Minor 2nd Assignment

OF

Business Ethics & Corporate Governance

On
Corporate Responsibilities towards Stakeholders

SUBMITTED TO: SUBMITTED BY

MR. JAI BANSHAL SIR VIKAS AHUJA
(ASSISTANCE PROFESSOR) K.ID- 12370
MBA 4th sem

Abstract

1
Corporations have a responsibility to those groups and individuals that they can affect, i.e., its
stakeholders, and to society at large. Stakeholders are usually defined as customers, suppliers,
employees, communities and shareholders or other financiers.

The responsibility to society at large may well be identical with the responsibility to its
various communities. Many have suggested that corporations have a special social
responsibility over and above its business purpose. In any case corporate responsibility
consists of earning a license to operate by creating value for stakeholders, including
shareholders, and society.

Corporate responsibility includes being consistent with ethical principles and conduct such as
honesty, integrity and respect for others. By voluntarily accepting responsibility for its
actions corporations earn their license to operate in society.

Table of Content

2
 1 Introduction..........04
2 About stakeholder................05
3 Ethics towards stakeholder....07
4 Corporate responsibilities.08
5 Impact on growth ............10
i) Company
ii) Stakeholder
6 Company profile
i) Cipla Pharma.........................11
ii) Dr. Reddys lab...........................17
7 CSR ACTIVITIES/ PROJECTS/ PROGRAMMES -
i) Cipla Pharma............................15
ii) Dr. Reddys lab .............................19
8 Comparison..21
9 Impact......22
10 Conclusion ...23
11 Bibliography ....24

Introduction

3
A stakeholder in a corporation, as defined in its first usage in a 1963 internal memorandum at
the Stanford Research Institute, is a member of the "groups without whose support the
organization would cease to exist."The theory was later developed and championed by R.
Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice
and in theorizing relating to strategic management, corporate governance, business purpose
and corporate social responsibility (CSR). A corporate stakeholder can affect or be affected
by the actions of a business as a whole.

Responsibilities toward Customers-

An organization will have put its customers first, providing them with a stable supply of high-
quality products that consistently meet safety standards.

Responsibilities toward Local Communities-

An organization will consider the best ways to collaborate with local governments and
residents and implement activities accordingly.

Responsibilities toward Business Partners-

An organization will have conduct fair and open transactions with our business partners,
sharing our policies and goals with them.

Responsibilities toward Employees-

An organization will have created a culture in which the individuality of each person is
respected and all employees are provided with a safe, satisfactory work environment.

Stakeholder

4
A stakeholder is any person, organization, social group, or society at large that has a stake in
the business. Thus, stakeholders can be internal or external to the business. A stake is a vital
interest in the business or its activities. It can include ownership and property interests, legal
interests and obligations, and moral rights. A legal obligation may be the duty to pay wages or
to honor contacts. A moral right may include the right of a consumer not to be intentionally
harmed by business activities. Stakeholders can:

Affect a business.
Be affected by a business.
Be both affected by a business and affect a business.

A stakeholder is often contrasted against a shareholder, which has an ownership interest in the
business. R. Edward Freeman and his book Strategic Management: A Stakeholder Approach
(1984) has had a major influence on stakeholder theory.
The concept of a stakeholder does have moral and ethical implications for business
governance. If a business only has a duty to its shareholders, then the business may have no
moral obligations to any other person, organization or society. On the other hand, if a
business has a duty to its stakeholders, then a business must take into account the interests of
its stakeholders as well and not focus completely on maximizing the interests of its owners.

Types of stakeholders-

5
Any action taken by any organization or any group might affect those people who are linked
with them in the private sector. For examples these are parents, children, customers, owners,
employees, associates, partners, contractors, and suppliers, people that are related or located
nearby.
Primary Stakeholders usually internal stakeholders are those that engage in economic
transactions with the business (for example stockholders, customers, suppliers, creditors,
and employees).

Secondary Stakeholders usually external stakeholders, are those who although they
do not engage in direct economic exchange with the business are affected by or can
affect its actions (for example the general public, communities, activist groups, business
support groups, and the media).

Excluded Stakeholders those such as children or the disinterested public, originally as

they had no economic impact on business. Now as the concept takes an anthropocentric
perspective, while some groups like the general public may be recognized as
stakeholders others remain excluded. Such a perspective does not give plants, animals or
even geology a voice as stakeholders, but only an instrumental value in relation to human
groups or individuals.

Stakeholders and Stakeholder's concerns:-

Government-
Taxation, VAT, legislation, employment, truthful reporting, legalities, externalities.
Employees-
Rates of pay, job security, compensation, respect, truthful communication,
appreciation, acknowledgement, recognition.
Customers-
Value, quality, customer care, ethical products.
Suppliers-
Providers of products and services used in the end product for the customer, equitable
business opportunities.
Creditors-
Credit score, new contracts, liquidity.
Community-
Jobs, involvement, environmental protection, shares, truthful communication.
Trade unions-
Quality, worker protection, jobs.
Owner(s)-
Profitability, longevity, market share, market standing, succession planning, raising
capital, growth, social goals.
Investors-
Return on investment, income.
Ten Principles for Company Stakeholder Responsibility-

1. Bring stakeholder interests together over time.

2. Recognize that stakeholders are real and complex people with names, faces and values.

6
 3. Seek solutions to issues that satisfy multiple stakeholders simultaneously.
4. Engage in intensive communication and dialogue with stakeholders not just those who are
friendly.
5. Commit to a philosophy of voluntarismmanage stakeholder relationships yourself,
rather than leaving it to government.
6. Generalize the marketing approach.
7. Never trade off the interests of one stakeholder versus another continuously over time.
8. Negotiate with primary and secondary stakeholders.
9. Constantly monitor and redesign processes to better serve stakeholders.
10. Act with purpose that fulfills commitments to stakeholders. Act with aspiration toward
your dreams and theirs.

Ethics towards stakeholder

I. Employees-
Security of job.
Better working conditions.
Better recommendation.
Participative management.
Welfare facilities.

II. Customer-
Better quality of goods.
Goods and services at reasonably price.
Not to corner stocks and create securities.
Not to practice discriminatory pricing.
Not to make false claims about products in advertisement.

III. Shareholders-
Ensure capital appreciation.
Ensure steady and regular dividends.
Disclose all relevant information.
Protect minority shareholders interests.
Not to window dress balance sheets.

IV. Banks and other lending institutions-

Guarantee safety of borrowed funds.
Prompt repayment of loans.

V. Government-
Complying with rules and regulations.

7
 Honesty in paying taxes and other dues.
Acting as partner in the progress of the country.

Corporate responsibilities

Corporate responsibility, often referred to as corporate social responsibility, is a form of self-

regulation instituted by companies by means of a formal integration into a respective business
model. Corporate responsibility functions as a self-regulating, built-in mechanism where a
business monitors and subsequently ensures its active compliance with the spirit of the law,
international norms and the adhered of various ethical and environmental standards.

Responsibilities toward Customers-

An organization will have put its customers first, providing them with a stable supply of high-
quality products that consistently meet safety standards.

Responsibilities toward Local Communities-

An organization will consider the best ways to collaborate with local governments and
residents and implement activities accordingly.

Responsibilities toward Business Partners-

An organization will have conduct fair and open transactions with our business partners,
sharing our policies and goals with them.

Responsibilities toward Employees-

An organization will have created a culture in which the individuality of each person is
respected and all employees are provided with a safe, satisfactory work environment.
What is the goal of Corporate Responsibility?

8
The goal of corporate responsibility, the reason why it is practiced by all companies in the
United States, is to embrace responsibility for the corporations actions and to encourage a
positive impact through the company's production and various activities on the environment,
the community, its employees, stakeholders and all other members of the public.
Furthermore, corporate responsibility encourages public interest by encouraging community
growth and development; corporate responsibility enables corporations to develop
relationships with the communities in which they reside through the institution of community
service projects and the elimination of practices that harm the environment and public sphere.
Corporate responsibility is deliberately included in a corporations business model to honor a
triple bottom line: people, planet, profit. Although the majority of companies in the United
States seem to only be focused on making money, the majority of domestic companies exhibit
socially-conscious maneuvers and utilize environmentally-friendly resources. Corporate
responsibility aids an organizations mission as well as elucidate to the public, regarding what
the entity stands for and how it upholds its pledge to its consumer base.

Approaches to Corporate Responsibility:

A corporation can benefit and bring direct aid to a community in a variety of ways. An
approach for corporate responsibility that is becoming more popular is a community-based
development approach, where the corporation will work with local communities to better
themselves. For example, corporations commonly set-up or fund educational facilities in poor
communities as well as development centers for impoverished adults. Furthermore, Executive
Officers of large corporations often donate exorbitant sums of money to childrens hospitals,
throughout the world; this money is used to purchase vaccines or medical equipment.

The majority of corporate responsibility projects are established in impoverished nations or

areas. An exceedingly common approach of corporate responsibility is philanthropy. This
initiative includes monetary donations and aid given to local organizations and impoverished
communities in developing areas. That being said, some organizations do not like this
approach for it does not build the skills of the local people, whereas a community-based
corporate responsibility initiative typically leads to a more sustained development.

Another common approach to corporate responsibility is to incorporate a socially-conscious

strategy into the business model of the organization. This ability to seamlessly intertwine
business with community outreach creates a model where the companys resources and
efforts to produce a profit are proportionately attached to sustaining and helping a
community.

Perhaps the most common form of corporate responsibility is found in a simple process
corporations, especially now, should take responsibility for their impact on the environment
and society. To do this, the corporation must incorporate social and environmental accounting
into their day-to-day business model.

9
 Impact on growth

1. Company-
It's no longer enough for businesses to simply buy and sell their products and services
without considering the world in which they operate. Companies must voluntarily do
business in an economically, socially and environmentally responsible manner to be
sustainable over the long term. Corporate responsibility will look different for each
business. Corporate responsibility is the concept that a business needs to be concerned
with more than just profit. An organization corporate responsibilities towards
stakeholders are also expressed through its ethical standards how it treats them. If they
treat them goodly so it will be beneficial for the organization. For this organization will
do growth and it is also create a good image of the organization. And if an organization
doesnt follow those policy of responsibility so its affect the organization growth.

2. Stakeholder-
If we talking about corporate Responsibilities towards stakeholders so we talking here
about our customer, employee, shareholder, banks where from we got loan and
government and according the responsibility towards them, a firm should focus on them
because if an organization follow its responsibility towards its stakeholder so that impact
on that organization growth.
According stakeholder growth, employee will growth in their performance by motivate
from the organization welfare.
Customer gets a good product it is good for the customer.
Shareholder also gets benefit from the organizations growth.
Bank and other lending institutions also get their loan back on time with interest and its
goof for them and their growth.
Government get proper tax from organization and it also help the economy of the country.

COMPANY PROFILE

10
About Cipla Pharma

Cipla is an Indian pharmaceutical and biotechnology company with a multinational presence,

and one of the world's largest manufacturers of generic pharmaceutical formulations. It was
founded in 1935 by Dr. Khwaja Abdul Hamiedas as The Chemical, Industrial &
Pharmaceutical Laboratories. It has its headquarters in Mumbai, Maharashtra, and offices
in Belgium, UK, and the United States. Its current chairman is Dr. Yusuf K. Hamied.

Cipla has 34 manufacturing facilities in India that are cGMP compliant and conform to
national and major international standards. Its formulations are sold in 170+
countries including the United States, Canada, Europe, Africa, Australasia, Latin America
and Middle East.

Cipla's portfolio includes 2000+ products across multiple therapeutic categories, including
treatment for acute, chronic and rare conditions. The company makes affordable medicines
and has played a pioneering role in HIV/AIDS treatment. It is among
the leading manufacturers of ARV (anti-retroviral) drugs in the world, and was the world's
first pharmaceutical company (in 2001) to supply ARVs to countries at less than a dollar a
day. In the financial year 2014-15 (according to company sources), its ARV formulations
were used by more than 2 million HIV patients in 100 countries.

11
Cipla at-a-glance*

20,000 Approvals
Employees
+ US FDA, WHO-Geneva, MHRA-UK, TGA-
Australia, SUKL-Slovak Republic, APVMA-
Australia, MCC-South Africa, PIC-Germany,
Sales Force 8,000+ Danish Medical Agency, ANVISA-Brazil,
INVIMA- Colombia, NDA-Uganda, Department of
Health-Canada and MOH-Saudi Arabia, etc.
Products 2000+

Countries 170+

Therapeutic
15+
Categories

Dosage Forms 60+

Manufacturing
34+
Facilities

Distributors in 6,500+

12
 India

Patents 100+

World Firsts 30+

Market Share
~5%
(India)

As of 31 March, 2015; source: Company website (http://www.cipla.com/)

History of Cipla

Cipla is one of the world's largest generic pharmaceutical companies, and has a strong
presence in 170+ countries. Its founder, Dr. KA Hamied, established it in 1935 with the vision
to make India self-reliant in healthcare. Since then, it has emerged as one of India's leading
pharmaceutical companies.

Cipla has 34 modern manufacturing facilities in India which are engaged in the manufacture
of Active Pharmaceutical Ingredients (APIs) and formulations. These manufacturing facilities
have been approved by major international Regulatory Agencies. The company manufactures
2000+ products in 65 therapeutic categories and 60+ dosage forms, covering communicable,
non-communicable, common and emerging diseases, and rare diseases.

The primary focus of Cipla'sResearch and Development (R&D) center is to develop

innovative and affordable products and drug delivery systems. It has pioneered several
formulations and come up with many firsts - both in India and the world.

13
PREAMBLE

Caring for Life has been at the forefront of Ciplas business philosophy and remains the
principal purpose of doing business. This philosophy is seamlessly integrated into Ciplas
people, products and processes. The initiatives taken by the Company as part of Corporate
Social Responsibility (CSR) programmes effectively contribute to developing a sustainable
and resilient community.

Being a good corporate citizen is an integral part of Ciplas core value. Over the last three
decades, the Company has carried out various CSR activities directly and through its trusts.
Making quality medicines at affordable prices has always been Ciplas focus.

The Company continues to support several community welfare, health and educational
activities, essentially in communities surrounding the Companys factories, both directly and
through its trusts, by providing healthcare education, improvement of community
infrastructure, scholarships, etc. The Company set up the Cipla Foundation in the year 2010
to provide care and financial support to Indians in need of healthcare and education.

The Cipla Palliative Care and Training Centre in Pune which was established in 1997
continues to provide holistic care to terminally ill cancer patients and their families, free of
charge. Till now, the Centre has provided comfort and solace to over 8,500 patients. The
focus of the Centre is to reach out to more cancer patients in need of Palliative Care and to
integrate Palliative medicine with curative therapy.
In a humanitarian effort to support cancer patients, the Company made a breakthrough in
reducing the prices of cancer drugs, thus making world-class medicines accessible to patients
in India.
Cipla also extends support to various NGOs engaged in various social initiatives including
education and health.

VISION STATEMENT

The corporate responsibility vision of Cipla is to achieve the distinction of being

acknowledged as an admirable and trusted Company. Sustainable development and creating
value for the stakeholders are two missions that will drive the company to realize its
corporate responsibility vision which will be built on four strategic pillars of the corporate

14
 responsibility framework safe & quality products at affordable cost, valuing our people,
helping the environment & sustainability and empowering our communities.

OBJECTIVE

With an endeavor to achieve our vision and fulfill our commitment to be a socially
responsible corporate citizen, the CSR policy has been formulated with the following
objectives:

To lay down guidelines to embed CSR as a business process for development of the society.
To undertake projects/programmes which will enhance the quality of life and economic well-
being of the communities in accordance with Schedule VII of the Companies Act, 2013
(Act) read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014 (Rules).

APPLICABILITY

The Corporate Social Responsibility (CSR) Policy of Cipla Limited (Company) has been
framed and made applicable in accordance with section 135 of the Act read with the Rules.
The Policy shall apply to the CSR Committee and all CSR projects/programmes undertaken
by the Company in accordance with Schedule VII of the Act.

CSR COMMITTEE

CSR Committee of the Board has been formed as required under the Act.

CSR ACTIVITIES/
PROJECTS/PROGRAMMES

The Company may undertake CSR activities through a registered trust or a registered society
or a company established by the Company or subsidiary or associate company under section
8 of the Act or through such other trusts, NGOs, registered societies etc which have an
established track record of three years of undertaking such projects/programmes.
The Company may collaborate with other companies for undertaking the CSR
projects/programmes subject to fulfilment of separate reporting requirements as prescribed in
the Rules.
The scope of CSR activities of the Company will inter-alia cover the below mentioned key
thrust areas.

15
The CSR activities shall not include any activity undertaken by the Company in pursuance of
the normal course of business of a Company.
Some of the activities the Company has been engaged in are as follows:
Sr. No Key thrust areas Activities/ Programmes/ Projects
1 Health Palliative care for terminally ill patients
Creating awareness on health
Improving sanitation
Providing easy access of medical support to
vulnerable communities
Supporting Cancer / HIV / Thalassemia patients
Mobile Medical Units

2 Education Setting-up / Developing infrastructure for schools

Arranging training and awareness programmes
for adolescents.
Promoting e-learning
Enhancing reading culture
Awarding scholarships for meritorious/needy
students
Providing vocational skills

3 Address Social Inequalities Supporting old age homes

4 Environment
5 Rural development projects
6 Others
Supporting orphans and differently abled
Promoting environmental sustainability
Promoting conservation of natural resources
Promoting of Renewable Energy Resources
Enhancing livelihood
Undertaking Sustainable Rural Development
Projects
Undertaking disaster management
Supporting NGOs & trusts for conducting various
programmes/activities
Any other permissible activity
under
Schedule VII of the Act

16
 CSR EXPENDITURE

CSR expenditure shall include all expenditure including contribution to corpus, for projects
or programmes relating to CSR activities approved by the Board on the recommendation of
the CSR Committee, but does not include any expenditure on an item not in conformity or
not in line with activities which fall within the purview of the Schedule VII of the Act.
The amount to be spent on CSR activities shall be calculated in accordance with the
provisions of the Act and Rules made thereunder.
Any surplus arising out of CSR projects, programmes or activities shall not form part of the
business profit of the Company.

EXECUTION, MONITORING &

REPORTING

The CSR Committee shall:

1. Prepare and propose the CSR plan with the execution modalities and implementation
schedules to the Board.
2. Periodically appraise the Board on the status of the CSR plan.
3. Institute a transparent monitoring mechanism for implementation of the CSR projects,
programmes or activities undertaken by the Company.

To fulfill the above responsibilities, the CSR Committee would be equipped with necessary
resources. The CSR team has been setup to ensure effective implementation of the CSR
activities. The team would submit status reports of the projects/programmes to the CSR
Committee on a periodic basis.
All disclosures, display and reporting requirement related to CSR shall be made in
accordance with the provisions of the Act and Rules made thereunder.

Company competitors

Sun parmacuticals
Dr. reddys
Intas
Sanofi
Alembic
Glenmerk
Pizer
Abbot

17
About Dr. Reddys Laboratories limited

Dr. Reddys Laboratories Limited (DRL) was established in 1984 to produce bulk drugs for
domestic markets. The companys process technology was based on indigenous efforts. The
first product was Methyl Dopa - a technologically difficult product. This product was
exported to USA through a multinational company. The company subsequently in late 80s
made a number of sophisticated products for multinational companies and the quality of
products made by company, was found to be better than the best in the world. The company
displaced a number of well-established suppliers from Europe and Japan. During 90s, the
company introduced branded finished formulations in the less regulated markets in CIS,
Middle East, South East Asia and Africa. From late 90s, the company has started exploiting
US patent and regulatory system to introduce generic products in time, to gain market
exclusivity and establish brand image. It is the first Indian based company to receive 180
days exclusivity for a generic drug in USA. Its latest product Amlodipine Maleate has made a
sale of US$ 2.0 billion during 2002.

Company At a Glance

The company has global operations with a strong focus on US, Europe, Russia, China and
India. Its portfolio of products consists of 70 Active Pharmaceutical Ingredients (API), 100+
Branded Formulations, 11 Generic Pharmaceuticals, 1 Specialty pharmaceutical, 7 new
chemical entities in clinical trials. It has world class manufacturing facilities consisting of 6
US FDA approved API plants, 7 formulation plants out of which one is dedicated for US and
European market. Its sales turnover for 2002-03 was US$ 380 m. This comprised of 35%
API, 38% Branded Formulations, 24% Generics and others 3%. Its revenue came from US
(32%), India (36%), Russia (9%), Europe (8%) and others (15%).

18
CSR of Dr. Reddys Lab through Dr. Reddys Foundation :

Dr. Reddys Laboratories was the first active pharmaceutical ingredient (API) company
established in May, 1984 with construction of the first plant at Bollaram, Hyderabad. Today it
is the largest Indian pharmaceutical company and one of the fastest growing generic
pharmaceutical companies in Russia. It is the first company to start drug discovery programs
in India through The Dr. Reddys Research Foundation (DRF). DRF was recognized as a
scientific and industrial research organization by the Department of Scientific and Industrial
Research, Ministry of Science and Technology, Government of India. It is aimed at providing
innovative new medicines for healthier lives, at a price of the common man. Dr. Reddy also
founded the Hyderabad-based Institute of Life Sciences, with public-private partnership with
the Government of Andhra Pradesh.

Dr. Reddys Foundation (DRF) is a non-profit organization established by Dr. Reddys

Laboratories in 1996. DRF focuses on sustainable development in individual, group and
organization levels through Urban Livelihoods, Rural Livelihoods, Education with particular
focus on economically disadvantaged youth.

The two-fold objective of DRF is

1. Helping improve livelihoods through programs increasing employability and aiding
income generation and
2. Providing opportunities for learning to those who have never been to school or have
dropped out. The Foundation also works to improve the quality of education in
schools. Through its sustained efforts, it has helped to improve the lives of nearly 5
million underprivileged people in India to date, especially youth and children. It
works with all concerned stakeholders in this field.

Channels of CSR

To educational needs of the children who are not enrolled in schools and engaged as child
labour, the company channels its wide network of social activities through Dr. Reddys
Foundation (DRF)

To address health education needs and patient care activities through Dr. Reddys
Foundation for Heath Education (DRFHE) and creates positive impact on communities
through Corporate Social Responsibility (CSR) teams in each location.

To address clean drinking water Naandi Foundation set up in 1998 as a public charitable
trust. Operating in multiple states, it is now one of the biggest social enterprises in India,
providing clean drinking water and mid-day meals to children, promoting child rights and
creating livelihoods. To safeguard motherhood and newborn care, NICE Foundation was
setup which is dedicated to improving maternal health and combating infant and child
mortality.

19
Coordinating Agencies

State Governments of respective States

Aga Khan Foundation

Activities of CSR

The main activities of Dr. Reddys Foundation include;

Short term skill development training programmes Livelihood Advanced Business

School (LABS) for youth and Livelihood Advanced Business School (LABS-PwD)
for People with Disability in the age group of 18-30 to ensure placements. They
prepare youth for careers in emerging service sectors such as Hospitality, Customer
Relations and Sales/ Retail Sales, BPO voice and non-voice and other market-driven
service domains. These programmes touches the issues like employability, Income
Generating activities, subsequent improvement in quality of life. Over 2,90,000 youth
have been trained to date under the LABS program, with an average placement rate
of 70%. Operational in over 75 centers across India, this one-of-its kind business
school tells the collective success story of tens of thousands of economically
disadvantaged youth, and of their journey to self-respect and financial independence.
2,94,444 livelihoods are created by 31st March 2014.
The foundation is providing clean drinking water and midday meals to children in
schools. It also promotes child rights and creating livelihoods. It also dedicated to
safeguard motherhood and newborn care, to improve maternal health and combating
infant and child mortality.
Agricultural programme Livelihood Advancement Business School for farmers
(LABSF) -launched in 2010, to provide small farmers with knowledge on the latest
advancement in technologies and techniques in the area of crop production.
This helps the farmers to overcome the challenges of low agricultural productivity
and enhances the incomes. In addition in the rural economy the local skills are
identified and linked to local jobs thus reducing pressure on dependency on
fragmented smallholding lands.b 5916 farmers are impacted by 28th February 2014.
DRF in association with Aga Khan Foundation initiated SCOPE (School
Community Partenershi in Education) in 1999 under the programme for Enrichment
of School Level Education. Those who completed will be mainstreamed
DRF promoted Education Resource Centre (ERC) to develop supporting materials
for the children in gaining curricular training and to make the children comfort to
shift to an english medium schools through language transition course material.
RBCs (Residential Bridge Centres) set up in 2008-09 in Ranga Reddy district in
collaboration with SSA and NCLP. The children between the age group of 9-14 years
from DRFs transit schools were mobilized into these RBC schools to impart
mathematics, english, telugu along with extra curricular activities. With the
successful training, the children from these centres were mainstreamed by through
Social welfare, Tribal welfare, B.C. welfare regular schools and hostels, KGBVs.

20
 DRF drew MoU with EGMM (which is implementing agency of SERP) of the
Department of Rural Development, Government of AP to run IKP LABS programme
in the state. In 2008 12,586 members were trained and 10,753 were found placements
Similarly IKP-Urban (UPADHI) Labs were set up through the MoU with Mission of
Elimination of Poverty in Municipal areas (MEPMA), Government of Andhra
Pradesh and imparted skill training for livelihoods under UPADHI (Urban
Programme for Advancement of Household Income). 6,246 were trained and 5452
were placed during the year.

Observations

The study shows that all surveyed companies present themselves as having CSR policies and
practices. It reflects their CSR philosophy or social environmental and ethical objectives in
mission statements.
The study reveals that Dr. Reddys Foundation implement CSR programmes with respect to
rural development and urban youth, education and income generation through the following
institutions which are given below;
CSR activities implemented directly by the company through its own CSR division,
HR Department, local management of manufacturing unit.
CSR activities implemented by establishing a separate foundation.
CSR activities implemented through partnership with NGOs, academic institutions,
international agencies.
CSR activities implemented through partnership with Government.
The activities resolve around sustainable livelihood through skill
development/advancement.
The activities are promoting equity among different communities through education
and skill training programmes.
The skill development programmes especially for women and rural youth include
fashion designing, preparation of agriculture based products like pickle making and
fruit products, electrical winding, cell phone repair, screen printing, printing and
dying, etc. Dr. Reddys Foundation implements SHE policy i.e., Safety, Health and
Environment.
The activities are promoting the quality agriculture productivity and status of farmers.

Company competitor-
Sun parmacuticals
Cipla pharma
Intas
Sanofi
Alembic
Glenmerk
Pizer
Abbot

21
 Comparison

By the comparison of corporate responsibilities towards stakeholders of both

organizations, DR.Reddy and Cipla Pharma, they both follow same types of corporate
responsibilities towards their stakeholders.

Cipla Pharma-
Employees- Focus on employee benefits and their future growth.

Customer- Being a good corporate citizen is an integral part of Ciplas core value.
Over the last three decades, the Company has carried out various CSR activities
directly and through its trusts. Making quality medicines at affordable prices has
always been Ciplas focus.
Shareholders- Provide all information of business.
Banks and other lending institutions- Return of loan on time with proper interest.
Government- Tax pay on time, follow other Govt. Policy and its slogan is Caring
For Lifes, so its help to make our country more and more propores in terms of
healthcare and pharmaceutical sectors.

Dr. Reddys Laboratories

Employees- Focus on employee benefits and their future growth.
Customer- DRF focuses on sustainable development in individual, group and
organization levels through Urban Livelihoods, Rural Livelihoods, Education with
particular focus on economically disadvantaged youth.
Shareholders- Provide all information of business.
Banks and other lending institutions- Return of loan on time with proper interest.
Government- Follow Govt. Policies, tax pay on time and helps in progress of the
country and Dr. Reddy also founded the Hyderabad-based Institute of Life
Sciences, with public-private partnership with the Government of
Andhra Pradesh.

22
 Impact

Corporate responsibility is the concept that a business needs to be concerned with more
than just profit. And if we talking about corporate Responsibilities towards stakeholders
so we talking here about our customer, employee, shareholder, banks where from we got
loan and government and according the responsibility towards them, a firm should focus
on them because if an organization follow its responsibility towards its stakeholder so that
impact on that organization growth. An organization corporate responsibilities towards
stakeholders are also expressed through its ethical standards how it treats them. If they
treat them goodly so it will be beneficial for the organization either they have to pay for
this.

Some impact-
if they do corporate responsibilities towards stakeholders-
Customer retention
Access to funding
+ve image
Market gain
Stable cash flow
Employee better productivity
Future growth of company

if they do not follow corporate responsibilities towards stakeholders-

no customer satisfaction
-ve image will build
Employee will be demotivated
Affect on employee productivity
Affect on company future growth
Shareholder can be move from the organization.

23
 Conclusion

The rise in population of ethical consumerism over the last two decades can be
linked to the rise of Corporate Social Responsibility. Global population increases
so does the pressure as on limited natural resources to meet rising consumer
demand (Grace and Cohen, 2005, 147). Since industrialization, in many
developing countries is booming as a result of both technology and globalization,
consumers are more aware of the environment and social implication of their
day- to - day consumer decisions and are therefore beginning to make
purchasing decisions related to their environment and ethical concern. In this
connection the corporate companies are more concerned about their
stakeholders interests, as well as their own interest.
Therefore, Dr. Reddys Foundation was established with this objectives
and successfully attending to the socio-economic, welfare, and
environmental aspects of the society as its responsibility. The action taken
by Dr. Reddys Foundation in this direction is high appreciable.
Cipla Pharma continues to support several community welfare, health and
educational activities, essentially in communities surrounding the
Companys factories, both directly and through its trusts, by providing
healthcare education, improvement of community infrastructure,
scholarships, etc. The Company set up the Cipla Foundation in the year
2010 to provide care and financial support to Indians in need of
healthcare and education.

The concept of corporate responsibility towards stakeholders embraces multiple stakeholders

or partners (employees, customers, banks, governments and others) in addition to
shareholders and other investors. Companies with good corporate responsibility follow helps
to get better outcome it can be the aspect of employee productivity or it can be customer base
increase or the overall growth of business. If a firm follows those responsibilities towards its
stakeholder so it will be beneficial for that organization.

If a company focus on employee so they will give better outcome

If a company focus on customer satisfaction so it will increase the customer base

If a company provides proper information to its shareholder so build the good

relationship.

24
 If a company follows all the govt. policies so it builds a good image of that company.

If a company follows the policy of the bank by which they took loan for the
organization, if organization return loan on time with the interest so it also builds a
good relationship and they will also give proper loan in future.

So every organization must follow the corporate responsibility towards stakeholders because
stakeholders have the rights of that and they deserve that and it will be beneficial for the
organization.

Bibliography

http://www.who.int/intellectualproperty/events/en/Reddy.pdf
http://www.drreddys.com
Economics times
http://www.brandindiapharma.in
http://www.cipla.com/en/

25
26