Module 4

Fundamentals of Management

Recent Trends - CSR & Green

Marketing
 CSR
• CSR Defined by Section 135 of Companies Act 2013
LINK: Companies Act, 2013 (mca.gov.in)

• Every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000
thousand crore or more or a net profit of rupees five crore or more during the
immediately preceding financial year; shall constitute a CSR Committee of the
Board consisting of three or more directors, out of which at least one director shall
be an independent director.

• Net worth is the value of the assets a person or corporation owns, minus the liabilities they
owe.
• Turnover refers to net sales. Net sales is sales after any allowances, discounts and returns.
This is because refunds, discounts and allowances for damaged goods eat into sales.
• Net profit is a company's total earnings after deducting all expenses.
 CSR
• Activities included under CSR – Schedule VII, Section 135 of
Companies Act 2013

https://www.mca.gov.in/Ministry/pdf/InvitationOfPublicComme
ntsHLC_18012019.pdf
 Green Marketing
American Marketing Association (AMA) defines the ‘Green Marketing' as
“the development & marketing of products that are. presumed to be
environmentally safe” (i.e., designed to minimize negative effects on the physical
environment or to improve its quality).
• This term may also be used to describe efforts to produce, promote, package, and reclaim
products in a manner that is sensitive or responsive to ecological concerns.

• Global organizations are more & more green and environmentally concerned, as modern
consumers belonging mostly to generation Y (Millennials) and Z tend to prefer organizations
that are able to implement green business models and strategies.

• In order to gain consumers’ attention and trust, companies rely on environmentally friendly
products, brands and services and try to get consumers’ loyalty by means of green marketing.

From this perspective green marketing can be regarded as

• An “umbrella” concept, which contains/embraces all principles, measures, actions,
activities and strategies of public and private organizations dedicated to foster the “health”
of the environment and to establish specific green behaviour, attitude, lifestyle, and buying
motivation of mankind. Concepts such as environmental marketing, environmental
protection, non-polluting technology, sustainability, sustainable agriculture, green
consumerism, green retailing, socially responsible consumption, green
products/brands/services, green technologies, green strategies, recycling, clean energy,
and organic food, are mostly used to describe green and sustainable strategies.
 Green Marketing
• HUL innovates to go green & grow business
• https://timesofindia.indiatimes.com/india/hul-innovates-to-go-green-grow-
business/articleshow/12862682.cms

• HUL - Planet & Society

• https://www.hul.co.in/planet-and-society/

• Companies like HUL, P&G & PepsiCo going green for their own sake
• https://www.businessinsider.in/companies-like-hul-pg-pepsico-going-green-for-
their-own-sake/articleshow/47526052.cms

• https://www.kearney.com/consumer-retail/article?/a/sustainability-a-product-life-
cycle-approach