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The Sanskrit saying, ‘Atithi Devo Bhav’, meaning – ‘the one who
with wider meaning and depth. This phrase has long been in use with
Thus, for the service sector organization business with the society has
Later data was collected from general public regarding their perception
time that such a study of ‘CSR in Aviation Industry in India’ has been
undertaken.
issues like nature and size of the organizations, but not much
In later part of the last century, the service sector has grown and
gained importance, hence, dearth of such literature and need for study
Among the Asian countries, India in the last five years has seen the
two, together.
particular.
Industry in particular.
To the best of the researchers’ knowledge, this is for the first time that
undertaken.
EXTERNAL SIGNATORY PAGE
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ACKNOWLEDGMENTS
TABLE OF CONTENTS
• Title Page
• Abstract
• Acknowledgments
• Table of Contents
• Synopsis
• Introduction
• Literature Review
• Objective of study
• Methodology
• Bibliography
• Appendices
• Response Sheets
SYNOPSIS
INTRODUCTION
The section begins with the discussion on concept of CSR and its
hues and shades in its explanation. For this reason, several questions
shall be resolved (Warton & Clifton, 2002)? Who are going to be the
society’, well stated by Mahbub ul Haq (HDR, 2004), that the basic
purpose of development is to enlarge people's choices….and that the
above. The matter is not that of profit earning alone for a corporation,
business for profit only looses the confidence and trust of consumers,
society.
Anu Aga (Khandwalla, 2004) voices similar sentiments. She says that
organisation have two or more faces to put up - one for the people and
society of their land, and another for the people of different land?
the corporation are less than the returns available from some
largess. Then Davis (1973) propounded, the much known, ‘Iron Law of
Development (1998).
importance and the arguments being given in favour and against the
case of CSR, in detail, in their previous work (Saxena & Gupta, 2005)
‘Business’’.
The concept of CSR had always been part of Indian business tradition,
defined today. People being highly social, the tradition of CSR had
that they might acquire that strength, which results from mutual
religion and charity have always been linked in India with business,
true sense.
has always been about corporates going for general good. It can be
more deep seated in Indian and other Asian countries for the reason
given by Chua, Nisbett, Leu (2005) and HT (2005), that East Asians
are more holistic than westerners and the evidences suggest that, east
from the society, as the society was dormant and also the executive
CSR.
But, in late 1980s it was realized that with all good intentions of social
together made efforts to come out of the deadlock, and envisaged the
private sector role came up in a very big way; And since liberalization
This laid firm foundation for CSR and the need for its practice. These
‘Altered Images: The 2001 State of CSR in India poll’ states 4 Models
Edward Freeman and according to the report all the four models co-
Arising out of the social responsibility sharing was the CSR imperative
realize that they have to replay their part in the spirit of trusteeship
unless it serves the needs or interests of the country and its people.
LITERATURE REVIEW
Post Independence era in India had seen CSR practices grow in India.
the positive image of the institutions, have brought them closer to the
downtrodden.
BILT (BILT, 2004), Birlas, whose social initiative work straddles across
3,700 village in India (Birla, -), Tata Motors Ltd. investing in curative
initiatives are being put for various issues under CSR policies
sector has grown beyond the size of doing business with limited
sector and institutions have grown to such a size, that their hold on
The above concluded section alone does not justify the CSR practices
regarding the prominence that services have gained and how modern
sector industries.
which constituted over 50% of GDP in 1960, has now come down to
banking and insurance, while other sections of vast service sector have
one of the critical dimensions of TQM and TQS and Schuyt, Theo,
organization.
flight of JRD Tata, the first PPL holder (Private Pilot License) of India.
Aviation grew around Tatas in India with other airlines such as Airways
India, Kalinga Airlines, Deccan Airways etc. But, with the passing of Air
took place.
The two national air carriers came into existence - Air India and Indian
the carriers were governed by the policies and programmes, laid down
by the government. In the early stages and upto mid 1980s the
change. But, later in early 1990s the scenario changed with the
private players like NEPC, Eastwest, VIF, Modiluft, Jet and Sahara
opened their shops (Satish & Jutur, 2005). The National carriers then
revamped themselves and joined the fray. Presently there are eight to
ten Indian air-carriers operating, with stiff challenges lying ahead, due
39.98 Million and the figures had grown to be 730018 and 59.54
million in year 2004-05, which speak for themselves the phenomenal
with indigenous technology; and so, New Aviation Policy has become
inevitable in India.
the foreign air operators were practicing it. But, it was new to the
Indian Aviation Industry. So, when the idea of doing research on social
importance of it. But, the way this industry is coming up and is pitched
importance. The clear reason being that, if CSR issues get addressed
in the initial stages, and get incorporated into the system from the
beginning itself, the spirit of CSR shall become an integral part of the
For aviation industry the CSR procedures and initiatives which were
internet and provides the following details: that it accepts the need to
earn not only customer loyalty and support, but the support of
stakeholders at large; that most important contribution Malaysia
they fly to; Other areas of CSR for Malaysian Airlines are- Code of
the needy; Air passage for the worthy causes (Annual Report, 2004-
05)
Again, in case of Malaysia Airlines the review of report shows that the
corporate identifies itself with the national sovereignty & pride, student
picture of being lively, caring and with concern for all. This shall result
care and concern for an issue other than aviation. Virgin Atlantic’s CSR
years company has come a long way and had been able to establish
attempt to make customers to believe that, its not me, but the society
for which the service has total commitment. Such impression goes a
long way, if honestly pursued. Air New Zealand provides Corporate and
Communication Policy.
Other airlines like Go, Kingfisher etc. are yet to be evaluated for want
The Research Design for the study has been Exploratory and Causal in
sector and other from private sector was chosen for the study.
For getting responses from public, about their perception of the social
persons with general awareness level were selected using the Non-
the society were asked about their opinion as well as their perception,
Data was collected both from the secondary and primary sources.
publications, websites etc. were studied and referred for the research.
at all the levels of the selected airlines in Udaipur region and second
A five point Likert scale was used to enable the managers to indicate
organization, availed its services and had any information about the
A five point Likert scale was used to enable the respondents to indicate
service organizations.
KINGFISHER & CORPORATE SOCIAL RESPONSIBLE
COMPANY PROFILE
third largest in the world, with leading market positions in the UK,
Sales for the year ended 02 February 2008 were £9.36 billion, over
half of which was generated outside the UK. Adjusted pre-tax profit for
main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix.
Kingfisher also has a 21% interest in, and strategic alliance with
Depot, with stores in the UK, France, Poland, Italy, China, Taiwan,
offices in Eastern Europe, China, India and South Africa, and over
wood based products come from forests that are managed sustainably.
it published in October 2001. The plan described the business case for
CSR and outlined six areas where CSR would help the business: being
ready for the future; maintaining respect for people; creating stores
issues stewardship
2 Timber
3 Supplier environmental
performance
4 Product environmental
operation
8 Waste
9 Packaging
investment
diversity people
retailer, selling new and exciting products at great prices. Our strategy
is
factories
impact on the
business, but we
believe that “being the best” also means ensuring that the long-term
development of our
and difficult
touches”, not just for our customers and shareholders but equally our
employees, the people making the products we sell and the wider
community.
Our policy sets out our aims and commitments and provides the
areas of:
Environmental Social
people
This policy has been adopted by the board of Kingfisher, who will
individual operating
measured, reported
and independently verified using appropriate performance indicators.
This policy and our action plans and performance indicators are
The drivers
Initially there were two main drivers for Kingfisher’s CSR approach.
The first was the need to respond to enquiries about Kingfisher from
within the group. Secondly, there was recognition of the need for a
Today a major driver is the actual business case that CSR helps deliver
corporate management tool for CSR. “As a global company we did not
aspire to have the same standards across the business, but rather to
up the ‘ladder’. The tool also enabled different companies in the group
their business.
The ‘ladder’
retailer in the country and arguably one without the power to influence
supply chains due to the low volumes it buys compared to, for
example, the leverage that B&Q UK’s 300-odd stores can exert.
Baker.
Why is it CSR?
The ‘ladder’ is still maturing and will require further refinement. The
progress up the ladder and with Kingfisher’s help develop policies and
and health and safety. The Code is reviewed on a regular basis and a
fund for social initiatives, but mention of it in form of CSR is not done
Managers’ Profile:
Six managers each, from two airlines, who gave their responses were
The factor wise ranking has also been attempted taking the average of
mean scores for all the statements pertaining to that factor. The
organizations:
the airline B in additional CSR practices. This also supports the above
It may be concluded that all the employees have been initiated in the
CSR practices in near past, and that too not very intensely, so the age
initiatives’
CSR orientation
Hypothesis Ho1, Ho2, Ho3, Ho5 and Ho6 have got rejected at 5%
organizations.
in two Airlines:
For analyzing the difference between the CSR perceptions of managers
initiatives’.
initiatives’.
initiatives’.
and B
It can be seen that all the null hypotheses have been rejected at 5%
sector organization scores over the private sector. CSR practices are
Public Profile:
categorized for their monthly income. The details are given in Table
4.8 and it can be seen that more than 59% of the respondents are in
Then the respondents were also grouped into three age categories and
from Table 4.9 it can be observed that half of the respondents are
above 40 years.
Udaipur city, then he was put under the category of ‘Urban’ and if the
category of ‘Rural’. Details are given in Table 4.10 and it can be seen
the airlines and if they have availed their services. The details are
shown in Table 4.11, and it can be seen that although more than 75%
haven’t availed their services and even lesser number (below 25%)
Initiatives
affected by their income. It also indicates that the price tag for the
formulated:
of Airlines
The results show that there is a positive correlation between the
distinction between the public or private airlines when they talk about
Airlines:
CSR orientation.
CSR orientation.
orientation.
The study shows that managers of both the airlines have readiness
remote areas, which are non functional at present, but have the
existing air routes and attempting for supremacy, the public and
The airlines may also reinvest the part of increased turnover in CSR
In the end it can be very well be understood that CSR has been and is
puts it -No matter how high the moral intentions, a corporation may
not survive long unless it can produce goods and services which the
bills, provide for depreciation and at the same time yield a profit i.e.
strategic direction on CR that takes into account the way the world is
strategy to prepare the business for the future. The company has
indicators (KPIs). The company will also revise its Steps programme
and it will become the principal tool to monitor progress across the
Group.
products has the potential to enhance profits in line with its core
business strategy.
services.”
Sustainability goals
Our products and Enable sustainability in all our product and service
services categories
Make it easy for our customers to create their homes
Our customers
in a sustainable way
Our stores and Ensure our stores and operations are efficient and
operations sustainable
Engage employees to be champions of sustainability
Our people
across our business
Our economic Use our sustainability strategy to create value for
The two Indian international carriers, Air India and Jet Airways,
currently have less than 25% share in the long-haul market to and
from the country. With the third carrier Kingfisher Airlines joining the
ranks this month, the Indian aviation scenario is all set to change.
join the SkyTeam Alliance led by Air France-KLM and Delta Airlines of
the US. The national carrier, Air India, has already joined the Star
Singapore Airlines.
end operations.
international market with the ambition of taking market share from the
to eventually join the SkyTeam alliance, given the growing links with
“It is a bit early to comment on our global alliance plans, but we are
support pact with Air France-KLM for its wide bodied aircraft used in
international operations.
have not decided to join any alliance as of now. There are no specific
immediate future.
Report 04/05,
http://www.rediffmail.com/cgibin/
red.cgi?red=http%3A%2F%2Fhq%2Emalaysiaairlines%2Ecom%2Fmys
%2Feng%2Fabout%5Fus%2
Finvestor%5Frelations%2Ffinancial%5Foperational%5Fdata%2Fannual
%5Freports%2Fcorporate%5Fsocial%5Fresponsibility
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APPENDICES
RESPONSE SHEETS