Académique Documents
Professionnel Documents
Culture Documents
INDEX
10 BIBLIOGRAPHY
WEBLIOGRAPHY
11
1
Project Report On Corporate Social Responsibility
Business Environment
Environmen
t Decision
Social Responsibility of business refers to what business does over and above
the statutory requirement for the benefit of the society. The word “responsibility”
emphasizes that the business has some moral obligations towards the society.
2
Project Report On Corporate Social Responsibility
The term corporate citizenship is also commonly used to refer to the moral
obligations of the business towards the society. It implies that like individuals, corporates
are also the part of the society and their behavior shall be guided by the social norms.
Social Responsibility has been defined by Davis as follows:
“Social responsibilities refer to businessman’s decision and actions taken to reason at
least partially beyond the firm’s direct economic or technical interest.”
Still broader view has been suggested by Andrews when he says that:
“By social responsibility, we mean the intelligent and objective concern for the
welfare of the society that restrains individual and corporate behavior from ultimately
destructive activities, no mater how immediately profitable, and leads in the direction of
positive contributions to human betterment, variously as the latter may be defined.”
There has been a growing acceptance of the plea that business should be socially
responsible i.e. it should discharge its duties and responsibilities in enhancing the
welfare of the society of which it is an integral part.
H. S. Singhania classifies CSR into two categories:
The manner in which a business carries out its own business activity.
The welfare activity that it takes upon itself as an additional function.
3
Project Report On Corporate Social Responsibility
There are some models, which endeavor to describe the evolution and extent of
social orientation of companies.
Carroll’s Model:
Discretionary
Resp.
Ethical Resp.
Economic Responsibility:
A firm being an economic unity, this is its prime responsibility, i.e. to
satisfy the economic needs of the society through generating surplus and
investing in development of the society.
Legal Responsibility:
A company performs this because it is bound to obey the law and the legal
system.
Ethical Responsibility:
4
Project Report On Corporate Social Responsibility
Ackerman’s Model:
Also described that CSR done by a company generally spreads over three
phases:
FIRST where the top management recognizes the existence of social
problem, which deserves attention and acknowledges the company’s policy towards it
by making an oral or written statement.
SECOND phase is where the Co. appoints staff specialists or external
consultants to study the problem and suggest ways of dealing with it.
THIRD phase involves the implementation of the social responsibility
programmes.
5
Project Report On Corporate Social Responsibility
Shareholders:
The first responsibility of the management is to protect the interest of
shareholders. The interests of majority of shareholders and large minority of
shareholders are generally well protected through either direct participation in the
management actions or they have real power to intervene, if necessary. They
should be informed about the functioning of the organization adequately and
timely.
Therefore, management has a responsibility to provide proper safeguard to
the money invested by shareholders.
6
Project Report On Corporate Social Responsibility
Workers:
Workers have direct interest in an organization because by working there,
they satisfy their needs. Thus, it is the management’s responsibility to protect the
interest of workers in the organization. This can be done by the management in the
following ways:
- Management should treat workers as another wheel of the cart
- Management should develop administrative process in such a way that
promotes cooperative endeavor between employers and employees.
- The management should adopt a progressive labor policy based on
recognition of genuine trade union rights – participation of workers in
management, creating a sense of belongingness, improving their living and
working conditions.
- Management should pay fair and reasonable wages and other financial
benefits to workers.
Customers:
Management owes a primary obligation to give a fair deal to the customers.
This can be done in the following ways:
- Customers should be charged a fair and reasonable price.
- The supply of goods and services should be of uniform standard and
of reasonable quality.
- Management should not indulge in profiteering, hoarding, or creating
artificial scarcity.
- Management should not mislead the customers by false, misleading
and exaggerated advertisements.
-
7
Project Report On Corporate Social Responsibility
Government:
It is very closely related with the business system of the country. It provides
various facilities for the development of business. Government, no doubt, exercises
control over business, but these controls are meant for overall development of
business. Management can discharge its obligation to government by:
- Management should be a law-abiding citizen
- Management should pay taxes and other dues fully, timely &
honestly.
- It should not corrupt government workers and public servants and the
democratic process
- It should not buy political favors by any means
Society:
Organizations exist within a social system and get facilities from the system.
Therefore, they owe obligations to the society as a whole. This can be done by:
8
Project Report On Corporate Social Responsibility
9
Project Report On Corporate Social Responsibility
that has attracted the attention of many thinkers, both from academics as well as from
practitioners. There have been arguments and counterarguments in favour of and
against social responsibility of business.
1. Profit maximization:
The first and the most important argument against CSR is that a business
organization’s primary objective is profit maximization. Since business operates in a
world of poverty and hunger, the economic efficiency of the business is a matter of
top priority and should be the sole mission of business. Its function is economic and
not social and economic values should be the only criteria used to measure success.
10
Project Report On Corporate Social Responsibility
4. Lack of accountability:
Another point of view is that business has not direct accountability towards the
people, so it is unwise to give the businessman the responsibility for areas he is not
accountable. Until the society can develop mechanisms, which establish direct lines of
social accountability from business to the public, it should pursue its goal of profit
where it is directly accountable through the market system.
5. Friedman’s Views:
The most convincing criticism has been voiced by the economist Milton
Friedman. Friedman based his arguments on two principal contentions, one economic
and one legal. From the economic perspective, he asserted that if managers spend
corporate funds on projects not intended to maximize profits, the efficiency of the
market mechanism will be undermined and resources will be misallocated within the
economy.
On the legal side, Friedman contended that because managers are legal agents
of the stockholders, their sole duty is to maximize the financial return to the
stockholders. Hence if they spend corporate funds for social purposes they are
essentially stealing from the stockholders.
11
Project Report On Corporate Social Responsibility
2. Public Image:
Another argument in favor of social responsibility is that it improves public
image. Each individual firm seeks an enhanced public image so that it may gain more
customers, better employees more responsive money market and other benefits.
Affirm which seeks better public image should support social goal.
12
Project Report On Corporate Social Responsibility
6. Citizenship argument:
If individual members of society have an obligation to improve society,
corporations also have this responsibility. After all, corporations unlike citizens are
created by the society. Corporations are citizens and citizens have civic duties and
responsibilities.
The proponents of social responsibility say that the old concept of profit
maximization has vanished and even economists have accepted it. The have
substituted profit maximization with satisfactory profit. Today, business decision –
making is a mixture of altruism, self interest and good citizenship. Managers do take
actions, which are in the social interest even though there is a cost involved and the
connection with the long-range profit is quite remote. Therefore, the responsibilities of
a business can be represented as follows:
13
Project Report On Corporate Social Responsibility
The figure shows that though there may be some cleary distinct economic and
social goals of an organisation, there is always a common area. This is the area that
provides a realistic view of the social responsibility of a business
14
Project Report On Corporate Social Responsibility
15
Project Report On Corporate Social Responsibility
Educational Initiatives
Aligned with the goals and vision of the management, several educational
initiatives have been proposed / established as leaps into the future. These ventures aim at
building confidence, capacity, global mindsets and communication skills in young
people-how they grow will shape and give direction to the growth of our country
16
Project Report On Corporate Social Responsibility
· Reliance has started a teacher training project called Anand-Dayee Shikhshan with
UNICEF and the Raigad zilla parishad covering all the 2500 primary schools of the zilla
parishad and has trained more than 5000 teachers and officers. Recently Reliance has
joined with other corporate houses to setup a world-class business school in India, in
association with the Wharton and Kellogg business schools of USA.
17
Project Report On Corporate Social Responsibility
The Dhirubhai Ambani Foundation (DAF) has instituted several rewards and scholars
schemes over the years.
The Dhirubhai Ambani SSC Merit Reward Scheme and Dhirubhai Ambani
Undergraduate Scholarship Scheme encourages and assists district level meritorious
students to pursue professionally oriented higher education. Both the schemes, instituted
in June 1996, are currently applicable in the states of Gujarat, Maharashtra, Goa and the
Union Territory of Diu, Daman, Dadra and Nagar Haveli.
The Reliance Kargil Scholarship Scheme was launched with the generous
contribution of Reliance employees. It continued to support 383 children from 103
families of martyrs of the Kargil war as well as disabled soldiers.
In 2003 a special award and a scholarship scheme have been introduced for district
toppers in the physically challenged category, to help such students obtain equal
opportunities in education.
18
Project Report On Corporate Social Responsibility
Healthcare Initiatives
As with education, Reliance stresses one more key contributor to the country's
human index factor - programmes and projects in areas of health awareness and
management. Along with other pre-occupations, social infrastructure is foremost in their
activities.
19
Project Report On Corporate Social Responsibility
· The Company has constructed a 6- storey, 100 bed hospital in Mumbai viz. BSES
MG Hospital.
The building is spread on a plot of area of 40,000 sq. ft. This fully equipped
hospital will cater to the needs of the Company's consumers. Apart from general medical
services, specialty services like C T Scan, Stress Test, Intensive Care Unit, etc. will also
be made available to patients.
This 82-bed state-of-the-art hospital was established seven years ago. It has served
the population in the industrial and rural areas of Raigad District, Maharashtra. Besides
taking care of hospitalization requirements, the hospital provides poor patients and senior
citizens free outpatient and subsidized inpatient treatment. It has provided critical
intervention in the case of numerous highway accidents and saved lives by providing
prompt, specialized and free life saving treatment. Reliance provides free trauma care
and treats all local people in nearly all area of medicine and surgery.
20
Project Report On Corporate Social Responsibility
Community Development
At all manufacturing locations, care is taken to improve the quality of life in the
surrounding communities. These community development programmes focus on key
areas of healthcare, education, child welfare, and infrastructure development. Reliance
offers medical services at all its locations.
Eye camps, blood donation camps, a mobile dispensary catering to nearly 15,000 patients
and a physiotherapy centre for mentally challenged children constituted some of the other
healthcare initiatives at Hazira.
Over 1000 enthusiastic Senior Citizens came together to Celebrate Age in the
Harmony initiated 5 kms Senior Citizen Special Run, held in association with the
Standard Chartered Mumbai Marathon 2005 on January 16, 2005. The event placed the
image of senior citizens in the forefront, helping increase awareness and sensitivity
towards them.
22
Project Report On Corporate Social Responsibility
Other Initiatives:
After the devastating cyclone that hit Jamnagar in June 1998, Reliance carried out
a large-scale relief operation that covered the entire Jamnagar city and neighboring
villages. Over 2000 light poles were erected and within just 3 days power was supplied. 7
medical centers and 4 ambulances carried out medical relief operations throughout the
region and free medicines were also distributed besides supplying essential commodities
to the entire area 20 pucca houses were handed over to landless labourers of the village.
When the super cyclone devastated parts of Orissa, the Company deputed a team
of engineers with support staff for restoration of electricity in the affected areas. The
timely assistance rendered by their team was effective and widely commended.
In January 2001, immediately in the aftermath of the earthquake that struck parts
of Gujarat, Reliance rushed teams of its executives; engineers and skilled workforce to
the quake affected areas and speedily restored electricity supply. The Chairman and
senior officials of Gujarat State Electricity Board lauded the efforts put in by our team.
In addition, Reliance organized a 3-day drive for collection of relief materials in Mumbai,
which were immediately dispatched to the affected areas
In the year 2002 the floodwater entered the homes of all those who lived at ground
level in Dahanu and their Dahanu plant had to be shut down. Enormous damage was
caused due to this disaster. The total damage in this region was about Rs. 25 crores. In
spite of this Reliance went to help the citizens of Dahanu with clean drinking water and
bags of grain were distributed to those who lived in the affected areas.
Reliance also took up a turnkey contract on no profit basis for the construction of
more than six hundred houses in Dudhai of Bhuj district, Gujarat in association with a
23
Project Report On Corporate Social Responsibility
social welfare organization. The township was completed in a record period of 100 days
and dedicated to the residents of the village by the Hon'ble Prime Minister. Reliance with
contributions from its employees and matching contribution from the Company
constructed a 30-room secondary school and a community center, the latter also was
inaugurated by the Hon'ble Prime Minister.
24
Project Report On Corporate Social Responsibility
Press Releases
Reliance has received an award for Corporate Social Responsibility for the year
2003. Shri Nikhil R. Meswani, Executive Director, Reliance Industries Limited received
the award from Justice M.N. Venkatchaliah, Former Chief Justice Supreme Court of
India at a function in Mumbai
On November 14, 2003 Reliance was awarded the Golden Peacock Award for
Corporate Social Responsibility in recognition of its social initiatives. The Institute of
Directors (IOD) has instituted the award.
Reliance Industries Ltd, Tata Sponge Iron Ltd and Indian Oil Corporation are
proud winners of The Energy Research Institute’s (TERI) Corporate Environmental
Awards 2002/03, which were announced on June 5 on the occasion of World
Environment Day. Union minister of state for environment Namo Narain Meena
presented the awards.
25
Project Report On Corporate Social Responsibility
26
Project Report On Corporate Social Responsibility
Due to this overwhelming success, SCB has continued with its programme, in
partnership with VISION 2020 – the international body for the elimination of avoidable
blindness - and together aim to raise US$ 6 million over the next three years which will
help to restore sight of about one million people
The bank believed in discharging its social responsibility and so as part of the
bank's 150th anniversary in 2003, a global fund raising campaign - 'Seeing is Believing'
-- was launched that aimed to restore eyesight for nearly 30,000 persons globally (one for
each Standard Chartered Bank employee). The Bank raised over US$ 1.44 million
globally (enough to restore eyesight for 56,000 persons). In India, the Bank raised about
US$ 200,000 from its staff and customers and is in the process of partnering with several
organizations and NGOs across the country to restore eyesight to over 7,500 persons
27
Project Report On Corporate Social Responsibility
SCB’s “Living with HIV” programme focuses on training all of its 30,000 plus
employees in more than 50 countries on the facts about HIV/AIDS, how it spreads, how
it can be prevented and how to care for those who are infected or affected by HIV.
SCB in through their unique programme hopes to take away the stigma attached to
HIV/AIDS in the hope that more people will come forward for testing and treatment,
which they also offer to their staff members.
In Botswana for example SCB’s work with the youth organizations has helped to
educate people about prevention and treatment. Similarly, in Malaysia, SCB is working
with the student organization, AIESEC, and have trained 30 young people who will in
turn train a further 3,000 counselors, thus spreading awareness in the country.
28
Project Report On Corporate Social Responsibility
SCB, through this marathon was able to bring closer donors like ICICI, McKinsey,
celebrities and international sports personality to various NGOs like the Give India and
National association for the Blind (NAB).
The participants of the Marathon began at the start and ended at the finish line. But
the funds generated began at the Marathon and ended in spurring social action for the
under privileged. Following the choice of the donors and the variety of donation options,
funds have found their way to a variety of causes. It took Rs 600 to sponsor a mid-day
meal for 120 children, Rs700 to sponsor an artificial limb for a disabled child, Rs2000 to
sponsor a blind child’s education for a year, Rs5000 to sponsor a set of books and
journals for a rural library and Rs11,250 to sponsor teacher training workshops for 25
women.
The Nation Association for the Blind (NAB) has spread the Marathon generated
funds for cataract operations, Braille presses and rehabilitation activities, while the
Children Toy Foundation is busy formulating nutrition programmes, teaching aides,
uniforms and libraries with it. 125 children are now assured of an education while 30
29
Project Report On Corporate Social Responsibility
disabled people will have access to rehabilitation facilities. Dream a Dream will initiate
the Dream Outdoor Programme, aimed at giving disadvantaged children exposure and
empowerment through the means of outdoor activities.
SCB will be arranging similar such marathons this year in Nairobi and Singapore
and in Hong Kong the next year.
Ashray centre
In continuing the Bank's pledge for providing support to HIV affected people
Standard Chartered India has recently supported the children of Ashray Centre.
Ashray centre is a local NGO which provides residential shelter for children of 0-
12 years affected and infected by HIV /AIDS. A total of 60 children are currently housed
at the centre. The Standard Chartered Branch staff donated generously for the mission
along with money that was available out of selling old newspapers. School bags,
notebooks and pencil were donated to each child.
And as a token of their gratitude towards the Bank, the children, all trained by
Shiamak Davar, entertained the Banks staff when the staff had visited the NGO to
distribute the gift items.
30
Project Report On Corporate Social Responsibility
Health education and awareness activities were also undertaken by the Mobile
Medical Unit to address eyes related problems and organizes preventive health-checking
camps. Arrangements have also been made under which the patients can be referred for a
secondary level and tertiary level health care.
The Mobile Medicine Unit is believed to have fulfilled a long felt need of the
disadvantaged older persons in the society who were otherwise neglected by the society.
31
Project Report On Corporate Social Responsibility
The Central School for the Deaf has 62 children divided into 6 classes. Education
is imparted to the children free of charge and a school bus service is provided for
bringing and taking the children to and from school. A balanced mid-day meal is also
provided to the children free of cost. Regular medical and dental camps are conducted
every year for the children and follow-up treatment is ensured. The school also offers
assistance for the purchase of the individual hearing aids wherever necessary.
The Bank provides ongoing assistance to the School, through cash donation, as well as
the Standard Chartered Income Fund, in which the Bank's donations and the School's
own funds are invested, and which interest returns fund the School.
32
Project Report On Corporate Social Responsibility
Prem Dan
Prem Dan, a charity run by Sister Felicity Morris in Mumbai, has three learning
centers for children forced into living on the streets.
Standard Chartered Bank has committed an annual donation for a period of five
years towards the Education and Nutrition Programme for the under privileged children
in Mumbai.
The children covered under programme are provided with a wholesome mid-day
meal and are given free tuition classes to help them cope with their studies. This
programme has helped the children because they leave their homes early morning and
return home only in the night for their supper. The programme supports around 572
children in four local schools in Mumbai.
33
Project Report On Corporate Social Responsibility
The school required nearly five years to complete the renovation project, due to the
meticulous care with which the renovation to an 86-year old Heritage building needed to
be carried out. The hall, now complete and known as the Standard Chartered Hall, was
inaugurated by Dr. P. C. Alexander, Governor of the state of Maharashtra, in January
2001.
34
Project Report On Corporate Social Responsibility
Standard Chartered is the largest donor and supporter of the Balwadi programme
and the bank is now exploring the possibility of taking on the role of the 'Leading
Organization' in this ward. Standard Chartered India has increased its involvement with
this organization, to embrace not only donations of funds, but also the inclusion of need-
35
Project Report On Corporate Social Responsibility
specific contributions, with the Bank donating old computers and furniture for the Mahila
Mandals during the Pratham Mumbai Initiative in 2001.
Under its ‘Seeing is Believing” campaign, Standard Chartered Bank has partnered with
Sankara Nethralaya. In this project, with the help of SCB, the fund could conduct 1,000
free cataract surgeries for the poor and needy people in Tamil Nadu in 2004.
Chris Low, then the CEO of Standard Chartered Bank, India Region, had presented
a cheque of Rs. 12.50 lakh to Dr. S. S. Badrinath, President and Chairman, Sankara
Nethralaya and also committed that the Bank would continue to fund the Nethralaya
projects to perform surgeries for the poor.
36
Project Report On Corporate Social Responsibility
Mahindra & Mahindra Ltd. (M&M), the flagship company of the Mahindra
Group of companies, is one of the largest private sector companies in India, and
amongst the top ten industrial houses in India. Mahindra started operations in
1945 to manufacture General Purpose Utility Vehicles and later on entered into
manufacturing of Tractors and Light Commercial Vehicles (LCVs) and then
expanded its operations to steel, trading and manufacturing of Ash Handling
Plants & Traveling Water Screens.
37
Project Report On Corporate Social Responsibility
Mahindra & Mahindra undertakes quite a bit of charitable work, and even
though the figure against its name shows Rs 1.3 crore, this is just the amount
available under the head donations in its annual report. Its activities include:
38
Project Report On Corporate Social Responsibility
Established in 1953 by the late K.C. Mahindra, M&M is the main sponsor
of the KC Mahindra Education Trust. The trust's objective is the promotion of
education at various levels, and it is involved in and contributes to various
education initiatives.
In 34 schools in India the trust has instituted the Mahindra Search for
Talent scholarships to encourage and reward students who have achieved
academic excellence. These scholarships are awarded every year to over 300
students from all over India. These are students with good scholastic records who
come from lower income groups and are keen on pursuing job-oriented diploma
courses.
The trust has also instituted the KC Mahindra Chair at the Institute of
Science, Mumbai, since 1970 to encourage research in the field of nuclear
chemistry. Besides, the trust has established the Mahindra Search for Talent
scholarship at the Banasthali Vidyapeeth, a deemed university in the state of
Rajasthan, where it has also recently started a management school called Wisdom
- Women's Institute for Studies In Development-Oriented Management.
39
Project Report On Corporate Social Responsibility
2. Nanhi Kali
40
Project Report On Corporate Social Responsibility
41
Project Report On Corporate Social Responsibility
42
Project Report On Corporate Social Responsibility
4. Welfare Centre
43
Project Report On Corporate Social Responsibility
The Welfare Centre came into existence in August 1971 to work not only
towards the development of Employee and his family but also to co-ordinate
other human and social resources available in the community. Thus, the welfare
activities cover both people from the low economic strata of the society within
and outside the factory.
Under the guidance of the Welfare centre, employees have formed the Social
Activity group known as Avani, which works actively for the cancer patients by
donating money through various sales and also organize sale of products by the
disabled organizations.
44
Project Report On Corporate Social Responsibility
b. Healthcare
HIV/AIDS activities were started for both the Automotive Sector as well as
Farm. At the Automotive Sector Welfare Centre, the social workers and
counselors initiated dialogue with other business houses such as L&T and Glaxo.
Recognizing the various impacts of HIV/AIDS, a need to develop awareness
initiatives within the respective companies was felt. Thus the Company got
involved in various HIV/AIDS initiatives.
Awareness activities are carried out in both the divisions along with the
staff and members of the Trade Union. These include information dissemination
through exhibitions, posters, pamphlets, booklets, street play, newsletter articles
and interactive discussions with employees, which provide a platform to the
employees to ask questions, clarify, misconceptions, etc.
46
Project Report On Corporate Social Responsibility
Quality condoms are distributed free of cost by both the sectors. Condoms
are kept at the Welfare Centres, Family Counselling Centres and the Medical
Centre. The Company as a component of the family welfare programmes had
initiated condom distribution and promotion. Later, information about condoms
as disease prevention tools was also disseminated.
Personnel from M&M along with others from L&T and Glaxo, were involved in
designing and writing an HIV/AIDS policy guideline for Indian industries
entitled, “Corporate Response to AIDS: Policy Guidelines” in partnership with
Bombay Chamber of Commerce and Industry (BCCI).
47
Project Report On Corporate Social Responsibility
48
Project Report On Corporate Social Responsibility
Conclusion
The concept of corporate social responsibility is not new in India. Right from the pre-
independence times, the Gandhian model has been in practice. Many family owned
businesses continue to engage in philanthropic activities. However with the passage of
time and increased privatization and globalization, the stakeholder model is gaining more
importance. Hence, corporate responsibility is becoming an integral part of the business
strategy. A poll reveals a number of areas where further progress is needed for the
business sector to keep pace with greater expectations for responsible, transparent and
accountable corporate conduct from various stakeholders.
• High expectations from companies are not yet matched by judgments about CSRs.
• More trust is placed in media and NGOs than the industry.
• Finding creative ways to work in collaboration with the NGOs would help to
enhance the corporate image.
The emerging message to corporations seems quite clear. Take care of your
customers; do not ignore your suppliers. Your employees are your most important
partners in the wealth creation process: share your potential prosperity with your
people. Meet your debt service obligations promptly and on schedule. All these are
imperative in ensuring shareholder wealth maximization, which is indeed the primary
goal of the corporation. Companies must focus on their prime responsibility to the
shareholders, the owners of the company. But in order to sustain such achievements,
working within and as part of society is all-important, failing which society will reject the
socially unconscientiously corporation, often sooner rather than later. Such are the
challenges and opportunities for corporations in quest of world-class standards of
excellence in the twenty first century.
37
Project Report On Corporate Social Responsibility
38
Project Report On Corporate Social Responsibility
Bibliography
Books:
• Principles and Practice of Management
• Business environment
- Francis Cherunilam
• Essentials of Business Environment
- K. Aswathappa
• Corporate Social Responsibilities concepts & Cases – Vol. I
- ICFAI University
Magazines:
• Business Today (May 8th 2005)
Newspaper:
• Midday (September 17th 2005)
39
Project Report On Corporate Social Responsibility
Webliography:
• www.ril.com/aboutus
• www.prdomain.com
• www.rel.co.in
• www.infochangeindia.org
• http://www.bombaychamber.com/csr.htm
• http://www.standardchartered.com/corporateresponsibility/index.html
• www.indianngos.com/corporate/mahindra
• www.mahindrabt.com
• www.mahindra.com
40