1.1 Background

1.
1 BACKGROUND
India has a long rich history of a close business involvement in social causes for national
development as well as human development in all sectors. In India, Corporate Social
Responsibility is known from ancient times as a philanthropic social duty which through
different ages is changing its nature in broader aspect. From the origin of business which
leads towards increase in wealth, increase in standard of living is a following activity.
India has had a long tradition of corporate charity and industrial welfare which is put to
practise since1800s. Business practices in the 1900s that could be termed socially
responsible took different forms: philanthropic donations to charity, service to the
community, enhancing employee welfare and promoting religious conduct. The ideology
of Corporate Social Responsibility in 1950s was primarily based on an assumption of the
obligation of business to society.
In initial years there was little documentation of social responsibility initiatives in India.
Since then there is a growing realization towards contribution to social activities globally
with a desire to improve the immediate environment. It has also been found that to a
growing degree companies that pay genuine attention to the principles of socially
responsible behaviour are also favoured by the public and preferred for their goods and
services. This has given rise to the concept of Corporate Social Responsibility.
It was after the independence that JRD Tata noticed that the industrial and business
enterprises can contribute to public welfare beyond the scope of their normal activities.
He suggested that apart from the obvious one of donating funds to good causes which has
been their normal practice for years; they can use their own financial, managerial and
human resources to provide task forces for undertaking direct relief and reconstruction
measures. Traditionally, firms had discharged its responsibility to society through
benefactions for education, medical facilities, and scientific research among other objects.
The important change at that time was that industry accepted social responsibility as part
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of the management of the enterprise itself. The community development and social
welfare program of the premier Tata Company, Tata Iron and Steel Company was started
the concepts of "Social Responsibility." This paved the road to the modern day Corporate
Social Responsibility projects in India.
In India as in the rest of the world there is a growing realization that business cannot
succeed in a society which fails. An ideal Corporate Social Responsibility has both ethical
and philosophical dimensions, particularly in India where there exists a wide gap between
sections of people in terms of income and standards as well as socio-economic status.
According to Infosys founder, Narayan Murthy, ―social responsibility is to create
maximum shareholders value working under the circumstances, where it is fair to all its
stakeholders, workers, consumers, the community, government and the environment.‖
The evolution of Corporate Social Responsibility in India has followed a chronological
evolution of 4 thinking approaches:
Ethical Model (1930 – 1950): One significant aspect of this model is the promotion of
trusteeship that was revived and reinterpreted by Gandhiji. Under this notion the
businesses were motivated to manage their business entity as a trust held in the interest of
the community. The idea prompted many family run businesses to contribute towards
socioeconomic development. The efforts of Tata group directed towards the well-being of
the society are also worth mentioning in this model.
Statist Model (1950 – 1970s): Under the aegis of Jawahar Lal Nehru, this model came
into being in the post-independence era. The era was driven by a mixed and socialist kind
of economy. The important feature of this model was that the state ownership and legal
requirements decided the corporate responsibilities.
Liberal Model (1970s – 1990s): The model was encapsulated by Milton Friedman. As
perth is model, corporate responsibility is confined to its economic bottom line. This
implies that it is sufficient for business to obey the law and generate wealth, which
through taxation and private charitable choices can be directed to social ends.
Stakeholder Model (1990 – Present): The model came into existence during 1990s as a
consequence of realisation that with growing economic profits, businesses also have
certain societal roles to fulfil. The model expects companies to perform according to
―triple bottom line‖ approach.
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MODEL FOCUS CHAMPION
Ethical Voluntary commitment by Mahatma Gandhi
companies to public welfare
Static State ownership and legal
requirements determine Jawahar Lal Nehru
Corporate responsibility
Liberal Corporate responsibilities Milton Friedman
limited to private owners
(Shareholders)
Stakeholder Companies respond to the R. Edward Freeman
needs of stakeholders-
customers, employees,
communities, etc.
Table: 1.1 Evolution of Corporate Social Responsibility
The importance of Corporate Social Responsibility emerged significantly in the last

decade. Over the time, Corporate Social Responsibility expanded to include both
economic and social interests. Not only this, it has broadened to cover economic as well
as social interests. Pressure from various stakeholders has made the companies to become
more transparent in accounting and display ‗public reporting‘. They now have started
behaving in ‗ethical‘ and responsible manner towards the consumers, employees,
communities, stakeholders and environment. They also have started incorporating
sustainability reports in the annual report. Corporate Social Responsibility is an entry
point for understanding various firm related and societal issues and responding to each
one of them in the firm‘s business strategy. Companies in India have quite been proactive
in taking up Corporate Social Responsibility initiatives and integrate them in their
business processes.
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1.2 NEED OF STUDY
After studying the Companies law in the first year of the B.Com course and
understanding the new Act and the changes that it has brought to the corporate sector has
made me realise the scope of Corporate Social Responsibility. India being one of the very
few countries that has made CSR mandatory for a certain class of companies has made
this concept of CSR a widely discussed one.
Having being associated with some NGOs that work in partnership with some corporates
to bring sustainable development in all regions of India, I was naturally drawn towards
this topic of CSR in India. Invariably selecting five companies I have studied how these
companies have made decisions and policies to promote hand in hand development of the
corporation along with the stakeholders. Hence a study has been made that clearly spots
the various areas where the companies are spending their yearly allocation of CSR funds.
It also analyses whether the companies are actually making a difference by doing so. We
have shown this with the help of the Impact Index and the data available from the
Sustainability reports.
 In the current trend of globalization which has made the firms realize that in order
to compete effectively in a competitive environment they need clearly defined business
practices with a sound focus on the public interest in the market.
 The increase in competition among the companies to gain first, is actually

advantageous in various developing countries as it helps in establishing goodwill
relationships with both the state and the stakeholders is indeed a testimony to the
transformation.
 In the most of the emerging markets, the state has a duty of protecting the interests
of the general public and thus gives preference to companies which take care of interests
of all the stakeholders.
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 In the present scenario emerging markets have been identified as a source of
immense talent with the rising levels of education.
Example: expertise of India in churning out software professionals and China in
manufacturing has now become internationally renowned. In order to draw from this vast
talent pool coming up in developing countries, companies need to gain a foothold in these
markets by establishing sound business practices addressing social and cultural concerns
of the people.
 Firms all over the world are beginning to grasp the importance of intangible
assets, be it brand name or employee morale. Equity created in a company‘s reputation or
brand can easily be harmed or even lost particularly for companies whose brand equity
depends on company‘s reputation. Reputation is built around intangibles such as trust,
reliability, quality, consistency, credibility, relationship and transparency and tangibles
such as investments in people, diversity and the environment. Corporate Social
Responsibility can be an integral element of a firm‘s business and corporate-level
differentiation strategies.
 Corporate Social Responsibility is an important factor for employee motivation

and in attracting and retaining top quality employees as well.
 Innovation, creativity, intellectual capital and learning are helped by a positive

Corporate Social Responsibility strategy.
 Better risk management can be achieved by in-depth analysis of relations with

external stakeholders.
 Corporate Social Responsibility also helps in compliance with regulations and the
avoidance of legal sanctions, while the building of responsibility with host governments,
communities and other stakeholders can enhance a company‘s reputation and credibility
and be important with regard to its future investment decisions.
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1.3 STUDY OF LITERATURE
Corporate Social Responsibility has become an integral part of the annual reports for any
company. This necessitates its external communication to all the stakeholders. Several
studies have been conducted at different parts of the world to examine the extent of Social
Responsibility reporting. After the Companies Act, 2013 was passed in the Parliament
and India became the first State that made Sustainability Reports mandatory, various
studies have been conducted to understand the implications of the Act.
Over the past decades, the concept of CSR has become an important concept in the study
of researchers, scholars and industrialists etc. So, the present researchers have made an
effort with this review paper for those researchers, analysts and industrialists who are
connected with Corporate Social Responsibility (whether social responsibility, social
accounting, social reporting or any other area related to Corporate Social Responsibility).
Windsor (2001), article examined the future of Corporate Social Responsibility or the
relationship between business and society in long run. The researcher tried to find out that
whether the organization and society will come closer to each other in future or not and
what will be the changing phase of CSR.
A study done by the Confederation of Indian Industry in the year 2013 and released as
―Handbook on Corporate Social Responsibility in India‖ actually analyses the effect on
SMEs due to the Companies Act 2013. It also mentions the planning and strategies that
must be made by the Indian industries due to the legal obligations that follow the
constitutional amendments.
In June 2013 Prof. Ramendra Singh, from Indian Institute of Management Calcutta, in his
research ―Corporate Social Responsibility for Social Impact: Approach to Measure Social
Impact using CSR Impact Index‖ has proposed a CSR Impact Index in order to measure
the impact of Corporate Social Responsibility initiatives taken by the firms.
Mr. Sanjay Pradhan in his paper ―Corporate Social Responsibility in Rural Development
Sector: Evidences from India‖ suggests that Corporate Social Responsibility actions have
positive impacts not only on development of rural community but also in their business. It
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gives a hint to the corporates how their activities can provide guidance to them for better
implementation of CSR activities.
Within the purview of above development, an earnest attempt has been made to study the
implication of Corporate Social Responsibility in India as it is indeed becoming a major
value diver in corporate sector all around the globe.
1.4 OBJECTIVES
 To study the CSR status in India.

The Parliament has come up with laws that have made CSR compulsory for certain
companies. In this study we come to know that what the predominant sectors are where
the companies are willing to serve in order to satisfy their CSR policies.
 To understand the meaning and the various models of CSR.

The study shall help to understand the various important models of CSR. The law that
states that all companies must have a CSR committee and policy framework in order to
track the CSR initiatives.
 To study the policies governing CSR in India.

The study enables us to understand the various laws that are governing CSR framework
and making sustainability projects a compulsion for certain companies.
 To study the challenges faced by CSR in India.

The study shall aid us to be aware of the various problems faced by the initiatives and
projects initiated by the corporates in sustainability development.
 To make suggestion for acceleration CSR in India.

Some suggestions and conclusions have been arrived at, after completion of the study.
They recommend some steps that can be taken in order to make the initiatives more
feasible and practical. This shall also help the initiatives to be fat tracked in order to
achieve the best results.
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 To study and understand the CSR initiatives being taken by selected public and
private Indian companies for development of backward areas.
The study shall help us analyse the various projects in the rural areas that are undertaken
by the companies. Rural communities are important stakeholders for the companies
operating in India since eighty per cent of the population is till engaged in rural sector.
 To examine the corporate‘s approach to work and their mode of action for
successful implementation for CSR initiatives.
A various number of case studies have been studied in order to analyse the corporate‘s
projects under its CSR policies.
 To assess the impact of CSR actions on socio-economic development of the

stakeholders of the firm.
With the help of data available the impact of the CSR projects on the society and the
stakeholders have been analysed.
1.5 RESEARCH METHODOLOGY

1.5.1 AREA OF STUDY
The study is limited in the area of Corporate Social Responsibility in India and its
reporting. It is an examination of current practices and reporting of their CSR initiatives
in India of the different Indian Companies. The companies CSR expenditure and the
variation through the years have been properly studied and included in the preparation of
the study.
1.5.2 SAMPLE
The annual reports of five companies are consulted in order to get the data. The five
companies are:
1. Bharti Airtel
2. Larsen & Toubro Ltd.
3. Tata Steel
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4. Mahindra & Mahindra
5. Axis Bank Ltd.
The annual reports for the past five years: 2009-2010, 2010-2011, 2011-2012, 2012-2013, 2013-
2014 are collected and analyzed in order to get the total picture of the CSR policy in the company.
The CSR policies of the above companies have also been studied to get a wholesome picture of
the company. For achievement of research purpose the flowing methodology has been
used. The research methods consisted of two parts, i) Explorative and, ii) Empirical.
Various available literatures that are different articles, books, reports, documents etc. in
this field and the related government rules and regulations issued in regulation with the
Companies Act 2013, amendment relating to the corporate social responsibility features
in India, have been relied upon for the explorative part of the study.
1.5.3 TYPE OF STUDY

The study uses secondary data for the analysis portion. The study is primarily based on
descriptive and analysis of the data collected for five companies.
The annual reports and the sustainability report of the above mentioned companies are
consulted in order to get the required data for the analysis portion of the report.
The explorative part of the study deals with the various conceptual issues relating to
corporate social responsibility that have developed recently. It also deals with the
growing importance of knowledge economy and the factors driving corporate social
responsibility. The second part to the study is the empirical part
The study population comprises of five companies that have been mentioned by the report
on corporate social responsibility by the Parliament of India. The reason for considering
this report as a source for selecting the companies is that, it places a most authentic report
and answer to the persistent question of the exact practices needed to be followed by the
firms in the field of corporate social responsibility.
1.5.4 TOOLS
Basically internet has been used to get the data required for the descriptive and analytical
portion of this study. Print literature to the extent of the books and the reports used for the
description portion of the project.
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Out of the several companies mentioned ten had been selected by random sampling. The
study period covers from 2010-2014. These 5 companies had been requested to send their
annual reports and sustainability reports.
1.5.5 ANALYSIS
With the respect of data received from sample companies the following issues have been
studied.
 The extent of details that corporate social responsibility forms a part to the
company‘s annual reports.
 The various fields where the companies have actually deposited their corporate
social responsibility allocated funds
 The policy that governs the corporate social responsibility initiatives in the
companies.
 Out of the selected companies if any one of them are actually reporting any major
project undertaken by them as a corporate social responsibility initiative during a certain
period.
 The impact that the companies are having on the area of operation and their profit
sharing with the shareholders as a percentage of their actual spending on CSR with
respect to their net profits.
 Whether the recommendation of the Companies Act with respect to CSR has been
followed by the companies regarding the sustainability reporting of their initiatives in the
annual reports.
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 The annual increase or fall in CSR spending, by the individual companies, has
been properly interpreted.
Keeping the objective of study in mind the data available from the annual reports of the
selected companies have been processed tabulated and analyzed thoroughly. Based on
that analysis an interpretation has been drawn and such findings have been presented in
Chapter three. This has been done with the help of bar graphs pie charts and other
presentation tools to make the picture more comprehensive.
1.6 LIMITATION OF THE STUDY
While completing the project several limitations have been faced. The present study has
been suffered from the following limitations:
In the study the conclusive decision largely depends upon the adequacy of data.
The sample study consists of only ten companies. Thus it cannot be generalized that
another companies are also following the same pattern and policy regarding reporting of
their CSR practices.
Due to non-availability of data for some years the comparisons couldn‘t be drawn
perfectly.
Due to time constraint and non-availability of accurate data for individual CSR
policy of a company abridged results have been procured from various sources.
The study has been based on secondary data availed from annual reports and
related studies. Non adequacy of time did not allow primary data collection possible by
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interviewing the executives of the sample companies. Primary data would have been
more effective certainly.
If the actual point of CSR initiatives could have been analyzed, and studied by
going through the places where the companies are investing, more realistic data could
have been obtained and the real picture could have become more evident rather than
picturing a print data only.
1.7 CHAPTER PLANNING

CHAPTER 1- INTRODUCTION
 Introduction
(The various project preparation notes and pre project preparation guidelines have been
assessed and kept in this chapter. It contains the need and objective of preparation of this
project paper. Moreover this chapter plans the conduct of the total project and how we
shall approach the project, particularly under the methodology part.)
CHAPTER 2- CONCEPTUAL FRAMEWORK

 Corporate Social Responsibility in India -A conceptual discussion
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(This chapter basically deals with the concept of Corporate Social Responsibility and its
corresponding need in India. It also deals with the legal provisions that govern the CSR in
India. Details under the Companies Act, 2013 in regard to the provisions of CSR have
been studied and duly incorporated.)
CHAPTER 3- PRESENTATION OF DATA, ANALYSIS AND FINDINGS

 Corporate Social Responsibility in India- A survey of reporting in selected Indian
companies
(The chapter has the various details of CSR in the Indian companies and the findings of
the initiatives taken by them in the appropriate fields. It also contains the case study and
questionnaire so as to understand the reporting standard of the companies)
CHAPTER 4 – CONCLUSION AND RECOMMENDATIONS

 Conclusion and Recommendations
(The conclusions obtained after completion of the project has been incorporated in this
chapter. It also contains the suggestions that can be given to various companies in order to
achieve the CSR policy requirement, faster and more effectively.)
BIBLIOGRAPHY
(The details of books, websites and reports with whose help this project has been
prepared have been assimilated here.)
ANNEXURE
(The various annexure(s) are incorporated in accordance with the university guidelines.)
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2.1 INTRODUCTION
Without any question in our minds we can come to a conclusion that vast majority of
India‘s poorest people live in villages and these villages are in a state of neglect and
underdevelopment with improvised masses. The problems like hunger, ignorance, ill
health, high morality and illiteracy are perhaps most predominant in the backward areas.
This is not only because of shortage of material resources but also defects in our planning
process and investment pattern. India has potential to answer these questions and meet the
challenges faced by the general masses, the external stakeholders.
However the efforts of the government are not adequate to provide basic services to the
citizens. The progress and welfare of a society is not only the responsibility of the
government but also of the stakeholders need to get involved in a joint action to reach this
developmental goals.
The corporate sector has a pivotal role to play in ensuring that the private investment cash
flow the backward areas, rural areas and the areas where development so far has been left
out completely. The work for sustainable development of all these areas needs to be done
now. In the hue and cry of Liberalisation, Privatisation and Globalisation companies that
were only focused towards profit maximisation has led to a social backwash. To
overcome this fashion CSR plays an important role in sustainability development which is
only possible hen there is a balance between profits and lowering social backwash or
perhaps eradicating them completely.
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2.2 WHAT IS CORPORATE SOCIAL RESPONSIBILITY?
There is no single universally accepted definition of CSR, each definition that currently
exists underpins the impact that businesses have on society at large and societal
expectations of them. One of the most contemporary definitions is from the World Bank
Group, stating ―Corporate Social Responsibility is the commitment of businesses to
contribute to sustainable economic development by working with employees, their
families, the local community and the society at large, to improve their lives in ways that
are good for business and for development.‖
According to the UNIDO, ―Corporate social responsibility is a management concept
whereby companies integrate social and environmental concerns in their business
operations and interactions with their stakeholders. CSR is generally understood as being
the way through which a company achieves a balance of economic, environmental and
social imperatives (Triple-Bottom-Line Approach), while at the same time addressing the
expectations of shareholders and stakeholders. In this sense it is important to draw a
distinction between CSR, which can be a strategic business management concept, and
charity, sponsorships or philanthropy. Even though the latter can also make a valuable
contribution to poverty reduction, will directly enhance the reputation of a company and
strengthen its brand, the concept of CSR clearly goes beyond that.‖
The EC defines CSR as ―the responsibility of enterprises for their impacts on society‖.
To completely meet their social responsibility, enterprises ―should have in place a process
to integrate social, environmental, ethical human rights and consumer concerns into their
business operations and core strategy in close collaboration with their stakeholders‖. The
WBCSD defines CSR as ―the continuing commitment by business to contribute to
economic development while improving the quality of life of the workforce and their
families as well as of the community and society at large.‖
From the above definitions it is clear that:
The CSR approach is holistic and integrated with the core business strategy for
addressing social and environmental impact of businesses.
CSR needs to address the well-being of all the stakeholders not only the company
stakeholders.
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Philanthropic activities viz. donations, charity, relief activities which otherwise
constitutes a much larger set of activities entailing strategic business benefits.
Companies today have become more transparent in their balance sheet. They display
public reporting in their accounting. These companies are incorporating their corporate
social responsibility initiative in their annual report. This has led to higher amount of
transparency in the accounting procedures as well.
2.3 REASONS FOR SOCIAL RESPONSIBILITY REPORTING

Providing information about challenges and achievements to shareholders,
employees, the public and other stakeholders as the report includes various projects
undertaken by the companies to fulfil their CSR policies.
An internal commitment to environmental and social responsibility and becoming
a world leader in sustainability is now an aim for the firms in case of sustainability
projects.
As a marketing tool, associating the company with sound environmental

management and sustainable activities helps to gain a favourable position in the eyes of
the stakeholders.
In tracking progress on integration of sustainability principles into company

planning and programs helps in achieving the CSR targets in correct time and in a perfect
manner.
A successful pilot project persuades decision-makers to take the initiative, company-wide

hence involving all the stakeholders in question and perfect review of the project
undertaken.
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2.4 CORPORATE SOCIAL VOLUNTARY GUIDELINES,2009
In order to assist the businesses to adopt responsible governance practices, the Ministry of
Corporate Affairs has prepared a set of voluntary guidelines which indicate some of the
core elements that businesses need to focus on while conducting their affairs. These
guidelines have been prepared after taking into account the governance challenges faced
in our country as well as the expectations of the society. The fundamental principle for
the guidelines is that each business entity should formulate a CSR policy to guide its
strategic planning and provide a roadmap for its CSR initiatives, which should be an
integral part of overall business policy and aligned with its business goals. The policy
should be framed with the participation of various level executives and should be
approved by the Board.
The core elements of the CSR policies are now discussed in the following:
 Care for all Stakeholders: The companies should respect the interests of, and be
responsive towards all stakeholders, including shareholders, employees, customers,
suppliers, project affected people, society at large etc. and create value for all of them.
They should develop mechanism to actively engage with all stakeholders, inform them of
inherent risks and mitigate them where they occur.
 Ethics in day to day functioning: Their governance systems should be

underpinned by Ethics, Transparency and Accountability. They should not engage in
business practices that are abusive, unfair, corrupt or anti-competitive.
 Respect for Workers' Rights and Welfare: Companies should provide a

workplace environment that is safe, hygienic and humane and which upholds the dignity
of employees. They should provide all employees with access to training and
development of necessary skills for career advancement, on an equal and non-
discriminatory basis. They should uphold the freedom of association and the effective
recognition of the right to collective bargaining of labour, have an effective grievance
redressal system, should not employ child or forced labour and provide and maintain
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equality of opportunities without any discrimination on any grounds in recruitment and
during employment.
 Respect for Human Rights: Companies should respect human rights for all and
avoid complicity with human rights abuses by them or by third party.
 Respect for Environment: Companies should take measures to check and

prevent pollution; recycle, manage and reduce waste, should manage natural resources in
a sustainable manner and ensure optimal use of resources like land and water, should
proactively respond to the challenges of climate change by adopting cleaner production
methods, promoting efficient use of energy and environment friendly technologies.
 Activities for Social and Inclusive Development: Depending upon their core
competency and business interest, companies should undertake activities for economic
and social development of communities and geographical areas, particularly in the
vicinity of their operations. These could include: education, skill building for livelihood
of people, health, cultural and social welfare etc., particularly targeting at disadvantaged
sections of society.
Implementation of these guidelines in the companies indeed was a major task that made
the future legislations on corporate social responsibility a reality. The guidelines include
the following which help us to understand the need of the hour in a more compact and
better way:
 The CSR policy of the business entity should provide for an implementation
strategy which should include identification of projects/activities, setting measurable
physical targets with timeframe, organizational mechanism and responsibilities, time
schedules and monitoring. Companies may partner with local authorities, business
associations and civil society/non-government organizations. They may influence the
supply chain for CSR initiative and motivate employees for voluntary effort for social
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development. They may evolve a system of need assessment and impact assessment while
undertaking CSR activities in a particular area. Independent evaluation may also be
undertaken for selected projects/activities from time to time.
 Companies should allocate specific amount in their budgets for CSR activities.
This amount may be related to profits after tax, cost of planned CSR activities or any
other suitable parameter.
 To share experiences and network with other organizations the company should
engage with well-established and recognized programmes/platforms which encourage
responsible business practices and CSR activities. This would help companies to improve
on their CSR strategies and effectively project the image of being socially responsible.
 The companies should disseminate information on CSR policy, activities and

progress in a structured manner to all their stakeholders and the public at large through
their website, annual reports, and other communication media.
2.5 UNDERSTANDING PROVISIONS OF COMPANIES ACT 2013
Before the Companies Act, 2013 came into operation it was indeed difficult to analyse the
spending of CSR by various firms as there were not required to do that by law and no
provisions for CSR existed in the Companies Act, 1956. But all this change as soon as the
Companies Bill 2013 became a law.
The Companies Act, 2013 incorporates a provision of CSR under Clause 135 which states
that every company having net worth Rs. 500 crore or more, or a turnover of Rs. 1000
crore or more or a net profit of rupees five crore or more during any financial year, shall
constitute a CSR Committee of the Board consisting of three or more Directors, including
at least one Independent Director, to recommend activities for discharging corporate
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social responsibilities in such a manner that the company would spend at least 2 per cent
of its average net profits of the previous three years on specified CSR activities.
According to Schedule-VII of Companies Act, 2013 the following activities can be
included by companies in their CSR Policies:-
(i) Eradicating extreme hunger and poverty;
(ii) Promotion of education;
(iii) Promoting gender equality and empowering women;
(iv) Reducing child mortality and improving maternal health;
(v) Combating human immunodeficiency virus, acquired immune deficiency syndrome,
malaria and other diseases;
(vi) Ensuring environmental sustainability;
(vii) Employment enhancing vocational skills;
(viii) Social business projects;
(ix) Contribution to the Prime Minister‘s National Relief Fund or any other fund set by
the Central Government or the State Governments for socio-economic development
and relief and funds for the welfare of the Scheduled Caste, the Scheduled Tribes, other
backward classes, minorities and women; and
(x) Such other matters as may be prescribed.
The Companies Act, 2013, Clause 135 also provides for constitution of a CSR
Committee of the Board. The CSR Committee is required to;
(a) Formulate and recommend to the Board, a CSR Policy which shall indicate the
activities to be undertaken by the company as specified in Schedule VII;
(b) Recommend the amount of expenditure to be incurred on the activities referred to in
clause (a); and
(c) Monitor the Corporate Social Responsibility Policy of the company from time to time.
(d) The format for disclosure of CSR policy and the activities therein as part of Board‘s
report will be prescribed in the rules once the Bill is enacted.
The companies need to keep the following guidelines in mind while making a
comprehensive CSR policy.
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 Surplus arising out of CSR activities will have to be reinvested into CSR
initiatives, and this will be over and above the 2% figure.
 The company can implement its CSR activities through the following methods:
- Directly on its own
- Through its own non-profit foundation set- up so as to facilitate this initiative
- Through independently registered non-profit organisations that have a record of at
least three years in similar such related activities
- Collaborating or pooling their resources with other companies.
 Only CSR activities undertaken in India will be taken into consideration.
 Activities meant exclusively for employees and their families will not qualify.
 A format for the board report on CSR has been provided which includes amongst
others, activity-wise , reasons for spends under 2% of the average net profits of the
previous three years and a responsibility statement that the CSR policy, implementation
and monitoring process is in compliance with the CSR objectives, in letter and in spirit.
This has to be signed by either the CEO, or the MD or a director of the company.
2.6BENEFITS OF A ROBUST CSR PROGRAMME
As the business environment gets increasingly complex and stakeholders speak about
their expectations, good CSR practices can only bring in greater benefits, some of which
are as follows:
1. Communities and Corporate to work hand in hand. In India, a fourth and

increasingly important stakeholder is the community, and many companies have started
realising that the ‗licence to operate‘ is no longer given by governments alone, but
communities that are impacted by a company‘s business operations. Hence the firms need
to analyse the need of this stakeholders as well.
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2. Making the employees feel an integral part of the firm. Interventions that
encourage and enable employees to participate are shown to increase employee morale
and a sense of belonging to the company. Hence the various methods shall be taken into
account in order to motivate, attract and retain the employees.
3. Involving communities as suppliers is a source of major involvement in the

salesmanship of the company. There are certain innovative CSR initiatives emerging,
wherein companies have invested in enhancing community livelihood by incorporating
them into their supply chain. This has benefitted communities and increased their income
levels, while providing these companies with an additional and secure supply chain.
4. Lastly, corporate reputation has to be enhanced. The traditional benefit of

generating goodwill, creating a positive image and branding benefits continue to exist for
companies that operate effective CSR programmes. This allows companies to position
themselves as responsible corporate citizens.
22 | P a g e
Net worth > 500 Crore
INR Turnover > 1000
Crore INR Net profit > 5
Crore INR
CSR committee Role of the board
Three or more directors

with at least one Form a CSR commiittee
independent director
Formulate and
recommend a CSR policy Approve the CSR policy
to the board
Recommend activities and

Ensure implementation of
the amount of expenditure
the activties under CSR
to be incurred
Monitor the CSR policy

Ensure 2% spend
from time to time
Disclose reasons for not

spending the amount (if
applicable)
Table 2.1: Role of the board and the CSR committee

2.7 PROPOSAL OF CSR IMPACT INDEX (CSRII)
CSR Impact Index shall be used to measure the effectiveness of the firm‘s CSR i.e. if the
activities carried out by the firms are not merely done for compliance, but create net
positive socio-economic impact. The proposed CSRII follows the underneath normative
guidelines:
i. Does the CSR activities carried out as per the recommendations of the firms‘ CSR
committee and CSR policies?
23 | P a g e
ii. Do the local communities that are the targeted beneficiaries (TB) require these
CSR activities?
iii. What forms of partnerships were developed or used for these CSR activities?
iv. What is the social impact of the CSR activities?
v. What is the economic impact of the CSR activities?
vi. What is the ROI of the CSR activities?
vii. Is the CSR impact sustainable?
Social impact index= Net improvement in quality of life, and number of lives affected
due to the nature of the CSR activity and based on the needs of the targeted beneficiaries
( in terms of increase in awareness in social, economic, health, environment, education,
political, and other areas of life etc.)
Economic impact index= Net improvement in incomes, wealth, savings, and assets, and
number of lives affected, due to the nature of the CSR activity, and based on the needs of
the TB( in terms of economic value created, income-generating assets created etc.).
ROI = (Net Social Value created for TB +Net Economic Value created for TB)/Financial
Investment of the firm.
24 | P a g e
Firm‘s CSR Policy Formulated, and CSR committee approves CSR
activities
Local Communities/targeted beneficiaries approves the CSR
activities
External/internal Partnerships formed for executing CSR activities
Evaluation of Social impact of CSR activities
Evaluation of Economic impact of CSR activities
Table 2.2: Planning and Executing CSR Impact Index
2.8 MILLENNIUM DEVELOPMENT GOALS (MDGS)
The Millennium Development Goals (MDGs) are eight international

development goals that were established following the Millennium Summit of the United
Nations in 2000, following the adoption of the United Nations Millennium Declaration.
All 189 United Nations member states at the time (there are 193 currently), and at least
23 international organizations, committed to help achieve the following Millennium
Development Goals by 2015:
1. To eradicate extreme poverty and hunger
2. To achieve universal primary education
3. To promote gender equality and empower women
4. To reduce child mortality
5. To improve maternal health
6. To combat HIV/AIDS, malaria, and other diseases
7. To ensure environmental sustainability
8. To develop a global partnership for development
The companies are advised to frame their CSR policies keeping in mind the above points
in order to attain unified moto of the nations.
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2.9 CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY
It is important for CSR strategies to become central to business strategy and part of the
long-term planning process. Stakeholders are questioning more on CSR initiatives of the
companies today. They are challenging the companies‟ decisions-making in this
direction. It has become imperative to incorporate stakeholders‟ views. In India the CSR
managers face number of challenges in managing CSR activities. The biggest problem is
of lack of budget allocations followed by lack of support from employees and lack of
knowledge as well. Lack of professionalism is another problem faced by this sector.
Small companies do not take adequate interest in CSR activities and those which
undertake them fail to disclose it to the society. In the process they lose out on people and
their trust in them.
Media can come up with strong support for informing the people at large about the CSR
initiatives taken up by the companies. It can sensitize population and also make them
aware of the benefits of CSR to them. However, media is not doing enough in this regard.
The failure of the government to come up with statutory guidelines to give a definite
direction to companies taking up CSR activities, in terms of size of business and profile
of CSR activities also results into few companies practicing CSR concept adequately.
Issues & Challenges
Many companies think that corporate social responsibility is a peripheral issue for their
business and customer satisfaction more important for them. They imagine that customer
satisfaction is now only about price and service, but they fail to point out on important
changes that are taking place worldwide that could blow the business out of the water.
The change is named as social responsibility which is an opportunity for the business.
Some of the drivers pushing business towards CSR include:
The Shrinking Role of Government
In the past, governments have relied on legislation and regulation to deliver social and
environmental objectives in the business sector. Shrinking government resources, coupled
26 | P a g e
with a distrust of regulations, has led to the exploration of voluntary and no regulatory
initiatives instead.
Demands for Greater Disclosure
There is a growing demand for corporate disclosure from stakeholders, including

customers, suppliers, employees, communities, investors, and activist organizations.
Increased Customer Interest
There is evidence that the ethical conduct of companies exerts a growing influence on the
purchasing decisions of customers. In a recent survey by Environics International, more
than one in five consumers reported having either rewarded or punished companies based
on their perceived social performance.
Growing Investor Pressure
Investors are changing the way they assess companies' performance, and are making
decisions based on criteria that include ethical concerns.
Competitive Labour Markets
Employees are increasingly looking beyond pay checks and benefits, and seeking out
employers whose philosophies and operating practices match their own principles. In
order to hire and retain skilled employees, companies are being forced to improve
working conditions.
Supplier Relations
As stakeholders are becoming increasingly interested in business affairs, many companies

are taking steps to ensure that their partners conduct themselves in a socially responsible
manner. Some are introducing codes of conduct for their suppliers, to ensure that other
companies' policies or practices do not tarnish their reputation. Dr. Ratnam said the
concept of CSR had different meanings depending on the stakeholder and that depending
on the specific situation of the enterprises expectations can also vary.
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3.1 INTRODUCTION
For the purpose of the study five companies are selected at random. The five companies are:
1. Bharti Airtel
2. Larsen & Toubro Ltd.
3. Tata Steel
4. Mahindra & Mahindra
5. Axis Bank Ltd.
The annual reports of the selected companies have been analysed with the objective of the
study in mind. From the Profit Statements of the companies the value of total revenue and
the profit after tax (PAT) is presented. The sustainability reports from the annual report
mentioned the CSR spending by the individual company in the certain year. Since the
amendments in the Companies Act have been put into effect only after it was passed by
the Parliament in 2013, hence the actual figures for CSR spending before that period has
not been incorporated in the annual statements. The above data has been collected for not
more than five previous financial years. This is due to non-availability of sufficient data
as well as shortage of time.
The data hence collected is compared with the other companies. The year wise results and
increase or decrease of CSR spending is analysed. The spending amount is also compared
with the total revenue of the firm. Moreover the guidelines of the new Companies Act
which are discussed in the previous chapter are kept in mind while preparing the
28 | P a g e
presentation part. Comparison in regard to the provisions of the Companies Act is also
taken into consideration.
Tables, bars and charts are used for the presentation of the data in this chapter.
For the purpose of study the provisions and the sustainability reports along with the CSR
policy of the companies have been studied in order to understand the implications of the
study and measure the output generated help provided to the stakeholders is analysed.
3.2SAMPLE COMPANY: 1
BHARTI AIRTEL LIMITED
Airtel‘s approach to responsible business activities is through regular engagement with its
internal and external stakeholders to confirm issues of importance. This is then aligned
with its governance framework and management approach. Airtel engages with its
stakeholders i.e. employees, customers, suppliers, business partners, the community,
investors and regulatory bodies on an on-going basis to help crystallise the range of
significant or material issues. The stakeholder engagement process is reviewed and the
materiality assessment is performed once in every two years, depending upon the
requirements. The four material issues that Airtel focuses on emerged basis those that
were most important to stakeholders, best aligned with the business and on which Airtel
operations had significant impact. In order to address these issues through its governance
structure, Airtel has formulated policies and management approaches around each issue.
Every material issue is governed by a member of the company‘s Management Board.
These 4 material issues are –
• Customer service and satisfaction
• Digital inclusion to catalyse social inclusion and economic parity
• Energy and climate change
29 | P a g e
• Waste management and resource optimisation
The areas where the company has contributed under its CSR schemes:
1. Community Development: A happy, empowered and sustainable community is the

foundation of a progressive society. The company has community outreach initiatives
comprise encouraging rural education, raising awareness about social issues, lending help
and support to people in times of crisis and participating with them in the joys of life. The
company believes in elevating the quality of life through consistent innovation in an
environmentally sustainable manner.
2. Environmental Protection: The Company‘s green initiatives are focused on

replacing traditional energy sources with renewable variants. They have introduced
various energy-efficient measures like e-waste management and reduced paper usage by
popularising e-bills and have dedicated efforts to conserve energy by every possible
means and reduce wastage at our areas of operations.
YEAR REVENUE PROFIT AFTER ACTUAL SPENT 2% OF PAT

TAX
Mar-14 50564.8 6600.2 40.45 132.004

Mar-13 46814 5096.3 38 101.926
Mar-12 42228.5 5730 33 114.6
Mar-11 38338.9 7716.9 - 154.338
Mar-10 36693.09 9426.15 - 188.523
TABLE3.2.1 The data collected from the sources are as follows: (all values in Cr. Rs.)
30 | P a g e
BHARTI AIRTEL
REVENUE PROFIT AFTER TAX
50564.8
46814
42228.5
38338.9 36693.09
7716.9 9426.15
6600.2 5096.3 5730
2014 2013 2012 2011 2010
CHART 3.2.1 Bar chart suggests the revenue and profit after tax plotted down through the years:
(the figures are in Rs. Crores)
From the above graph we can conclude that the revenue of the firm has gone up with the
years but the profit after tax has more or less remained the same.
BHARTI AIRTEL
ACTUAL SPENT 2% OF PAT SHORTAGE
188.523
174.523
154.338
132.004 129.338
114.6
101.926
91.554
81.6
63.926
40.45 38 33 25
14
2014 2013 2012 2011 2010
CHART3.2.2 Bar chart suggests the actual money spent in corporate social responsibility by the
company, 2% of profit after tax reported by the company along with the shortage (2% of PAT –
actual money spent) plotted down through the years: (the figures are in Rs. Crores)
31 | P a g e
From the above graph we can see that the company though has increased its CSR
spending through the years, but it is still far away from the projected 2% of Profit After
Tax requirement. But even the shortage (or the difference between the money actually
spent and the legal requirement) is decreasing. In 2010 and 2011 the shortage was 174
and 129 Crores respectively but in its comparison in 2014 it is 91 Crores.
1. Name of the Company Bharti Airtel

2. Does the company need to engage in Yes
compulsory CSR initiatives?
3. Does the company have a CSR Yes
policy?
4. DOES it have a CSR committee? Yes with ten members
5. Did the company follow norms as per Yes and the policy promises to follow the
companies Act 2013? recent amendments in the Act.
6. Is the sustainability report present Yes
on all important documents?
7. Are there any Directors present in Yes. One whole time director.
the committee?
8. Does the sustainability report Yes. Even valid questionnaire has been
contain all information regarding CSR included in order to get a more valid report.
spending by the company?
9. Has the company followed the Yes
Voluntary Guidelines issued by the MCA in
2009?
10. Have all the stakeholders been Apparently, yes.
informed of the CSR policy?
11. Does the sustainability report form a Yes
part of the annual report?
12. Mention the link to view the CSR http://www.airtel.in/sustainability
report.
TABLE 3.2.2 QUESTION ANSWER BASED FINDINGS
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2010 2011 2012 2013 2014
Education 25 21 10 20 34
Health 10 12 10 18 17
Community welfare 40 40 44 30 15
Environment 15 15 21 17 14
Rural development 10 12 15 15 20
TABLE3.2.3: Distribution of CSR expenditure among the various areas: (in percentage of the
total amount spent)
RURAL
DEVELOPMENT,
8.09
EDUCATION,
ENVIRONMENT, 13.753
5.663
COMMUNITY
HEALTH, 6.8765
WELFARE,
6.0675
CHART 3.2.3 Pie chart showing the contribution in various sectors for 2014
33 | P a g e
CSR EXPENDITURE BREAK-UP
50
45
40
35
30
25
20
15
10
5
0
Education Health Community Environment Rural development
welfare
2012 2013 2014
CHART3.2.4:CSR expenditure in various sectors
The above graph suggests that the spending of the company has gone up in the field of
education over the years. The contributions in health environment and rural development
have more or less remained constant. The chart suggests that the contribution in the field
of community welfare has gone down. Primarily because the programs like Satya Bharti
Schools have given a more comprehensive growth in the whole community, as suggested
by the case study.
3.2.1 Case Study: Airtel and Education
Airtel, has set up Bharti Foundation so as to fund its projects under its CSR activities in
its policy documents. The Foundation participated in the Public Private Partnership model
of the Punjab government, under which five senior secondary schools have been set up
under the Adarsh School Scheme. Under this scheme, in addition to the land being
provided on a long term lease, the government is also providing 50% of capital expenses
and 70% of operational expenses per child.
Impact assessment of Satya Bharti School Programme
34 | P a g e
A structured impact assessment study was conducted by a third party to assess the Satya
Bharti School Programme. 15 Satya Bharti Schools across Punjab, Haryana and
Rajasthan were compared to 15 other schools within the vicinity of five kilometers to
ascertain the impact that the programme has made on children, parents, communities and
teachers.
• Empowering the girl children – 96% of parents with a girl child studying at Satya
Bharti School wanted her to pursue higher education (compared to 74% among parents
whose child goes to other schools).
• Instilling greater confidence among students - On a confidence battery of one to four,

86% of children studying at Satya Bharti Schools were rated 4 in terms of confidence in
communicating with elders / outsiders (compared to only 32% children studying at other
schools).
• Developing stronger values and ethics among students - Satya Bharti School Students
tend to exhibit a stronger value code as 84% of them believe in amicable dispute
resolution (in comparison to 42 % children from other schools).
• Sensitizing communities towards responsible participation – 75% of families in the

communities with access to a Satya Bharti School regularly join Panchayat meetings
(where other communities have only 40% of such families).
• Notable shift in the perception of value education – 24% of families whose children are
going to Satya Bharti Schools reported that they are saving for their child‘s future
education (the corresponding figure for other families was about 8%).
• Quality teacher training programmes for teachers.
• Aid to teachers in pursuing higher education.
• Social empowerment, integration and upliftment of community, especially mothers

engaged as Mid-day Meal vendors.
The company has contributed around 11.70 Crore in this project in the year 2014-2013.
35 | P a g e
NUMBER OF SATYA BHARTI SCHOOLS
500
450
433
400
350
300 309
250 236 243 253
200
150
100
50
0
2010 2011 2012 2013 2014
CHART 3.2.5 Increase in number of CSR funded schools
Does the CSR activities carried out as per the Yes

recommendations of the firms’ CSR
committee and CSR policies?
Do the local communities that are the Not all communities, certain portion
targeted beneficiaries (TB) require these CSR only.
activities?
What forms of partnerships were developed Public private as well as other
or used for these CSR activities? corporates
What is the social impact of the CSR Around 900 students in Rajasthan
activities? are benefitted under this program.
Is the CSR impact sustainable? Yes, if more such programs are
carried out.
TABLE3.2.4 Questionnaire judging effectiveness of CSR in Education Sector by Airtel
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3.3SAMPLE COMPANY: 2
LARSEN AND TOUBRO LTD
The Company is the first engineering & construction organisation in India to report on its
Corporate Sustainability performance, and among the earliest to state its conformance
with the eight missions of National Action Plan on Climate Change (NAPCC), India.
The companies list of activities in which CSR expenditure has been incurred:
Community and social engagements broadly covering;
a. Education b. Skill Building c. Health Care d. Environment protection
Health Care: In the field of health care the company is engaged in various activities
around India. Mobile medical vans owned and operated by L&T provide marginalized
communities access to modern health care. These vans focus on health education-
promoting healthy behaviour, early diagnosis and referral. These vans currently serve
nine locations. In addition the Company conducts health camps, and participates in public
private partnership (PPP) health projects like programs to spread awareness of HIV
/AIDS. This helps to greatly extend and enhance the impact of L&T‘s outreach
programmes.
Education: Educational interventions are focused on pre-primary and primary section of

schools. The Company supports pre-schools (Anganwadi & Balwadi), which have been
established as community learning centres for underprivileged children and provides
infrastructure aids, has established libraries, provides teaching aids, uniforms and
computers to schools. The Company runs specific programmes in schools on subjects
such as Mathematics, Science, English, Health & Hygiene and Safety. Under the ‗Science
on Wheels‘ programme, mobile science vans visit various schools in villages to impart
knowledge through experiential learning. In addition, summer camps, sports activities,
periodical health check-up camps are conducted at adopted schools.
37 | P a g e
Skill building: Eight Construction Skills Training Institutes (CSTI) across India are
currently imparting skills for school dropouts and illiterate village youth. CSTI provides
training in construction trades such as carpentry, bar bending, masonry, electrician,
welding and scaffolding.
Environment protection: The Company has formulated and executed green strategies
which yield both environmental benefits and business growth. The underlying philosophy
is to continuously enhance the efficiency of processes and augment the Company‘s green
portfolio. The Company‘s water consumption and wastewater discharge have declined
steadily over the years. Various water management initiatives like water auditing,
rainwater harvesting and Industrial & domestic wastewater treatment & reuse are in place
across the Company‘s manufacturing locations.
YEAR REVENUE PROFIT ACTUAL 2% OF

AFTER TAX SPENT PAT
2014 58958.28 5493.13 76.5 109.8626
2013 64110.25 4910.65 71 98.213
2012 55103.57 4456.5 70 89.13
TABLE 3.3.1: The data collected from the sources are as follows: (all values in Cr. Rs.)
LARSEN AND TOURBO LTD.

64110.25
58958.28 55103.57
45918.88
38768.87
5493.13 4910.65 4456.5 3957.89 4375.52
2014 2013 2012 2011 2010
CHART 3.3.1:Bar chart suggests the revenue and profit after tax plotted down through the years:
38 | P a g e
LARSEN AND TOURBO LTD.
109.8626
98.213
89.13 87.5104
76.5 79.1578 73.5104
71 70
51
33.3626 27.213 28.1578
19.13 14
2014 2013 2012 2011 2010
CHART 3.3.2: Bar chart suggests the actual money spent in corporate social responsibility by the
spending through the years, but it is still far away from the projected 2% of Profit After
Tax requirement. But even the shortage (or the difference between the money actually
spent and the legal requirement) is decreasing. In 2010 and 2011 the shortage was 74 and
29 Crores respectively but in its comparison in 2014 it is 33 Crores.
1. Name of the Company Larsen and Toubro Ltd.
2. Does the company need to engage in Yes. It covers all the necessary points as
compulsory CSR initiatives? required by the Companies Act,2013
3. Does the company have a CSR policy? Yes
4. DOES it have a CSR committee? Yes with fifteen members
6. Is the sustainability report present on all Yes

important documents?
39 | P a g e
7. Are there any Directors present in the Yes. One whole time director.
committee?
8. Does the sustainability report contain all Yes.

information regarding CSR spending by the
company?
9. Has the company followed the Voluntary Yes

Guidelines issued by the MCA in 2009?
10. Have all the stakeholders been informed Apparently, yes. The sustainability report had
of the CSR policy? been provided as an annexure to the main
project.
11. Does the sustainability report form a part Yes

of the annual report?
12. Mention the link to view the CSR report. http://www.larsentoubro.com/lntcorporate/

common/ui_templates/ HtmlContainer.aspx?
res=P_CORP_AABT_DCOR
2010 2011 2012 2013 2014
Education 20 21 16 17 30
Health 10 17 19 18 20
Entrepreneurship
50 41 30 44 30
development
TABLE 3.3.3: Distribution of CSR expenditure among the various areas: (in percentage)
40 | P a g e
Environment, 15.3
Education, 22.95
Entrepreneurship
development,
22.95
Health, 15.3
CHART 3.3.3: Pie chart showing the contribution in various sectors for 2014

50
45
40
35
30
25
20
15
10
5
0
Education Health Entrepreneurship Environment
development
2012 2013 2014
CHART 3.3.4 : CSR expenditure in various sectors
The above chart suggests that the expenditure in the field of education has gone up
through the years. For health and environmental security it has contributed aptly. But for
the sector of entrepreneurship development it has gone down and again become constant
as previously L&T had supported some start-ups in India under its CSR scheme.
41 | P a g e
3.3.1Case Study: Larsen and Toubro and Health
L&T's participates in building a healthy community through continuing initiatives in

several areas of healthcare, with a focus on mother & child care and HIV/AIDS
awareness. All L&T locations, including construction sites, have in-house AIDS
awareness programs. Five additional mother & child care centers were set up in 2006-07.
In partnership with local NGOs, these centres benefit children of commercial sex
workers, street children and tribal communities.
Through health care centres and regular family camps L&T organizes health checkups,
provides gynaecology and laboratory facilities, carries out free cataract surgeries and intra
ocular lens implants, and helps maintain health data for children. Supply of equipment
and aid for orphanages and physically challenged children, periodic counseling to combat
rampant alcoholism, awareness camps on childcare, reproductive health, sanitation, dental
check-up, provision for safe drinking water, cancer awareness etc. are other healthcare
activities that L&T supports.
In 2014 the company has promised to put in additional funds in order to make 1000 toilets
in the backward districts.
Does the CSR activities carried out as per the Yes. The sustainability report
recommendations of the firms’ CSR committee? suggests so.
Do the local communities that are the targeted Not all communities, certain
beneficiaries (TB) require these CSR activities? portion only.
What forms of partnerships were developed or used Majorly the project is carried by the
for these CSR activities? company on its own initiative
What is the social impact of the CSR activities? Around 12,000 peoples in rural
India are affected
Is the CSR impact sustainable? Yes, if more help of NGOs is taken

by the company
TABLE3.3.4 Questionnaire judging effectiveness of CSR in Health Sector by L&T
42 | P a g e
3.4 SAMPLE COMPANY: 3
TATA STEEL
The Company also derives directions from the Purpose of the Tata Group, ―to improve
the quality of life of the communities‖ it serves - a task Tata Steel has been committed to
since its inception. This social purpose has been integrated with the Company‘s Business
Objectives & Strategies. A formal Corporate Social Responsibility & Accountability
Policy was articulated in 2009 to reaffirm its commitment to voluntarily investing
resources towards positively impacting the quality of life of the communities its serves.
1. Vocational Training: The Company intervenes as an employability enabler by

bridging the gap between the demand for and availability of vocational training
programmes for youth. These programmes are designed to train youth for entry-level
positions in the organised sector. The objective is to convert the potential talent pool into
a trained and readily employable force.
2. Agricultural Development: Tata Steel‘s Agriculture Development interventions

aim at improving agricultural productivity and cropping intensity by increasing the
acreage under paddy cultivation. The outcome is an increase in farmer income.
3. Healthy Nurturing: Tata Steel‘s hospitals, dispensaries, medical centres and

mobile medical vans provide healthcare facilities to its communities in Jharkhand, Odisha
and Chhattisgarh. Its services cover preventive, promotive and curative health care. Tata
Steel‘s health care infrastructure includes: Tata Main Hospital with 890 bed, nine
dispensaries and a super dispensary in Jamshedpur, hospitals at mining locations, Mobile
Medical Vans.
4. Early Child Education: To improve the quality of Bal Vikas Kendras functioning
within its community centers in the ‗basti areas‘ (urban settlements) of Jamshedpur, Tata
Steel sought technical support from Aide et Action (AEA), a leading development
organisation. The agreement brings technical support on capacity building of teachers,
active involvement of parents and the community in the education process and best
utilisation of the available resources to make the space within Tata Steel‘s Bal Vikas
Kendras more child-friendly in nature.
43 | P a g e
5. Physical Infrastructure: Tata Steel has initiated a drive to illuminate remote
villages using renewable sources of energy like solar energy. To eliminate the water crisis
in rural areas especially during summers Tata Steel continued to install bore wells for
communities living in rural and peri-urban areas. A single borewell has the capability to
benefit as many as 250 households or several villages.

AFTER TAX SPENT PAT
2014 45512.09 6412.19 212 128.2438
2013 38831.54 5062.97 170.76 101.2594
2012 35551.62 6691.42 146 133.8284
2011 30746.45 6865.69 - 137.3138
2010 26.46.76 5046.8 - 100.936
TABLE 3.4.1: The data collected from the sources are as follows: (all values in Cr. Rs.)
TATA STEEL
45512.09
38831.54
35551.62
30746.45
26467.6
6412.19 6691.42 6865.69

5062.97 5046.8
2014 2013 2012 2011 2010
CHART 3.4.1 Bar chart suggests the revenue and profit after tax plotted down through
the years: (the figures are in Rs. Crores)
44 | P a g e
TATA STEEL
212
170.76
146 137.3138
128.2438 133.8284
101.2594 110 100.936
85
27.3138
15.936
2014 2013 2012 2011 2010

-12.1716
-69.5006
-83.7562
CHART 3.4.2 Bar chart suggests the actual money spent in corporate social responsibility by the
spending through the years, and it has also gone much more than the statutory 2% of
Profit after Tax. But even the shortage (or the difference between the money actually
spent and the legal requirement) is decreasing and since 2012 the shortage has become
negative, which means that the company is spending more than the legal requirement and
achieving its CSR goals perfectly.
1. Name of the Company Tata Steel Ltd.

2. Does the company need to engage Yes
in compulsory CSR initiatives?
policy?
4. DOES it have a CSR committee? Yes with six members
45 | P a g e
5. Did the company follow norms as Yes and the policy promises to follow the
per companies Act 2013? recent amendments in the Act.
the committee?
8. Does the sustainability report Yes.
contain all information regarding CSR
2009?
12. Mention the link to view the CSR http://www.tatasteel.com/sustainability/csr-
report. reports.asp
2010 2011 2012 2013 2014
Education 10 18 18 18 19
Health 20 20 17 26 19
Entrepreneurship
41 41 30 31 32
development
TABLE 3.4.3: Distribution of CSR expenditure among the various areas: (in percentage)
46 | P a g e
Education,
40.28
Environment,
63.6
Health,
40.28
Entrepreneurship
development,
67.84

40
35
30
25
20
15
10
5
0
development
2012 2013 2014
CHART 3.4.3 Showing break up of CSR expenditure
The graph suggests that Tata Steel has vividly followed its CSR policy and there is not
much difference between the anticipated spending and its actual spending. In 2014 the
company has followed a moderate approach so as to contribute in various areas of CSR
initiatives compared to 2012-2013
47 | P a g e
3.4.1 Case Study: Tata Steel and Environment
The Company believes that respect for the environment is critical to the success of its
business and strives for continuous improvement in environmental performance. Over the
years, Tata Steel has been proactively investing in initiatives that nurture the
environment. Its approach to Environment Management is guided by Tata Code of
Conduct, Tata Climate Change Policy, Tata Steel‘s Vision, Tata Steel‘s Sustainability
Policy - enunciated in 2012-13, Environmental Policy and the UN Global Compact
Principles.
To achieve benchmark levels in operational excellence, Tata Steel has undertaken

implementation of Environment Management Systems at all key sites involved in mining
and manufacturing. These sites are also certiﬁed under EMS ISO 14001, the international
environmental management standard. Regular audits and reviews ensure that continual
improvement is achieved and wherever required, corrective actions are taken. The
Company focuses on environment management not only to comply with the applicable
regulatory regime but also to contribute positively to the communities around its
operations through varied community initiatives, encouraging biodiversity and nature
conservation.
Tata Steel‘s operations function on the basis of predetermined Environment Management

Plan (EMP) to comply with the environment protection regulations, to ensure that adverse
impacts on the environment are minimised and to fulfill the corporate social responsibility
for environment protection.
A frontrunner in using advanced technologies, Tata Steel, in addition to its carbon

accounting system (MoniCA) for monitoring and benchmarking CO2 emission
performance, also has an IT platform for a centralised environmental database. This was
launched in 2012-13.
48 | P a g e
As a part of its various governance mechanisms, Tata Steel also has an Environment
Management Committee that monitors and assesses environmental risks. The Committee
also seeks questionnaire- based feedback from stakeholders on concerns, expectations and
priorities. Tata Steel is also an active member of various industry associations with an
international and nationwide presence.

recommendations of the firms’ CSR committee and CSR
policies?
Do the local communities that are the targeted Not all communities, certain
beneficiaries (TB) require these CSR activities? portion only.
What forms of partnerships were developed or used for Public private as well as other
these CSR activities? corporates
What is the social impact of the CSR activities? A lot of areas has been
covered
Is the CSR impact sustainable? Yes, if more such programs
are carried out.
TABLE3.4.4 Questionnaire judging effectiveness of CSR in Environment Sector by Tata Steel
49 | P a g e
MAHINDRA AND MAHINDRA
The corporate governance philosophy at Mahindra goes beyond ‗enhancing shareholder

value‘. We remain committed towards upholding industry best practices while ensuring
ethical wealth generation and being a responsible corporate citizen.
1. Wheels of Good Health: 'Swaraj Arogya Rath', a mobile health van was set in motion,
halting at rural pockets of Mohali. 14 need-based camps were hosted in areas like dental,
anaemia, ophthalmic, orthopaedic, geriatric and general healthcare, and 1,693 OPDs were
conducted.
2. Community Engagement: Adopting Avre village near Thane facilitated resources to put
the survey recommendations in action. In focus were issues like safe drinking water, school
infrastructure, vocational training and youth employment.
3. Health Initiative: An Anti-Tobacco Rally was organised by MTWL volunteers, along with
38 community volunteers and 10 policemen.
4. Environmental Management: Years of sustainability reporting has helped them fine
hone their environment management skills. The constant monitoring has helped us gain deeper
insights into relationships of cause and effect. It has ingrained in us the importance of seeding
sustainability at the design stage.

AFTER TAX SPENT PAT
2014 41553.95 3758.35 150 75.167
2013 41168.26 3352.82 42 67.0564
2012 33024.91 2878.89 22 57.5778
2011 24214.12 2662.1 - 53.242
2010 18825.11 2087.75 - 41.755
TABLE 3.5.1 The data collected from the sources are as follows: (all values in Cr. Rs.)
50 | P a g e
MAHINDRA &MAHINDRA
41553.95 41168.26
33024.91
24214.12
18825.11
3758.35 3352.82 2878.89 2662.1 2087.75
2014 2013 2012 2011 2010
MAHINDRA & MAHINDRA

150
75.167
67.0564
57.5778 53.242
42 35.5778 35.242 41.755
25.0564 22 18 24.255
17.5
2014 2013 2012 2011 2010
-74.833
51 | P a g e
spending through the years, it has even achieved the statutory legal requirement of getting
at least 2% of Profit After Tax. In 2014 the company has invested a large amount of its
profits in various CSR activities.
1. Name of the Company MAHINDRA AND MAHINDRA

3. Does the company have a CSR policy? Yes
4. DOES it have a CSR committee? Yes with two members
6. Is the sustainability report present on Yes
all important documents?
the committee?
8. Does the sustainability report contain Yes.
all information regarding CSR spending by
the company?
2009?
12. Mention the link to view the CSR http://www.mahindra.com/How-We-Help
report.
52 | P a g e
2010 2011 2012 2013 2014
Education 20 18 21 20 19
Health 15 20 14 30 19
Entrepreneurship
25 41 40 15 32
development
TABLE 3.5.2 Distribution of CSR expenditure among the various areas: (in percentage)
Education, 28.5
Environment, 45
Health, 28.5
Entrepreneurship
development, 48
53 | P a g e
45
40
35
30
25
20
15
10
5
0
development
2012 2013 2014
CHART 3.5.4 GRAPH SHOWING CSR EXPENDITURE BREAK UP
The above graph suggests that the spending in education and environment is almost the
same through the years and for health and entrepreneurial development it has remained
the same in moderate amounts through the years.
3.5.1 Case Study: Mahindra and Mahindra and Health
The Impact India Lifeline Express arose from a simple yet powerful thought—if people
can‘t come to the hospital, then the hospital should come to them. The Impact India
Foundation created the Lifeline Express to be the world‘s first hospital on wheels,
bringing medical facilities to remote areas and treating people whose disabilities prevent
them from making the journey to a formal hospital. Since 2007, the company has
supported the Lifeline Express every year with financial contributions and volunteering
through An Employee Social Options Program (Esops).
Each year, five railway coaches bring medical care to remote areas completely free of
charge. Inside, the air-conditioned coaches contain sophisticated surgical and medical
54 | P a g e
facilities. Surgeons provide diagnostic, medical, and surgical treatment to patients with
cleft lips, dental deformities, deafness, polio, and cataracts.
In 2005, Tech Mahindra partnered with the Emergency Management and Research
Institute to provide comprehensive emergency response services through a toll-free
number—108. They provide all technical support, putting our cutting edge
communications technology to work to deliver the quickest response possible to any
distress call, be it a medical, police, or fire related emergency.
More than 2,600 ambulances are now on call in Andhra Pradesh, Gujarat, Uttarakhand,
Goa, Tamil Nadu, Rajasthan, Karnataka, Assam, Meghalaya, and Madhya Pradesh. As of
2009, we‘ve reached about 147 million people, saved 40,000 lives, and employed 8,500
people. By 2011, we plan to cover the entire nation—more than 1.1 billion people—with
10,000 ambulances and employ 100,000 people.
Esops volunteers respond quickly and efficiently to disasters. When heavy rains flooded
villages in Bihar in 2008, 60 Esops volunteers from local offices took the initiative to
organize relief efforts. Working quickly, they sourced and distributed Rs 1.5 million of
essential food items to over 10,000 people.

recommendations of the firms’ CSR committee and CSR
policies?
Do the local communities that are the targeted beneficiaries (TB) Not all communities,
require these CSR activities? certain portion only.
What forms of partnerships were developed or used for these Public private as well
CSR activities? as other corporates
What is the social impact of the CSR activities? A lot of areas has
been covered
Is the CSR impact sustainable? Yes.
TABLE3.5.4 :Questionnaire judging effectiveness of CSR in Health Sector by Mahindra
and Mahindra Ltd.
55 | P a g e
AXIS BANK LIMITED.
The strategy of Axis Bank Foundation (ABF), the Corporate Social Responsibility arm of
Axis Bank, has been twofold. At the community level, it aims to provide 'Sustainable
Livelihoods' to the economically weaker and underprivileged sections of the society. To
achieve this goal, ABF has partnered with several likeminded and reputed Civil Society
Organizations across 26 states in IndiaVocational Training: Formal education system
may not give space to children to think scientifically and/ or give them opportunities to
learn what they want to, resulting in high drop outs or lack of employability after
education especially in rural parts of India.
1. Balwadis / Aanganwadis: A key aspect of the Right to Education Act is to

provide education for all including children with various disabilities. Through the
‗inclusive Aanganwadi‘ programme, ABF works to provide children with multiple
disabilities from the slums of Mumbai, a platform to learn and get into mainstream
education system faster. This programme works on three fronts – giving the children with
disabilities an opportunity to learn, creating awareness amongst the parents on the
importance of providing education to all their children and advocating with the
government to include these children within their system through trained teachers who
can take care of their special needs.

AFTER TAX SPENT PAT
2014 38046 6217 60 124.34
2013 33734 5179.43 51.79 103.5886
2012 27415 4242.21 42.42 84.8442
2011 19787 3388.49 33.88 67.7698
2010 15584 2514.53 25.14 50.2906
TABLE 3.6.1 The data collected from the sources are as follows: (all values in Cr. Rs.)
56 | P a g e
AXIS BANK
(ALL FIGURES ARE IN Rs. Cr.)
38046
33734
27415
19787
15584
6217 5179.43 4242.21 3388.49 2514.53
2014 2013 2012 2011 2010
124.34 ACTUAL SPENT 2% OF PAT SHORTAGE
103.5886
84.8442
64.34 67.7698
60
51.79 51.7986 50.2906
42.42 42.4242
33.88 33.8898
25.14 25.1506
2014 2013 2012 2011 2010
spending through the years, but it‘s still very less than what it should have been i.e. 2% of
Profit After Tax. The company is slowly increasing its contribution in the various fields
but its almost 1% of Profit after Tax.
57 | P a g e
1. Name of the Company Axis Bank Limited
policy?
4. DOES it have a CSR committee? Yes with seven members
the committee?
8. Does the sustainability report Yes.
contain all information regarding CSR
2009?
12. Mention the link to view the CSR http://www.axisbank.com/media-
report. center/CSR.aspx
2010 2011 2012 2013 2014
Education 40 28 35 35 35
Health 25 31 15 40 35
Entrepreneurship
35 41 50 25 30
development
TABLE 3.6.3 Distribution of CSR expenditure among the various areas: (in percentage)
58 | P a g e
Entrepreneurship
development, 18
Education, 21
Health, 21
CHART3.6.3 Pie chart showing the contribution in various sectors for 2014

60
50
40
30
20
10
0
Education Health Entrepreneurship development
2012 2013 2014
CHART 3.6.4 Showing the CSR spending by the company in various sectors
The firm has kept its contribution in education constant through the years. But in the year
2014 the contribution in each of the sectors has remained almost constant, rather it is an
average or a mid-way in a scatter diagram which means achieving an average point.
59 | P a g e
3.6.1 Case Study: Axis Bank Limited and Sustainable Livelihoods
A large percentage of India's rural population is dependent on agriculture for their

livelihood and sustenance. Poverty still remains high and a quarter of India's population
still remain without food security. Lack of irrigation facilities, dependence on the
monsoon for agriculture and non-accessibility and unavailability of various government
schemes are some of the reasons that have made agriculture an unviable occupation. This
in turn has led to large scale migration of communities for better livelihood options,
increase in indebtedness and an overall instability in their socio-economic conditions.
Axis Bank Foundation Livelihood Programme in some of the poorest districts of the
country aims to impart positive change in people's lives by providing direct solutions to
these issues. ABF's partners work in some of the most socio-economic backward states to
help improve irrigation through rain water harvesting, make various government schemes
accessible, create market linkages and opportunities for small enterprises and provide
credit linkages with banks.
With focus on Livelihood Programme, ABF aims to provide one million people with
sustainable livelihood options by 2017.
Does the CSR activities carried out as per the recommendations of Yes
the firms’ CSR committee and CSR policies?
Do the local communities that are the targeted beneficiaries (TB) Not all communities,
require these CSR activities? certain portion only.
What forms of partnerships were developed or used for these CSR Public private as well as
activities? other corporates
What is the social impact of the CSR activities? A lot of areas has been
covered
Is the CSR impact sustainable? Yes.
TABLE3.6.4 : Questionnaire judging effectiveness of CSR in community development

Sector by Axis Bank Ltd.
60 | P a g e
3.7 COMPARISONS
In the study we have noticed that the four companies have allotted an amount of their
total spending in the sector of environment security. The funds allotted by them and the
percentage of their total spending is shown in the following graph. Tata Steel has allotted
the maximum amount of its total CSR funds towards the betterment of environment.
70 63.6
60
50 45
40
30 30
30
20
20 14 15.3
10 5.6
0
AIRTEL LARSEN AND TURBO MAHINDRA AND TATA STEEL
MAHINDRA
SPENDING IN CRORE PERCENTAGE OF TOTAL SPENDING
CHART 3.7.1 Showing the spending and percentage of total CSR funds
The following graph shows how much money out of their CSR funds the companies have
allotted for the sector of Education. The graph suggests that though Tata Steel has allotted
maximum of its funds among the rest of the companies, still the percentage of total
contribution made by it is quite low. Whereas Axis Bank Ltd. And Bharti Airtel has
allotted maximum of its fund for the development of Education among the stakeholder
premises.
61 | P a g e
45 40.28
40 35
34
35 30 28.5
30
25 22.95
21
19 19
20
13.75
15
10
5
0
AIRTEL LARSEN AND MAHINDRA AND TATA STEEL AXIS BANK
TURBO MAHINDRA
The following graph shows details of funds allocated for development of health in the
community of operation by the different companies. Tata Steel has allotted maximum
amount of fund than the other companies. Axis Bank realising the importance of health
has invested 35% of its total CSR fund in development of health in the Rural Sector.
Project Nanhi Kali has been set up by Axis Bank Foundation to support this project for all
round development of tribal girls.
45
40.28
40
35
35
30
24
25 21 21
20 19
20 17
15.3
15
10 6.84
5
0
AIRTEL LARSEN AND MAHINDRA AND TATA STEEL AXIS BANK
TURBO MAHINDRA
62 | P a g e
4.1 CONCLUSION
The conclusion of this study is that social responsibility is regarded as an important

business issue of Indian companies irrespective of size, sector, business goal, location of
the company. Because Indian companies are realizing that without socio-economic
development of the local communities, there can be no stability and sustainability for
doing business so as to compete with the global market. The study shows that all
surveyed companies present themselves as having CSR policy and practices. Most of the
companies which design and implement CSR initiatives in the vicinity of their works
cover entire community. A wide range of CSR initiatives ranging from income generation
activities for livelihood, health check-up camps, mobile health services, education, adult
literacy, agricultural development, provision of drinking water, management and
development of natural resources, infrastructure facilities being carried out by these
companies. Though the approach to work is generally shifting from philanthropic to
welfare and sustainable development but no link was observed between the company‘s
CSR agenda and Millennium Development Goals. Many companies promote and
implement CSR initiatives through Human Resource Department, foundation or in
partnership with NGOs, but do not have full-fledged CSR department. CSR initiatives
being implemented by the Indian companies for rural development have a positive impact
in overall development of society and their business. However, following points must be
considered to continue on sustained basis for the betterment of both the people at large
and the business.
1. The study shows that most of Indian companies have engaged to undertake their
CSR (Corporate Social Responsibility) activities with local communities near their areas
of operation, the beneficiaries generally are the local population.
63 | P a g e
2. Looking into the CSR reports of various companies we see that most of the
companies have chosen some sectors of CSR (for example healthcare education)
moreover they spend money in it on a project to project basic(i.e. health camps etc.)
3. Corporate sustainability is an evolving process and not an exhaustive one. The
Companies Act amendment is a good initiative for the firms to decide the areas and
spending on CSR activities.
4. Across the globe CSR has been accepted as an element for success and survival
of business along with fulfilling social objectives.
5. However it is a challenge for the companies to determine a strong and innovative
CSR strategy which shall deliver high performances in ethical environmental and social
areas and meet all the stakeholders objectives.
6. Awareness of corporate responsibility is rising and the understanding of the term
is moving away from just charitable donations to include environmental matters, health
and safety, ethics and other considerations.
7. These findings show an increased sense of responsibility by companies towards
their people, the environment and the wider community. The main drivers are clearly the
brand and an internal commitment to corporate values.
8. The three main areas of activity in the local scenario are energy and water
consumption, followed by waste management. As companies envisage CSR to grow in
importance, other areas of corporate responsibility may see additional investment in the
near future.
9. Stakeholders‘ expectations and pressures are still low when compared to other
countries. Disclosure efforts are mainly driven by a desire to show a company‘s internal
commitment to CSR and to some extent by regulatory bodies.
10. The companies must align the CSR goals with the national goals set up under the
Millennium Development Goals (MDG).
11. The companies should have a dedicated CSR division with well trained, qualified
and experienced professionals from social science i.e. Social Work, Sociology, Rural
Development and Development Studies and management background for better planning,
implementation and evaluation of CSR initiatives.
12. CSR programmes being implemented by Indian companies should be based on
the felt-need of the local people so that their participation in the programme can be
64 | P a g e
enhanced. Moreover, it is necessary to create jobs and economic activity in rural
community with a view to uplift the masses.
13. Social audit should be conducted by an external agency to assess the CSR
performance of the company.
14. Government can encourage economic players to consider ethical, social and
environmental criteria. Government should play the role of motivator, enabler, facilitator
rather than director of corporate social responsibility.
15. An annual report on Corporate Social Responsibility should be prepared to
highlight the company‘s commitment for sustainable community development. It should
be kept in mind that the report shall contain all valid details.
4.2 RECOMMENDATIONS
1.Companies can now come together and set a network of activities to be taken up in a
joint project to tackle major environmental issues.
It also provides an opportunity to learn from each other.
2. Training, conferences and seminars can be organized by the companies to disseminate

and generate new knowledge and information in the sector.
3.A strong and supporting budgetary figure shall help the CSR initiatives to grow and
research related to this shall enhance the organization‘s contribution further
Government‘s support in the form of regulations and rules shall attract more responses
from organizations.This shall even help to benchmark CSR activities.
4. Companies need to have complete involvement of their stakeholders in order to build

meaningful and long term partnership which would lead to creating a strong image and
brand identity.
5. Existing policies and CSR initiatives need to be periodically reviewed in order to

develop meaningful visions for the companies and broaden their contribution to reach the
local communities.
65 | P a g e
The following books, papers and websites have been used in preparation of the project.
PAPERS
 Handbook on Corporate Social Responsibility in India

By Confederation Of Indian Industries (CII)
 Government makes Corporate Social Responsibility spending mandatory for
public sector companies : A report by The Economic Times on 28/10/2014
 Prof. Ghose Soheli, A look into Corporate Social Responsibility in Indian and
emerging economies, 2012
 The Gazette Of India (PART Il--Section 3-Sub-section (i)) as published in New
Delhi on 28 Feb.2014
 Corporate Social Responsibility (REFERENCE NOTE . No. 11 /RN/Ref./2013)
as issued by the Lok Sabha Secretariat.
 India Corporate Responsibility Reporting Survey 2013 conducted by KPMG
 Corporate Social Responsibility in Rural Development Sector: Evidences From
India
By Sanjay Pradhan, Akhilesh Ranjan
 CSR reports of the selected companies
 Annual Reports of the selected companies
BOOKS
 Agarwal Sanjay, Corporate Social Responsibility in India, Sage

Publications,2006
 Prabhakar Rajeev and Mishra Sonam, A Study of Corporate Social Responsibility

in Indian Organization: An-Introspection, , Indian Institute of Social
Sciences,2013
 Singh Ramender and Agarwal Sharad, Corporate Social Responsibility for Social
Impact: Approach to Measure Social Impact using CSR Impact Index , Indian
Institute of Management Calcutta, 2012
WEBSITES
 Wikipedia.com
 Indiacsr.in
 Websites of the selected companies
66 | P a g e
Annexure- IA
Supervisor's Certificate
This is to certify that Mr. NISHANT PATEL a student of B.Com. Honours in Accounting
& Finance of HERAMBA CHANDRA COLLEGE under the University of Calcutta has
worked under my supervision and guidance for his/her Project Work and prepared a
Project Report with the title CORPORATE SOCIAL RESPONSIBILITY IN INDIA: A
SURVEY OF ITS REPORTING IN SELECT INDIAN COMPANIES
which he is submitting, is his genuine and original work to the best of my knowledge.
Signature
Name: Smt. Sharmistha Dasgupta
Designation:
Name of the College: Heramba Chandra College
Place: KOLKATA
Date:
67 | P a g e
Annexure- IB
Student's Declaration
I hereby declare that the Project Work with the title CORPORATE SOCIAL
RESPONSIBILITY IN INDIA: A SURVEY OF ITS REPORTING IN SELECT INDIAN
COMPANIES is submitted by me for the partial fulfilment of the degree of B.Com.
Honours in Accounting & Finance under the University of Calcutta is my original work
and has not been submitted earlier to any other University /Institution for the fulfilment
of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing
details of such literature in the references.
Signature
Name: NISHANT PATEL
Address:105/1, Ho-Chi-Minh Sarani
Kolkata-700061.
RegistrationNo.043-1121-0531-12
Place: KOLKATA
Date:
68 | P a g e

1.1 Background

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The importance of Corporate Social Responsibility emerged significantly in the last

 The increase in competition among the companies to gain first, is actually

 Corporate Social Responsibility is an important factor for employee motivation

 Innovation, creativity, intellectual capital and learning are helped by a positive

 Better risk management can be achieved by in-depth analysis of relations with

 To study the CSR status in India.

 To understand the meaning and the various models of CSR.

 To study the policies governing CSR in India.

 To study the challenges faced by CSR in India.

 To make suggestion for acceleration CSR in India.

 To assess the impact of CSR actions on socio-economic development of the

1.5 RESEARCH METHODOLOGY

1.5.3 TYPE OF STUDY

1.6 LIMITATION OF THE STUDY

1.7 CHAPTER PLANNING

CHAPTER 2- CONCEPTUAL FRAMEWORK

CHAPTER 3- PRESENTATION OF DATA, ANALYSIS AND FINDINGS

CHAPTER 4 – CONCLUSION AND RECOMMENDATIONS

2.3 REASONS FOR SOCIAL RESPONSIBILITY REPORTING

As a marketing tool, associating the company with sound environmental

In tracking progress on integration of sustainability principles into company

A successful pilot project persuades decision-makers to take the initiative, company-wide

 Ethics in day to day functioning: Their governance systems should be

 Respect for Workers' Rights and Welfare: Companies should provide a

 Respect for Environment: Companies should take measures to check and

 The companies should disseminate information on CSR policy, activities and

2.5 UNDERSTANDING PROVISIONS OF COMPANIES ACT 2013

 Only CSR activities undertaken in India will be taken into consideration.

2.6BENEFITS OF A ROBUST CSR PROGRAMME

1. Communities and Corporate to work hand in hand. In India, a fourth and

3. Involving communities as suppliers is a source of major involvement in the

4. Lastly, corporate reputation has to be enhanced. The traditional benefit of

CSR committee Role of the board

Three or more directors

Recommend activities and

Monitor the CSR policy

Disclose reasons for not

Table 2.1: Role of the board and the CSR committee

iv. What is the social impact of the CSR activities?

v. What is the economic impact of the CSR activities?

vi. What is the ROI of the CSR activities?

vii. Is the CSR impact sustainable?

External/internal Partnerships formed for executing CSR activities

Evaluation of Social impact of CSR activities

Evaluation of Economic impact of CSR activities

Table 2.2: Planning and Executing CSR Impact Index

2.8 MILLENNIUM DEVELOPMENT GOALS (MDGS)

The Millennium Development Goals (MDGs) are eight international

1. To eradicate extreme poverty and hunger

2. To achieve universal primary education

3. To promote gender equality and empower women

4. To reduce child mortality

5. To improve maternal health

6. To combat HIV/AIDS, malaria, and other diseases

7. To ensure environmental sustainability

8. To develop a global partnership for development

Issues & Challenges

The Shrinking Role of Government

Demands for Greater Disclosure

There is a growing demand for corporate disclosure from stakeholders, including

Increased Customer Interest

Growing Investor Pressure