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Acknowledgement Title of the Study Objectives of the study Scope of the study Introduction Conclusion Bibliography

Title of the study

The title of the project study is Corporate Social Responsibility: How far should a company go? This project report shows the Social Responsibility done by corporate sector to pay the certain debts that it owes to the society.

Objective of the study

The primary objective of this project study is to know what Corporate Social Responsibility exactly is. And up to what extent companies are playing their role in society and further how can they help in welfare of society. Some other objectives are: To study & analyze the Corporate Social Responsibility. To know up to what extent society is being benefited by Corporate Social Responsibility? To know whether CSR accounts for brand image of a company or not? To study different CSR programmes accomplished by companies? To compare the effectiveness of CSR programmes in different companies.

Scope of the study

The scope of this project is not restricted in particular area or industry but its open for all the different kind of sectors like FMCG, RETAIL, PHARMA, TELECOME etc. because the Social Welfare is the responsibility of every industry as the business takes place in the society, So it becomes the duty to pay their obligations towards society.


Business depends on the society for the needed inputs like money, men and skills. Business also depends on the society for market where products may be sold to their buyers. Thus, business depends on society for existence, sustenance and encouragement. Dependence of business on society is so complete that as long as the latter wants the former, business has reason to exist. Once society ceases to have any use for business, it has no place and reason to live. Being so much dependent, business has definite responsibility towards society.

Definition 1: European Commission

A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis

Definition 2: World Business Council for Sustainable Development

The continuing commitment by business to behave ethically and contribute to economic o

development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Definition 3: AIESEC Business taking an active role in addressing economic, social, and environmental issues at
both global and local community levels.

Definition 4: PHILIPPINES
CSR is about business giving back to society.

Definition 5: INDIAN

Corporate social resbonsibility is a business process wherein the institution and the individual within,are sensitive and careful about the direct and indirect effect of their work on internal and external communities,nature and outside world.

Definition 6:
CSR is concerned with treating the stakeholders of the firm ethically or in a societally responsible manner.Stakeholder exist both within a firm and outside.Consequently behaving socially resbonsible will increase the human development of the corporation.A process-and dialogue baesd approach to treat stakeholders with respect by consistently monitoring their interests and status and taking those into accounts in corporate decision making.


The dominant thinking of business firms, till around the mid twentieth century, was only to earn profit for the shareholders (owners). The paradigm of thinking changed as the expectations of society from business altered from 1960s onward. This change was triggered because of the occurrence o Bhopal Gas Tragedy , 1984 and Corporate bad behavior (Shell, Nike, Exxon Mobile, Enron and WorldCom) became common place from the 1990s f certain events like: The coming of Rachel Carsons, book Silent Spring in 1962 and Ralph Naders consumer safety and environment movement in the 1960s Stockholm conference, 1972 Bhopal Gas Tragedy , 1984 and Corporate bad behavior (Shell, Nike, Exxon Mobile, Enron and WorldCom) became common place from the 1990s Earth Summit (Rio de Janeiro, 1992) Formulation of Kyoto Protocol 1997 and institutionalization of the Global Warming movement. World Summit on Sustainable Development (Johannesburg, 2002) Many such events along with the events mentioned changed the business and society equation. Business firms were expected to take responsibility of the harm the firm activities caused to environment and society.


The concept of social responsibility has broadened and changed over time. As the values and norms of society has changed. During the industrial revolution the corporation was seen solely as an economic entity whose primary objectives were to maximize profit, provide jobs and protect the interest of its shareholders. The doctrines of self interest prevailed during the 1920s before the stock market crash In the 1930s the concept of CSR moved into its second stage, trusteeship management which lasted until the 1960s. During this stage the number of private companies declined due to the great depression and the remaining organization had to please group both outside and within the company. Manager had to balance the interest of all stakeholders, some of whom pressured companies into using their wealth to meet the needs of society. This stage marks the first time that organization had to become social responsible in order to survive. As the 1960s approached, once again society values and expectations changed, and the concept of social responsibility moved into its 3 phase. This period was marked by quality of life management, in which managers were expected to manage the quality of life by helping to solve such problems, as pollution and poverty at local and national levels and to become involved in activities that improve the quality of life in their communities. Quality of life management is the stage at which social responsibility is today. According to DUNHAM and by PIERCE, two principles provide the basis for current views on social responsibilities. 1. Principle of charity. People who have should give to those who dont. 2. Principle of stewardship. Corporations are obligated to meet the need of society because they gain there power and wealth through operating within society. Large Corporation are being asked not only to support social causes but to solve societys problems as well. In addition to pursuing traditional economic goal, corporation are protecting and improving the welfare of the community. According to Gorman : Three factors have led to the latest concern for social responsibility. 6

1. Deregulation of industries: The Reagan administration cut the budgets of the federal Trade Commission and the Consumer Product Safety Commission. 2. Hostile takeover and buyouts: While many bankers and CEOs became rich, thousands of employees lost their jobs, which eroded the credibility of business. 3. Accidents: The Chemical spill in Bhopal, India reminded people of the destructive effects that the carelessness of companies can cause.

The public believes that corporations will not follow regulatory requirements if left to do son on their own and will try to get away with whatever they can, which is why government intervention is justified. Charter is permission granted to a corporation by a state to operate under its laws. The government is supposed to represent what the people want and therefore can intervene in business activities if they affect society negatively. Government intervention reflects the belief that businesses have a responsibility to their constituencies other than shareholders. Even religious institution can influence what business activities are considered legitimate. Consumers have also taken matters into their own hands. Todays consumers not only check the prices of items, but check for social responsibility as well. Many consumers use shopping for a better world, published by the council on economic priorities. In an effort to be heard, consumers are investing in corporation that they feel are socially responsible and are boycotting those that are not.

One that has built-in to its purpose and strategy a commitment to deliver sustainable value to society at large, as well as to shareholders, and has open and transparent business practices that are based on ethical values and respect for employees, communities, and the environment.

A concept and a process whereby entrepreneurial enterprises integrate social and environmental concerns in their business operations and in their interactions with their stakeholders.


Human resources:
A CSR programme can be seen as 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 to improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. 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 events 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 which can separate them from the competition in the minds of consumers. CSR can play a role in building customer 8

loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group and The Body Shop are built on ethical values. Business service organizations can benefit too from building a reputation for integrity and best practice. 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, and so avoid intervention. This also applies to firms seeking to justify eye-catching profits and high levels of boardroom pay.


In the flat world, with lengthy global supply chains, the balance of Power between global companies and the individual communities in Which they operate is tilting more and more in favor of the companies. As such these companies are going to command more power, Not only have to create value but also to transmit valued, than any other institution on the planet. Many factors and influences have led to increasing attention being devoted to the role of Companies and CSR. These include: Sustainable development: United Nations (UN) studies and many others have underlined the fact that humankind is using natural resources at a faster rate than they are being replaced. If this continues, future generations will not have the resources they need for their development. In this sense, much of current development is unsustainableit cant be continued for both practical and moral reasons. Related issues include the need for greater attention to poverty alleviation and respect for human rights. CSR is an entry point for

Understanding sustainable development issues and responding to them in a firms business strategy. Globalization: With its attendant focus on cross-border trade, multinational enterprises and global supply chainseconomic globalization is increasingly raising CSR concerns related to human resource management practices, environmental protection, and health and safety, among other things. CSR can play a vital role in detecting how business impacts labor conditions, local communities and economies, and what steps can be taken to ensure business helps to maintain and build the public good. This can be especially important for export-oriented firms in emerging economies. Governance: Governments and intergovernmental bodies, such as the UN, the Organization for Economic Co-operation and Development (OECD) and the International Labor Organization (ILO) have developed various compacts, declarations, guidelines, principles and other instruments that outline norms for what they consider to be acceptable business conduct. CSR instruments often reflect internationally-agreed goals and laws regarding human rights, the environment and anti-corruption. Corporate sector impact: The sheer size and number of corporations, and their potential to impact political, social and environmental systems relative to governments and civil society, raise questions about influence and accountability. Even small and medium size enterprises (SMEs), which collectively represent the largest single employer, have a significant impact. Companies are global ambassadors of change and values. How they behave is becoming a matter of increasing interest and importance. Communications: Advances in communications technology, such as the Internet and mobile phones, are making it easier to track and discuss corporate activities. Internally, this can facilitate management, reporting and change. Externally, NGOs, the media and others can quickly assess and profile business practices they view as either problematic or exemplary. In the CSR context, modern communications technology offers opportunities to improve dialogue and partnerships.


Finance: Consumers and investors are showing increasing interest in supporting responsible business practices and are demanding more information on how companies are addressing risks and opportunities related to social and environmental issues. A sound CSR approach can help build share value, lower the cost of capital, and ensure better responsiveness to markets. Ethics: A number of serious and high-profile breaches of corporate ethics resulting in damage to employees, shareholders, communities or the environment-as well as share pricehave contributed to elevated public mistrust of corporations. A CSR approach can help improve corporate governance, transparency, accountability and ethical standard.

Consistency and Community: Citizens in many countries are making it clear that corporations should meet the same high standards of social and environmental care, no matter where they operate. In the CSR context, firms can help build a sense of community and shared approach to common problems. Leadership: At the same time, there is increasing awareness of the limits of government legislative and regulatory initiatives to effectively capture all the issues that CSR address. CSR can offer the flexibility and incentive for firms to act in advance of regulations, or in areas where regulations seem unlikely. Business Tool: Businesses are recognizing that adopting an effective approach to CSR can reduce the risk of business disruptions, open up new opportunities, drive innovation, enhance brand and company reputation and even improve efficiency.


Stakeholders are those parties impacted by the company and upon whom its ultimate success depends Major stakeholders in addition to investors: 11

Employees Customers Business partners Communities Environment Shareholders / Owners


The employees should be treated as human beings and their cooperation must be achieved for the realization of organizational goals. The management of a business should fulfill the following obligations towards its employees. 1. Fair wages-every business should pay reasonable wages and salaries to its employees so that they may satisfy their needs and lead a good life. 2. Good working conditions-since workers spend about eight hours on every working day at the workplace, they must be provided with good working conditions. 3. Adequate service benefits-Workers should be provided service benefits such as housing and medical facilities, insurance cover and retirement benefits. 4. Cooperation It is the responsibility of the management to win the cooperation of the workers by creating the condition in which workers are willing to put forward their efforts towards the common goal of business. 12

5. Recognition of workers rights - The management should recognize the workers right to fair wages , to participate in decision affecting their working life, to form trade unions to collective bargaining and to go on strike of their demands are not accepted. 6 Opportunity for growth-The workers should be helped by training and other means to improve their skills. Management should give the workers adequate to opportunities to develop their capabilities through training education and the enjoyment of freedom to the greatest possible extent.

Responsibility towards customers

Customer satisfaction is the ultimate aim of all economic activities. This involves more the over of products at lowest possible price. Adulteration of goods, poor quality, failure to give fair measure, lack of service and courtesy to the customers, misleading of dishonest advertising are some of the examples of violation by business of it obligations towards the customers of its products. Therefore, it is the duty of management to take care of following points. Need satisfaction-the company should produce those goods which meet needs of different classes, tastes and with different purchasing power. Regular flow of goods-The business should make goods of right quality available to the right people at the right time and place at reasonable price. Courteous service-The business should provide a prompt adequate and courteous service to customers, and handle their grievances carefully. Fair trade practices-The management should not indulge into unethical practice such as blackmarketing, hoarding, adulteration etc.


Right information-The manager should assure that advertisements ad statements issued by the business are true and fair.


1. Provide accurate information regarding the financial health of the organization. 2. Ensure a reasonable price for the articles supplied, and make prompt payments there should be fairness in transactions. 3. Promote a healthy atmosphere where creditors, suppliers and other interest groups are treated as patterns in a cooperative endeavor.


There is a separation of ownership and management in the case of joint stock companies. The shareholders are empowered to appoint directors and seek regularly accurate and full financial information about the company are responsible for safeguarding the interests of shareholders. But in case of sole readership and partnership concerns, the owners can look after their interests themselves. 1 Reasonable dividend shareholders are a source of fund for a company. They expect a high rate of dividend on the money invested by them and also the maximization of the value of their investment in the company. 2 Soundness- it is duty of management to see that financial position of the company is sound and the company always look for growth. 3 Information- It is the responsibility of the management to keep the shareholders well informed about the progress and financial position of the company.


4 Protection of the assets- The assets of the company are purchased with the funds provided by the shareholders. The management is able to safeguard these assets.

Peter Drucker suggested that business should be so managed that to make the public good the private good of the enterprise. Thus every business owes an obligation to the society at large. The specific responsibilities of business towards society are as follows1 Socioeconomic objectives Management must be guided by the socioeconomic objectives of the society. It should not indulge in any practice which is not fair from social point of view. Society expects that the business uses the factor of production effectively and efficiently to the satisfaction of needs of the society. If the business fulfills these expectations its goodwill and reputation will increase. 2 Improvement of local environment- good management can develop surrounding area for the well being of the workers and the general public. Management has certainly great responsibility to keep the healthy environment conditions where production is being carried on. It should take preventive measures against air and water pollution and should contribute should contribute to the development activities. 3 Employment opportunities- it is the responsibility of the management to help increase direct and indirect employment in the area where it is functioning. 4 Efficient uses of resources- the resources at the command of the business belong to the society. Therefore the management should make best efforts of use of capital, raw material and other resources for the well being of the society. 5 Welfare activities- The business should contribute to the weaker sections of the society. It should cooperative in welfare activities of the community.


ECO-EFFICIENCY Waste reduction

Pollution avoidance


Reducing materials, energy, water

Lower packaging costs







Co-operatives to generate leather industry-related employment for women at Indore and Mhow. Maintenance of a public children's park in Dewas town. Public library in Dewas supervised by workers as a volunteer activity. Marketing consultancy and computer classes for NGOs as a volunteer activity. Tata Public School in Dewas. Provides training to women in the manufacture of leather articles at a Vocational Training Centre, the Leather & Jute Training Centre at Indore, in collaboration with the Madhya Pradesh Handicraft Development Board (Hasta Shilp Vikas Nigam). Donation of finished leather to a leprosy hospital every year for making shoes for patients. Tata International is also a member of the Tata Council for Community Initiatives and participates in regional programmes.



200 000 trees planted at the leather factory at Dewas. Reforestation of Tekri hillock in Dewas town. Sophisticated effluent treatment plant at the leather factory. Reverse Osmosis plant for liquid waste. Biomethanation pilot plant.

R&D projects like processes for chrome free leather, process changes study for eco labeling of leather products.


One of India's largest solar thermal water heating systems at the leather factory.


Education. Environmental consciousness. Healthcare. Medical research. Social welfare.


Projects of Tata Tata Projects step towards corporate social responsibility

Keeping the tradition of the Group to do service to the society apart from the business, Tata Projects has taken a step forward by donating and installing a 1000 litres per hour defluoridation unit at Gangadevapalli village in Warangal district of Andhra Pradesh through The Federation Of Andhra Pradesh Chambers of Commerce and Industry (FAPPCI) in October 2004. The Gangadevapalli village has been adjudged as an ideal village by the Andhra Pradesh Government and same was adopted by FAPPCI. This Village has a population of 1,200 with 230 dwelling units and the ground water contains 2.8 3.2 mg/litre fluoride level. While a Canadian NGO offered their assistance for the bore well, water storage and distribution network, the defluoridation unit was installed by Tata Projects in the distribution system to enable the villagers to collect the potable drinking water to WHO standard. The unit supplied by Tata Projects is working well and the villagers are happy with the services rendered by Tata. The skid mounted de-fluoridation unit is an in-house developmental project of Tata Projects which converts water containing fluoride and arsenic into potable water.


Tata Projects is a professionally managed engineering, procurement and construction company with operations in the core sectors of power generation, transmission and distribution, industrial infrastructure, oil, gas and hydrocarbons, and quality services. Tata Projects is one of the few companies that have earned the ISO 9001, ISO 14001 and OHSAS 18001 certifications for all its operations. 19

The company's quality services backed by well-integrated inspection centers within and outside India, offer bestin-class third-party inspection and expediting services in the fields of power, cement, steel, pharmaceutical, telecom, oil and gas, petrochemicals and windmills.

Areas of business Power generation

The company's power generation strategic business unit undertakes turnkey engineering, procurement and construction (EPC) projects in the fields of captive power plants, balance of plants for super thermal plant utilities; installation works of steam generators, turbine generators and auxiliaries up to 660 mw. As an EPC contractor the company has a knowledge base of the latest technologies and skills available in project management. The unit's offerings are based on a deep understanding of both domestic and international customer needs in order to achieve the best possible solution.

Transmission and distribution

The company is a key player in the extra high voltage (EHV) sector with capabilities of turnkey execution of high-voltage transmission lines and substations, execution of distribution substations and substations, and survey of transmission lines using satellite imagery and other modern technology. Backed by a dedicated workforce, the company is teaming with leading global companies in their efforts to execute mega projects in power generation, transmission and distribution.

Industrial infrastructure

The company's infrastructure business unit, besides its main business of setting up seawater desalination and water-related treatment plants, is aggressively working on an end-to-end sustainable solution for providing potable drinking water in rural areas, a problem that afflicts most states in India. The company is also working towards creating a sustainable solution for treating arsenic infestation of water, particularly in the state of West Bengal and Bihar.

Oil, gas and hydrocarbons

The oil, gas and hydrocarbons sector has been identified as another thrust area and a new strategic business unit has been set up to handle the new line of business. At present, it is handling EPC projects for downstream oil, gas and hydrocarbon sector, establishment of crude oil and chemical storage terminals and handling facilities, installation services for main plants, and equipment and piping for refinery and petrochemical projects.

Quality services

This strategic business unit offers third-party inspection and expediting services in the fields of power, cement, steel, pharmaceuticals, telecom, oil and gas, petrochemicals and windmills. It also offers consultancy services for ISO 9001, ISO 14001 and OHSAS 18001, besides selfcertification capabilities assessment of suppliers. Fifteen inspection
effective services. centers with e-connectivity spanning major industrial cities in India provide fast and cost-

In the international arena, the company is currently providing these services in Abu Dhabi, Sharjah, Dubai, Bahrain, Saudi Arabia, China, Korea and Malaysia.

Community initiatives

As part of corporate social responsibility, the company is involved in finding a sustainable solution to the acute problem of fluorosis (excessive fluoride concentration in ground water) in the state of Andhra Pradesh, where the company's corporate office is located. In this regard, the company, by networking with the Federation of Andhra Pradesh Chamber of Commerce and Industry, has donated defluoridation units to provide safe drinking water in the Gangadevapalli village of Warangal district and Chinnakandakur village of Nalgonda district, both in Andhra Pradesh. The company has also adopted a village to provide education to all children up to primary school and for adult literacy. The company, along with the Tata Relief Committee, took part in the relief operations of tsunami-affected villagers
by deploying its mobile /skid-mounted desalination plant for safe drinking water at Nagapattinam, TamilNadu. The unit is operated by a team of company personnel.



ITC has won the prestigious Corporate Social Responsibility Award 2004 from The Energy and Resources Institute (TERI) for its celebrated e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector. ITC e-Choupal, the single-largest information technology-based intervention by a corporate in rural India, has already received several national and international accolades as a unique transformation model for rural India. ITC has earlier won the inaugural `World Business Award' instituted in support of the United Nations' Millennium Development Goals and also the Wharton-Infosys 'Enterprise Business Transformation Award 2004' for the Asia-Pacific region. The curriculum of the Harvard Business School now includes a case study on the ITC eChoupal movement and how it is enabling a paradigm shift in Indian agriculture. ITC is also one of the first Indian companies to pioneer the concept of 'Triple Bottom Line' reporting, covering not only the economic dimension, but also the environmental and social dimensions as well. ITC's Sustainability Report is the only one in India certified to be fully in accordance with GRI (Global Reporting Initiative) Guidelines. ITC e-Choupal empowers over 3.1 million farmers by enabling them to readily access cropspecific, customized and comprehensive information in their native village habitat and language. Vernacular websites relating to each agricultural crop that ITC deals in, created by the Company, provide ready and real-time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop, expert knowledge on best farming practices, and micro-level weather forecast. This significantly improves the farmer's decision-making ability, thereby helping him better align his agricultural produce to market demand, secure better quality, productivity and improved price discovery. The e-Choupal model and movement helps aggregate demand by creating a virtual producers' co-operative, thus facilitating access to higher


Quality farm inputs at lower costs for the farmer. ITC e-Choupal also creates a two-way direct marketing channel for rural India, eliminating wasteful intermediation and multiple handling, thus significantly reducing transaction costs and improving logistical efficiency. Over the next decade, the ITC e-Choupal network aims to cover over 100,000 Indian villages, representing 1/6th of rural India, and create more than 10 million e-farmers.

Bet on corporate social responsibility portfolio: ITC

"CSR can be a value proposition for companies," said Mr. Y.C. Deveshwar, Chairman, ITC Ltd. He spoke of a business model where customers would choose products based on the corporate social responsibility (CSR) portfolio of the company. This model, he said, would result in sustaining the bottom-line of the company as well encourage social work. "Profit is a by-product of business. The real aim is to do good for the society," he said. He added that instead of contributing to charity, one could buy products from companies doing charitable work.

Mr. Deveshwar was in Chennai to receive the Dr M.S. Swaminathan Award for Environmental Protection - 2006 on behalf of ITC. The citation said ITC had been a water positive corporation (recycling water from waste) for the third consecutive year. Through agro-forestry programmes, ITC has made about 30,000 hectares of wasteland cultivable and planted over 10 crore saplings. The company is poised to achieve zero solid waste through recycling techniques, 24

The Tamil Nadu Governor, Mr. Surjit Singh Barnala, who presented the award, instituted by the Rotary Club of Madras East and CavinKare Pvt Ltd, said media must make space for stories on environmental issues and show work done by people in positive light. The Dr M.S. Swaminathan award for environmental protection is given to individuals or organizations implementing environment-friendly practices.


Corporate Social Responsibility

One of the comments to against ITC was that Social Responsibility of Business is to Increase its Profits. The gist of the point made was that "ITC makes money by smoking, hence its CSR(Corporate Social Responsibility) is crap"

ITC may sell cigarettes, but does not ask people to choose smoking at gunpoint. It is a responsible corporate citizen, because it plays by the rules defined in the world of business. If ITC spends money on an initiative like e-choupal, should we say "good" or should way shoo away ITC from the e-choupal initiative and let the villages be in the dark ages of middlemen and price information asymmetry?

In an offline discussion, it was argued that smoking is inherently evil, but sugar is not, hence the two cannot be equated. But poison consumed in micro quantities can be good,


while too much of good food can lead to bad. The other question is who decides that smoking is evil? It is the perception held by a certain set of people. There is no Generalization of what is evil and what is good when it is consumed by humans. For example, according to Jains, potatoes and onions and anything that grows below the ground must be avoided, so if we followed Jainism (a true pacifist religion), we could say that CSR by a potato chip company is crap.

KVIC Mangaldeep project

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company has commenced marketing agarbattis (incense sticks) sourced from small-scale and cottage units. This business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality agarbattis. ITC has also entered into an MOU with the Khadi & Village Industries Commission (KVIC) to source agarbattis from KVIC approved units, and to distribute agarbattis through the Khadi Bhavan / Khadi Bhandar outlets across the country. This collaborative venture is expected to result in employment generation, particularly in the semi-urban and rural areas. ITC is also supporting an 'Agarbatti Community Participation Programme' run by the Vyakti Vikas Kendra, a non-profit organization founded by the renowned spiritual guru Sri Ravishankar and located near Bengaluru. Over 100 village women are gaining from the training that this organization imparts in rolling agarbattis. ITC is also beginning to extend similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu, who are also setting up agarbatti units, training village women in rolling agarbattis and employing these women in these units.




The Coca-Cola Company Commits to Engage in the United Nations Global Compact


Coca-Cola Company today confirmed its support for the United Nations Global Compact, publicly expressing the Companys serious commitment to taking a corporate leadership role in the focus areas of the Global Compact: human rights, labor rights, protection of the environment, and anti-corruption. Coca cola support to the United Nations Global Compact is a formal expression of The CocaCola Company's commitment to conduct business with the utmost respect for universal principles around human rights, workplace standards, responsible environmental practices and anti-corruption,. "This is a natural evolution of Company's long-held commitment to responsible corporate citizenship. There's much we can and will continue to do to help advance the development goals and principles of the UN and the international community."


The companys general CSR activities linked to developing the areas around its plant sites will continue as it is. It has 45 plants across the country and involves itself with community education, health & sanitation projects. The annual spend on these activities ranges between Rs 4-5 crore, informed Agarwal. Apart from this, Coca-Cola is also pumping back the entire three million cubic meters (mcm) of water that it currently consumed for its operations back into the water cycle through rain water harvesting (RWH) structure. Currently, it had 350 such structures in the country, and is planning to add 80 more by the end of this year. Coca-Cola is conserving 2.7 mcm of water now. It targeted 100 per cent conservation by 2009, said Agarwal. It would spend $25-30 million a year on the water conservation structures including rain water harvesting


(RWH) and check-dams. The cost of putting up a RWH structure varies between Rs 60,000 and Rs 15 lakh, depending on the technical requirements and collaborations formed with community partners, added Agarwal. In another significant move, CocaCola had forged tie-ups with International Crops Research Institute for Semi-Arid Tropics (ICRISAT) and Bharatiya Agro Industries Foundation (BAIF), Pune, for sustainable and equitable management of rural water resources infrastructure and other natural resources management (NRM) through watershed interventions in villages near Jaipur in Rajasthan. Bags Golden Peacock Award Beverages Company Coca-Cola India has been awarded the Golden Peacock Global Award for Corporate Social Responsibility - 2008. The award has been given in recognition to the companys efforts in water conservation and management, and its community development initiatives. Ola Ullsten, former Prime Minister of Sweden and Chairman of the awards jury presented the award to the company at the 3rd Global Conference on Social Responsibility in Vilamoura, Portugal. Coca-Cola India has installed 320 rain water harvesting (RWH) structures in 17 states and has restored several traditional water bodies such as the Sarai Bawari and Kale Hanuman ki Bawari and several check dams across the country for water conservation. The company has a target to reach a net zero balance with respect to groundwater usage till 2009. It has also undertaken a project Elixir of life to provide drinking water to nearly 30,000 children in 100 primary and panchayat schools in and around Chennai. The company is also planning to provide clean drinking water in 1000.

India: Coca-Cola attacked for 'toxic' fertilizer gifts to farmers

According to a BBC report broadcast on its Radio 4 'Face the Facts' programme, the Coca-Cola plant in Kerala has been providing commercial waste to local farmers as fertilizer which has proved to be contaminated with toxic substances. The programme said it had discovered dangerous levels of cadmium and lead in the sludge produced by the plant which was lying on the fields of local farmers. It was alleged that the substance was actually useless as a fertilizer. BBC reporters also said they had seen waste leaving the 28

factory to be dumped directly into a local river. The Vice-President of Coca-Cola in India, Sunil Gupta, said that the fertilizer was absolutely safe. However, Professor John Henry, consultant at St Mary's Hospital in London, said that the levels of toxins found in water samples taken near to the plant would cause serious problems of pollution that could have "devastating consequences". Meanwhile, Coca-Cola is suffering a call for a boycott from unions across the world over the persistent allegations of involvement in the use of violence and intimidation by bottlers against workers in Colombia. A current lawsuit had seen Coke removed by the judge from the case, with the process continuing against the bottlers. However, campaign groups have not been similarly satisfied that the company bears no responsibility.

Coca-Cola honoured with 'Best Management Award' by the Government of Andhra Pradesh Hindustan Coca-Cola Beverages Pvt. Ltd. has been honoured with the 'BEST MANGEMENT AWARD' in the State by the Government of Andhra Pradesh for its people's management practices following a review by the State Labour Department. Mr. Y.S. Rajasekhara Reddy, Honourable Chief Minister of Andhra Pradesh will present the award to the company at a simple function in Hyderabad on the occasion of Labour Day, May 1, 2005. In addition to the professional growth of the employees, the Company also focuses on personal and social growth by involving employees in various corporate social responsibility projects undertaken in Andhra Pradesh. These include blood donation camps, health camps for local communities around the bottling plant, education support to local community, etc in association with NGOs like Red Cross and Hyderabad Round Table. In addition to the above, the Andhra Pradesh team came forward to donate generously to Chief Minister's Relief Fund during the tsunami tragedy besides working on location to help the victims. 29


Water conservation and harvesting HUL's Water Conservation and Harvesting project has two major objectives: a. to reduce water consumption in its own operations and regenerate sub-soil water tables at its own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew; b. help adjacent villages to implement appropriate models of watershed development. Water scarcity is one of the biggest crises facing India in terms of spread and severity. Water conservation and harvesting in HUL's own operations will help conserve and regenerate this scarce resource. An attendant benefit will be reduction in the consumption of energy that would have been spent in converting and using that water. The support to communities in developing watersheds will help in the economic development of areas adjacent to HUL sites. Water management is a focus area for all HUL factories. Water conservation has been made one of the key performance indicators of an HUL factory. Through a series of technology innovations and novel processing routes HUL has reduced its ground water consumption by over 50%. HUL has also applied technologies that recycle effluent water after treatment 70% of HUL sites are now zero discharge sites. There are many other measures - Reverse Osmosis Plants and Solar Evaporation Ponds to name a few. A simultaneous benefit is saving in energy that otherwise would have been consumed in drawing, pumping or converting 30

Water into steam - HUL's energy consumption per unit of production has come down by 61% since 1996. Since 2003, all HUL sites have begun to harvest rain water. Rain water falling on factory premises is accumulated in ponds, thereby renewing sub-soil water tables.

PROJECT SHAKTI - Changing Lives in Rural India

Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing incomegenerating opportunities, health and hygiene education through the Shakti Vani programmed, and creating access to relevant information through the iShakti community portal. In general, rural women in India are underprivileged and need a sustainable source of income. NGOs, governmental bodies and other institutions have been working to improve the status of rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organized in Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation. Shakti already has about 25,000 women entrepreneurs in its fold. A typical Shakti entrepreneur earns a sustainable income of about Rs.700 -Rs.1, 000 per month, which is double their average household income. Shakti is thus creating opportunities for rural women to live in improved conditions and with dignity, while improving the overall standard of living in their families. HUL's vision for Shakti is to scale it up across the country, covering 100,000 villages and touching the lives of 100 million rural consumers by 2005.


LIFEBUOY SWASTHAYA CHETNA Health & Hygiene Education

Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in 2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra, Orissa) with the objective of spreading awareness about the importance of washing hands with soap. The need for a program of this nature arose from the fact that diarrheal diseases are a major cause of death in the world today. It is estimated that diarrhea claims the life of a child every 10 seconds and one third of these deaths are in India. According to a study done by the London School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and water can reduce diarrhea by as much as 47%. However, ignorance of such basic hygiene practices leads to high mortality rates in rural India.


Economic Empowerment of Women The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of women across India. It aims to achieve this through providing information, resources, inputs and support in the areas of education, career and enterprise. It specifically targets women from low-income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic empowerment platform and the Foundation is an extension of this promise. The Foundation has renowned Indian women, from various walks of life, as its advisors. Among them are educationists, NGO activists, physicians. The Foundation is implementing its activities in association with state governments.


Some foreign social responsible OrganizationsHYUNDAI MOTORS Hyundai motors the Korean automaker, set up a training center in South Central Los Angeles to train high school graduate to become auto mechanics. The training Program run for eighteen weeks, after that the graduates were eligible for jobs at any of the seven Hyundai dealership in Los Angeles area. One reason why Hyundai started this program was in an effort to improve relations between the black and Korean communities. TOYOTA- Toyota Japan leading manufacturer, is helping make dreams come true in run down American neighborhoods through a program called Christmas in April which offers financial and volunteer support. The program is a non profit organization dedicated to renovating and repairing homes for poor, elderly and handicapped. It now operate in 150communities.Toyota support is more than just financial. The company gets many volunteers to participate in these neighborhood projects. For example in Santa Ana, California, 87 Toyota volunteers renovated the Mercy House Transitional Living Center, a shelter for homeless men. They painted the entire house and installed new windows and floor coverings. RUSSELL CORPORATION-Russell manufacturers athletic wear and sweatshirts. Instead of laying the staff during the recent downturn, the company focused on cutting costs. One way that they are able to do so was by eliminating all solid wastes headed for landfills.Fr example Russell spent $100 on new machinery over five years, which demonstrated their long term commitment. MATTEL-Mattel, the second largest toy company, has shown its commitment to urban renewal through an effort to share some of its prosperity with its customers and the community. This commitment has grown even stronger since the riots Los Angeles. One such project, Mattel Learning Centers focuses on preschool and elementary school children, but provides service to everyone. The center offers preschool classes for everyone and programs for their parents. Programs at the centers are available to members of the community free of charge.



Many companies whose activities effect the environment are forming what are called eco efficient corporate initiatives. As concern for the environment grows among the public, business must expand its efforts to recognize their environmental responsibilities. On side following examples 1. McDonalds- in 1991, McDonalds launched a waste reduction plan which is a comprehensive environmental policy that concentrates the companies efforts on reducing the waste generated at its 8500 restaurants and its distribution centers. McDonalds studied ways to reduce, reuse, recycle and composite materials .The Company now uses recycled carryout bags and small paper napkins, has eliminated the use of Styrofoam containers, recycles all corrugated cardboard and contains to work on other ways to reduce waste. 2. S.C.Johnson- S.C.Johnson implemented an incentive program to encourage suppliers to reduce their packaging and manufacturing waste. The company promotes recycling and reducing waste. ignorance in the workplace costs. I t reduces productivity and can lead to expensive errors that cost a loss in sales, customer locality, and the ability to attract new customers. 3. Polaroid-Polaroid stopped using mercury in its batteries, which were not recyclable. by doing so the company eliminated environmentally dangerous chemical and created batteries that are recyclable. 4. Northern Telecom-Northern Telecom provided the technology to help Mexican industries cut their use of ozone depleting solvent. 5. AT&T-AT&T redesigned its circuit board cleaning process to eliminate the use of ozonedepleting chemicals. In addition to preventing environmentally destructive emissions, the company also achieved annual savings of $3 million.



LUPIN India Ltd. Indias third largest manufacturer of pharmaceutical has started a project for providing sustainable development in 154 villages across Rajasthan. The scheme instead of providing piece-meal assistance that does not lead to effective includes an Agricultural Income Generation Schemes, land cultivation and fruit plantation programs, fodder preservation schemes, sericulture and water-recycling programs, establishment of medical and educational centers, adults literacy programs and credit schemes. CIPLA, another Indian pharma major has found a novel approach to fulfill its CSR obligations by offerings to sell a cocktail of three anti-HIV drugs, stavudine, Lamivudine and Nevirapine, to the Nobel Prize-winning voluntary agency Medicines Sans Frontiers (MFS) at a rate of $350, and at $600 per patient per year to other NGOs over the world. This offer has to lead to a significant decrease in the prices of these drugs worldwide increasing the accessibility of these drugs especially in the developing countries. RANBAXY, one if the Indias major pharmaceutical firms operate seven mobile healthcare vans and two urban welfare centers that reach over a lakh people in various parts of northern and central India as part of its CSR initiative.


TCS has set up a fully equipped computer training laboratory for children from the society for the welfare of the Physically Handicapped And Research Center, in Pune for importing basic computer knowledge. NIIT has launched a highly popular hole-in-thewall scheme where it place a computer on a public wall in urban and rural areas so that neighborhood children can learn computer basics using the play-way method.


BHARAT Electronics Ltd built cyclone proof houses for the victim of the super cyclone in with the help of the victims themselves so that the houses are built according to their needs.

Ion Exchanges has founded a profitable venture for environmental protection through water treatment, a forestation and organic farming.


As the public demands greater corporate social responsiveness social issues such as equal employment, business ethics, environment protection and consumer relations are becoming an important part of corporate decision making .Economic concerns as a primary emphasis of a business is a thing of past. Business must address both social and economic concerns and work to improve the overall quality of life. By being more socially responsible business also avoid further government regulation, such regulation limits the freedom of business and in turn limits everybodys freedom. Business must work to avoid blanket government regulations bought on by social pressure. The future of business depends on its ability and willingness to respond to the changing expectations of the society. Companies may not wait until they are attacked by the public before becoming socially responsible. They must continuously present themselves as being committed to social causes. Those companies do not get involved in the social issues will not survive. As multinational organizations becoming more global in their operations a growing trend towards global sensitivity is developing. Although management behaviors are starting to base on cultural assumptions there is need to develop management theories that are effective and functional when applied in multiple settings. In speaking about the future, Donna wood raises some interesting points. One is that management must be able to see opportunities where others see threats and problems. Another is what she calls the input output view which means that a company must take on what is need to meet its objectives but must also take on something on value to person or group external to itself. This helps a firm center its sight on how its actions effect its environment.




Journals: HR Review

MERI Journal of Management and IT, Vol. 3