PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITIES ADOPTED BY BANKING & INSURANCE SECTOR

Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General

BBA VI Semester (B) (M) Batch 2010-2013

Submitted to: Ms. Neha Gupta Assistant Professor

Submitted by: Shweta Mavi 13214101710

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI

1

TABLE OF CONTENTS

S.NO

DESCRIPTION

PAGE NO.

ACKNOWLEDGEMENT

CERTIFICATE OF COMPLETION STUDENTS DECLARATION

EXECUTIVE SUMMARY

6-8

CHAPTER-1 INTRODUCTION HISTORICAL BACKGROUND CURRENT STATE OF THE FIELD

9-36

CHAPTER-2 OBJECTIVES

37

CHAPTER-3 RESEARCH METHODOLOGY

38-42

CHAPTER-4 ANALYSIS

43-77

CHAPTER-5 RECOMMENDATIONS & LIMITATIONS

78

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CHAPTER-6 CONCLUSION

79

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CHAPTER-7 REFERENCES

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ACKNOWLEDGMENT

I take this opportunity to express my profound gratitude and deep regards to my guide Ms. Neha Gupta for her exemplary guidance, monitoring and constant encouragement throughout the course of this thesis. The blessing, help and guidance given by her time to time shall carry me a long way in the journey of life on which I am about to embark. I also take this opportunity to express a deep sense of gratitude to my college, HOD (Ms. Rashmi Bhatia), my class coordinator (Dr. Ruchi Singhal), and all other faculties for their cordial support, valuable information and guidance, which helped me in completing this task through various stages. Lastly, I thank almighty, my parents, brother, sisters and friends and atlas but not the least for the constant encouragement and blessings without which this project would not be possible.

SHWETA MAVI

CERTIFICATE OF COMPLETION

This is to certify that Shweta Mavi, pursuing BBA 6thsem (B) (M) from JIMS KALKAJI, has completed his project on the topic CORPORATE SOCIAL RESPONSIBILITIES ADOPTED BY BANKING & INSURANCE SECTOR under my guidance.

Her work is appreciable.

Project Guide: Ms. Neha Gupta Assistant Professor

STUDENTS DECLARATION

hereby

declare

that

the

project

report

titled

CORPORATE

SOCIAL

RESPONSIBILITIES ADOPTED BY BANKING & INSURANCE SECTOR is my own work and has been carried out under the table guidance of Ms. Neha Gupta (Assistant Professor at JIMS Kalkaji). All care has been taken to keep this project error free and I sincerely regret for any unintended discrepancies that might have crept into this report.

Thank You (SHWETA MAVI) BBA 6thSem (B)(M) Jagannath International Management School (KALKAJI) (shwetamavi20@yahoo.in) Date:-13/03/2013 Place-Delhi

EXECUTIVE SUMMARY

CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance within the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984.[2] Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.

BANKING & INSURANCE SECTOR

The economic reforms undertaken in the last 15 years have brought about a considerable improvement in the health of banks and financial institutions in India. The banking sector is a very important sector of the Indian economy. The sector has made a marked improvement in the liberalization period. The limit for foreign direct investment in private banks has been increased from 49% to 74%. In addition, the limit for foreign institutional investment in private banks is 49%. Liberalization and globalization have created a more challenging environment in the banking sector as well as in the other segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices, capital markets, venture capitalists, etc. Now the challenges faced by the sector would be gaining profitability, reinforcing technology, maintaining global standards, corporate governance, sharpening skills, risk management and, the most important of all, to establish 'Customer Intimacy'.

New players have contributed to the launch of innovative products, services and valueadded benefits. Major foreign players have entered the country and announced joint ventures in both life and non-life areas. These include New York Life, Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among others.

CSR ADOPTED BY BANKING AND INSURANCE SECTOR CSR has been identified as a tool to contribute directly or indirectly to the companys bottom-line and also ensures its long-term sustainability. It helps companies emerge as true corporate citizens. CSR means in its essence to be responsible to ones various stakeholders and not just charity. At present, the world over, there is an increasing awareness about Corporate Social Responsibility (CSR), Sustainable Development (SD) and Non-Financial Reporting (NFR). Consequently, there is a concerted effort among all types of organizations, to ensure that sustainable development is not lost sight of, in the pursuit of their respective goals - profit making, social service, philanthropy, etc. CSR entails the integration of social and environmental concerns by companies in their business operations as also in interactions with their stakeholders. The contribution of financial institutions including banks to sustainable development is paramount, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the urgency for banks to act as responsible corporate citizens in the society, especially in a developing country like ours, need be hardly overemphasized. Their activities should reflect their concern for human rights and environment. Studies over the recent times have revealed that organisations involved in CSR activities continued to sustain for much longer durations in comparison to those not involved in such activities. This is the reason why more and more organisations across sectors are increasingly getting involved in CSR activities. CSR has been identified as a tool to contribute directly or indirectly to the companys bottom-line and also ensures its long-term sustainability. It helps companies emerge as true corporate citizens. CSR means in its essence to be responsible to ones various stakeholders and not just charity.

CHAPTER-1

INTRODUCTION

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance within the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders.
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The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984.[2] Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles but with no formal act of legislation. The UN has developed the Principles for Responsible Investment as guidelines for investing entities.

Approaches Some commentators have identified a difference between the Canadian (Montreal school of CSR), the Continental European and the Anglo-Saxon approaches to CSR. And even within Europe the discussion about CSR is very heterogeneous. A more common approach to CSR is corporate philanthropy. This includes monetary donations and aid given to local and non-local nonprofit organizations and communities, including donations in areas such as the arts, education, housing, health, social welfare, and the environment, among others, but excluding political contributions and commercial sponsorship of events.

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Some organizations do not like a philanthropy-based approach as it might not help build on the skills of local populations, whereas community-based development generally leads to more sustainable development. Another approach to CSR is to incorporate the CSR strategy directly into the business strategy of an organization. For instance, procurement of Fair Trade tea and coffee has been adopted by various businesses including KPMG. Its CSR manager commented, "Fair trade fits very strongly into our commitment to our communities." Another approach is garnering increasing corporate responsibility interest. This is called Creating Shared Value, or CSV. The shared value model is based on the idea that corporate success and social welfare are interdependent.

A business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and opportunities for philanthropy. CSV received global attention in the Harvard Business Review article Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility [1] by Michael E. Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School; and Mark R. Kramer, Senior Fellow at the Kennedy School at Harvard University and co-founder of FSG Social Impact Advisors. The article provides insights and relevant examples of companies that have developed deep linkages between their business strategies and corporate social responsibility. Many approaches to CSR pit businesses against society, emphasizing the costs and limitations of compliance with externally imposed social and environmental standards. CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but focuses more on the opportunities for competitive advantage from building a social value proposition into corporate strategy. CSV has a limitation in that it gives the impression that only two stakeholders are important shareholders and consumers - and belies the multi-stakeholder approach of most CSR advocates.
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Many companies use the strategy of benchmarking to compete within their respective industries in CSR policy, implementation, and effectiveness. Benchmarking involves reviewing competitor CSR initiatives, as well as measuring and evaluating the impact that those policies have on society and the environment, and how customers perceive competitor CSR strategy. After a comprehensive study of competitor strategy and an internal policy review performed, a comparison can be drawn and a strategy developed for competition with CSR initiatives.

Social accounting, auditing, and reporting For a business to take responsibility for its actions, that business must be fully accountable. Social accounting, a concept describing the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large, is thus an important element of CSR. Social accounting emphasizes the notion of corporate accountability. D. Crowther defines social accounting in this sense as "an approach to reporting a firms activities which stresses the need for the identification of socially relevant behavior, the determination of those to whom the company is accountable for its social performance and the development of appropriate measures and reporting techniques." An example of social accounting, to a limited extent, is found in an annual Director's Report, under the requirements of UK company law. A number of reporting guidelines or standards have been developed to serve as frameworks for social accounting, auditing and reporting including:

Account

Ability's AA1000 standard,

based

on John

Elkington's triple

bottom

line (3BL) reporting

The

Prince's

Accounting

for

Sustainability

Project's Connected

Reporting

Framework

The Fair Labor Association conducts audits based on its Workplace Code of Conduct and posts audit results on the FLA website.

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The Fair Wear Foundation takes a unique approach to verifying labour conditions in companies' supply chains, using interdisciplinary auditing teams.

Global Reporting Initiative's Sustainability Reporting Guidelines Good Corporation's Standard developed in association with the Institute of Business Ethics

Synergy Codethic 26000[2] Social Responsibility and Sustainability Commitment Management System (SRSCMS) Requirements Ethical Business Best Practices of Organizations - the necessary management system elements to obtain a certifiable ethical commitment management system.

The standard scheme has been build around ISO 26000 and UNCTAD Guidance on Good Practices in Corporate Governance. The standard is applicable by any type of organization.;

Earthcheck www.earthcheck.org Certification / Standard Social Accountability International's SA8000 standard Standard Ethics Aei guidelines The ISO 14000 environmental management standard The United Nations Global Compact requires companies to communicate on their progress (or to produce a Communication on Progress, COP), and to describe the company's implementation of the Compact's ten universal principles. This information should be fully integrated in the participants main medium of stakeholder communications, for example a corporate responsibility or sustainability report and/or an integrated financial and sustainability report. If a company does not publish formal reports, a COP can be created as a stand-alone document.

The United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR)provides voluntary technical guidance on eco-efficiency indicators, corporate responsibility reporting,

and corporate governance disclosure. The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance of companies.

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In some nations, legal requirements for social accounting, auditing and reporting exist (e.g. in the French bilan social), though international or national agreement on meaningful measurements of social and environmental performance is difficult. Many companies now produce externally audited annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary widely in format, style, and evaluation methodology (even within the same industry). Critics dismiss these reports as lip service, citing examples such as Enron's yearly "Corporate Responsibility Annual Report" and tobacco corporations' social reports.

In South Africa, as of June 2010, all companies listed on the Johannesburg Stock Exchange (JSE) were required to produce an integrated report in place of an annual financial report and sustainability report. An integrated report includes environmental, social and economic performance alongside financial performance information and is expected to provide users with a more holistic overview of a company. However, this requirement was implemented in the absence of any formal or legal standards for an integrated report. An Integrated Reporting Committee (IRC) was established to issue guidelines for good practice in this field.

Potential business benefits The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones (e.g., Deming's Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes found a correlation between social/environmental performance and financial performance. However, businesses may not be looking at short-run financial returns when developing their CSR strategy. Intel employs a 5-year CSR planning cycle. The definition of CSR used within an organization can vary from the strict "stakeholder impacts" definition used by many CSR advocates and will often include charitable efforts and volunteering.
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CSR may be based within the human resources, business development or public relations departments of an organisation, or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSRtype values without a clearly defined team or programme. The business case for CSR within a company will likely rest on one or more of these arguments:

Triple Bottom-Line People planet profit, is also known as the Triple Bottom Line are words that should be used and practiced in every move an organization makes. People relates to fair and beneficial business practices toward labour, the community and region where corporation conducts its business. Planet refers to sustainable environmental practices. A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals for example. Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. It therefore differs from traditional accounting definitions of profit.

Human resources A CSR program can be an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage. CSR can also help improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. CSR has been found to encourage customer orientation among frontline employees.

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Risk management Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.

Brand differentiation In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group, The Body Shop and American Apparel are built on ethical values. Business service organizations can benefit too from building a reputation for integrity and best practice.

Engagement Plan An engagement plan will assist in reaching a desired audience. A corporate social responsibility team, or individual is needed to effectively plan the goals and objectives of the organization. Determining a budget should be of high priority. The function of corporate social responsibility planning: 1. To add discussion and analysis of a new set of risks into corporate decision-making. 2. To represent issues within the corporation that watchdogs, NGOs and advocates represent within society. 3. To assess the future. An organizations long term and short term future needs to be thought of. 4. To help prioritize consideration of socially and environmentally friendly projects that might otherwise lack a corporate advocate.

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5. To keep corporations aware of potential major societal impacts even when a negative impact may not be immediate, and thus lessen liability. 6. To positively influence decision making where societal impacts are maximized, whilst ensuring efforts are within a given budget.

Developing an Engagement Plan Commit to coming up with and improving on your companies goals. CSR commitments communicate the nature and direction of the firm's social and environmental activities and, will help others understand how the organization is likely to behave in a particular situation 1. Do a scan of CSR commitments 2. Hold discussions with major stakeholders 3. Create a working group to develop the commitments 4. Prepare a preliminary draft 5. Consult with affected stakeholders 6. Revise and publish the commitments 7. Consider what is feasible within the budget To ensure employee buy-in, include employees in the process of developing the vision and values. To spark the process, create a CSR working group or hold a contest for the best suggestions, encouraging employees and their

representatives to put some thought into their submissions. Host a visioning session and ask participants to think about what the firm could look like in the future as a CSR leader. Review the CSR priorities to determine which codes of ethics or conduct fit best with the firm's goals.

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Consultants are recommended when planning for CSR activities involving small, medium and large sized corporations. All levels of management should be on board, and the support of high ranking corporate officials should be given.

License to operate Corporations are keen to avoid interference in their business

through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity, or the environment seriously as good corporate citizens with respect to labour standards and impacts on the environment.

Supplier Relations Businesses are constantly relying on suppliers to reduce overall costs, while improving the quality of their goods or services. Many North American companies have downgraded the volume of suppliers they do business with, and award contracts to a select few, in order to lower operating costs. By establishing a strong supply chain, companies are able to push for continuous quality improvements, and price reductions. The long-term benefits of the listed above create a better value for stakeholders. Some multi-national companies like General Motors can shift suppliers, if a lower offer is made by the competition. As a result, competitiveness, and greater profits are created, in turn contributing to a stronger market The strategic use of supplier relations can benefit single, double and triple bottom-lines. Corporations excelling in supply relations include Wal-Mart, Ford, General

Motors, Toyota and Nestle. All companies listed above have gained tangible results through the practice of ensuring sound supply chains, and sourcing materials from ethical sources. Emphasizing the importance of practicing CSR to suppliers, researching their existing supply chain, and sending out CSR check-sheets to existing suppliers is important to staying on-track of a companys implemented CSR activity.
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Criticisms and concerns Critics of CSR as well as proponents debate a number of concerns related to it. These include CSR's relationship to the fundamental purpose and nature of business and questionable motives for engaging in CSR, including concerns about insincerity and hypocrisy.

Nature of business Milton Friedman and others have argued that a corporation's purpose is to maximize returns to its shareholders, and that since only people can have social responsibilities, corporations are only responsible to their shareholders and not to society as a whole. Although they accept that corporations should obey the laws of the countries within which they work, they assert that corporations have no other obligation to society. Some people perceive CSR as in-congruent with the very nature and purpose of business, and indeed a hindrance to free trade. Those who assert that CSR is contrasting with capitalism and are in favor of the free market argue that improvements in health, longevity and/or infant mortality have been created by economic

growth attributed to free enterprise. Critics of this argument perceive the free market as opposed to the well-being of society and a hindrance to human freedom. They claim that the type of capitalism practiced in many developing countries is a form of economic and cultural imperialism, noting that these countries usually have fewer labour protections, and thus their citizens are at a higher risk of exploitation by multinational corporations. A wide variety of individuals and organizations operate in between these poles. For example, the Leadership Alliance asserts that the business of leadership (be it corporate or otherwise) is to change the world for the better. Many religious and cultural traditions hold that the economy exists to serve human beings, so all economic entities have an obligation to society.

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Moreover, as discussed above, many CSR proponents point out that CSR can significantly improve long-term corporate profitability because it reduces risks and inefficiencies while offering a host of potential benefits such as enhanced brand reputation and employee engagement.

Motives Some critics believe that CSR programs are undertaken by companies such as British American Tobacco (BAT), the petroleum giant BP (well known for its high-profile advertising campaigns on environmental aspects of its operations), and McDonald's to distract the public from ethical questions posed by their core operations. They argue that some corporations start CSR programs for the commercial benefit they enjoy through raising their reputation with the public or with government. They suggest that corporations which exist solely to maximize profits are unable to advance the interests of society as a whole. Another concern is that sometimes companies claim to promote CSR and be committed to sustainable development but simultaneously engage in harmful business practices. For example, since the 1970s, the McDonald's Corporation's association with Ronald McDonald House has been viewed as CSR and relationship marketing. More recently, as CSR has become main stream, the company has beefed up its CSR programs related to its labor, environmental and other practices . All the same, in McDonald's Restaurants v Morris & Steel, Lord Justices Pill, May and Keane ruled that it was fair comment to say that McDonald's employees worldwide 'do badly in terms of pay and conditions' and true that 'if one eats enough McDonald's food, one's diet may well become high in fat etc., with the very real risk of heart disease.' Royal Dutch Shell has a much-publicized CSR policy and was a pioneer in triple bottom line reporting, but this did not prevent the 2004 scandal concerning its misreporting of oil reserves, which seriously damaged its reputation and led to charges of hypocrisy. Since then, the Shell Foundation has become involved in many projects across the world, including a partnership with Marks and Spencer (UK) in three flower and fruit growing communities across Africa.
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Critics concerned with corporate hypocrisy and insincerity generally suggest that better governmental and international regulation and enforcement, rather than voluntary measures, are necessary to ensure that companies behave in a socially responsible manner. A major area of necessary international regulation is the reduction of the capacity of corporations to sue states under investor state dispute settlement provisions in trade or investment treaties if otherwise necessary public health or environment protection legislation has impeded corporate investments. Others, such as Patricia Werhane, argue that CSR should be considered more as a corporate moral responsibility, and limit the reach of CSR by focusing more on direct impacts of the organization as viewed through a systems perspective to identify stakeholders. For a commonly overlooked motive for CSR, see also Corporate Social Entrepreneurship, whereby CSR can also be driven by employees' personal values, in addition to the more obvious economic and governmental drivers.

Principles of Corporate Social Responsibility The main principles involving corporate A social responsibility needs to

involve economic, legal, ethical and discretionary aspects.

corporation

generate profits, while operating within the laws of the state. The corporation also needs to be ethical, but has the right to be discretional about the decisions it makes. Levels of corporate social responsiveness to an issue include being reactive, defensive, responsive and interactive. All terms are useful in issues management. Selecting when and how to act can make a difference in the outcome of the action taken.

Ethical consumerism The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand. Industrialization, in many developing countries, is booming as a result of both technology and globalization.

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Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are therefore beginning to make purchasing decisions related to their environmental and ethical concerns. However, this practice is far from consistent or universal.

Globalization and market forces As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. Government regulations, tariffs, environmental restrictions and varying standards of what constitutes "labor exploitation" are problems that can cost organizations millions of dollars. Some view ethical issues as simply a costly hindrance, while some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising. (Fry, Keim, Meiners 1986, 105) Global competition places a particular pressure on multinational corporations to examine not only their own labor practices, but those of their entire supply chain, from a CSR perspective. that all government is controlling.

Social awareness and education The role among corporate stakeholders is to work collectively to pressure corporations that are changing. Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. The extension of SRI bodies driving corporations to include an element of ethical investment into their corporate agendas generates socially embedded issues. The main issue correlates to the development and overall idea of ethical investing or SRI, a concept that is constructed as a general social perspective. The problem becomes defining what is classified as ethical investing. The ethics or values of one SRI body will likely different from the next since ethical opinions are inherently paradoxical. For example, some religious investors in the US have withdrawn investment from companies that fail to fulfill their ethical expectations.
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The Non-governmental organizations are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behavior. Through education and dialogue, the development of community awareness in holding businesses responsible for their actions is growing.[36] In recent years, the traditional conception of CSR is being challenged by the more community-conscious Creating Shared Value concept (CSV), and several companies are refining their collaboration with stakeholders accordingly.

Ethics training The rise of ethics training inside corporations, some of it required by government regulation, is another driver credited with changing the behavior and culture of corporations. The aim of such training is to help employees make ethical decisions when the answers are unclear. Tullberg believes that humans are built with the capacity to cheat and manipulate, a view taken from Trivers (1971, 1985), hence the need for learning normative values and rules in human behavior. The most direct benefit is reducing the likelihood of "dirty hands", fines and damaged reputations for breaching laws or moral norms. Organizations also see secondary benefit in increasing employee loyalty and pride in the organization. Caterpillar and Best Buy are examples of organizations that have taken such steps. Increasingly, companies are becoming interested in processes that can add visibility to their CSR policies and activities. One method that is gaining increasing popularity is the use of well-grounded training programs, where CSR is a major issue, and business simulations can play a part in this. One relevant documentary is The Corporation, the history of organizations and their growth in power is discussed. Corporate social responsibility, what a company does in trying to benefit society, versus corporate moral responsibility (CMR), what a company should morally do, are both important topics to consider when looking at ethics in CSR. For example, Ray Anderson, in The Corporation, takes a CMR perspective in order to do what is moral and he begins to shift his company's focus towards the biosphere by utilizing carpets in sections so that they will sustain for longer periods.
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This is Anderson thinking in terms of Garret Hardin's "The Tragedy of the Commons," where if people do not pay attention to the private ways in which we use public resources, people will eventually lose those public resources.

Geography In a geographical context, CSR is fundamentally an intangible populist idea without a conclusive definition. Corporations who employ CSR behaviors are empirically dissimilar in various parts of the world. The issue of CSR diversity is produced through the perpetual differences embedded in the social, political, cultural, and economic structures within individual countries. The immense geographical separations feasibly contribute to the loosely defined concept of CSR and difficulty for corporate regulation.

Public policies CSR has inspired national governments to include CSR issues into their national public policy agendas. The increased importance driven by CSR, has prompted governments to promote socially and environmentally responsible corporate practices. Over the past decade governments have considered CSR as a public issue that requires national governmental involvement to address the very issues relevant to CSR. The heightened role of government in CSR has facilitated the development of numerous CSR programs and policies. Specifically, various European governments have implemented public policies on CSR enhancing their competence to develop sustainable corporate practices. CSR critics such as Robert Reich argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow a business to conduct themselves responsibly. Actors engaged in CSR:

governments corporations civil societies

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Recently, 15 European Union countries have actively engaged in CSR regulation and public policy development.[42] Recognizably, the CSR efforts and policies are vastly different amongst countries resultant to the complexity and diversity of governments, corporations, and civil societies roles. Scholars have analyzed each body that promotes CSR based policies and programs concluding that the role and effectiveness of these actors are case-specific. Global issues so broadly defined such as CSR generate numerous relationships between the different socio-geographic players. A key debate in CSR is determining what actors are responsible to ensure that corporations are behaving in a socio-economic and environmentally sustainable manner.

Regulation The issues surrounding corporate regulation pose several problems. The concept of regulation is inherently difficult to address because of the numerous amount of corporations that exist are vastly dissimilar in terms of corporate behavior and nature. Thus, regulation in itself is unable to cover every aspect in detail of a corporation's operations. For example, This leads to burdensome legal processes bogged down in interpretations of the law and debatable grey areas (Sacconi 2004). For

example, General Electric failed to clean up the Hudson River after contaminating it with organic pollutants. The company continues to argue via the legal process on assignment of liability, while the cleanup remains stagnant. (Sullivan & Schiafo 2005). Government regulation or public institutional regulation is difficult to achieve. Depending on the political regime and form of government democracy, parliamentary, presidential issues of governmental ineffectiveness may transpire. As a result, attempts at CSR policy development and implementation may be unattainable. The second issue is the financial burden that regulation can place on a nation's economy. This view shared by Bulkeley, who cites the Australian federal government's actions to avoid compliance with the Kyoto Protocol in 1997, on the concerns of economic loss and national interest.
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The Australian government took the position that signing the Kyoto Pact would have caused more significant economic losses for Australia than for any other OECD nation. On the change of government following the election in November 2007, Prime Minister Kevin Rudd signed the ratification immediately after assuming office on 3 December 2007, just before the meeting of the UN Framework Convention on Climate Change. Critics of CSR also point out that organizations pay taxes to government to ensure that society and the environment are not adversely affected by business activities. The government of Canada has adopted a national position that expects Canadian corporations to practice behaviors parallel to CSR. In 2007, Prime Minister Harper was aware of Canadas abundant investment into the resource/mineral extractive s ector and encouraged the Canadian mining companies to meet Canadas newly developed CSR standards and expectations. The method of developing and implementing CSR policies was achieved through government-company consultation and government stakeholder cooperation. The successful relationship between the CSR actors within Canadas government and coutry, may advocate that cooperation amongst constituencies is the most imperative element to CSR regulation. The European Union has recently done extensive work to try and find the best form of regulation. Some critics argue that the creation of a CSR organization with a democratically appointed minister focused solely on monitoring and enforcing socially responsible behaviour will be extremely effective.

Laws The laws legally binding the corporations behavior and activity are quite insignificant in relation to the global consequences. Only recently have countries included CSR policies in government agendas legislature. Common types of countries who have implemented legislation and CSR laws generally consist of socio-economic and politically sophisticated countries. The level of political stability and effectiveness is inextricably linked to a countries capacity to ensure national CSR policies.

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The increasing ability and influence corporations have on the economic, political, and social dynamics of society correlate to the recent studies by the UN Commission on Human Rights. More research and international political instruments are being explored to protect and prevent corporations from violating human rights. Denmark has a law on CSR. On 16 December 2008, the Danish parliament adopted a bill making it mandatory for the 1100 largest Danish companies, investors and stateowned companies to include information on corporate social responsibility (CSR) in their annual financial reports. The reporting requirements became effective on 1 January 2009.[46] The required information includes:

information

on

the

companies

policies

for

CSR

or socially

responsible

investments (SRI)

information on how such policies are implemented in practice, and information on what results have been obtained so far and management expectations for the future with regard to CSR/SRI.

CSR/SRI is still voluntary in Denmark, but if a company has no policy on this it must state its positioning on CSR in their annual financial report. More on the Danish law can be found at CSRgov.dk

Crises and their consequences Often it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental mismanagement is the CERES Principles that resulted after the Exxon Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally and caused the company to initiate new risk management and quality control processes. In another example, Magellan Metals in the West Australian town of Esperance was responsible for lead contamination killing thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a cleanup.

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Odwalla also experienced a crisis with sales dropping 90%, and the company's stock price dropping 34% due to several cases of E. coli spread through Odwalla apple juice. The company ordered a recall of all apple or carrot juice products and introduced a new process called "flash pasteurization" as well as maintaining lines of communication constantly open with customers.

Stakeholder priorities Increasingly, corporations are motivated to become more socially responsible because their most important stakeholders expect them to understand and address the social and community issues that are relevant to them. Understanding what causes are important to employees is usually the first priority because of the many interrelated business benefits that can be derived from increased employee engagement. Key external stakeholders include customers, consumers, investors (particularly institutional investors), communities in the areas where the corporation operates its facilities, regulators, academics, and the media. Branco and Rodrigues (2007) describe the stakeholder perspective of CSR as the inclusion of all groups or constituents (rather than just shareholders) in managerial decision making related to the organizations portfolio of socially responsible activities. This normative model implies that the CSR collaborations are positively accepted when they are in the interests of stakeholders and may have no effect or be detrimental to the organization if they are not directly related to stakeholder interests. The stakeholder perspective suffers from a wheel and spoke network metaphor that does not acknowledge the complexity of network interactions that can occur in cross sector partnerships. It also relegates communication to a maintenance function, similar to the exchange perspective.

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HISTORICAL BACKGROUND

In the late 18th century a Scottish philosopher and economist named Adam Smith wrote numerous articles on these subjects, his magnum opus being The Wealth of Nations in which he espoused the concepts of free trade and the free market on which the classic market economy was based.

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Smiths principles were borne out. By the early 19th Century, new technology saw jobs being created and living standards improved. Unchecked by regulation businesses flourished and industrialists in Europe and the USA amassed huge fortunes. However few of these wealthy new industrialists were concerned about the wellbeing of their employees, society or the environment. The appalling conditions under which people worked were documented in the novels of Charles Dickens and inspired radical theorists such as Karl Marx and Friedrich Engels to write about new concepts on labour, socialism and communism. By the start of the 20th century, powerful corporations suffered a backlash against their widespread exploitation. Labour unions were formed, giving a voice to the workers, and governments began to assume more responsibility for welfare and infrastructure, gradually introducing anti-trust legislation. In the 1950s, emerging consumer power saw companies start taking a new interest in the social and human aspects of their markets it was at about this time scientists and environmentalists started noticing some worrying changes to the environment. The 1960s saw a shift in attitudes towards government and business. In 1962 Professor Milton Friedman, Nobel Prize-winning economist, published his controversial Capitalism and Freedom. In it he makes the case for economic freedom as a precondition for political freedom. The 1980s and 1990s saw communism collapse, globalization emerge and the information revolution change the way the world did business. As globalization intensified, so did environmental awareness and the emergence of responsible business practice. Key developments include: the Brundtland Commission, the formation of the World Business Council for Sustainable Development, and the United Nations Global Compact.

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CURRENT STATE OF THE FIELD

By any count, the world is changing faster than ever before. Human numbers are growing faster, and the impact of our activities is being felt in more and more ways. This change has profound implications for business, and means that the world of CSR - or how businesses respond to society's expectations - is at the forefront of this change. So it's worth looking for what are the current trends and where are they heading. What drives trends in an area like CSR?

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Three things.

One - attitudes to business and its relationship with society are changed and shaped by outside events. These can be demonstrations of social problems that substantially change the environment within which companies do business, which are partially or wholly caused by business activities, or which businesses are likely partners in finding solutions. These can be as diverse as extreme climate events raising the profile and public concern about climate change, right through to a run of incidences of corporate corruption. Businesses are called upon to change behaviours or solve problems because of something external to them.

Two - expert practitioners have a vision for how sustainable business should operate, and develop new ideas, or increase expertise on past experience, and implement these within the business. This defines how businesses focus their attention when the spotlight isn't particularly on them. Do they define CSR as being about philanthropy, or environmental management, or core purpose and the business model?

Three - outside agencies create a vision for the achievement of future goals, and actively recruit businesses and partners. So in recent years, the involvement of businesses in finding ways to meet the millenium development goals has been an example.

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The Top 10 Trends in CSR for 2012

1. Going Global: The relentless march toward globalization will continue to stretch the scope of corporate responsibility. For instance, the new conflict minerals requirement in the Dodd-Frank Financial Reform Act breaks new ground for the scope of corporate responsibility, by requiring many types of businesses to track four minerals back to their sources to ensure they dont fuel conflict in the minefields of Central Africa. As this and similar requirements arise, the trend is clear: Corporate social responsibility leaders will be increasingly accountable for responsible behavior all along their supply chains.

2. The Triumph (or Tyranny) of Transparency: The pressure for ever increasing levels of transparency and disclosure will build in 2012. Last year, according to CorporateRegister.com, more than 5,500 companies around the world issued sustainability reports, up from about 800 a decade ago. Also, the Rate the Raters report from confound that more than 100 sets of ratings measure which companies are the most responsible. All the big four accounting firms are expanding their practices to audit all of these disclosures and are also sponsoring the expanded fourth edition of the Global Reporting Initiative Guidelines, which outline

standard CSR disclosures. In 2012 a promising new initiative, the Global Initiative for Sustainability Ratings, will endeavor to standardize the ratings framework, but beyond that there is little relief in sight for the survey-fatigued CSR manager.

3. Employee Engagement Emerges: The connection between CSR and engaged employees continues to grow. A Hewitt & Associates study looked at 230 workplaces with more than 100,000 employees and found that the more a company actively pursues worthy environmental and social efforts, the more engaged its employees are. The Society for Human Resources Management compared companies that have strong sustainability programs with companies that have poor ones and found that in the former morale was 55% better, business process were 43% more efficient, public image was 43% stronger, and employee loyalty was 38% better.

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4. Political Pitfalls: The elections will dominate the public conversation in the U.S. in 2012, and corporations will be alternately described as greedy, polluting, untrustworthy political puppet masters and job-creating paragons of virtuewith little room in the middle. Beyond the rhetoric, candidates wont be able to resist highlighting company success stories featuring economic, environmental and social benefits. CSR leaders should choose what they promote wisely and set clear boundaries to avoid becoming political footballs.

5. Collaboratition: As CSR becomes more of a differentiator, companies will both compete and collaborate on CSR issues. I devised the term collaboratition in a 2011 speech to describe how companies both compete and collaborate on CSR at the same time. The numerous CSR ratings, together with data from the Reputation Institutes 2011 Pulse Survey, which indicate that CSR is responsible for more than 40% of a companys reputation, lay the basis for CSR competition. On the other hand, there are a plethora of associations and multi stakeholder networks that foster collaboration on CSR topics. Groups like the Electronics Industry Citizenship Coalition demonstrate how competitors can partner on CSR issues like conflict minerals. Why would they? Such issues are so massive that working together is clearly more efficient. On the other end of the spectrum are initiatives like GEs ecomagination program, which furthers competitive advantage. Collaboratition means that companies can and will collaborate on CSR efforts when that is more efficient, while continuing to compete on their signature CSR programs.

6. Sustainability Shoppers: Consumers are increasingly tuned in to sustainability when making their buying decisions. Green labels have been around for a long time, but Wal-Marts sustainability index is taking it up a notch. Already driving WMT suppliers to improve performance, in the future the index could appear on a point-ofsale label for products. Expect green marketing in 2012 to up the ante based on the successes of campaigns likeTimberlands Earthkeepers line (Nature Needs Heroes). Perhaps the high water mark for eco-minded advertising was Patagonias brilliant Dont Buy This Jacket messaging.
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Its Common Threads Initiative asks customers to pledge to only buy what they need and instead repair, reuse, and recycle their clothing. Nothing inspires confidence in your eco-values more than telling customers not to buy your products. Independent certification schemes like the GoodGuide will continue to proliferate, as will cause marketing, for the simple reason that it works. Cone Communications reports in its 2010 Cause Evolution Study that even as cause marketing continues to grow, consumers are eager for more. In fact, 83 percent of Americans want MORE of the products, services and retailers they use to support causes.

7. Occupy From the Inside: Price Waterhouse Coopers has found that 88% of millennials, or echo boomers, choose employers based on strong CSR values, and 86% would consider leaving if the companies CSR values no longer met their expectations. As a new generation goes to work in corporate America, it is bringing strong social justice values with it. At the same time, companies are under increasing pressure to go green. So despite the popular view that corporations are in a race to the bottom, 2012 will see more jobs created for CSR professionals who want to change business from the inside out. Companies of all kinds are looking for people to help improve their environmental, social, and ethical performance throughout their value chains. There are recruiters like Ellen Weinreb and Martha Montag Brownwho specialize in CSR jobs, and the big recruiters have caught on too.

8. Social Media Rules: I will admit that I originally got a Facebook account just to annoy my children. Now Facebook and Twitter are essential communications tools for any serious CSR program. Social media is not a replacement for hefty annual CSR reports, but those reports are increasingly static reference documents, used mainly for looking up facts and grading performance. Social media opens a way for stakeholders to interact directly with a companys CSR program. Through social media, companies gain a following of people who are interested in their CSR performance and can keep tabs on stakeholder sentiment on any emerging issue.

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9. Human Rights: Since the 2008 publication of the Ruggie Report on human rights and transnational corporations, companies have been waking up to human rights issues across their value chains. For example, the major Internet search companies are embroiled in basic human rights questions ranging from the protection of free speech during the Arab Spring to being compelled to identify dissidents in repressive regimes. In a time of globalization, hyper-transparency, and increasing expectations among informed stakeholders, the risk in even tacit complicity in human rights violations is growing. Wise companies will take a hard look at their human rights policies and practices in 2012 and act to mitigate any liabilities. 10. Earth at Seven Billion and Growing: In 2011 the worlds population topped seven billion people. Even at seven billion we have averted a Malthusian catastrophe so far. But as more people compete for the Earths resources, the need to be more efficient will continue to increase. Everything from energy efficient semiconductors to electric cars to water conserving plants will find new markets in 2012 and beyond. The imperative to stretch resources ever further will make sustainability a central design principle for the winning corporations of the future.

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CHAPTER-2

OBJECTIVES

TO KNOW WHAT IS CSR (CORPORATE SOCIAL RESPONSIBILITY)

TO KNOW ABOUT WHAT IS BANKING AND INSUARNCE SECTOR AND HOW IT WORKS.

CSR ACTIVITIES DONE BY CORPORATES

WHAT ARE THE RECENT TRENDS IN CSR

AND WHAT IS THE CONTRIBUTION OF BANKING AND INSURANCE SECTOR IN CSR

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CHAPTER-3

RESEARCH METHODOLOGY

INTRODUCTION TO RM

Marketing research is the function which likes the consumers, customers & public to the marketer through information which is used to identify & define marketing opportunities & problems, generate, refine & evaluate marketing action; monitor marketing performances & improve understanding of marketing as a process. It has following steps: I: PROBLEM DEFINITION II: DEVELOPMENT OF AN APPROACH TO THE PROBLEM III: RESEARCH DESIGN FORMULATION IV: FIELDWORK OR DATA COLLECTION V: DATA PREPARATION AND ANALYSIS VI: REPORT PREPRATION AND PRESENTATION

2.1

RESEACH DESIGN:

It is framework or blueprint for conducting the market research project. It specifies the details of procedures necessary for obtaining the information needed to structure and/or solve marketing research problem.

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Research design broadly classified into two parts : Exploratory Research Conclusive Research EXPLORATORY RESEARCH:

Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory. Hypothesis is tentative answer to the question that serves as guide for most of the research projects It seeks to discover new relationships. All marketing research projects start with it. This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. The major emphasis is on the discovery of ideas & insight. CONCLUSIVE RESEARCH:

Conclusive research provides information that helps the executive so that he can make a rational decision. This study has done well while attempting to arrive at a more clear description of an apparent problem.

2.2 TARGET POPULATION: The collection of elements or object that possess the information sought by the researcher and about which inference are to be made Target population should be defined in term of Element and Sampling unit.

ELEMENT:

Object that possess the information sought by the researcher and about which inferences are to be made.
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SAMPLING UNIT:

The basic unit containing the elements of the population to be sampled .

2.3 SAMPLE SIZE: Sample size refers to the number of elements to be used in a study.

2.4 SAMPLING TECHNIQUES: Sampling Techniques are of two types: Non probability (non random) Probability sampling (random sampling) The sampling technique used in this research is Non - random sampling techniques in which I have choose convenience sampling technique because it is least expensive and least time consuming of all sampling techniques. Convenience sample: It is also known as "accidental" sample or "man-in-the-street" samples.

SCOPE OF STUDY:

The scope of the study will be useful in future. Through this study we can know what is CSR, how Banking & Insurance sector works and what are the CSR activities adopted by Banking & Insurance Sector. Through this study we will find out the factors of awareness for CSR by corporates. Hence by implementing all the above we can analyze the CSR initiatives by Banking & Insurance sector.

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2.6 DATA COLLECTION METHOD: The data collection process can be relatively simple depending on the type of data collection tools required and used during the research. Data collection tools are instruments used to collect information for performance assessments, self-evaluations, and external evaluations. The data collection tools need to be strong enough to support what the evaluations find during research. Here are a few examples of data collection tools used within three main categories. Secondary participation: Secondary participation require no direct contact to Data collection tools used in personal contact observations are used ather information. It involve: Postal mail Electronic mail Telephone Web-based surveys

In-person observations when there is face to face contact with the participants. Some examples of this type of data collection tool would include: In-person surveys used to gain general answers to basic questions Direct or participatory observations where the researcher is directly involved with the study group Interviews used to gain more in depth answers to complex questions Focus groups where certain sample groups are asked their opinion about a certain subject or theory.

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Case Studies And Content Analysis:

Case studies and content analysis are data collection tools which are based upon preexisting research or a search of recorded information which may be useful to the researcher in gaining the required information which fills in the blanks not found with the other two types during the data collection process. Some examples of this type of data collection tool would include: Expert opinions leaders in the field of study Case studies previous findings of other researchers Literature searches research articles and papers I have used case studies, referred books and internet sites, previous year reports and newspapers for preparing the project report.

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CHAPTER-4

ANALYSIS BANKING & INSURANCE SECTOR

BANKING SECTOR:
The banking in India started with the establishment of the General Bank of India in 1786. Later the Bank of Hindustan was also established. However, both the banks are not in functional state currently. It's the State Bank of India, which is currently the oldest bank in India in existence, established in 1806.

Since the beginning, due to huge market potential, a number of banking companies have come up in India, which include both, public sector as well as private sector banks. However, the list of top 10 banking companies in India has mostly been dominated by the State Bank of India (SBI).

Since the initial days, the State Bank of India has dominated the Indian banking industry accounting for nearly 20% of the Indian banking system's deposit base. It also has got almost 20% of the credit portfolio.

The recent economic slowdown, like many other industries, also affected the Indian banking industry. However, it showed resilience to the global recession.

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Following is the list of top 10 banking companies in India: 1. State Bank of India (Figures (2008-09) are in crore, unless specified other)
No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income 11447 205896 556.00 4.74 57948 742073 275954 542503 63788 12691

Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses

42915 15649 5.85 3.83 16.64

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Return on Assets

1.04

CRAR Net NPA ratio

14.25 1.76

2. HDFC BANK (Figures (2008-09) are in crore, unless specified other)

No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income Interest expended Operating expenses Cost of Funds (CoF) 1400 52687 446.00 4.18 14652 142812 58818 98883 16332 3291 8911 5533 6.83

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Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

8.12 15.50 1.28 15.69 0.63

3. AXIS BANK (Figures (2008-09) are in crore, unless specified other)

No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income Interest expended 786 20624 1060.00 10.02 10215 117374 46330 81557 10835 2897 7149

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Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

2858 5.88 4.69 9.97 1.44 13.69 0.40

4. BANK OF INDIA (Figures (2008-09) are in crore, unless specified other)

No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income 2934 40155 833.00 7.49 13495 189708 52607 142909 16347

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Other income Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

3052 10848 3094 5.79 4.00 13.90 1.49 13.01 0.44

5. PUNJAB NATIONAL BANK

(Figures (2008-09) are in crore, unless specified other)

No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits 4323 54780 654.92 5.64 14654 209760

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Investments Advances Interest income Other income Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

63385 154703 19326 2920 12295 4206 6.05 4.62 17.72 1.39 14.03 0.17

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6. BANK OF BARODA (Figures (2008-09) are in crore, unless specified other)

No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR 2916 36838 914.00 6.05 12836 192397 52446 143986 15092 2758 9968 3576 5.36 3.58 17.34 1.09 14.05

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7. ICICI BANK LIMITED

(Figures (2008-09) are in crore, unless specified other)
No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR 1408 34596 1154.00 11.00 49883 218348 103058 218311 31093 7604 22726 7045 5.97 4.09 6.62 0.98 13.96

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Net NPA ratio

2.09

8. UNITED BANK OF INDIA

(Figures (2008-09) are in crore, unless specified other)
No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF 2569 29014 694.00 6.28 8740 138703 42997 96534 11889 1483 8076 2214 6.15 4.27

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Wages as % to total expenses Return on Assets CRAR Net NPA ratio

11.19 1.27 12.01 0.34

9. CITI BANK
(Figures (2008-09) are in crore, unless specified other)
No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income Interest expended Operating expenses 41 4795 1880.10 45.12 11518 51677 24519 39920 6840 3582 2429 2587

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Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

3.57 9.04 17.56 2.12 13.23 2.63

10. CANARA BANK

(Figures (2008-09) are in crore, unless specified other)
No. of offices No. of employees Business per employee (in ` lakh) Profit per employee (in ` lakh) Capital and Reserves & surplus Deposits Investments Advances Interest income Other income 2740 44090 780.17 4.97 12208 186893 57777 138219 17119 2311

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Interest expended Operating expenses Cost of Funds (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

12401 3065 6.75 3.69 12.14 1.06 14.1 1.09

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INSURANCE SECTOR:

Insurance is a subject listed in the Union list in the Seventh Schedule to the Constitution of India where only centre can legislate. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26% earlier and 49% from 2012, the insurance sector has been a booming market. However, the largest life-insurance company in India is still owned by the government. History In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in these ancient Indian texts is the same i.e. pooling of resources that could be redistributed in times of calamities such as fire, floods, epidemics and famine. The early references to Insurance in these texts have reference to marine trade loans and carriers' contracts. Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business.

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The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1 January 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1, 1973. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

Industry structure Currently India is a US$41 billion industry. Currently, in India only two million people (0.2% of the total population of 1 billion) are covered under Mediclaim, whereas in developed nations like USA about 75% of the total population are covered under some insurance scheme. With more and more private companies in the sector, the situation may change soon. Specialisation ECGC, ESIC and AIC provide insurance services for niche markets. So, their scope is limited by legislation but enjoy some special powers.
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Acts The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts. The Insurance Act of 1938[1] was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India. The General Insurance Business Act of 1972 was enacted to nationalise the about 100 general insurance companies then and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities. Until 1999, there were no private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and Company Secretaries. A minimum capital of US$80 million(Rs.400 Crore) is required by legislation to set up an insurance business.

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Authorities The industry recognises examinations conducted by IAI (for actuaries), III (for agents, brokers and third-party administrators) and IIISLA (for surveyors and loss assessors). TAC is the sole data repository for the non-life industry. IBAI gives voice for brokers while GI Council and LI Council are platforms for insurers. AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to the employees of the insurers. In addition, there are a dozen Ombudsman offices to address client grievances. Insurance education National Insurance Academy, Pune, has a 32 acre campus & 50-plus faculty, specialized in teaching, conducting research and providing consulting services in the insurance sector. NIA offers a two year PGDM program in insurance. NIA was founded as Ministry of Finance initiative with capital support from the then public insurance companies, both Life (LIC) and Non-Life (GIC, National, Oriental, United & New India). Amity School of Insurance Banking and Actuarial science (ASIBAS) of Amity University, located in Noida and established in 2000, offers MBA programs in Insurance, Insurance and Banking, and M.Sc./B.Sc. actuarial sciences.

The Institute of Insurance and Risk Management (IIRM) is an international education and research organization. The Institute was set up jointly by the Insurance Regulatory and Development Authority (IRDA) of India and the State Government of Andhra Pradesh, in 2002 for promotion of International Post Graduate Diploma Courses in Insurance / Risk Management(Regular and Distance learning) . International School of Actuarial Sciences (ISAS) opened on 6th August 2007 leading to a Post Graduate Diploma in Actuarial Sciences.

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Birla Institute of Management Technologyn a graduate business school located in Greater Noida, established in 1988, offers a PGDM-IBM program in insurance business management. This program was launched in 2000 by the Centre for Insurance and Risk Management and is accredited by the Insurance Regulatory and Development Authority. Life Office Management Association (LOMA),USA is BIMTECH's educational partner and BIMTECH is an approved centre for LOMA examination. The Chartered Insurance Institute(CII), UK has accorded recognition (by way of credits) to the BIMTECH PGDM-IBM program. Their two year PGDM program in insurance business has been recognized as equivalent to the Associate level of the Insurance Institute of India, Mumbai. NLU, Jodhpur, offers a two year MBA and one year MS (for engineering graduates) program in insurance. IRDA controls all the Insurance business in India. They are setting structure and boundaries for the insurance companies to act within. Starting from licensing to approving the products, IRDA directs the companies in India. They also protect customer interests in the country.

As per current guidelines issued by IRDA, Insurance Companies are not permitted to invest in Indian Depository Receipts ( IDR), while they are permitted to invest in Equity shares/ Bonds/ Debentures. IRDA needs to remove this disparity to open up investment opportunity by Ins Companies and thereby also enhance the liquidity of IDRs ( Contributed by Sanjay Banka, FCA FCS)

To become an insurance advisor in India insurance act 1938 mandates that the individual has to be Major with sound mind. After the advent of IRDA as Insurance Regulator IRDA has framed various regulations viz training hours, examination, fee etc. which are amended from time to time. Since November 2011 IRDA the Insurance Regulator in India has introduced a new syllabus(IC-33) conceived and developed by CII, London.

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Complete List of Insurance Companies in India (March 2012)

Insurance industry, earlier comprised of only two state insurers.

Life Insurers ie Life Insurance Corporation of India (LIC) and General Insurers ie General Insurance Corporation of India (GIC) GIC had four subsidary companies.

With effect from Dec'2000, these subsidaries have been de-linked from parent company and made as an independent insurance companies. Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited. The first batch of licenses were issued by the Insurance Regulatory and Development Authority (IRDA) in 2001. As on December 2012 following are the players in the Indian Market: Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

LIFE INSURERS IN INDIA

- Bajaj Allianz Life Insurance Company Limited - Birla Sun Life Insurance Co. Ltd - HDFC Standard Life Insurance Co. Ltd - ICICI Prudential Life Insurance Co. Ltd - India First Life Insurance Company Ltd - ING Vysya Life Insurance Company Ltd. - Life Insurance Corporation of India - Max New York Life Insurance Co. Ltd - Met Life India Insurance Company Ltd.
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- Kotak Mahindra Old Mutual Life Insurance Limited - SBI Life Insurance Co. Ltd - Tata AIG Life Insurance Company Limited - Reliance Life Insurance Company Limited. - Aviva Life Insurance Company India Limited - Sahara India Life Insurance Co, Ltd. - Shriram Life Insurance Co, Ltd. - Bharti AXA Life Insurance Company Ltd. - Future Generali India Life Insurance Company Limited - IDBI Fortis Life Insurance Company Ltd. - Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. - Aegon Religare Life Insurance Company Limited - DLF Pramerica Life Insurance Company Limited - Star Union Dai-Ichi Life Insurance Company Limited - IndiaFirst Life Insurance Company Limited - Edelweiss Tokio Life Insurance Co. Ltd.

REINSURERS IN INDIA:

- GENERAL INSURANCE CORPORATION OF INDIA.

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BANKING & INSURANCE SECTOR - AN OVERVIEW

The economic reforms undertaken in the last 15 years have brought about a considerable improvement in the health of banks and financial institutions in India. The banking sector is a very important sector of the Indian economy. The sector has made a marked improvement in the liberalization period. There has been extraordinary progress in the financial health of the commercial banks with respect to capital adequacy, profitability, asset quality and risk management. Deregulation has opened new doors for banks to increase revenues by entering into investment banking, insurance, credit cards, depository services, mortgage,

securitization, etc. The limit for foreign direct investment in private banks has been increased from 49% to 74%. In addition, the limit for foreign institutional investment in private banks is 49%. Liberalization and globalization have created a more challenging environment in the banking sector as well as in the other segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices, capital markets, venture capitalists, etc. Now the challenges faced by the sector would be gaining profitability, reinforcing technology, maintaining global standards, corporate governance, sharpening skills, risk management and, the most important of all, to establish 'Customer Intimacy'.

The insurance business is one of the most rapidly growing areas in the financial sector. As an economy grows over the years, insurance sector intensifies and broadens its reach. Every practical and futuristic individual would want himself, his family and his assets to be insured. Insurance deals mainly with life and general insurance. India has a large insurance market commensurate with its population. The IRDA Act 1999 (Insurance Regulatory and Development Authority of India Act) has given new opportunities to private players to enter into the market on the fulfillment of certain prerequisites. The IRDA is the licensing authority in the sector; the current FDI cap/Equity in the sector stands at 26 percent. There is no doubt the challenges ahead will become tougher with more companies competing both in general and life Insurance. Also mortgage insurance will soon be coming into the industry.
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New players have contributed to the launch of innovative products, services and valueadded benefits. Major foreign players have entered the country and announced joint ventures in both life and non-life areas. These include New York Life, Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among others. Commercial banks are coming up with more and more jobs, and the banking sector now has more new jobs than any other sector. Right from the branch level to the highest level, there is tremendous range of opportunities available in the sector. Jobs in this sector can be both rewarding and enjoyable, as you get opportunities to learn about business, interact with people and build up clientele. The same is the case with insurance, as it is the fastest growing industry under the financial sector. Both government and private players are currently offering a plenty of jobs in this sector. So, this is great news for you if you are thinking to go into the banking & insurance streams.

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CSR ADOPTED BY BANKING & INSURANCE SECTOR

THE IMPACT OF CSR ON PERFORMANCE AND IMAGE OF BANKS IN INDIA Purpose The purpose of this paper is to map the Corporate Social Responsility (CSR) practices of major players in Indian Banking Sector and to find out the impact of such practices on the performance and image of such players.

Design/Methodology/ApproachThe paper is based on the published records of some major players both in the public sector as well as in the private sector banks of the country which has been linked to their published financial performance, and image for the last few years with the objective of assessing the impact of the CSR practices on the performance and image. Findings The findings suggest that banks in India are increasing their activities under corporate social responsibility which is also impacting their business in the positive direction, apart from improving their image and goodwill. Research Limitations/Implications The study was conducted through secondary data since CSR activities are mainly performed through the Central/Head Office of the Banks and they are located in major metropolitan centres of the country. But as CSR improves the performance of banks in terms of goodwill, image, and business, this may be a good example for other service sectors as well

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Originality/Value This paper observes that the work done for society may pass on the advantages to the corporate world and initiatives in this area may enhance their value. Keywords: Banks in India, Corporate Social Responsibility, Performance, Business, Image.

INTRODUCTION ABOUT CSR ADOPTED BY BANKING AND INSURANCE SECTOR CSR has been identified as a tool to contribute directly or indirectly to the companys bottom-line and also ensures its long-term sustainability. It helps companies emerge as true corporate citizens. CSR means in its essence to be responsible to ones various stakeholders and not just charity. At present, the world over, there is an increasing awareness about Corporate Social Responsibility (CSR), Sustainable Development (SD) and Non-Financial Reporting (NFR). Consequently, there is a concerted effort among all types of organizations, to ensure that sustainable development is not lost sight of, in the pursuit of their respective goals - profit making, social service, philanthropy, etc. CSR entails the integration of social and environmental concerns by companies in their business operations as also in interactions with their stakeholders. The contribution of financial institutions including banks to sustainable development is paramount, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the urgency for banks to act as responsible corporate citizens in the society, especially in a developing country like ours, need be hardly overemphasized. Their activities should reflect their concern for human rights and environment. Studies over the recent times have revealed that organisations involved in CSR activities continued to sustain for much longer durations in comparison to those not involved in such activities. This is the reason why more and more organisations across sectors are increasingly getting involved in CSR activities.

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CSR has been identified as a tool to contribute directly or indirectly to the companys bottom-line and also ensures its long-term sustainability. It helps companies emerge as true corporate citizens. CSR means in its essence to be responsible to ones various stakeholders and not just charity. The Emerging CSR Model shows how the meaning of CSR is changing both in its essence and application. The objectives of CSR have progressed beyond the obvious and have transgressed into goals like: a) Image Makeover b) Building Relationships c) Accountability d) Maximizing Gains e) Maximizing Profits f) Long-term Sustainability. CSR is much more beyond charity and much more than mere construction of schools, hospitals and temples. The Emerging CSR Model considers that the corporate have their share of responsibility towards their various stakeholders with an ultimate objective directed towards the bottom-line and long-term sustainability. Social responsibility refers to managements obligations to make choices and take actions that will contribute to the welfare and interests of society as well as to those of the Organization and its Stakeholders (Shareholders, Employees, Suppliers,

Consumers and Society).

RBI GUIDELINES ON CSR The Reserve Bank of India (RBI) directed banks in December, 2007 to undertake corporate social responsibility (CSR) initiatives for sustainable development. The regulator also asked banks to begin non-financial reporting, which will give an account of the banks intangible assets. There is insufficient awareness on an issue such as global warming and climate. Majority of the Asian companies are not aware of the risks that climate change can pose to their business models and environment in general.

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In this context, the need for sustainable developmental efforts by financial institutions in India assumes urgency and banks, in particular, can help contribute to this effort by playing a meaningful role, said the RBI in a circular issued to banks. CSR entails the integration of social and environmental concerns by companies, in their business operations and interactions with stakeholders, according to the central bank. Sustainable development is about maintaining the quality of environmental and social systems in the pursuit of economic development. Non-financial reporting is a system whereby organizations report on their activities, especially those pertaining to environmental, social and economic accounting. The regulatory authority has directed banks to put in place a board-approved plan of action aimed at ensuring sustainable development. The banks will have to keep themselves abreast of developments and modify their strategies and plans in the light of changing situations. Banks will have to place their CSR initiatives in the public domain, along with their annual accounts. Non-financial reporting is an opportunity to communicate in an open and transparent way with the stakeholders. The non-financial reports allow firms to provide an overview of the environmental and social impact in the previous year. This information contributes towards building a companys risk profile. The importance of non -financial disclosure in the overall assessment of a companys risk profile is steadily gaining ground, said the RBI. The central bank said the contribution of financial institutions, including banks, is crucial to sustainable development, considering their role in financing the economic and developmental activities worldwide. Hence, the need for banks to act as responsible corporate citizens, especially in a developing country such as ours, need be hardly overemphasized. Their activities should reflect their concern for human rights and environment. CSR practices by major banks in India.

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CSR IN ICICI BANK ICICI Bank Ltd (NYSE:IBN) (www.icicibank.com) is India's largest private sector bank and the second largest bank in the country, offering a wide range of banking products and financial services to more than 25 million corporate and retail customers. ICICI Bank's subsidiaries include India's leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank's presence currently spans 19 countries, including India.

In line with its commitment to investing in India's future and building the nation's talent pool, ICICI Bank views its Corporate Social Responsibility (CSR) initiatives as integral to its core mission of delivering value to its stakeholders. The Bank's CSR activities have taken three broad strategic directions: CSR through commercial activities, CSR in partnership with civil society and CSR through ICICI Foundation for Inclusive Growth.

ELEMENTARY EDUCATION Programme: Read to Lead Read to lead is an initiative of ICICI Bank to facilitate access to elementary education for underprivileged children in the age group of 3-14 years including girls and tribal children from the remote rural areas. The Read to Lead initiative supports partner NGOs to design and implement programs that mobilise parent and community involvement in education, strengthen schools and enable children to enter and complete formal elementary education.

Read to lead has reached out to 100,000 children across 14 states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.

CSR IN HDFC BANK In keeping with the HDFC Group philosophy, your Bank has always believed in making a difference to society at large. As a responsible corporate citizen, it has been your Banks vision to empower the community through socio-economic development of underprivileged and weaker sections of society.

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During 2007-08 the Bank further intensified its efforts in this direction. Most of the Banks social activities revolve around educational initiatives (including school adoption projects, educational sponsorships of girl children, primary education to first generation learners etc.) and initiatives in the field of livelihood training and support. In the latter area, the Bank has been working with NGOs in providing nonformal vocational and technical education programs as well as skill up gradation courses to enable sustainable employment and income generation for economically weaker sections. To further integrate some of its Corporate Social Responsibility (CSR) initiatives with its banking operations, the Bank has started outsourcing some non-core back office operations to certain small semi-urban locations. This creates jobs for the local educated youth in those towns with obvious gains for the families (as the youth is gainfully employed without having to relocate to distant cities) and also gives a boost to the local economy in those locations. Where relevant, the Bank coordinates its CSR activities with its microfinance and self help group (SHG) financing. The Bank has relationships with 110 micro finance institutions and has extended credit facilities, whereby 1.61 million households have been beneficiaries of financial inclusion. In this regard, your Bank has also appointed around 150 NGOs across the country as business correspondents (BCs) to provide SHG Bank linkage to help tribals, physically challenged, beggars, etc. to earn a livelihood and join the mainstream. The Bank under the direct SHG linkage programme, has credit linked over 32,000 SHGs and thereby roughly another half a million households have been brought under Financial Inclusion. Employees are a key part of your Banks social initiatives and are encouraged to participate in these activities, contributing their time and skills. The Bank also administers a payroll-giving programme whereby employees offer deductions from their salary to donate for specified charities or social causes of their choice and the Bank contributes an equivalent amount.

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CSR IN IDBI BANK IDBI, the premier banking institution of the country, joins the exclusive club of Socially Responsible Corporate under Smile Foundations Corporate Social Responsibility [CSR] initiative. IDBI has come forward to join hands with Smile Foundation in social development initiatives. The bank has contributed 14 personal computers to Smile Foundation which have been utilized in four different projects being implemented through as many partners in Delhi and NCR. Details of the projects and implementing partners are as follow: Prerna 6 computers. The computers will be utilized in the ongoing project for Empowering Community Gi rls through Education and Skills for Livelihood. The project area covers 6 villages in Badarpur area of Delhi. Target beneficiaries of the project are 300 community girls Child Survival India (CSI) 4 computers. It will be added to the educational programme under the ongoing integrated project focused on under-privileged children, adolescent girls and village women. The project being implemented in Khda Khurd area in outer Delhi. Number of target beneficiaries of the project is around 500. New Opportunity for Women (NOW) 2 computers. Education, Life Skills Enhancement & Vocational Training of Adolescent Girls from Under Privileged Community is the project where both the computers will add value to a target group of 60 adolescent girls from below poverty line families from the neighbourhood slum communities near Ashram in Delhi Nav Shrishti 2 computers. Provided by IDBI, these computers will add real value to the project Education, Health Care, FLE/LSE, Vocational Training on Girl Child. With a target group of 300 needy adolescent girls, the project has been taken up in Faridabad, Haryana.

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CSR IN PUNJAB NATIONAL BANK PNB Farmers Welfare Trust The Bank established PNB Farmers Welfare Trust in the year 2000 for welfare of the farmers, women and youth in rural areas. Under the aegis of the Trust, eight Farmers Training Centres (FTCs) are operational at Village Sacha Khera (Haryana), Vidisha (MP), Neemrana (Rajasthan), Shamsher Nagar (Punjab), Saifai (UP), Labhandi (Chhattisgarh), Mehraj (Punjab) & Pillayarpatti (Tamil Nadu). Land has been obtained at Jhalara Patan (Rajasthan) where Trust intends to start 9th Farmers Training Centre. Mobile Van at FTC Sacha Khera is providing off-site training on improved package & practices of agricultural crops & allied activities, soil testing and Jatropha cultivation. In addition, the van is acting as an information kiosk. As a major objective of the Farmers Welfare Trust Scheme, these FTCs have become training ground for the farmers, small traders, agri-businessmen, entrepreneurs, etc. These Centres provide training FREE OF COST. They imparted training to 1,34,646 farmers & youths including 18,900 women till March 2008. Further, during 2007-08, 30 Human Health Check-up Camps and 88 Animal Health Check-up Camps were conducted, in addition to arranging 50 visits to Agricultural Universities / Colleges / Fairs / Govt. Farms etc. Each FTC has also adopted one village for developing it as a Model Village at a cost of Rs 5 lakh.

PNB Centenary Rural Development Trust The Bank has established PNB Centenary Rural Development Trust with an objective of assisting rural youth for taking up gainful employment and rural development. Three units under the Trust are working, viz. Soil Testing and Artificial Insemination Centre at Village Matki Jharoli (UP), Training Centre for Rural Youth for Self Employment at village Dhudike (Punjab) and PNB

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Swarojgar Vikas Sansthan for training of unemployed youth at Patna (Bihar). At Matki Jharoli Centre, 31,297 soil samples have been analyzed, 7653 animals artificially inseminated and 63,222 diseased animals have been treated till March 2008. Besides, 81,211 persons have attended demonstrations on vermi composting and solar energy. At Dhudike Centre, the birth place of Shri Lala Lajpat Rai, training on self employment ventures like repair and maintenance of farm machinery; cutting, tailoring & embroidery; computer courses etc. have been imparted to 555 boys and 526 girls. PNB Swarojgar Vikas Sansthan, Patna (Bihar) is a Rural Development and Self Employment Training Institute established on 15.1.2007 for channelising youth power in wealth creation through entrepreneurship development and imparting knowledge and skill required for taking up self employment ventures. Till March 2008, training has been provided to 378 persons including 330 women by the Institute.

Micro Credit The Bank continued to promote Micro Finance through formation & credit linkage of Self Help Groups which is an effective instrument for increasing the income level and reducing poverty and unemployment. Adequate thrust is being given to financing Tenant Farmers Groups (TFGs). In addition, the Bank has laid emphasis on capacity building and training of intermediaries, such as NGOs / Volunteer Vahinis and the ultimate beneficiaries. During 2007-08, the Bank contributed Rs 22.75 lakh to the corpus formed for providing financial assistance towards infrastructure for the RUDSETI being run by J&K Government. Further, the Board approved a budget of Rs 13.09 lakh for recurring expenses of RUDSETI at Distt. Solan, Himachal Pradesh, established in association with Ambuja Cement Foundation. As at end March 2008, the Bank has credit-linked 1,18,952 SHGs, registering a growth of 18.2 percent.

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CSR IN BANK OF BARODA Most of the Banks social activities are linked to rural masses, i.e., adoption of 101 villages across India for their all-around development and providing financial assistance for development of infrastructure facilities like setting up village libraries, community hall and solar lighting systems in villages. The Bank has also established Swarozgar Vikas Sansthan for imparting training to unemployed youth, free of cost for gainful self employment and entrepreneurship skill development which help them improve their family economic status and also gives a boost to the local economy in those locations. The Bank has established 52 Baroda Gramin Paramarsh Kendra for providing credit counseling and financial literacy for rural masses across country. The Bank coordinates its CSR activities with its Micro-finance and Self-Help Group (SHG) financing. The Bank has developed relationships with 91,536 SHG and has extended credit facilities of Rs 636.00 crore through SHGs, whereby million of households have been beneficiaries of financial inclusion. The Bank has also adopted Dungarpur District in Rajasthan for total integrated rural development and 100% financial inclusion.

CSR IN CANARA BANK TRAM Campaign Ten Rupees a Month, popularly known as TRAM Campaign, is intended to actively involve all staff members in the welfare activities. Under this programme students, patients suffering from major diseases, disabled from weaker sections of society are assisted. Every year about Rs. 6.00 lakh is contributed from the employees for helping the needy people. Blood Donation With the active cooperation of the staff, every year around 5000 units of blood is donated by staff members and able to save many precious lives. Health Camps Canara Bank through its branches is conducting various types of health camps both in rural and semi urban areas which lack medical facilities. Welfare Activities for Students.

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Every year more than One Million Rupees is spent for Primary Education by providing Notebooks, School Bags, Uniforms, Educational Aids, etc. Poor meritorious students of Government Schools are honoured every year. Many orphan students are helped financially to continue their education. Many orphan and slum students are sponsored for free computer training to help them to earn their livelihood.

Self Employment and Career Guidance For students and unemployed youth these programmes are conducted to guide them to choose their career path. Assisting the Victims of Natural Calamities. Initiating relief measures to the victims of drought, flood, earth quake cyclones by providing clothes, food, utensils etc through voluntary contributions in cash and kind from our employees and also arranging contributions from the Bank. Assisting the NGOs CANARA BANK is always assisting the NGOs working for the welfare of disabled, orphans, senior citizens, destitutes and conducting programmes in coordination with them.

CSR IN UNION BANK OF INDIA The Bank fully realizes its social responsibility to improve the quality of life of the local community and society at large. The Bank has moved a step ahead in this direction. In order to pay a focused attention, the Board of the Bank has decided to set apart 1% of its annual public profits to undertake Corporate Social Responsibility Activities through its trust named Union Bank Social Foundation. The trust would provide for infrastructure facilities in rural areas and committed to undertaking one major project in each of the 13 lead districts across the country. The Bank has established Village Knowledge Centres (VKCs) in nearly 200 villages across the country, which provides knowledge dissemination and extension services to the rural community helping them in improving their productivity. These VKCs are nonprofit entities, fully funded by the bank.

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The Bank has also established two Rural Development and Self-employment activities in Perambavur (Kerala) and Varanasi (U.P) funded jointly by the Bank, NABARD and respective State Governments.

CSR IN ORIENTAL BANK OF COMMERCE Oriental Bank Rural Development Trust As part of the corporate social responsibility, rural unemployed youth and women are provided training on skill development free of charge under the aegis of OBC Rural Development Trust. A rural clinic has been opened in Sivaganga district, Chennai for providing medical consultancy facility free of charge to the rural customers. Prabhat Tara, an NGO, operational from RK Puram, New Delhi was provided with computers by the bank to facilitate them for conducting training for their self help group members. In an effort to include people from the lower strata in inclusive participatory development, the bank plans to involve the people from slum areas, rural remote areas by forming self help groups and making financial services available to them in simple and effective way so that they are able to taste the fruits of growing Indian economy. For increasing visibility in rural villages, the bank plans to adopt one or two villages in ethnic areas like Punjab, Haryana, Rajasthan for overall village development like creation of public infrastructure and utility services like bus stand shelter, public drinking water taps, coolers, water tanks for schools, and imprinting the banks name and logo on them. It is proposed that the members of self help groups shall be given training on skill development by engaging the services of NGO at B/O Singampunari, Chennai. Depending on the outcome, the same may be repeated at other centres also. Financial Inclusion To provide banking facilities to the sections of society so far deprived from the formal financial sector, the bank has implemented financial inclusion policy. To accomplish the objectives, the bank has adopted three strategies for financial inclusion.

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 Financial Inclusion in villages allotted by SLBC/adopted by rural branches of the bank. 100 per cent financial inclusion in lead districts. Technology based financial inclusion. Oriental Bank Rural Development Trust The Oriental Bank Rural Development Trust (OBCRDT) is an initiative taken by the bank for setting up Rural Development Training & Resource Centres at various places across the country for imparting training for capacity building in rural areas. In the first phase, the trust has set up Rural Development Training & Resource Centres at the following places: Ferozepur, Punjab Sriganganagar, Rajasthan Jaipur, Rajasthan

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CHAPTER-5

RECOMMENDATIONS AND LIMITATIONS

LIMITATIONS:

Secondary data can be general and vague and may not really help companies with decision making.

The information and data may not be accurate. The source of the data must always be checked.

The data maybe old and out of date. The sample used to generate the secondary data maybe small. The company publishing the data may not be reputable.

RECOMMENDATIONS: The time duration should be increased. The secondary data we use should be more accurate. The project should be based on primary research and company visits rather than secondary data.

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CHAPTER-6

CONCLUSION
The concept of corporate social responsibility has gained prominence from all avenues. Organizations must realize that government alone will not be able to get success in its endeavor to uplift the downtrodden of society. The present societal marketing concept of companies is constantly evolving and has given rise to a new concept-Corporate Social Responsibility. Many of the leading corporations across the world had realized the importance of being associated with socially relevant causes as a means of promoting their brands. It stems from the desire to do good and get self satisfaction in return as well as societal obligation of business. The Indian corporate sector spent US$ 6.31 billion on social expenditure during 200708, up from US$ 3.68 billion spent during the previous fiscal. The Steel Authority of India Ltd (SAIL), the country's largest steel company, spent US$ 21.05 million on CSR last year; Tata Steel Ltd, (which runs a 850-bed hospital and rural projects in 800 villages around Jamshedpur), spends about US$ 31.58 million as part of its annual revenue expenditure. Now there are plans to also introduce CSR in the small and medium enterprises (SME) sector to increase its reach in remote areas. Financial institutions can do a lot to assist efforts for corporate social responsibility and achieve sustainability. Internal efforts to make day-to-day operations cleaner, more efficient, and supportive of social structures can help. Sound financing of sustainable economy can be promoted by the banks. A lot more can be done by banks so as to practice the corporate social responsibility. There would be general social and economic benefits that would accrue to society, if business recognized broader social goals in its decisions.

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CHAPTER-7

REFERENCES Business Standard dated 21-12-2007 Palazzi, M & Starcher, G. (2006) Corporate Social Responsibility and Business
Success, The European Bahai Business Forum

Carol, A. B. (1979), A Three-Dimensional Conceptual Model of Corporate

Performance, Academy of Management Review 1979, Vol. 4(4).pp. 497-5

Moir, L. (2001), What Do We Mean By Corporate Social Responsibility?C o r p

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Carroll, A, B,, and Belier, G, W. Landmarks in the evolution of the social audit.
Academy ot Management Journai 1975 J8(3), 589-599,

Carroll, A, B, (Ed,), Managing corporate social responsibiiity. Boston: Little,

Brown, 1977,

Fitch, G. Achieving corporate social responsibility. Academy ot Management

Review, 1976, /(1), 38-46. Friedman, M. Capitaiism and freedom. Chicago: University of Chicago Press, 1962.

Manne, H., and Wallich, H. C. The modern corporation and sociai responsibiiity.
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Preston, L. E., and Post, J. E. Private management and pubiic policy.

Englewood Cliffs, N.J.: Prentice-Hall, 1975.

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t\Aanagement Review, 1975,77(3), 58-64.

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