts, in both home and host countries. Their potential in being not only part of the problem, but also perhaps part of the solution, is increasingly recognised and has come to the fore in research interest in corporate social responsibility (CSR) activities and sustainable development implications of IB.

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Industry Profile:

The media and entertainment industry consists of many different segments under its
folds such as television, print, and films. It also includes smaller segments like radio, music, OOH, animation, gaming and visual effects (VFX) and Internet advertising. Entertainment Industry in India has registered an explosive growth in last two decades making it one of the fastest growing industries in India. From a single state owned channel, Doordarshan in the 1990s there are more than 400 active channels in the country. Worldwide, 2010 saw the global economy begin to recover from a steep decline in 2009. Improved economic conditions in 2010 played a major role in a rebound in customer spend. Since the world economy begin to recover from the global financial crisis of 2008, improved economic conditions played a major role in rebound in consumer spend. While India was not critically impacted by the downturn in 2008 and 2009, it demonstrated one of the highest growth rates this year and continued to at a healthy pace. The rising rate of investments by the private sector and foreign media and entertainment (M&E) majors have improved India's entertainment infrastructure to a great extent. As per the recent report by PricewaterhouseCoopers (PwC), Indians are likely to spend more on entertainment in the coming years with a steady growth in their disposable income. And as per the combined survey report by KMPG and FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is likely to reach US$ 20.09 billion by the year 2013. The industry pegged at INR 5808 billion in 2009 as compared to INR 3565 billion in 2005. The Indian Media & Entertainment Industry grew by US$ 12.9 billion in 2009 to US$ 14.4 billion in 2010, a growth of 11 per cent, according to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and research firm KPMG. The report also states that backed by positive industry sentiment and growing media consumption, the industry is estimated to achieve growth of 13 per cent in 2011 to touch US$ 16.2 billion. As the industry braces for exciting times ahead, the sector is projected to grow at a CAGR of 14 percent to reach US$ 28.1 billion by 2015.

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Indian Entertainment & Media industry grew 11.2% in 2010 on the back of improved economic conditions and rebound in advertising spend. With sustained growth in advertising as well as consumer spend; the E&M industry is likely to achieve double digit growth in the forecast period. TV, Print and Film continue to dominate the E&M industry in the foreseeable future. Significant revenues in Indian E&M industry continue to be non-digital though there is good growth in digital spends. Infrastructure in India is the biggest challenge to the growth of digital consumption and revenues.

•

•

•

•

India’s Entertainment & Media sector to continue its double digit growth trajectory in 2011 as per PwC’s latest report titled ‘India Entertainment & Media Outlook 2011’. The industry is expected to touch Rs 1199 billion growing cumulatively at 13.2% CAGR to 2015. Indian E&M industry recorded one of the highest growth rates in the world growing at 11.2% in 2010. This was largely due to rebound in consumer spend, advertising spend and most importantly in the E&M spend. The industry grew a little slower than expected largely due to the downturn in the film segment. All the other segments grew as predicted. The industry is poised for greater growth in the foreseeable future though some key regulatory hurdles remain. On the way forward, Timmy S Kandhari, Leader – Entertainment & Media Practice, PwC India said: “The buoyant advertisement spend will have to be supplemented with subscription growth for sustainable profitable growth in E&M revenues. Addressable digitisation in the broadcast space and focus on good content across sectors will go a long way in achieving this objective.” Outlook for major segments of the Indian Entertainment & Media Industry in 2011-2015 are as follows: 22

Television: The sector is projected to command half of the entertainment pie by 2015 as it is estimated to grow at a robust 14.5% cumulatively over the next five years, from an estimated INR 306.5 billion in 2010 to INR 602.5 billion by 2015. Film: The sector is projected to grow at a CAGR of 9.3% over the next five years, reaching INR 136.5 billion in 2015 from the present INR 87.5 billion in 2010. Print media: The sector is projected to grow by 9.6% over the period 2011-15, reaching INR 282 billion in 2015 from the present INR 178.7 billion in 2010. Radio: The sector is projected to grow at a CAGR of 19.2% over 2011-15, reaching INR 26.0 billion in 2015 from the present INR 10.8 billion in 2010. Music: Due to the tremendous uptake of the mobile VAS market, the sector is projected to grow at a CAGR of 17.6% over 2011-15, reaching INR 21.4 billion in 2015 from INR 9.5 billion in 2010. Internet advertising: With rebound in overall advertising, internet advertising too is projected to grow by 25.5% over the next five years and reach an estimated INR 24.0 billion in 2015 from the present INR 7.7 billion in 2010. Out of home (OOH): The estimated size of Out of home (OOH) advertising spend is INR 14.0 billion in 2010, which is projected to reach INR 24.0 billion in 2015. Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 21.4% to INR 82.6 billion in 2015 from its current size of INR 31.3 billion.

23

Advertisement Spend The advertisement spend registered high growth of 14.3% in 2010 as compared to negligible growth in 2009. Internet advertising, with 28% growth, remained the fastest growing segment as an increasing number of advertisers are using online platform to connect with the youth. Digital vs. Non-Digital Spend The next five years will see digital technologies increase their influence across the industry and rapid change in technologies and consumer behaviour will continue across all E&M segments. However, the pace of change will continue to be slower in India as compared to other territories. On the migration to digital consumption, Marcel Fenez, Global Leader, Entertainment & Media practice, PwC said:

“The Indian consumer is yet to reap the benefits of the enhanced digital experience seen in other markets where smart devices and enhanced bandwidth speed prevail. This is an issue highlighting the need for future infrastructure investment and the overall affordability of devices.” India, like the rest of the world, will have to contend with rising demand from consumers for digital experience. This is adding new complexities for the E&M industry in terms of delivery and monetisation. Many of these will need to be addressed by collaboration across the digital value chain. On the challenges facing the E&M industry, Timmy concluded: “While there is good revenue growth, the challenge for the Indian industry would be how to make the growth profitable in all its constituents. Favourable government policies will help but the industry does need to look at their own operating model such that sustained investment in the E&M sector becomes possible”.

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India entertainment and media outlook 2011 This2011 edition of the PwC report ‘India entertainment and media outlook 2011’ has in-depth forecasts and analysis of nine entertainment and media (E&M) industry segments. It has detailed key trends and challenges in each of the segments besides providing their future prospects. In addition, we have provided our views on tax and regulatory issues as well as the technology that is influencing the distribution of content in the industry. The report has been prepared on the basis of information obtained from key industry players, trade associations, government agencies, trade publications, and other industry sources. The performance trends in different segments of the industry were analysed and an attempt was made to identify the underlying factors. Models were developed to quantify the impact of each of these factors, to create a forecast scenario. PwC’s professional expertise, institutional knowledge and global resources of knowledge and excellence were applied to review and adjust those values wherever required. The entire process was then examined for internal consistency and transparency vis-à-vis prevailing industry wisdom. Feedback from key industry players was subjected to a rigorous validation process to ensure that it was consistent and conformed to the industry feel. The Global Entertainment and Media Outlook 2011-15
About the Outlook PwC Global Entertainment & Media outlook 2011-2015, the 12 th annual edition, contains in-depth analysis and forecasts of 13 major industry segments across four regions of the globe: North America (USA and Canada), EMEA (Europe, Middle East and Africa), Asia Pacific and Latin America. Digital Spending Digital spending, as included in the Outlook, consists of broadband and mobile Internet access, online and mobile Internet advertising, video-on-demand, mobile TV subscriptions, digital music, electronic home video, online and wireless video games, digital consumer

25

magazine circulation spending, digital newspaper circulation spending, digital trade magazine circulation spending, electronic consumer, educational and professional books, and satellite radio subscriptions. About PwC PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See pwc.com for more information. In India, PwC (www.pwc.com/India) offers a comprehensive portfolio of Advisory and Tax & Regulatory services; each, in turn, presents a basket of finely defined deliverables. Network firms of PwC in India also provide services in Assurance as per the relevant rules and regulations in India. Complementing our depth of industry expertise and breadth of skills is our sound knowledge of the local business environment in India. We are committed to working with our clients in India and beyond to deliver the solutions that help them take on the challenges of the ever-changing business environment. PwC has offices in Ahmadabad, Bangalore, Bhubaneswar, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune. PwC has changed its brand name from PricewaterhouseCoopers to PwC. 'PwC' is written in text with a capital 'P' and capital 'C'. Only when you use the PwC logo is the name represented in lower case. "PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.

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Company’s overview:
3HD Media is a rich digital media agency offering an endless list of digital services all aimed at engaging the customer on one single touch point that the customer never fails to carry along and that is their mobile phone. Entertainment giants are re-editing shows and creating new content for small screen, these are the BIG BUCKS in selling Television on the go…

3HD Media has absorbed the best technological brains in the country and bought them under one roof so that both advertisers and brand could benefit from the latest digital media technologies. It’s an effort of the experts who have strived hard to develop various mobile applications, one of them being Mobile Video Streaming that allows you an instant access to a particular content in a usable and appropriate format on any mobile phone. Our team possesses extensive intellectual technologies across the entire digital services like Mobile Video Streaming, Location Based Advertising (LBA)/ Marketing(LBM) Bluetooth Advertising, Internet Advertising, Video SMS , Video Emails, WiFi Advertising, Product Launches and Social Media.

We are also the pioneers and the only organization owning the software for Mobile Video Streaming for transmitting TV on Mobile and that too on a 2G network delivering 18 frames per second(as good as normal television) using just 60 kbps of bandwidth. It is crucial in this ever-changing global business landscape to have the right technology & knowledge hence 3HD Media focuses on; delivering the technology & knowledge that companies not only want, but the critical insights on how to ensure success on their marketingplans.

27

Who would not want to be the first to witness an electrifying product launch live on their mobile phone/computer, 3HD Media brings together the latest footage on the most portable screen irrespective of your target audience being at home, work or traveling, we promisetheywon’tmissit!!!!!! Mobile Phone is believed to be the third screen for viewers after Television and Computers, it’s like a wildfire waiting to set blaze so now one can have the latest per minute shows and sports action just within a time it takes for the eye to blink or the heart tobeat. 3HD Media integrates all the various digital touch points of a customer on a single platform and uses the latest analytic tools to create an unmatchable ROI for the product. The company envisions being the definitive market leader on the Digital Media landscape of India. So now come give us a chance to serve you so that we could create a win-win situation on the most promising medium for the two of us.

Services company provide: • Mobile Video Streaming
"If you're brand in not on the mobile, your market share is getting smaller and smaller..." 3HD Media provides a unique mobile video streaming technology on the 2G & 3G networks that streams up to 18 FPS (Frames per second which is as good as a normal television) by using only 60 kbps of bandwidth. 3HD Media with its latest video streaming- proprietary compression technology built by our team of IT professionals can deliver the smoothest video, clearest audio and richest multimedia experience which no other company can provide that too both on the 2G & 3G networks. 3HD Media’s end-to-end solution enables mobile video streaming from any mobile handset right from the high end to the low end devices. We will help your brand reach its 28

right audience & keep you updated with the ever evolving demography. According to this Streaming Media post, the H1 2011 Allot Mobile Trends Report found a 93 percent increase in mobile video streaming during the first half of 2011. This growth accounts for 39 percent of all mobile bandwidth, and makes video the largest single consumer of the available mobile bandwidth & 3HD Media is very much aware of this fact. Unify and expand your organization’s mobile video communications today with the help of 3HD Media!

• Bluetooth Advertising
"New Then you gotta crowd go where they of go and mobile be where they customers, hang out!"

Do you want to outwit your competition, increase brand awareness or improve customer relationship, then leverage on the latest technology of Bluetooth Advertising provided by 3HD Media to WOW your customers and be ahead of the game.

We will help you achieve this goal by offering superior technology in

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• • • • • •

Broadcast location-based coupons. Contextual advertising. Localized information. Gaming and music. Content on demand. Specific and targeted campaign.

It's a breakthrough in technology which 3HD Media has developed wherein one could communicate through Bluetooth for a distance of up to 250 meters.

According to the latest numbers, mobile telephony is expanding at the rate of 20 million customers a month and there are currently 23 mobiles for every landline phone. Taking this into consideration 3HD Media, with the help of Bluetooth advertising, can help you develop Business Opportunities in restaurants & cafes, bars & nightclubs, cinemas & theatres, offices schools, colleges, & universities, retail outlets & shopping malls, banks, exhibitions & events, public places, airports & train stations.

• InternetAdvertising

3HD Media helps in creating high-conversion, interactive direct marketing services to help brands succeed in the online marketplace. Through the medium of internet

30

advertising we help you in immediate publishing of content that is not restricted by place or time.

In India, Internet users will more than double to 237 million by 2015 from the current figure of around 100 million. At 3HD Media we do it for you!

Our dynamic internet advertising solutions include:
• • • • • • • • • • •

Pay Per click Management (PPC) Search Engine Optimization (SEO) Contextual/Display Advertising Landing Page Optimization Web Design & Development Online Video Marketing Internet Marketing Consulting Strategy Development Online Marketing Audits Affiliate Marketing Custom, Proprietary Internet Marketing Technology

3HD Media provides you with all these solutions under one roof & boosts your brand value in this competitive & dynamic market thus differentiating you from the rest.

• Video SMS
Video has an inherent appeal to audiences. Most of us want to "see" something before we "read" something. In the context of internet marketing, 3HD Media brings to you video messaging which can be used to enhance the consumer experience by educating the viewer about the product or services, creating an image and building the brand. 3HD Media has made a breakthrough in the video messaging arena by bringing in the unique compression technology which means greater flexibility & more data can be handled in a small space. By means of 2G & 3G networks we enable video service that

31

allows users to make a video call, record video and send it to any other subscriber. Voice or Video SMSes are fast ways to send short messages to any mobile subscriber. If you're tired of typing a message, now you can simply record it! 3HD Media offers you a non-intrusive and expressive way of communication to your target audience thus bringing easier and faster communication to reality.

"Picture speaks a thousand words & videos a million" & therefore we introduce you to our Video sms technology for
• •

A truly personalized communication with customers Shortens your time to market considerably & allows the transmission of timesensitive information Enables you to effectively target both new and existing customers Maximize cost-effectiveness and returns for all we know it is GREEN!!!!!

• •

• Video Emails
Everyone prefers watching and listening to video, so why not delight THE CUSTOMERS and improve MARKETING campaign results . We at 3HD Media

showcase the audience that you care enough to communicate face-to-face.

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•

3HD Media has streamlined the video email process to the point where the whole recording, linking and sending process is done within our secure 3HD Media systems.

•

We also allow you to record evergreen (reusable) videos ready to go at the push of a button. These are often used as a follow up to a phone or email enquiry, and are an effective first-step in the relationship building process. Our team at 3HD Media offers unprecedented level of coaching and support that teaches businesses to put the human element back into their communications.

•

3HD Media offers ground-breaking video compatibility with almost all handset devices & with our video email compression technology we assure a revolution in the video email marketing technology space.

•

With video email marketing techniques, 3HD Media offers a significant improvement in the way A MESSAGE IS DELIVERED TO THE CUSTOMER. When you use web video, you not only refine the process, you enhance it. Plain text can only say so much. Video takes your processes via your message to the next level

•

•

GOOD MARKETING CAN MAKE A DIFFERENCE BETWEEN THE SUCCESS & FAILURE OF A BRAND Incorporating video email, and web video, into your marketing efforts will increase the impact of your copy exponentially. With video email marketing technology we allow you to fix your hard costs, regardless of the number of videos you send out.

•

WiFiAdvertising

You just need to get their attention, invoke their desire & lead them to take action by walking through your doors & you will make more money!!!

Traditional marketing tactics have to be reinvented to keep up with technology and the 33

ever evolving demography. 3HD Media creates a direct response marketing opportunity that will give you information that has not been available through traditional means with the help of WIFI advertising.

"The bottom line is that WiFi puts butts in seats," Our brand of WIFI technology is designed to build a stronger one-on-one connection with your desired target audience. 3HD Media's WIFI advertising system can be used to:
•

Pre-qualify leads for your business by determining which users are meeting your specific prequalification metrics. Provide valuable product feedback directly from your consumers. Provide the multiple branding opportunities necessary to convert potential customers.

• •

3HD Media, through its WIFI advertising system attracts what you are looking for. We have created a unique branding and data collection opportunity for advertisers wanting to reach their target audience. Our software delivers targeted advertising campaigns and collects the data for you in an easy-to-use and download interface.

Our unique opportunity and proven technology will advance your marketing effort.

Product Launches
The business world today is witnessing cut-throat competition, not just due to the race to increase the revenues, but also since all the brands are offering a wide array of products. "Launching a product is similar to launching a rocket – you have to break the tremendous inertia that is holding the body at rest" We can bring a perfect storm in making your product ready, your partners screaming at you to ship and your buyers foaming at the mouth in anticipation. 3HD Media helps you

34

differentiate your brand from the rest and swoop on the handsets of your potential customers, you can now:
• • •

Demonstrate use of a new product Train your business partners almost anytime and anywhere Send latest updates on the critical attributes of your product

So what are you waiting for, when you can reach your customers/agents at just one click? Thus being precisely cost-effective with the power of mobile video streaming you can get the world out quicker, build your customer base faster and generate more revenue.

• Regional Voice SMS
India is a land of regional diversity with more than 22 languages and thousands of dialects. In India there are more than 850 million mobile phone users and only 10% of these users speaks English. Inspite of this most of the interactions on the mobile phone takes place in English It would be any marketers dream come true if he could communicate to rural india in their own language through the mobile phone Regional voice based SMS services enhances the quality of your communication by making interactions more meaningful. Don't just convey but stay connected with your customers through voice SMS Features & Benefits of Voice SMS
• • • • •

Broadcast in all Regional languages A Mechanism for inbuilt feedback Immediate call connect Instant MIS Emotional Appeal

So what are you waiting for call 3HDMedia and take advantage of technology at its best in this fast changing world.

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• Mobile Video Training
"Mobile Mobile is is no longer all about about what doing you can do all on your of cell the phone. time." more,

3HD Media initiates an exclusive video compressed technology which is able to present large amounts of detailed information in a finite, condensed form wherein enterprises can easily speedup training time taken for educating and guiding new workers or employees including agents/distributors at their convenience, newsletters, e-mailers can be designed in the form of video and target its direct audience within no time. Consistency of content is another major benefit that 3HD Media provides with video training rest assured that all viewers receive the same content. Not to forget the retention of video content is far more effective than any traditional training method. 3HD Media with the aid of mobile video training allows the training facilitator to travel to different locations and quickly set up and break down equipment, or convert any place into an instant training facility. It's the most inexpensive way to train, develop, and motivate your employees, for any workplace. With most enterprises wanting to employ solutions that can offer best ways of cutting

36

down cost, we at 3HD Media introduce Video Training like an optimized solution that can solve all training woes.

VISION
To be a market leader in offering innovative products and services that help Businesses achieve simplified growth.

MISSION
The company has a corporate mission of certain goals in respect of “customer satisfaction”,” employee development”, “service to society” ,which are meant to create a good image of the organization .

OBJECTIVES & PHILOSPHY OF 3HD MEDIA
3HD Media integrates all the various digital touch points of a customer on a single platform and uses the latest analytic tools to create an unmatchable ROI for the product. The company envisions being the definitive market leader on the Digital Media landscape of India. We take time and care in the process of striking a balance between the feasible and the desirable, between the required and the tolerable. We take your time too. It is essential to understand we build a relationship of mutual trust. We understand that in the business world how important the media power can be in the upcoming future.

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OBJECTIVE OF STUDY:
(1) To identify the impact of CSR activities on companies. (2) To identify CSR related issues and contexts in relation to industry sector. (3) To examine the impact on community development.

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RESEARCH METHODLOGY

RESEARCH: Research is an original contribution to the existing stock of knowledge making for the advancement. According to Clifford Woody “Research comprises defining and redefining problems, formulating hypothesis or suggested solution, collection, organizing and evaluating data, making deductions and reaching conclusion and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learner dictionary of current English lays down the meaning of research as “a careful investigation or inquiry especially through search for the new facts in any branch of knowledge.” Some people consider research as a movement, a movement from unknown to known. It is actually a voyage of discovery. Inquisitiveness is the mother of all knowledge of whatever unknown, can be termed as research.

Research methodology is a way to systematically solve the research problem. This chapter describes the research methodology adopted in conduct of this study. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem

39

along with the logic behind them. It is necessary for the research to know not only the research methods/ techniques, but also the methodology.

Every research project conducted systematically has a specified framework for collection and analysis of data in a manner that aims at combining this frame work is called research designed involves five steps. 1. Deciding the approach to be used in the design. 2. Deciding the data needed. 3. Identifying probable sources of data. 4. Deciding how the data should be gathered 5. Anticipating the results, their interpretation and presentation.

Defining the problem
Defining the research problem is first necessary for any research. This Work should be done carefully. Here research is conduct on the context and cases of the CSR activities on the Indian companies.

RESEARCH DESIGN :- This study is a Descriptive in nature because the variables are already explained and known. DATA COLLECTION PRIMARY DATA: The investigator must identify the source from which the different items of information are obtainable and select those that will use. He may use primary data, secondary or both. Primary data are data freshly gathered for a specific purpose or for a specific research project at hand, directly e.g. -through questionnaire and interviews. When the needed data do not exist or are dated,

40

inaccurate, incomplete or unreliable, the researcher will have to collect primary data collection. SECONDARY DATA : Secondary data are generally published sources, which have been collected originally for some other purpose. They are not gathered specifically to achieve the objectives of particular project at hand, but are already assembled. Such sources are internal company records, government publication, reports and journals, trade professional and business firm’s records, university research organization and library. In my project I used both primary data as well as secondary data.

Sampling Plan
The Sampling Plan Calls for three decisions. A. Sampling Unit: I have completed my survey in MUMBAI. B. Sample Size: The Selection of 20 respondents. The Sample was drawn from Company CSR mangers. The selection of the respondent was done on the basis of simple random Sampling. C. Contract Methods. I have conducted the respondent through personal interviews.

Analyze the Information
The next step is to extract the pertinent finding from the collected data. I have tabulated the collected data & developed frequency distributions. Thus the whole data was grouped aspect wise and was presented in tabular from. Thus, frequencies & percentages were to reader impact of the study.

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Limitations of the Study
No study is without limitations, whether it is of any type & so researcher study does have certain limitations Limitations are those difficulties which are faced by the researcher while his research works. The limitation Researcher has faced during research. 1. TIME CONSTRAINTS: The time period for the study is very less because the study is so complex. . 2. INFORMATION NOT SUFFICIENTLY AVAILABLE: The source of data collection is secondary so the information available is not sufficient. Moreover there is heterogeneity of information available at different sources. 3. RESPONDANTS WERE NOT WILLING TO SHARE INFORMATION: Managers were not ready to share much especially the negative points. 4. COMPLEX CALCULATIONS: The calculations are so complex that it needs expertise and tedious task.

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ANALYSIS AND INTERPRETATION OF DATA

1. Which of the following best describes the industry sector your company is operating?
Finance, securities and insurances Food and consumer packaged goods Textiles and clothing Utilities, oil or gas Life Sciences and pharmaceutical manufacturing Wholesale trade Industrial manufacturing Transportation and transportation services Automotive High tech and consumer electronics Construction and building materials Mining Forestry, pulp and paper Retail Tourism Aerospace and defense Other 4 20% 1 5% 1 5% 1 5% 0 0% 1 5% 6 30% 0 0% 3 15% 1 5% 0 0% 0 0% 0 0% 1 5% 2 10% 0 0% 0 0%

43

Out of 20 respondents 20% of companies indulge in finance and insurance sector, 30% in industrial manufacturing, 15% in automotive and 5% in food, clothing and oil sector.

2. How many people work in your company?

250 No answer
INTERPRETATION:

0 0 4 9 7 0

0% 0% 20% 45% 35% 0%

Out of 20 respondents, 45% of the employees strength is there in the companies those who are indulge in industrial manufacturing, 35% of employees strength in the finance sector companies and 35% of the employees strength in the other related sectors.

44

3. In terms of stability, has your company experienced

financial viability > 5 years financial viability over 3-5 years financial viability over 1-3 years financial viability over 0-1 year some financial difficulties frequent financial difficulties No answer

4 7 7 1 1 0 0

20% 35% 35% 5% 5% 0% 0%

INTERPRETATION:
Out of 20 respondents, 35% of the companies’s financial viability over 1-5 years, 20% of the companies’s financial viability is greater than 5 years.

45

4. How did you learn first about Corporate Social Responsibility

(CSR)?

Other companies Local NGOs Business associations Chamber of Commerce Media UN Global Compact Other
INTERPRETATION:

12 11 3 0 12 0 0

63% 58% 16% 0% 63% 0% 0%

Out of 20 respondents, 63% contribution is of Media sector and other companies to give information about the CSR activities, 58% is of local NGO’s and 16% is of business associations.

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5. Which of the below definitions describes CSR best in your opinion?
CSR is a set of philanthropic activities a company carries out voluntarily on a 16 84% sporadic basis in the local community CSR is the commitment of a company to strictly abide to national labour and 6 32% environmental laws CSR is about promoting corporate fairness, transparency and accountabil-ity through a set of internal rules or processes by which businesses are operated, 13 68% regulated and controlled CSR is a collection of occasional philanthropic practices, gestures or initia-tives 1 5% motivated by public relations or marketing considerations CSR is a comprehensive set of policies, practices and programs that are strategically integrated throughout business operations and decision-making 2 11% processes to minimize the negative impact on the company's social and natural environment CSR is a formal process of relationship management through which companies 11 58% engage with their stakeholders to align their mutual interests CSR is a concept aimed at achieving commercial success in a way that does not 1 5% compromise the well being of its employees or the local com-munity CSR describes a decision-making process based on ethical values and 1 5% compliance with legal requirements CSR describes the way in which a company manages its economic, social and environmental relationships, and the way it engages with its stakeholders 8 42% (including shareholders, employees, customers, business partners, governments and communities) People may select more than one checkbox, so percentages may add up to more than 100%.

47

INTERPRETATION:
Out of 20 respondents, 84% of the companies believes that CSR is a set of philanthropic activities, 68% of the companies believes that CSR is about promoting corporate fairness, transparency and accountability, 58% believes that CSR is a formal process of relationship management and 42% believes that CSR describes the way in which a company manages its economic, social and environmental relationships.

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6. How long do you think it would take to implement CSR in your company?

2-3 weeks 1 month 2-6 months 6-12 month 1 year Other No answer

0 1 2 7 8 1 1

0% 5% 10% 35% 40% 5% 5%

INTERPRETATION:
Out of 20 respondents, 40% companies requires 1 year to implement the CSR in the companies, 35% companies requires 6-12 months to implement CSR and 10% requires 26 months to implement CSR.

7. What would in your opinion be the biggest obstacles to integrate CSR in your business operations?

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lack of human resources lack of employee motivation lack of time unavailability of technology lack of know-how no support from top-management lack of funds no benefits expected from CSR Other

8 42% 3 16% 12 63% 10 53% 12 63% 2 11% 9 47% 5 26% 0 0%

INTERPRETATION:
Out of 20 respondents, 63% of the companies face obstacles in implementing the CSR due to lack of know-how and lack of time, 53% due to unavailability of knowledge, 47% due to lack of human resources and lack of funds.

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8. Is there a trade union (or any other form of employee association) at your enterprise?

51

Yes No No answer

11 8 0

55% 40% 0%

INTERPRETATION:
Out of 20 respondents, 55% companies have trade unions, 40% companies don’t have trade unions.

9. Are you a supplier to large national or international companies?

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Yes No No answer

17 2 0

85% 10% 0%

INTERPRETATION:
Out of 20 respondents, 85% companies are the suppliers of the national and international companies, 10% are not the suppliers of the national and international companies.

10. Would you hire a professional consultant/advisor to help your company deal with CSR in a strategic way:
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Yes No No answer

8 11 0

40% 55% 0%

INTERPRETATION:
Out of 20 respondents, 55% companies need no CSR consultant or advisor and 40% companies need CSR advisor and CSR consultant.

FINDINGS:

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Corporate social responsibility (CSR) activities have the potential to create several distinct forms of value for customers. It is the customer perception of this value that mediates the relationship between CSR activities and subsequent financial performance. By categorizing major CSR activities and the different types of value each can create, this report offers a number of practical recommendations to business leaders embarking in CSR programs for their companies. Investments in CSR activities are under scrutiny. Boards and shareholders are increasingly demanding that outcomes from these investments be measured to understand if and how they positively impact the profitability of the firm. Not surprisingly, a significant amount of research has been undertaken to understand the relationship between CSR and profitability. Due to the importance of customers among business stakeholders, marketing research that examines the effects of CSR on profitability is particularly informative. In particular, this research shows that CSR leads to outcomes such as increased customer loyalty, willingness to pay premium prices, and lower reputational risks in times of crisis. Each of these marketing outcomes in turn has the potential to support increased profitability. However, the research findings in question are often equivocal and offer business leaders limited guidance when it comes to choosing and implementing specific CSR activities. In fact:
•

The relationship between CSR activities and financial performance is typically affected by many other mediating variables, which are not always thoroughly considered by researchers; and

Corporate social responsibility has been defined as “a business organization’s configuration of principles of social responsibility, processes of social responsiveness, and policies, programs, and observable outcomes as they relate to the firm’s social

55

relationships.” It consists of specific firm investments called “activities.” Collectively, over time, these activities can lead to a reputation for social responsibility— a valuable business asset of its own. Table 1: Categorization of CSR Activities CSR Category Philanthropy Examples of Specific CSR Activities • Donation of sales • Unrestricted cash donations • Donation of products • Employee volunteerism • Collection of customer donations • Charity events • Promotion of public service announcements • Pollution levels • Reduced energy consumption • Recycling • Labor practices (e.g. child/sweatshop labor) • Diversity • Fair trade • Other supply chain responsibility (e.g., human rights) • Third party awards for performance • Customer relations • Employee relations • Packaging • Animal testing • False advertising • Controversial advertising • Ethical conduct • Packaging • Animal testing • False advertising • Controversial advertising • Ethical conduct • Competing fairly and ethically • Investment in South Africa • Local sourcing • Industry codes of ethics • Adherence to other standards (e.g., GRI) • Product recalls • Governance • Carbon offset sales/offsets • Six Sigma projects • Lawsuits • Decreased product use/moderation message • Investment in workplace safety

Business Practices

Product-Related Activities

• Energy efficiency • Organic • Product ingredients • Controversial products (e.g., firearms, alcohol, gambling) • Product quality

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Suggestions to Business Leaders
Using value creation as a lens, this section offers a series of recommendations on how business leaders can enhance the effectiveness of CSR activities on customer responses.
•

1. Diversify the CSR portfolio Other-oriented customer value is potentially present in CSR activities related to philanthropy and business practices. Instead, CSR delivered through the firm’s products and services carries the potential for both other-oriented and self-oriented customer value. For this reason, business leaders should attempt to embed multiple forms of value across their company’s CSR portfolio and even within CSR activities themselves.

•

2. Offset value trade-off of multiple activities Although the creation of multiple forms of value is the norm rather than the exception, one CSR activity may alter the customer value perceived in another. In particular, with respect to a CSR activity that provides other-oriented value, customers will be sensitive to tradeoffs with self-oriented value. For example, customers perceive fair trade coffee (a potent source of other-oriented value) as having less enjoyable taste (a reduction in self-oriented value) than regular coffee. Similarly, energy efficient automobiles are also perceived as less powerful despite advances in hybrid and electric motor technology that allow customers to retain power while gaining cost efficiency. However, recent research suggests that the perception of these tradeoffs can be offset by the use of performance guarantees. For this reason, companies should strive to offset negative tradeoffs through the use of targeted promotions and information.

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3. Prioritize product-related CSR activities over philanthropy and business practices Faced with a choice, customers will favor CSR activities categorized as product-related over philanthropy and business practices. For example, it has been shown that customers tend not to sacrifice minimum standards on product performance (a self-oriented value) when faced with information about other CSR activities (e.g., testing on animals, child labor). Similarly, customers are unlikely to reward a company that prices higher its environmentally friendly product if there is a cheaper alternative product embedding at least some amount of CSR value. For this reason, companies should not myopically assume that CSR involves exclusively the goodwill of customers, rather, whenever possible, companies should build a strong self-oriented value component in other-oriented product-related CSR activities. By pursuing a CSR strategy that does not neglect the self-oriented stakeholder value, the firm can even command a premium price over competitors whose CSR activities rely solely on other-oriented forms of customer value.

•

4. Be mindful of your customer type The idea that the type of customer is important in evaluating the business merit of CSR activities has also found some support in research. Referring in particular to the environmental context, CSR research distinguishes two customer types: the self-oriented (self-enhancement) customer and the other-oriented (self-transcendent) customer. Customers with self-enhancement goals carry an egoistic view of the world, while selftranscendent customers are concerned with the welfare of others and of nature. Further studies have revealed that self-enhancement customers view the profitmaking aspect of CSR (i.e., financial sustainability) more positively than selftranscendent customers, whereas self-transcendent customers view the legal, ethical, and philanthropic elements of CSR as more important than selfenhancement customers. Finally, while both self-transcendent and self-enhancing types of customers perceive self-oriented value in product-related CSR activities, only the self-transcendent customers are also likely to perceive other-oriented 58

value in product-related CSR activities. For these reasons, in order to gain a larger customer market share, managers should be sure to include in their CSR portfolio a number of activities that are likely to be supported even by self-enhancement customers.

•

7. Make adequate use of marketing to enhance the customer value proposition of CSR Cause-related marketing that makes a compelling case for the adoption of new social norms can help enhance the customer value proposition of a certain CSR activity. An excellent example of value enhancement realized through cause-related marketing is the study of hotel guests’ towel reuse, which shows that the savvy promotion of the program by a mid-priced hotel chain (including references to the aggregate amount of water and detergents that would be saved annually) resulted in a significant increase in participation. With respect to a private customer behavior such as the use of bath towels, the assumption would be that customers would not trade their self-oriented value for a social value. However, by effectively showing the importance of adhering to new social norms on towel use, program participation rates went from a low 35 percent to almost 50 percent.

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8. Tie CSR activities to functional and utilitarian products Not all product categories evoke the same emotional state when consumed. Specifically, marketing experts classify products as experiential, symbolic or functional based on the primary needs they satisfy. Experiential products satisfy the need for sensory pleasure (e.g., the new 3D television sets); symbolic products fulfill needs for self-enhancement or group membership (e.g., fashionable clothing); and functional/utilitarian products (or services) address more pressing customer issues (e.g., a non-dairy product addresses the issue facing a lactose-intolerant customer). Research shows that appeals that more closely match the specific

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needs satisfied by the product category are the most persuasive to customers. In particular, CSR activities that also enhance a self-oriented value (in the organics agricultural practices of the aforementioned example, the value of adopting healthier eating habits) will receive the highest level of support by customers.

•

9. Seek optimal level of CSR investment Empirical evidence demonstrates that, above an optimal level, CSR investment can be detrimental to financial performance without producing incremental stakeholder value. For this reason, business leaders should not simply look to outspend their competition on CSR, or assume that greater levels of CSR investment will be matched by an equally greater customer perception of value. As part of a preliminary analysis of the multi-faceted effects of CSR activities on stakeholder value, companies should also include testing the effects of incremental investments in those activities so as to determine the optimal level of CSR return on investment. Above that level, additional CSR investment may be detrimental to shareholder value. Ultimately, the most successful customer brands are those that use CSR activities to provide incremental customer value without distracting critical resources to other elements of the business strategy.

•

10. Be mindful of the impact of CSR on financial performance and shareholder value Many CSR activities can create firm value without the intervening step of stakeholder perception (including customer value). For example, a protocol adopted by the company to reduce energy consumption in the production process provides a cost savings and an environmental benefit without the necessary value perception by customers. Therefore, in deciding on CSR activities, business leaders should not only assess customer value but also use CSR instrumentally to enhance financial performance and shareholder value.

CONCLUSION:

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Business leaders face competing demands for resources dedicated to CSR initiatives. By linking CSR activities with increased customer value, or developing new sources of customer value, companies can gain a competitive advantage. Moving from the analysis of multiple value types that CSR activities offer to customers, this report provided recommendations on how board members and senior executives committed to their company’s social and environmental responsibility can ensure effective and profitable investments in CSR. After collection of data interpretation is done on that basis conclusion is drawn. companies should not myopically assume that CSR involves exclusively the goodwill of customers, rather, whenever possible, companies should build a strong self-oriented value component in other-oriented product-related CSR activities. By pursuing a CSR strategy that does not neglect the self-oriented stakeholder value, the firm can even command a premium price over competitors whose CSR activities rely solely on other-oriented forms of customer value. Customers with self-enhancement goals carry an egoistic view of the world, while selftranscendent customers are concerned with the welfare of others and of nature. Further studies have revealed that self-enhancement customers view the profit-making aspect of CSR (i.e., financial sustainability) more positively than self-transcendent customers, whereas self-transcendent customers view the legal, ethical, and philanthropic elements of CSR as more important than self-enhancement customers.

BIBLIOGRAPHY
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BOOKS
• Chhabra, T.N, “Human Resource Management”,2004 Ed,Dhanpat Rai & Co (P) Ltd , New Delhi 2003. • Kothari, C.R., “ Research Methodology”, 2nd Edition, New Age International (P) Ltd. Publishers, New Delhi ,2005. • Mark Saunders, research methodology for business students, Pearson education 3rd edition.

JOURNALS:
(1) 2012 (2) Do customer satisfaction and reputation mediate the CSR-FP link? Indigenous Resource and Institutional Capital: The Role of Local Context

in Embedding Sustainable Community Development Business & Society September 1,

Evidence from Australia Australian Journal of Management August 1, 2012 (3) 1, 2012 (4) Firm Size Matters: An Empirical Investigation of Organizational Size and Theorizing Firm Adoption of Sustaincentrism Organization Studies April

Ownership on Sustainability-Related Behaviors Business & Society June 1, 2011 (5) 1, 2010 Conceptualizing the Behavioral Barriers to CSR and CS in Organizations:

A Typology of HRD Interventions Advances in Developing Human Resources October

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International Business, Corporate Social Responsibility and Sustainable

Development Volume 19, Issue 2, April 2010

WEBSITES: • • • • • • • • • • • • •http://3hdmedia.com/ www.nottingham.ac.uk/business/ICCSR/ www.csr.com/http://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://www.library.pitt.edu/guides/business/CorporateSocialResponsibility.html www.unitar.org/event/introduction-corporate-social-responsibilityhttp://www.conferenceboard.ca/topics/GCSR/research/csrresearch.aspx www.adas.co.uk/.../CorporateSocialResponsibilityCSRResearch/ www.nottingham.ac.uk/business/ICCSR/research.php?action...id... www.journals.elsevier.com/continental-shelf-research/http://www.onlinelibrary.wiley.com www.csrinternational.com/http://www.sciencedirect.com/science? _ob=ArticleListUR L & _method=lis t

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& _ArticleListID=208693200 9&_urlVersion=0&_userid=10&md5=372ee1a67c5c3c16a13e42045f2f45 • • • •http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1295427http://papers.ssrn.com/sol3/papers.cfm?abstract_id=753445http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1517589http://papers.ssrn.com/sol3/papers.cfm? abstract_&http://papers.ssrn.com/sol3/papers.cfm? abstract_id=1025989&http://papers.ssrn.com/sol3/papers.cfm? abstract_id=1025989 • • •http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2012755http://papers.ssrn.com/sol3/papers.cfm?abstract_id=370968http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1349971

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CSR QUESTIONNAIRE FOR COMPANIES:
This survey is based on the curriculum project where going to do the Research study on the Cases and Contexts related with the CSR (Corporate Social Responsibility) activities of the Indian companies. Please take 10 minutes to fill in this online questionnaire online by clicking on the link below. If you would like to provide us with any additional information not covered by the survey questions, please use the box for comments and feedback at the end of the document. This questionnaire is completely anonymous and we will keep your responses strictly confidential. The outcomes of this survey will be presented in aggregate numbers without references to any particular respondent. Thank you very much in advance for your support. ----------------------------------------------------------------------------------------------------------1. Which of the following best describes the industry sector your company is operating? Check any that apply
• • •

Finance, securities and insurances Food and consumer packaged goods Textiles and clothing 65

• • • • • • • • • • • • • •

Utilities, oil or gas Life Sciences and pharmaceutical manufacturing Wholesale trade Industrial manufacturing Transportation and transportation services Automotive High tech and consumer elec-tronics Construction and building mate-rials Mining Forestry, pulp and paper Retail Tourism Aerospace and defense Other

2. How many people work in your company? Choose one of the following answers
• • • • • •

250 No answer

3. In terms of stability, has your company experienced Choose one of the following answers
• • • • • • •

financial viability > 5 years financial viability over 3-5 years financial viability over 1-3 years financial viability over 0-1 year some financial difficulties frequent financial difficulties No answer

4. What is your understanding of Corporate Social Responsibility (CSR) and responsible business practices? What activities do they include? (Please briefly list them with a brief description in the box below) 5. How did you learn first about Corporate Social Responsibility (CSR)? Check any that apply
• • • • •

Other companies Local NGOs Business associations Chamber of Commerce Media

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UN Global Compact Other

6. Which of the below definitions describes CSR best in your opinion? (You may choose maximum 2 of the options provided below)
• • •

• •

• • • •

CSR is a set of philanthropic activities a company carries out voluntarily on a sporadic basis in the local community CSR is the commitment of a company to strictly abide to national labour and environmental laws CSR is about promoting corporate fairness, transparency and accountabil-ity through a set of internal rules or processes by which businesses are operated, regulated and controlled CSR is a collection of occasional philanthropic practices, gestures or initia-tives motivated by public relations or marketing considerations CSR is a comprehensive set of policies, practices and programs that are strategically integrated throughout business operations and decision-making processes to minimize the negative impact on the company's social and natural environment CSR is a formal process of relationship management through which companies engage with their stakeholders to align their mutual interests CSR is a concept aimed at achieving commercial success in a way that does not compromise the well being of its employees or the local com-munity CSR describes a decision-making process based on ethical values and compliance with legal requirements CSR describes the way in which a company manages its economic, social and environmental relationships, and the way it engages with its stakeholders (including shareholders, employees, customers, business partners, governments and communities)

7. How long do you think it would take to implement CSR in your company? Choose one of the following answers
• • • • • • •

2-3 weeks 1 month 2-6 months 6-12 month 1 year Other No answer

8. What would in your opinion be the biggest obstacles to integrate CSR in your business operations? Check any that apply
• •

lack of human resources lack of employee motivation

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lack of time unavailability of technology lack of know-how no support from top-management lack of funds no benefits expected from CSR Other

9. Is there a trade union (or any other form of employee association) at your enterprise?
• • •

Yes No No answer

10. Describe briefly what benefits do you think your particular company could reap from engaging in CSR? (Please write in the box below) 11. Are you a supplier to large national or international companies?
• • • •

Yes No No answer

12. Would you hire a professional consultant/advisor to help your company deal with CSR in a strategic way:
• • •

Yes No No answer

13. Please use the below box for any additional information you would like to provide us with:

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