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Submitted By
MAY 2020
AN IMPACT OF CSR ACTIVITIES DONE BY
COMPANIES IN AGRICULTURE SECTOR
Submitted By
MAY 2020
Date:-
CERTIFICATE
This is to certify that the dissertation entitled “An impact of CSR activities done by
companies in agriculture sector” is a bona fide work carried out by Mr. Prafull
Prakash Korde in the Master of Management Studies Department of Vidyalankar
Institute of Technology, Mumbai and is submitted in partial fulfillment of the
requirements for the award of the degree of Master of Management Studies in
Finanace.
Forwarded by:
This is to acknowledge Prof. Varsha Maheshwari under whose guidance I have been
able to successfully complete this project and effectively come to a very successful
conclusion.
A greater share of inputs and data from CSR policy reports of different companies
made this project report possible to its rightful accuracy.
To all my colleagues who have helped me either directly or indirectly, I am grateful for
their valuable inputs. This project would not have been possible without their help.
4.0 Objectives 7
5.0 Literature Review 7
6.0 Methodology of Study 10
6.1 Findings and Discussion
10
6.1.1 Reliance Industries Ltd. 10
6.1.2 Tata Steel
15
6.1.3 HDFC Bank 16
17
6.1.4 Bank of Maharashtra
6.1.5 Mahindra & Mahindra 18
6.1.6 Cairn India Ltd.
19
6.1.7 The Rural Electrification Corp 20
21
6.1.8 Adani Ports & SEZ Ltd.
6.1.9 Container Corp of India Ltd. 22
23
6.1.10 Mahindra & Mahindra
6.1.11 Bharat Heavy Electricals Ltd. 26
6.1.12 Numdigarh Refinery Ltd.
27
7.0 Conclusion 28
9.0 Reference 29
An impact of CSR activities done by companies in Agriculture sector
1.0 Abstract
In the globalized world, integration of Corporate Social Responsibility (CSR)
in business is one of the great challenges faced by the firms today. Stakeholders require
much more from the company than pursuing growth and profitability. Companies
which aim to be, or are, leaders in CSR are challenged by increasing innovations, rising
public expectations, heightened social and environmental problems and continuous
quality improvement. They are forced to chart their CSR activities within a very
dynamic and complex environment. Engaging in CSR is perceived to be a good thing.
This project is completely focused on how the companies are contributing or
conducting their CSR activities in Agricultural field as we all know that the farmer the
the backbone of our nation’s economy. So this project gives the all insights about those
companies who done their CSR in Agriculture sector.
Indian lawmakers have also given due importance to the concept of CSR. In
fact, India is the first country which has made CSR mandatory for companies in an
amendment to the Companies Act, 2013. It is gratifying to know that a number of Indian
companies have taken a step towards the development of the country.
3.0 Introduction
Indian Agriculture sector continue to remain shabby for the economic growth
of India. Although, the rising demand of food in domestic and global markets can create
huge possibilities, small and declining land holding, price volatility, soil degradation
and climate risks continue to trouble the farmers. Less opportunities and constraints to
improve the agricultural sector also affects the farmers income, especially the small and
marginal farmers. The overall development of agriculture needs to involve various
service providers such as private agribusiness companies, NGO’s in dissemination of
agricultural technologies with knowledge, skills, expertise and leveraging Corporate
Social Responsibility (CSR) funds.
Although, inadequate amount of CSR funds has been spent in the agricultural
sector by the companies, there is a huge potential for investment in this sector.
Companies can implement CSR project for agricultural development and income
generation for farmers. Such investment will help the agriculture sector to improve and
flourish. Major agricultural states in India are currently facing challenges in agricultural
development.
Vidyalankar Institute of Technology, Wadala
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An impact of CSR activities done by companies in Agriculture sector
Odisha like other states of the country is facing huge challenges related to water
scarcity, soil degradation, productivity, rising costs of labour and energy. In a
significant move, PI Foundation, a Trust supported by PI Industries Ltd, BSE and NSE
listed leading Agri Input, Custom Synthesis and Manufacturing company, has
collaborated with Fiinovation company, a research-based CSR consulting firm to carry
out a CSR initiative. The primary agenda of the program is ‘Income Generation through
Sustainable Agriculture’ for the farmers in Odisha. Keeping in mind the objective to
improve the income level of the disadvantaged group of farmers, Fiinovation and PI
Industries foundation developed a model in the year 2016 to promote sustainable
agriculture in one of the backward tribal parts of the country in South Odisha. The
sustainable agriculture practices entail the adoption and mainstreaming of the Good
Agricultural Practices (GAP) among the small and marginal farmers. The intervention
is laying emphasis on agricultural practices that are cost-effective, sustainable and
require lesser amount of water, energy resources and labour.
The CSR Activities aims to skill over 1300 farmers giving hands-on training on
the working of seed drillers, sowing method, insect pest management, judicious use of
farm inputs and other extended services over the next two years, thereby
enabling agriculture on the sustainable lines of production in the Rayagada district of
Odisha. The focus is also on product stewardship. The farmers are being provided with
live demonstration on the field and effective boot camps are being organized to increase
farmer participation. They are counselled on the working of seed drillers, sowing
method, insect pest management, judicious use of farm inputs, product stewardship and
other extended services.
Farmers of these villages are now adopting the sustainable practices of
agriculture in their farming. The difference can be seen easily in control fields where
the intervention had not happened before.
Fiinovation focuses on implementing effective intervention design and selection
of the implementing partner. As a result, Harsha Foundation, a NGO ensuring
livelihood security and improving the quality of life of the farmers by capacity building
is running on ground program to provide hands-on training on different aspects of
GAP(Good Agricultural Practices). This includes agronomy, plant protection, nutrient
management, storages, sorting, forward market linkages.
Fiinovation plays a vital role in conducting monitoring & evaluation and impact
assessment exercises on regular basis to ensure the success of the proposed CSR
programme in farming. The next step is the distribution of inputs like fertilisers,
pesticides, seeds & sacks through farmer interest group. So far, 6 training sessions have
been conducted on seeds treatment training & POP. Also, 3 training sessions on seed
replacement & seed treatment, Value addition and market linkages, have been
conducted so far in the area to ensure a smooth functioning in the village. 45 Farmers
Interest Groups (FIG) has also been formed.
In the month of July alone, all the 1300 farmers started consuming the
vegetables in home and offered the same to their relatives. The surplus production is
being sold in local & daily market. During the month, two road side market hub called
“Green Market” inauguration was done at Bissamcuttack and Kalyansingpur block.
4.0 Objectives
There we can plot several objectives from this project. But here we clearly
focusing on what are the CSR activities done by the different Indian or MNC’s in
agricultural sector and how this impacted to increase the level of Indian agricultural
sector.
Here we study companies and their work. If they partner with the any NGO’s
how it helping them.
Harjoto and Jo (2011) found that CSR engagement positively influences firm
value and operating performance. Hazlett et al. (2007) conducted a study on the
relationship between quality management and CSR. They found substantial evidence
demonstrating the breadth and depth of activities in which organizations engage, under
the broad headings of workplace, environment, social impact and economic impact.
However, while there is no doubt on the sincerity of the actions, approaches and the
activities, a strategic focus on CSR is still very much in its infancy. Jamali and Mirshak
(2007) studied CSR theory and practices in a developing country, Lebanon, and found
the lack of a focused, systematic, and institutionalized approach to CSR and that the
practice and understanding of CSR in Lebanon are still grounded in the context of
philanthropic action. Sharp and Zaidman (2010) studied the process of strategization of
Israeli firms and identified the differentiating characteristics of CSR strategization
processes, including the requirement for informative communications rather than
persuasive negotiations, and the absence of resistance within the organizational
community.
European experiences are the same like many other countries in Asia and Africa
when it comes to agriculture. CSR intervention in agriculture would help in sustainable
growth in agriculture and can contribute to improve the production of safe and quality
food. But it requires properly functioning supply chain (Mazur-Weirzbicka, 2015) and
is helpful in sustainable growth of agri-business (Kissinger, 2012).
Though CSR is intended to benefit society but it is very important that projects
under CSR initiatives receive societal support. So, strategy part of the implementation
of CSR initiatives becomes very important for its impact on communities as it requires
informative communication and community support (Sharp & Zaidman, 2010).
The FPCs have established links with agri-Input companies and government
agencies to provide quality inputs at reasonable prices. The Kamareddy Progressive
FPC ventured into an altogether new business of hiring out farm machinery that was
purchased at `40 lakh, with 50% subsidy provided by the Department of Agriculture.
Four FPCs have received a collective equity grant of `35 lakh from the Small Farmers
Agri-business Consortium.
So far, Reliance has mentored the formation of 22 FPCs spread across 11 states.
Of these, 17 FPCs are registered with NCDEX and 6 FPCs are registered with e-NAM
platform for online trading of produce.
Till March 2019, the Reliance mentored FPCs have nearly 32,000 farmer
shareholders. During the same financial year, these companies recorded a collective
annual turnover of `40 crore.
WATER SECURITY
Water being vital for an agrarian economy, Reliance endeavours to make its
intervention villages water secure. Towards this end, 85.8 billion litres of water
harvesting capacity has been created, since inception, by constructing or renovating
water harvesting structures, including earthen/masonry dams and check dams, farm
ponds, open wells, etc. These efforts resulted in 434 villages becoming water secure.
Most of these villages have formed water user groups for managing and
regulating usage. The positive impact created through water interventions has resulted
in reduced drudgery for women, who apart from tending to their household duties, also
have to walk several kilometres to fetch water. It has also increased the land use,
cropping intensity, agricultural production and income for communities. Owing to this
effort, over 38,500 hectares of land have received assured irrigation for two cropping
seasons.
FOOD SECURITY
Tata Steel has been working towards the mission 2020 for agriculture
development to address poverty and food security issues by drastically increasing the
income of poor farmers. The programme has been initiated with the objective to
increase agricultural income of 7,000 households in the eastern state of Odisha. It aims
to do so by increasing the efficiency of tribal farming communities by giving them skill
base training and improving the productivity of the land through modern techniques of
irrigation, wasteland development, horticulture and dry land farming.
For this, the formation of various self-help groups was critical. The programme
also promoted women self-help groups to implement the project. The project was
successful in converting monsoon dependent agricultural land to a three cropland
through the establishment of irrigation systems. The project aims to convert 3000 acres
of land to three crop lands thereby reducing dependence on rainfall and increasing the
income sustainability. Apart from this, ponds and other irrigation facilities have been
developed for the benefit of over 344 farmers. About 60 acres of wasteland has been
brought under cashew, mango and lemon plantations in association with the National
Horticulture Mission and approximately 500 farmers have benefitted from vegetable
cultivation of 60 acres of land.
HDFC bank provided assistance to farmer in soil and water conservation, water
management, construction, renovation and maintenance of water harvesting structures
for improving surface and ground water availability, in partnership with the Village
Development Committees.
Company rejuvenated existing structures like ponds, wells, and constructed
check-dams. This activity has led to not only better
Estimated Impact:
• Soil and water conservation work has been initiated in 550 acres of land.
• Other initiative benefitted over 140 farmer families. 65 acres land
brought under irrigation for the first time and 45 acres brought under
assured irrigation.
• Soil quality improved in 317hc.of land and reduced soil and water
erosion.
The Rural Development Centres at Hadapsar- Pune and have been undertaking
various rural developmental activities for the benefit of farmers’ viz. Vermi compost,
Re-development of Saline Soils, Soil Testing etc. Bank has established Soil testing lab
(STL) through MARDEF Trust at RDC Bhigwan. Farmers from the districts of Pune,
Ahmednagar, Solapur and Satara are taking benefit of the lab
Estimated Impact:
The Soil Testing Laboratory has analyzed 7418 Soil and Water samples in the
year 2015-16 and accordingly counselling is done. This has helped the farmers in the
surrounding area of four districts to know health of their soil & water and to overcome
the deficiencies /improve the health of soil. Various activities have benefited 2,363
farmers from April 2015 to March, 2016.
The program includes soil testing, advisory services, drip irrigation, community
farming, seed culture farming, Agri extension services, infrastructure development and
capacity building resulting in improvement in agricultural productivity.
Estimated Impact:
Kirshi Mitr benefited 49,635 farmers.
the first batch of 21 Cairn AgroFellows graduated to start their own enterprise,
including dairying, goat farming, mushroom farming, and to work as a field extension
worker.
Estimated Impact:
A total of 476 rain channels (or wadis) have been established, 200 farmers
supported through drip irrigation. The project has established more than 240 individual
khadins, benefiting some 270 farmers over 600 hectares of land spread across 28
villages. Construction of two community khadins converted 140 hectares of hitherto
barren and fallow land into a cultivable land for 74 farm families.
Estimated Impact:
The project duration is 5 years, 2nd year operation is completed 3rd year
operation is under implementation.
The Foundation, along with 1,050 farmers from 35 villages of Tiroda region,
effectively implemented an SRI (System of Rice Intensification). Adani Foundation
empowered them with training in low-water, labour-intensive and organic methods.
Besides, 1,108 farmers and 5,464 cattle benefitted following the intervention of
the Foundation in association with the Animal Husbandry Department for regular
vaccinations, first aid, deworming, and infertility treatment drives in 17 villages of the
Tiroda region.
Estimated Impact:
Farmer support programme benefited 1,050 acres farmland and thousands of
farmers.
In association with The Energy & Resource Institute (TERI) in the state of
Himachal Pradesh and other, 360 Apple growing farmers have been provided rain water
harvesting tanks including various equipments like anti hail nets, power sprayers,
pruners, planting material of high apple yielding varieties, etc. as well as technical
training that will help them in increasing their Apple yields .
Estimated Impact:
Nearly 4,500 apple farmers have been benefited from such activities.
Mahindra and Mahindra launched 'Seed the Rise' - a digital crowd funding
campaign aimed at supporting Indian farmers who are seeing terrible times due to bad
weather and difficult circumstances. Flying Cursor Interactive is the digital agency that
has partnered in developing, launching and managing this campaign with the hope to
change the narrative around the agricultural sector.
Project Implemented By: Naandi Foundation, K.C. Mahindra Education Trust, Digital
Green, Swades Foundation.
Amount spent: INR 1.05 Cr
Location: Vidarbha, Raigad - Maharashtra
Estimated Impact:
Project helped many farmers in their tough time and supported them in making
agricultural advancements.
Mahindra & Mahindra launched WFFP in April 2015. This project introduced
a new method of agriculture to the farmer. WFFP also helps the farmer to solve the
drought issue by implementing drip irrigation which ensures an economic use of water,
use of biodynamic techniques which improve soil water retention capacity and ground
water levels.
The Wardha Family Farming Project was launched by Naandi in April 2015.
Funded by different companies under the umbrella of the Mahindra Farm Equipment
Sector, this project is a response to the situation of severe agrarian distress in Vidarbha
region in Maharashtra, the farmer suicide capital of India. Through the several study
tours made by a senior Naandi team to different villages of Wardha, Amravati and
Akola districts of Vidarbha throughout 2014 and early 2015, the complex dynamics
between soil productivity, droughts, market conditions and farmer family wellbeing
began to become clear to us.
Rapidly growing acreage under cash crops, primarily cotton and soybean,
increasing input costs, uncertainty of the two ‘m’s – monsoon and market prices has
resulted in huge indebtedness amongst farmers in this region. The declining
productivity of soil has further added to the stress. In its first phase of the project,
Naandi proposes to demonstrate that a different method of agriculture and the
introduction of an entirely new high value crop can start to bring about changes in the
farmer’s economics. Naandi through its Wardha Family Farming Project aims to solve
the drought issue by implementing drip irrigation which ensures an economic use of
water, use of sustainable agriculture techniques which improve soil water retention
capacity and ground water levels and use of mounding which acts as a shield against
floods.
The unit economics for pomegranate cultivation shows it to be hugely profitable even
with conservative estimates. This is especially so when the method of cultivation is not
only entirely sans chemicals but also strengthens soil productivity and gradually
reduces the need for irrigation.
Estimated Impact:
WFFP benefited 345 farmers from different villages of Vidarbha (Wardha,
Amravati and Akola District)
Estimated Impact:
Solar water pumped helped the farmers in energy optimization, better use of
water resources and keep productivity high.
The community leaders of village Ponka situated 1km from the refinery were
desperate to help 175 cultivators increase their annual agricultural income. Opportunity
came in the form of NRL’s offer to promote multiple cropping, and all the cultivators
were included in the list of beneficiaries.
Estimated Impact:
7.0 Conclusion
8.0 Reference
1) Sharp, Z., & Zaidman, N. (2010). Strategization of CSR. • Journal Business Ethics,
51-71.
2) Poetz, K., Haas, R., & Balzarova, M. (2012). Emerging • strategic corporate social
responsibility partnership initiatives in agribusiness: the case of the sustainable
agriculture initiative. Journal on Chain and Network Scienc, 151-165.
4) Chambers, E., Chapple, W., Moon, J., & Sullivan, M. • (2003). CSR in Asia: A seven
country study of CSR website reporting. International Centre for Corporate Social
Responsibility.
Websites
1) https://indiacsr.in/corporate-social-responsibility-for-agricultural-
development/
2) https://thecsrjournal.in/csr-initiatives-benefitting-farmers-in-india/
3) https://fiinovation.co.in/corporate-social-responsibility-for-agricultural-
development-and-its-impact-on-income-generation/
4) https://csrbox.org/India_CSR_news_A-list-of-11-large-agriculture-CSR-
projects-in-India_48
5) https://group.bnpparibas/uploads/file/position_paper_soft_commodities_forma
t_corporate_final.pdf
6) http://www.icrisat.org/csr/
7) https://www.vskills.in/certification/blog/csr-activities-indian-companies/
8) https://www.ril.com/ar2018-19/report-on-corporate-social-responsibility.html#
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