ITM UNIVERSITY, GWALIOR

BUSINESS ORGANIZATION
REPORT ON CORPORATE SOCIAL
RESPONSIBILITY

INTRODUCTION
Corporate social responsibility (CSR) can be simply and broadly defined as the
ethical role of the corporation in society. The aim of CSR is to increase long-term
profits and shareholder trust through positive public relations and high ethical
standards to reduce business and legal risk by taking responsibility for corporate
actions. It isn’t enough for companies to generate a profit and merely meet the
letter of the law in their business operations. In India, many corporations have been
practicing the concept of Corporate Social Responsibility (CSR) activities to meet
the needs of the society. Corporate Social responsibility refers to all those activities
ranging from providing safe and eco-friendly products and services to giving a part
of the company’s profits to welfare organizations with a philanthropic perception.
As a responsible entrepreneur one is accountable for the welfare of the society in
which the company operates such as helping society by means of protecting the
environment, conserving the natural resources, recycling of wastage, health and
education of public.
The new Indian Companies Act,2013 has replaced the old legislation governing the
way corporate function. All companies with annual turnover of Rs.1000 crore and
more, net worth of Rs.500 crore and more or a net profit of Rs.5 crore and more
would have to spend at least 2 % of three-year average profit every year on CSR
activities. They can spend the funds by collaborating with other firms or with
NGO’s also. Whatever amount they spend on social cause along with its details has
to be reflected in Annual CSR Report. Companies have realized that Corporate
Social Responsibility can gain respect for their company in the market which can
result in both employee and customer loyalty. Above all in the current global state
where competition is increasing, business leaders need to pay close attention on
their Business Performance.
LITERATURE REVIEW
 Hemingway (2002) in her article has suggested that Corporate Social
Responsibility (CSR) can imply diverse things to different people. CSR is
generally regarded as a multi-disciplinary subject and its definitions vary in
regard to the perceived scope or boundaries of the corporation’s
responsibility. CSR can be interpreted as a modern-day expression of the
concept of philanthropy or charity. It is argued that the formal adoption of
CSR by the way of corporations can be related to the changing personal
values of managers. Clear understanding of CSR can be enhanced if the
values operating at an enterprise level, as well as at the personal level are
researched.
 Proactive firms focus on their ‘triple bottom-line’ of three Ps i.e People,
Planet and Profits. In other words, they focus on economic, social and
environmental contribution. A case study undertaken by V. Ahuja has
highlighted how a carpet weaving company like Jaipur Rugs has climbed the
ladder of success not because of their financial criteria, but in the way it has
contributed to the society. The company has developed a business model
which is standing on the pillars of social responsibility. The main objective
behind their business model is to make the artisan community self-reliant
and develop entrepreneurship among them. The company has explored the
essence of helping those who create value.
 Shashank Shah and Sudhir Bhaskar (2010) made a case study of Bharat
Petroleum Corporation Ltd. (an Indian Public Sector Organization). They
found that there is a broad relationship between the organization and the
society. The organization used the resources of the society like human,
material etc and in reverse they provide services to the society. The study
also revealed that BPCL has taken a lot of initiatives in order to serve the
society.
 In an article by Premlata and A. Agarwal (2013) the authors have focused
on why CSR is important for corporations? Why should they contribute for
Country's Economic Development? They say that CSR is an important
element of development because companies need to look after their
communities in which they operate, particularly those that are operating in
rural areas. CSR can help the corporations to build their goodwill,
differentiate themselves from their rivals by taking social initiatives,
enhance access to capital and markets, increase sales and profits, improve
brand image and reputation, enhance customer loyalty and also improve
employee job satisfaction level.
  MigleSontaite-Petkevicience [2012] explains that various authors have
studied and given a number of reasons why companies engage in corporate
social responsibility activities. Some of these reasons are improved financial
performance, contribution to market share, improved product quality,
increased employee turnover, increased employee commitment and better
corporate reputation. Out of all these reasons enhanced corporate reputation
is the most sought out benefit for the companies. It shows that CSR has
become one of the most important drivers of corporate reputation. This is
because CSR when broken down into segments like human responsibility,
environmental responsibility and product responsibility ultimately affects
corporate reputation.
 Dr. Rajinder Singh (2017) in his article has studied the CSR activities
undertaken by Bharti Airtel in compliance with the new Companies Act,
2013.An Industrial Unit makes use of the resources of society and in turn the
society helps for its functioning. Hence, these business units should
contribute for the welfare of the society and its counterparts. Bharti Airtel
which is one of the leading telecom company carries out its CSR activities in
the areas of Education, Eradicating Hunger and Poverty, Gender Equality
and Women Empowerment, Environment, Disaster Relief and Waste
Management, etc.
INTRODUCTION ABOUT THE COMPANY
Aditya Birla Group is one of India's largest conglomerates and also claims
to be the most international of the country's major corporations. The company acts
as a holding company for more than 72 manufacturing and services subsidiaries
throughout India, and in Thailand, Indonesia, the Philippines, Malaysia, Australia,
China, Egypt, and Canada. Aditya Birla's major subsidiaries include Grasim, the
world's leading producer of viscose staple fiber, and a manufacturer of rayon grade
pulp, cement, sponge iron, textiles, and chemicals; Hindalco, a leading producer of
aluminum and copper; UltraTech Cement, which produces portland cement and
related products; Aditya Birla Nuvo, which manufactures clothing, textiles, and
carbon black and is India's second largest producer of viscose filament yarn; Indo
Gulf, a fertilizer producer; Birla NGK Insulators (a joint venture with NGK of
Japan), which is the world's leading producer of insulators; and Idea Cellular Ltd.,
a mobile service provider jointly owned with fellow Indian conglomerate Tata
Industries. The company also produces software and provides IT services, and
operates a number of financial products subsidiaries. The company's Birla Sun Life
Insurance Co. is the second largest private sector insurance company in India, and
its Birla Sun Life Asset Management Co. is the country's fourth largest assets
manager. In other areas, the company claims to be the world's eighth largest
producer of cement and the world's fourth largest producer of carbon black. These
operations combine to generate revenues of nearly $7.6 billion per year. The
company is led by Kumar Mangalam Birla, son of Aditya.

CORPORATE SOCIAL RESPONSIBILITY PRACTICES IN THE

COMPANY
Vision of Aditya Birla Group defines the CSR of the group :"To actively
contribute to the social and economic development of the communities in which
we operate. In so doing, build a better, sustainable way of life for the weaker
sections of society and raise the country's human development index.“
Before Corporate Social Responsibility found a place in corporate lexicon, it was
already textured into their Group's value systems.
As early as the 1940s, their founding father Shri G.D Birla espoused the trusteeship
concept of management. Simply stated, this entails that the wealth that one
generates and holds is to be held as in a trust for the multiple stakeholders. With
regard to CSR, this means investing part of profits beyond business, for the larger
good of society.
Project identification mechanism:
All projects are planned in a participatory manner, in consultation with the
community, literally sitting with them, and gauging their basic needs.
Subsequently, based on a consensus and in discussion with the village panchayats,
they prioritise requirements. And thus a project is born.
Implementation is the responsibility of the community and their team, as is the
monitoring of milestones and the other aspects. Monitoring entails physical
verification of the progress and the actual output of the project.
Village meetings are held periodically to elicit feedback on the benefits of their
community programmes and the areas where these need to be beefed up. once the
project becomes self sustaining, they withdraw.
In this way they do not build a culture of dependence, instead they make the
villagers self-reliant.
Model villages:
 One of unique initiatives is to develop model villages, so each of their major
companies is working towards the total transformation of a number of villages in
proximity to their plants.
Making of a model village entails ensuring self-reliance in all aspects viz.,
education, health care and family welfare, infrastructure, agriculture and watershed
management, and working towards sustainable livelihood patterns.
More than 80 villages in the hinterland have already become model villages. From
abject poverty to fulfilling the necessities of life. From dependence to freedom.
From backwardness to progress.
Their focus areas: Their rural development activities span five key areas and
single-minded goal is to help build model villages that can stand on their own feet.
Their focus areas are :
 Healthcare
 Education
 Sustainable livelihood
 Infrastructure Development
 Social causes
 Education
Education
Formal and non-formal education, adult education.
Scholarships for girls, merit scholarships and technical education for boys.
Distance education,Girl child education, Digital literacy / computer education.
Health care and family welfare
Pulse polio programme
Mobile clinics — doctors' visits ,general and multispecialty medical camps, cleft
lips ,reproductive and child health care, supplementary nutrition / mid-day meal
projects ,safe drinking water, sanitation — household toilets, community
hospitals ,HIV / AIDS, cancer, TB awareness and prevention camps ,blood
donation ,responsible parenting PULSE POLIO PROGRAMME…
Sustainable livelihood
Self-help groups (microfinance for women and farmers),integrated agriculture
development ,integrated livestock development ,watershed
management ,microenterprise development ,skill development / vocational training
through Aditya Birla Technology Park for integrated training programme and VT
centers at most of our plants in collaboration with ITIs.
Infrastructure development
Community centers ,schools in villages. Health care centers and hospitals. Roads.
Homes for the homeless. Rural electrification. Irrigation and water storage
structures.
Social causes
Widow re-marriage / dowry-less mass marriages ,social security
(insurance) ,culture and sports ,women empowerment .

SWOT ANALYSIS
Strengths of Aditya Birla Group
Strengths are an organization’s unique abilities, these abilities help them to capture
a large market share, attract more customers and maximize profits. Following are
Aditya Birla Group’s strengths: 
 Online Sales: With all these actors working with brands, the Aditya Birla
Group’s online presence is quite well. Customers can get hands-on with any
products of the group easily through their website, also the fashion brands
are available on the e-commerce sites like Flipkart, Amazon, etc.
 Technological Superiority: Managing a multinational corporation, with a
wide range of products, the company needs to be well structured physically
as well as virtually. And when it comes to technical stability the Aditya Birla
Group provides 100% online support 24/7, with a good track record of
clients, customers can get their years ago information with a single click
from the group’s online portal.
Also, when it comes to online reputation management on social media platforms,
Aditya Birla Group is always ahead of its competitors and this is the reason, today
Aditya Birla Group is one of the biggest conglomerates in the world. So, when the
question comes to how to make your business successful digitally then social
media marketing, online reputation management & content strategy are some of
the ways to achieve so. You can learn all these digital marketing skills from digital
industry experts under one roof, course by course, as per your speed and time,
within a week or less than that.    
  Brand Recognition is High: Aditya Birla Group is one the largest apparel
brand in India, owning over 10 clothing brands like Allen Solly, Peter
England, Pantaloons, Louis Philippe, Van Heusen, etc. also the group is also
recognised for producing cement, carbon black, textiles, chemicals, etc. It is
one of the oldest telecom service providers in India. 
 Increasing International Visibility: As we all know, it is a multinational
corporation, working in over 30 countries. The group is always trying to
expand more, providing employment, trying to capture markets with their
products. 
 Product Innovation Skills: Aditya Birla Group provides a wide range of
newly created products, every year. With being one of the biggest financial
institutes in India, the group always comes with attractive loan plans,
attractive return on investment plans with their mutual funds & FD’s. 

Weaknesses of Aditya Birla Group

Weaknesses are the points that every brand or company needs to improve or
get rid of. Weaknesses of Aditya Birla Group are as followers:

 Operational Complexity: With an increasing audience, the group is

providing a large number of consumer goods as much as they can. While making
adjustments, a small change can make an unexpected impact on operational
complexity. Providing a variety of products is causing operational complexity to
the group.
The Processing Chain is Quite Long: Having a huge customer following
delays the process of ongoing functions like maintaining a large scale of
client records & keeping them up to date every time takes time and while
doing all the work simultaneously it delays the ongoing processes.
Opportunities of Aditya Birla Group
Like weaknesses, opportunities are the areas where a company needs to
focus, on improving results, increasing sales, and, ultimately, profits.

 E-commerce: Many of us are now making our purchases online. The Aditya
Birla Group is the leading fashion brand in India, but while having its products on
different e-commerce sites, the company doesn’t have their e-commerce site where
customers can explore only Aditya Birla Group’s products. Having their e-
commerce site can generate revenue & will increase customer following to the
company.
Useful Tip: Along with selling your products on big e-commerce sites such
as Amazon, Flipkart etc., you can also create a separate e-commerce website
through WordPress website planning & development or you can create your
own e-commerce website on Shopify with this Online E-Commerce Training
Course. With this, you will be able to pick the right e-commerce platform for
your product and choose appropriate shipping, packaging, and payment
partners. Also, you can personally get in touch with your customers to solve
their queries.

 Rising Urbanization: With the increase in the rate of urbanization, the

company needs to fulfil the demands of the customers, especially those who are
from the non-urban area & wants to explore the brand. The study predicts that by
the end of 2050 the two-third of the world will be in urban areas. Multinational
brands like Aditya Birla Group need to provide the services in baby-urban cities.

Threats of Aditya Birla Group

Threats are the factors that can be harmful to the company’s growth. The
following are some of the Aditya Birla Group’s threats:

 Substitution Effect: Due to owning expensive brands like Van Heusen, etc.
the target audience of the company is limited. And with competitors giving cheaper
products with the same quality, the company can lose market share. If a brand
increases its price, customers can choose an alternative brand with a cheaper price.
 Currency Fluctuation Effect: Being a multinational company requires
heavy export & import. And with a weaker currency make exports more expensive,
while making products cheaper for overseas customers.
CONCLUSION
Corporate Social Responsibility (CSR) is the new way of getting to the bottom of
social problems through shared cooperation between the government and business
firms. It is also a medium for the companies to fulfill their social obligation
towards the stakeholders. Government has laid down certain focus areas in the new
Amendment to the Companies Act, 2013 wherein the companies can conduct their
social activities. It is seen that many companies are performing their social
responsibility in the areas mentioned in the Act much before its Amendment. Still,
some of the focus areas like slum development, protection of national heritage art
and culture, etc. Are not yet taken into consideration by the companies should be
looked into.

SUBMITTED TO:- MR. AMOL MUTATKAR, ASSISTANT PROFESSOR

SUBMITTED BY :-
DEEPTI SINGH (BBAH1MG20021)
ARCHI LAHARIYA (BBAH1MG20014)
ARPITA AGRAWAL (BBAH1MG20003)
DEEPAK BHARGAV (BBAH1MG20005)