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A PROJECT REPORT ON
CORPORATE SOCIAL RESPONSIBILITY
IN WIPRO
SUBMITTED TO:
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
(2015-16)
SUBMITTED BY:
RAHUL SHAH
ROLL NO: 31
M.COM PART-I (BUSINESS MANAGEMENT)
(SEMESTER 2)
PROJECT GUIDE:
PROF S.N.CHITALE
VPMS
K.G. JOSHI COLLEGE OF ARTS &
N.G. BEDEKAR COLLEGE OF COMMERCE
(THANE)
CERTIFICATE
OF
PROJECT WORK
This is certify that
Mr. / Ms.
_______________________________________________ Of
PROJECT GUIDE
EXTERNAL EXAMINER
DECLARATION
project
on
reference
RESPONSIBILITY IN WIPRO
to
CORPORATE
SOCAIL
Student
(AMRITA BHAT)
Place: Thane
Date:
ACKNOWLEDGEMENT
INDEX
SR
NO
.
CONTENTS
PAG
E
NO.
1.
INTRODUCTION
2.
CORE ELEMENTS
3.
IMPLIMENTATION GUIDANCE
1
1
4.
1
2
5.
1
5
6.
CSR IN INDIA
1
7
7.
8.
CSR
STRATEGIES
FOCUS
ON
OPREATION
RATHER
THEN
COMPETITIVCE ADVANTAGE
COMPANY PROFILE
1
9
2
1
9.
2
4
10.
CONCLUSION
3
8
11
BIBLIOGRAPHY
3
9
With some models, a firm's implementation of CSR goes beyond compliance and
engages in "actions that appear to further some social good, beyond the interests of
the firm and that which is required by law." CSR aims to embrace responsibility for
corporate actions and to encourage a positive impact on the environment and
stakeholders including consumers, employees, investors, communities, and others.
The term "corporate social responsibility" became popular in the 1960s and has
remained a term used indiscriminately by many to cover legal and moral
responsibility more narrowly construed.
Proponents argue that corporations increase long term profits by operating with a
CSR perspective, while critics argue that CSR distracts from business' economic
role. A 2000 study compared existing econometric studies of the relationship
between social and financial performance, concluding that the contradictory results
of previous studies reporting positive, negative, and neutral financial impact, were
due to flawed empirical analysis and claimed when the study is properly specified,
CSR has a neutral impact on financial outcomes.
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR or
that CSR is merely window-dressing, or an attempt to pre-empt the role of
governments as a watchdog over powerful multinational corporations.
Political sociologists became interested in CSR in the context of theories of
globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as
a form of capitalist legitimacy and in particular point out that what began as a
social movement against uninhibited corporate power was transformed by
corporations into a 'business model' and a 'risk management' device, often with
questionable results.
DEFINITIONS
Corporate Social Responsibility is the continuing commitment by business
to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of
the local community and society at large.
Operating a business in a manner that meets or exceeds the ethical, legal,
commercial and public expectations that society has of business.
CORE ELEMENTS
The CSR Policy should normally cover following core elements:
1. Care for all Stakeholders: The companies should respect the interests of, and
be responsive towards all stakeholders, including shareholders, employees,
customers, suppliers, project affected people, society at large etc. and create value
for all of them. They should develop mechanism to actively engage with all
stakeholders, inform them of inherent risks and mitigate them where they occur.
2. Ethical functioning: Their governance systems should be underpinned by
Ethics, Transparency and Accountability. They should not engage in business
practices that are abusive, unfair, corrupt or anti-competitive.
3. Respect for Workers' Rights and Welfare: Companies should provide a
workplace environment that is safe, hygienic and humane and which upholds the
dignity of employees. They should provide all employees with access to training
and development of necessary skills for career advancement, on an equal and nondiscriminatory basis. They should uphold the freedom of association and the
effective recognition of the right to collective bargaining of labour, have an
effective grievance redressal system, should not employ child or forced labour and
provide and maintain equality of opportunities without any discrimination on any
grounds in recruitment and during employment.
4. Respect for Human Rights: Companies should respect human rights for all and
avoid complicity with human rights abuses by them or by third party.
10
11
IMPLEMENTATION GUIDANCE
The CSR policy of the business entity should provide for an implementation
strategy which should include identification of projects/activities, setting
measurable physical targets with timeframe, organizational mechanism and
responsibilities, time schedules and monitoring. Companies may partner
with local authorities, business associations and civil society/nongovernment organizations. They may influence the supply chain for CSR
initiative and motivate employees for voluntary effort for social
development. They may evolve a system of need assessment and impact
assessment while undertaking CSR activities in a particular area.
Independent
evaluation
may
also
be
undertaken
for
selected
12
13
stocks. (More on socially responsible investment can be found in the 'Banking and
investment' section of the site.)
Competitive Labour Markets: Employees are increasingly looking beyond
paychecks and benefits, and seeking out employers whose philosophies
and operating practices match their own principles. In order to hire and
retain skilled employees, companies are being forced to improve working
conditions.
Supplier Relations: As stakeholders are becoming increasingly interested in
business affairs, many companies are taking steps to ensure that their partners
conduct themselves in a socially responsible manner. Some are introducing codes
of conduct for their suppliers, to ensure that other companies' policies or practices
do not tarnish their reputation. Dr Ratnam said the concept of CSR
had different meanings depending on the stakeholder and that depending on the
specific situation of the enterprises expectations can also vary. A CSR project can
begin in response to a crisis or adverse publicity that a company may suffer. The
motive for launching CSR can vary between philanthropy or notions of corporate
citizenship. In India, over time, the expectations of the public has grown
enormously with demands focusing on poverty alleviation, tackling
unemployment, fighting inequality or forcing companies to take affirmative action.
Lack of Community Participation in CSR Activities: There is a lack of interest
of the localcommunity in participating and contributing to CSR activities of
companies. This is largely attributableto the fact that there exists little or no
knowledge about CSR within the local communities as no seriousefforts have been
made to spread awareness about CSR and instil confidence in the local
communitiesabout such initiatives. The situation is further aggravated by a lack of
communication between thecompany and the community at the grassroots.
Need to Build Local Capacities: There is a need for capacity building of the local
non-governmentalorganizations as there is serious dearth of trained and efficient
organizations that can effectivelycontribute to the ongoing CSR activities initiated
by companies. This seriously compromises scaling upof CSR initiatives and
subsequently limits the scope of such activities.
14
15
COST-BENEFIT ANALYSIS
In competitive markets cost-benefit analysis of CSR initiatives, can be examined
using a Resource-Based View (RBV). According to Barney (1990) "formulation of
the RBV, sustainable competitive advantage requires that resources be valuable
(V), rare (R), inimitable (I) and non-substitutable (S)." A firm introducing a CSRbased strategy might only sustain high returns on their investment if their CSRbased strategy could not be copied (I). However, should competitors imitate such a
strategy, that might increase overall social benefits. Firms that choose CSR for
strategic financial gain are also acting responsibly.
RBV presumes that firms are bundles of heterogeneous resources and capabilities
that are imperfectly mobile across firms. This imperfect mobility can produce
competitive advantages for firms that acquire immobile resources. McWilliams and
Siegel (2001) examined CSR activities and attributes as a differentiation strategy.
They concluded that managers can determine the appropriate level of investment in
CSR by conducting cost benefit analysis in the same way that they analyze other
investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only
sustain an abnormal return if it could prevent competitors from imitating its
strategy.
16
17
CSR IN INDIA
CSR is not a new concept in India. Ever since their inception, corporates like the
Tata Group, the Aditya Birla Group,and Indian Oil Corporation, to name a few,
have been involved in serving the community. Through donations and charity
events, many other organizations have been doing their part for the society. The
basic objective of CSR in these days is to maximize the company's overall impact
on the society and stakeholders. CSR policies, practices and programs are being
comprehensively integrated by an increasing number of companies throughout
their business operations and processes. A growing number of corporates feel that
CSR is not just another form of indirect expense but is important for protecting the
goodwill
and
reputation,
defending
attacks
and
increasing
business
competitiveness.
Companies have specialised CSR teams that formulate policies, strategies and
goals for their CSR programs and set aside budgets to fund them. These programs
are often determined by social philosophy which have clear objectives and are well
defined and are aligned with the mainstream business. The programs are put into
practice by the employees who are crucial to this process. CSR programs ranges
from community development to development in education, environment and
healthcare etc.
18
19
20
one single entity to bring about change, as the scale is enormous. Corporate have
the expertise, strategic thinking, manpower and money to facilitate extensive social
change. Effective partnerships between corporate, NGOs and the government will
place Indias social development on a faster track.
21
COMPANY PROFILE
Wipro
Limited (Western
India
Products
Limited[1])
is
an
Indian multinational IT Consulting and System Integrationservices company
headquartered in Bangalore, India. As of December 2014, the company has
154,297 employees servicing over 900 large enterprise & Fortune 1000
corporations with a presence in 61 countries.[7] On 31 January 2015, its market
capitalisation was approximately 1.63 trillion ($26.3 billion), making it one of
India's largest publicly traded companies and seventh largest IT services firm in the
World.[8]
To focus on core IT Business, it demerged its non-IT businesses into a separate
company named Wipro Enterprises Limited with effect from 31 March 2013. [9] The
demerged companies are consumer care, lighting, healthcare and infrastructure
engineering which contributed approximately 10% of the revenues of Wipro
Limited in previous financial year.[10][11]Recently Wipro has also identified Brazil,
Canada & Australia as rapidly growing markets globally and has committed to
strengthen the presence in the respective countries over the next 5 years.
22
Wipro Ltd.
Wipro Limited is a global company provider of comprehensive IT solutions and
services, including Systems Integration, Consulting, Information Systems
outsourcing, IT-enabled services, and R&D services.
It is also a value added reseller of desktops, servers, notebooks, storage products,
networking solutions and packaged software for international brands.[54]
Wipro entered into the technology business in 1981 and has over 140,000
employees and clients across 54 countries today. IT revenues stood at $6.2 billion
for the year ended 31 March 2013, with a repeat business ratio of over 95%.
The business model at Wipro Technologies Ltd is an industry aligned customer
facing model which gives greater understanding of customers businesses to build
industry specific solutions.
23
cylinders, and their components and solutions since 1976. This division delivers
hydraulic cylinders to international OEMs and represents the Kawasaki, Sun
Hydraulicsand Teijin Seiki range of hydraulic products in India. It has entered into
partnerships with companies like Kawasaki and aerospace giant EADS.The
commitment to quality has made Wipro Infrastructure Engineering the second
largest independent manufacturer of cylinders in the world. The company has
recently ventured into water treatment systems and solutions to cater to the needs
of various industries.
Wipro GE Medical Systems Limited
Wipro GE Medical Systems Limited is Wipros joint venture with GE Healthcare
South Asia. It is engaged in the research and development of advanced solutions to
cater to patient and customer needs in healthcare. This partnership, which began in
1990,[75] today includes offerings like gadgets and equipment for diagnostics,
healthcare IT solutions and services to help healthcare professionals combat
cancer, heart disease, and other ailments. There is complete adherence to Six
Sigma quality standards in all products.
SUSTAINABILITY OF WIPRO
Wipros approach to sustainability is structured on enabling itself, as an
organisation, and its customers to be more ecologically sustainable. It is driven by
issues considered important to employees, India current and future generations,
customers, investors, suppliers, and the community as a whole. Wipro has been
ranked 1st in the 2010 Asian Sustainability Rating (ASR TM) of Indian companies
and is a member of the NASDAQ Global Sustainability Index as well as the Dow
Jones Sustainability Index.
24
25
Their efforts were recognized in the form of NCPEDP Shell Helen Keller Award
for 2009 given to Wipro as an organization and to one of our employees for being a
positive Role Model amongst the physically challenged people
IT IS FAR GREATER TO SUSTAIN THAN IT IS TO CREATE.
Wipro is built on a foundation of values - Spirit of Wipro. These values drive
Wipro. Acting with Sensitivity is one of the three values and is manifested in our
approach to stakeholders & ecology. Our journey towards ecological and social
sustainability is an integral part of Wipros view of Good Citizenship. As a
responsible global organization Wipro would like to lead the way in sustainability
practices.
ECOLOGICAL SUSTAINABILITY AT WIPRO
It is an accepted fact that the current path to economic progress is ecologically
unsustainable. This brings us to the moot point of choices.
The most obvious being that if each one of us - organizations and individuals in the
global society, adopt an ecologically sustainable path, we have the best chance of
shaping a secure and happy future.
EcoEye is Wipros initiative towards ecological sustainability that has today
become a concerted organization-wide program. Its this lens of ecological
sustainability that is transforming the way we do business and engage with all our
stakeholders.
Their sustainability framework is pivoted on engaging with multiple stakeholders
in areas of vital and common interest, founded on an unchanging bedrock of
integrity and values.
Their customer stewardship program in Sustainability offers an integrated portfolio
of solutions in Clean Energy, Energy Efficiency, Water Treatment, Green Lighting,
Green PCs, Green Datacenters and IT for Green Software Solutions.
Wipros Green PC is a complete case study in sustainable product design, energy
efficient operations and extended responsibility for e-waste. Wipros Green PC
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27
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29
Mission10X set out to reach and empower 10,000 engineering faculties with
innovative learning methodologies by September 2010. The year 2009-10 saw an
accelerated growth aided by affiliations with reputed universities and by end of
year the mission has successfully empowered over 7,777 faculties across 19 states
in India.
Wipro Cares
The focus of Wipro Cares is on education & healthcare for marginalized
communities, and environment & disaster rehabilitation.
Education: We work with partners to create an engaging atmosphere where
children can spend a few hours a day at informal learning centres. These centres
double up as bridge schools and aim to get out-of-school children back into the
mainstream.
Some of our initiatives aim to provide additional support to bright students from
poor families by providing books or opening up their world through interactions
and motivation.
Healthcare: Our mobile clinics reach the communities around our factories and
provide healthcare to those who cannot come to the centre. We provide primary
health care services and focus on both preventive and curative treatment.
Environment: Wipro Cares undertakes activities in the community under its
EcoEye charter. We have adopted and developed Lake Manikonda in Hyderabad.
This year we worked to increase its water holding capacity, built a bio-fence and
installed a water purifier system to ensure that the incoming water is clean.
Disaster Rehabilitation: In areas affected by disasters, Wipro Cares works on
rehabilitation, to provide long term support to the community, to restart their lives.
In 2009-10, Wipro Cares ran a pilot project in parts of Bihar affected by the Kosi
river breach. We provided ecologically sustainable infrastructure such as ecosanitation, solar lights and rain water harvesting in the community of Mandal
Thola in Puraini village.
30
We have also provided solar street lights, cobbled streets, raised platforms as
shelters for animals, raised hand-sets and cleaned open wells among other
activities.
31
incorporates
better
ecological
balance
in
every
project
we
execute.
Wipro Cares
Wipro Cares is our community initiative that helps marginalized communities
living in our neighborhoods. This initiative is organized as a trust and works with
funds donated by Wiproites and these funds are in turn matched by Wipro.
Our Operations
Wipro Cares works on the model of channelizing voluntary employee efforts to
contribute to the needs of the neighboring communities.
Volunteers become members of the local chapter and few may emerge as leaders.
These chapters in different locations proactively identify projects based on the
requirement of the community in that location.
These projects are then evaluated by the project head and the central team to be
approved by the trustees.
We have launched Wipro Cares projects in the following areas:
Education
Healthcare
Environment
Disaster Rehabilitation
Wipro Cares has also volunteered efforts in various areas where extreme
circumstances
required
humane
interventions.
Education
Wipro strongly believes that education is the basic enabler and through Wipro
Cares we work with NGOs who in turn work with underprivileged children. We
offer them opportunities for holistic development, run bridge schools and also train
them in vocational skills. While supporting these education activities we also train
teachers to engage with children who come from struggling backgrounds.
32
33
Impact
The confidence of children has risen and the drop-out rate has reduced
Adolescent girls have adopted skills such as tailoring, jewelry-making and other
crafts, thus helping them to earn a small living
The community is gradually responding to the concept of a library and are
engaging themselves in reading books and newspapers in their leisure time
Healthcare
Rural Health Program
Wipro Cares launched Project Sanjeevani, its first rural healthcare project, on the
6th of November 2009, in Aurangabad district. It was launched in partnership with
Savitribai Phule Mahila Ekatma Samaj Mandal (SPMESM), a reputed NGO, which
has extensive experience in working in rural healthcare.
The project will cover nine small villages, all situated in and around Wipros Waluj
factory. Over the next three years, Project Sanjeevani aims to build a sustainable
Primary Healthcare system with the involvement of the local population. Towards
this aim, the project will:
34
35
36
Built toilets and provided clean drinking water to the village to ensure hygiene
and good health
Naluvedapaty
Reconstructed houses that were damaged by the tsunami
Supported the village and helped reconstruct 35 earthquake and cyclone-free
homes as per the government norms in Naluvedapaty
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CONCLUSION
Wipro faced many barries when it first started, the biggest as its CEO mentioned in
an interview with Forbes was that they were looked as a joke being a consumer
care company going into technology. That's why they changed their name from
Western India Products Limited to Wipro. It was about the credibility. But they
invested a lot in R&D and talent.
Wipro put plenty of support money into building custom solutions and into
building a strong after-sales service network that was not very prevalent in those
days.
Today the IT industry is strong and so its Wipro. Wipro has presence around the
world and even in Latin America where it has been difficult for them to acquire the
experience. Wipro is a company that keeps growing, and expanding around the
world.Wipro is doing recruitment from American, European campuses and are now
starting Japanese campuses. They are setting up a center in Atlanta, where they will
be recruiting from universities, and would like to build up to 500 people. They'll
probably have two more centers in the U.S., typically in low-cost areas, university
towns. Community sensitivity and visa concerns make this essential, and it makes
sense to have a local cadre, apart from employees gained through acquisitions.
Wipro Cares is Wipros community initiative focused on certain key developmental
39
WEBLIOGRAPHY
www.google.com
www.wikipedia.com
www.investopedia.com
www.economictimes.indiatimes.com
www.businessdictionary.com
www.csr.com
BIBLIOGRAPHY
40