CSR Blackbook 1

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CSR blackbook 1
MMS (University of Mumbai)
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A PROJECT REPORT
ON
“A STUDY ON CO-OPRATIVE SOCIAL RESPONSIBILITY

AT MARUTI SUZUKI INDIA LIMITED”
Submitted in Partial Fulfillment for the award of the Degree
MASTERS OF MANAGEMENT STUDIES
FINANCE
Under University of Mumbai
SUBMITTED BY
SHRUTI VIJAY MHATRE
ROLL NO. MS2122048
Under the Guidance of
PROJECT GUIDE
Prof. TEJASVI BHOSALE
Batch 2021-23
INSTITUTE OF MANAGEMENT & COMPUTER STUDIES
THANE (W)

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DECLARATION
I, SHRUTI VIJAY MHATRE the student of MMS Semester IV,

Batch (2021-23) hereby declare that this Project Report submitted
by me to the ASM’s Institute Of Management & Computer
Studies, (IMCOST), Thane.
Is a bonafied work undertaken by me and it is not submitted to any

other University or Institution for the award of any degree/diploma
certificate or published any time before.
Name of the Students: SHRUTI VIJAY MHATRE
Roll Number: MS2122048
Signature of the Student:

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CERTIFICATE
This is to certify that project titled “A STUDY ON CO-OPRATIVE
SOCIAL RESPONSIBILITY AT MARUTI SUZUKI INDIA
LIMITED” [SHRUTI VIJAY MHATRE] of MMS (Masters of
Management Studies) Semester IV, Batch (2021-2023) has
successfully completed the Project under the guidance of Prof.
TEJASVI BHOSALE
Date:
Place:
Signature Signature Signature

Project Guide / External Examiner Director
Internal Examiner
Dr.D.V.Kulkarni
Prof. Tejasvi Bhosale
Institute Seal

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ACKNOWLEDGEMENT
I take this opportunity to express my gratitude and extend my

thanks to all those who helped and guided me to make this
endeavor successful.
I would also like to thank our project guide Prof. TEJASVI

BHOSALE who helped me in the completion of project.
I cannot end this page without thanking my family and friends for
their support and encouragement while undertaking this project.
SIGNATURE AND NAME OF THE STUDENT WITH DATE

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Executive Summary
Title of the study: A STUDY ON CO-ORPOREATE SOCIAL

RESPONSIBILITY AT MARUTI SUZUKI INDIA LIMITED
A study on Corporate Social Responsibility (CSR) at Maruti Suzuki India

Limited revealed that the company has been consistently practicing CSR
initiatives through its various programs in the areas of education, health,
environment, and community development. The study highlighted that Maruti
Suzuki's CSR programs have positively impacted the lives of people in
communities near their manufacturing facilities, thereby enhancing the
company's reputation and brand image. The study also suggested that Maruti
Suzuki could further enhance its CSR initiatives by increasing the focus on
sustainable practices, strengthening stakeholder engagement, and leveraging
technology to improve program effectiveness and monitoring. Overall, the
study showed that Maruti Suzuki has demonstrated a strong commitment to
CSR and is continuously striving to improve its impact on society and the
environment.

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INDEX
Chapte Page
Chapter
r No. No.
Chapter 1: Introduction to
8
the Study
1.1 INTODUCTION 8-12
1.2 OBJECTIVES OF THE
12
STUDY
1.3 RESEARCH
12
METHODOLOGY
1.3.1 RESEARCH TYPE 12
1 1.3.2 DATA ANALYSIS 13
1.3.3 INSTRUMENTS 13
1.4 SCOPE OF THE
13
STUDY
1.5 IMPORTANCE OF
14
THE STUDY
1.6 LIMITATION OF THE
14
STUDY
Chapter 2: REVIEW OF 15-
2 LITERATURE 19
Chapter 3: The
20
3 Conceptual Background
20-
3.1 INTRODUCTION
49
Chapter 4: Data Analysis
50
& Interpretation
4 4.1 INTRODUCTION 50
51-
4.2 DATA ANLALYSIS
59
Chapter 5: Findings, 60-
5
Suggestions & Conclusion 61
61-
5.2 SUGGESTIONS
62
5.3 CONCLUSION 62
63-
Bibliography
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List of Graphs
Graph Title Page No.

No.
1. CLASSIFICATION ON 51
THE BASIS OF CSR
EXPENDITURE
2. CLASSIFICATION ON 52-55
THE BASIS OF CSR
ACTIVITES
3. CLASSIFICATION ON 56-57
THE BASIS OF
NUMBER OF CSR
THE BASIS OF TOTAL
ASSETS
THE BASIS OF CSR
IMPLEMENTATION

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CHAPTER 1
INTRODUCTION OF THE STUDY
1.1 INTRODUCTION
Corporate Social Responsibility (CSR) is becoming increasingly important for
businesses worldwide as they strive to create a positive impact on society
while achieving their business goals. Maruti Suzuki India Ltd, one of India's
leading automobile manufacturers, is no exception to this trend. This study
aims to explore Maruti Suzuki's CSR initiatives and their impact on the
company and society.
The research will begin by providing a brief background of Maruti Suzuki and
its CSR approach. The study will then analyse Maruti Suzuki's CSR initiatives
in various areas, including education, health, environment, and community
development. The research will also evaluate the effectiveness of these
initiatives in achieving their intended goals and their impact on society.
To gain insights into Maruti Suzuki's CSR practices, the study will use a
mixed-method approach, including both qualitative and quantitative research
methods. Primary data will be collected through interviews with Maruti
Suzuki's CSR team members and stakeholders, including NGOs and
government officials. Secondary data sources will include company reports,
CSR publications, and other relevant literature.
The study aims to provide valuable insights into Maruti Suzuki's CSR
practices, highlighting their successes and identifying areas for improvement.
The research findings will be useful not only for Maruti Suzuki but also for
other companies looking to enhance their CSR practices. Ultimately, the study
seeks to contribute to the growing body of knowledge on CSR and its role in
creating a sustainable future.
A study on CSR at Maruti Suzuki India Ltd may aim to analyse the company's
CSR initiatives in different areas, such as education, healthcare, environment,
and community development. The study may evaluate the effectiveness of
these initiatives in achieving their intended goals and their impact on society. It
may also explore the challenges and opportunities faced by the company in
implementing CSR initiatives and the strategies used to overcome them.
The study may use a mixed-method approach, including qualitative and
quantitative research methods. The data may be collected through interviews
with Maruti Suzuki's CSR team members and stakeholders, including NGOs,
government officials, and community leaders. Secondary data sources may
include company reports, CSR publications, and other relevant literature.
The study's findings may provide insights into Maruti Suzuki's CSR practices,
highlighting their successes and identifying areas for improvement. The
research may also contribute to the growing body of knowledge on CSR and
its role in creating a sustainable future.

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Overall, a study on CSR at Maruti Suzuki India Ltd may provide valuable
information for the company and other businesses looking to enhance their
CSR practices and make a positive impact on society.
Road Safety
Maruti Suzuki understands the importance of making Indian roads safer. That
is why, the company runs a nationwide road safety programme to promote safe
driving habits via various initiatives. The two most important initiatives among
these are:
 Institutes of Driving and Traffic Research (IDTRs):
These institutes, spread over almost 10 acres each, work in close association
with a number of state governments. The main focus of the IDTRs is to train
passenger and commercial vehicle drivers with the help of world-class training
infrastructure and qualified trainers. The use of scientifically designed training
tracks and simulators keep the training environment in these IDTRs very close
to the experience of actually driving on Indian roads. Over the years, IDTR
have built a reputation of being among the finest driving and road safety
training facilities in India.
 Maruti Driving Schools (MDSs):
Established in partnership with authorised Maruti dealers, the 417 MDSs aim
at nurturing a safe driving culture through special theoretical sessions, test
tracks, and driving classes on the road. These schools are credited with having
introduced advanced driving training simulators for better judgement, and also
with familiarising drivers with the concept of route maps for a more holistic
on-road practice.
Apart from Institutes of Driving and Traffic Research and Maruti Driving
Schools, the company also has several other initiatives such as Train the
Trainer Programme, Road Safety for Truck Drivers and various city specific
road safety programmes which focus on addressing the issue of road safety.
The Road Safety Knowledge Centres (RSKCs) were established in partnership
with the Haryana Traffic Police. Managed by the IDTR, the seven RSKCs
together train the traffic violators and learner license applicants.
The company signed an MoU with the National Minorities Development and
Finance Corporation in 2013-2014 under which it has trained over 92000
existing and new young drivers from the economically weaker sections of
India’s minority communities between 2014 and 2017.
To ensure that the drivers transporting Maruti Suzuki vehicles follow the best
driving practices, the company offers them road safety training. Under Jagriti
programme, star commercial vehicle drivers who transport Maruti Suzuki
vehicles are rewarded for having an excellent track record of damage-free and
timely delivery of cars.
Training millions of new and existing drivers, Maruti Suzuki continuously
strives to make Indian roads safer with the help of these initiatives.

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 Skill Development
With more than half of its total economic output coming from the service
sector alone, maintaining and constantly expanding the size of its skilled
labour force is imperative for India. Keeping this in mind, Maruti Suzuki has
partnered with a number of state governments to adopt several Industrial
Training Institutes (ITIs). With this initiative, the company aims to make a
large section of the youth employable by the automobile industry.
Maruti Suzuki's Skill Development programme consists of three key elements.
Upgradation of Government ITI:
In partnership with state governments, the Company is adopting ITIs and

through its various interventions upgrading physical infrastructure and
workshops, training faculty, and providing exposure to students on Japanese
shop floor practices
Skill Enhancement in Automobile Trade:
To help workers adapt to the changing demands of the industry, the Company
has set up Automobile Skill Enhancement Centres (ASEC) at 60 ITIs. Each of
these centres is equipped with a model workshop on which practical training is
imparted by full time trainers provided by the Company.
Japan India Institute for Manufacturing:
In 2016-17, the Governments of Japan and India signed an agreement to create

a pool of skilled manpower for manufacturing in India. To translate the vision
of this partnership, the Company embarked on setting up the first Japan-India
Institute for Manufacturing (JIM) at AS Patel (Pvt.) ITI, in Ganpat University,
Mehsana, Gujarat.
Upgradation of Government ITIs consists of the following:
Faculty Development:
Maruti Suzuki works in close association with the faculty at the ITIs to
improve teaching skills and methodologies. Working on varied aspects of
faculty skill development, such as behaviour, work culture, and teaching
techniques, the company assists the teachers in preparing students for the
growing demands of the automobile industry.
Student Development:
Under this arm of the skill development initiative, students are tutored by
Maruti Suzuki trainers in areas related to car service, repair, and maintenance.
This is independent of their regular curriculum at the ITIs. To further the
company’s holistic approach, students are also trained in various soft skills
such as discipline, personal grooming, and interpersonal communication skills.
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Industry Connect:
Maruti Suzuki also arranges for industrial outreach programmes where experts
from the automobile industry are brought in as guest speakers to the ITIs.
These interactions with the experts not only help the students get industry-
specific training, but they also enable them to upgrade their skills. Apart from
this, the company often invites students and faculty for factory visits so they
can familiarise themselves further with the demands of an industrial
environment.
The Skill Development initiative is working closely with 141 ITIs across 27
Indian states as of 31st March 2017.
 Community Development:
Maruti Suzuki believes that to truly help someone, it is necessary to first
understand his or her needs. Therefore, before undertaking any new CSR
initiative, the company conducts a Need Assessment Survey to understand the
areas where a community might require support and improvement. It is on the
basis of the results of these surveys, that the company launches projects in
various sectors of community development, such as education, water and
sanitation, health care, and rural development.
Education
With its community development programmes that focus on education, the
company aims at improving the infrastructure and learning conditions in
government schools across the country. It seeks to do so by constructing
toilets, boundary walls, and pavements in schools, by arranging for basic
facilities like clean drinking water, and by providing and repairing electrical
fittings like lights and fans.
Apart from providing infrastructural support, Maruti Suzuki also awards
scholarships to meritorious students from underprivileged and economically
weaker communities. This not only encourages other students to work harder,
but also goes a long way in improving the overall academic performance of
these schools.
Water and Sanitation
Maruti Suzuki’s water and sanitation initiatives started in 2013-2014 with the
aim of improving personal hygiene, sanitation facilities, and public cleanliness
conditions in the country. One of the main thrusts of this initiative is to educate
people about the importance of hygiene through street plays and the
distribution of communication literature.
Combining infrastructural improvement and public education drives to this
end, the company has provided 13 villages with 100% household toilet
coverage.
Health Care:
Maruti Suzuki has been regularly assessing community health care needs, and
has undertaken various projects to provide better facilities We have also
donated four EECO Ambulances to the Civil Hospital in Gurgaon.
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Rural Infrastructure:
Maruti Suzuki regularly undertakes initiatives to upgrade shared community

facilities such as parks, cremation grounds, playgrounds, and community halls,
in the villages around its Manesar facility.
 Employee Volunteering:
At the heart of Maruti Suzuki’s success story is its people. With a firm belief
in each employee’s potential to contribute to the growth and improvement of
society, Maruti Suzuki started its employee volunteering programme.
This initiative provides volunteering opportunities in areas such as education,
health care, public cleanliness, sanitation, old age support systems, and others.
Under this programme, all new hires undergo a small CSR training during
their induction. They are encouraged to participate in the various volunteering
activities that the company runs.
It is the enthusiastic participation of its people that has helped Maruti Suzuki
improve the quality of life for everyone. Over the years, thousands of Maruti
employees have contributed hundreds of thousands of volunteering hours
under the e-Parivartan programme. However, it is not numbers and statistics
that Maruti Suzuki focusses on. Rather, it is the quality of the contribution
made, and the change brought about that the company wants to keep in its
sights.
1.2 OBJECTIVES OF THE STUDY
 To assess the effectiveness of Maruti Suzuki's CSR initiatives in addressing

social and environmental issues in the communities where it operates
 To demonstrate Maruti Suzuki's commitment to ethical and responsible
business practices
 To analyse the financial implications of Maruti Suzuki's CSR programs and
assess their return on investment
 To assess the level of awareness and engagement among Maruti Suzuki's
employees regarding its CSR initiative.
1.3 RESEARCH METHODOLOGY
1.3.1 RESEARCH TYPE

A research method is a proper plan for conducting research.
In view of the objects of the study listed above an exploratory research design
has been adopted. Exploratory Research is one which is largely interprets and
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already available information and it lays particular emphasis on analysis and

interpretation of the existing and available information.
1.3.2 DATA COLLECTION
a. Primary Data: The data is major through observation and discussion.
b. Secondary Data: Secondary data means data that are already available i.e.,
they refer to data which has already been collected and analysed by someone
else. Secondary data may either be published data or unpublished data.
1.3.3 Instruments
Magazines, Journals, Case Studies, News Articles etc
1.4 SCOPE OF THE STUDY
Definition and conceptualization of CSR: The study may aim to define what
CSR is, its evolution over time, and the various conceptualizations of CSR.
CSR practices of companies: The study may examine the various CSR
practices adopted by companies, such as philanthropy, environmental
sustainability, human rights, and ethical business practices.
Benefits of CSR: The study may analyse the potential benefits of CSR for
companies, such as increased brand reputation, customer loyalty, and
employee morale.
Challenges and barriers to CSR implementation: The study may explore the
challenges and barriers that companies face in implementing CSR initiatives,
such as lack of resources, conflicting stakeholder interests, and regulatory
issues.
CSR reporting and disclosure: The study may investigate the reporting and
disclosure practices of companies related to their CSR activities, such as the
extent and quality of their CSR reporting, and the impact of such reporting on
stakeholder perceptions.
The role of stakeholders in CSR: The study may examine the role of various
stakeholders, such as employees, customers, communities, and government, in
promoting or hindering CSR initiatives.
CSR and corporate performance: The study may assess the relationship
between CSR and corporate performance, such as financial performance,
innovation, and long-term sustainability.
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1.5 IMPORTANCE OF THE STUDY

CSR is an ethical framework that emphasizes a company's responsibility
towards society and the environment. Therefore, studying CSR can help
companies understand their ethical obligations and implement policies and
practices that align with their values.
MSIL is one of the leading automobile manufacturers in India and has a
significant impact on the environment, society, and economy. Therefore,
studying its CSR practices can provide insights into the challenges and
opportunities of implementing CSR in the automobile sector.
CSR can be a source of competitive advantage for companies, as it can
enhance brand reputation, attract and retain customers, and improve employee
engagement and loyalty. Therefore, studying CSR can help companies identify
opportunities to differentiate themselves in the market.
MSIL has been recognized for its CSR initiatives by various organizations,
such as the Confederation of Indian Industry (CII) and the World Economic
Forum (WEF). Therefore, studying MSIL's CSR practices can provide
examples of best practices for other companies in India and beyond.
1.6 LIMITATION OF THE STUDY

1. Limited generalizability: The study may only provide insights into the CSR
practices of MSIL, which may not be applicable to other companies in
different industries or contexts.
2. Reliance on secondary data: The study may rely on secondary data sources
such as company reports, media articles, and academic literature, which may
not provide a complete and accurate picture of MSIL's CSR practices.
3. Potential biases: The study may be influenced by the researcher's biases,
assumptions, and values, which may affect the interpretation of the data and
the conclusions drawn from the study.
4. Lack of stakeholder perspectives: The study may not capture the
perspectives of various stakeholders, such as employees, customers, and local
communities, who may have different views on MSIL's CSR practices.
5. Limited scope: The study may only focus on specific aspects of CSR at
MSIL, such as environmental sustainability or community development, and
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may not cover other important areas of CSR, such as human rights or labour
practices
CHAPTER 2
REVIEW OF LITERATURE
1. Khan and Atkinson(1987) A comparative study conducted by on the
managerial attitudes to social responsibility in India and Britain shows that
most of the Indian executives agreed CSR as relevant to business and felt that
business has responsibilities not only to the shareholders and employees but
also to customers, suppliers, society and to the state.
2. Caroll (1998) In a study made by on top 500 largest Indian companies
found that around 49% companies were reporting on CSR. Most of the
companies report on donations, renovating schools in villages, mid- day meals
etc. well defined expenditure on CSR has been shown by very few companies.
The study also revealed that only 25% companies CSR activities were for
employees and the rest were focusing on vicinity and society at large. Many
companies are only making token gestures towards CSR in tangential ways
such as donations to charitable trusts or NGOs, sponsorship of events, etc.
believing that charity and philanthropy equals to CSR.
3. TERI-Europe and ORG-MARG (2001) A survey conducted by in several
cities in India found that more than 60% of the people felt that the companies
should be held responsible for bringing down the gap between rich and poor,
reducing human rights abuses, solving social problems and increasing
economic stabilities.
4. Conway (2003) in his study on iron ore mining industry in Goa shows that
many large mining companies have their own initiatives towards
environmental and social development. However, a structured CSR policy and
planning is missing especially among the small and medium players in the
industry.
5. In 2003, James Shyne conducted a study entitled CSR, public policy and
the Oil Industry in Angola on ten major oil companies currently operating in
Angola. The study presents a baseline discussion of public sector roles in
strengthening CSR. It prompted a detailed analysis of CSR investment in
terms of business value and impact upon intended beneficiaries. The study also
describes the current role of the public sector in promoting the CSR activities
and identifying potential public section roles that would assist, broaden and
deepen corporate efforts. It was found that the representatives of ten oil
companies are broadly familiar with current issues in the field of CSR and
moreover they tend both to recognize and embrace the ethical and practical
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imperative for their companies to operate in a safe, socially responsible and

environmentally sustainable manner.
6. Chamhuri Siwar and Siti Haslina Md.Harizan (2004) in their study on
CSR practices amongst business organizations in Malaysia aimed to analysed
the extent of CSR practices among different types of organizations and
industries in Malaysia in terms of environmental and social dimensions. A total
of 500 companies were selected based on the quota sampling that comprises
25 Govt. linked corporation, 50 multinational corporation, 50 corporation, 50
other Malaysian corporations and 375 small and medium sized enterprises.
The study revealed that multinational companies bring benefits to the society
through width, generation, employment, skill development and transfer and
community initiatives. It was also found that small and medium sized
enterprises also play a pivotal role and supports the practices of CSR.
7. Arora and Puranik (2004) reviewed contemporary CSR trends in India
concluding that the corporate sector in India. He concluded that the corporate
sector in India has benefitted immensely from liberation and privatization
process, its transition from philanthropic mindsets to CSR has been lagging
behind its impressive financial growth.
8. D.Y. Chacharkar and A. V. Shukla (2004) in their paper entitled “A study
of Corporate Social Responsiveness” tried to highlight theoretically the benefit
of CSR through “iceberg effect” diagram. The results showed that just like
iceberg, except the recognition and appreciation, the larger part of CSR
initiatives for the company are invisible in the form of publicity, image
building, expansion of customer base and profit.
9. R.S. Raman (2006), in a study on “Corporate Social Reporting in India-a
view from the top”, used content analysis technique to examine the chairman’s
message section in the Annual Reports of the top 50 companies in India to
identify the extent and nature of social reporting. The study concluded that the
Indian companies placed emphasis on product improvement and development
of human resources.
10. Buchholtz (2006), in his study on CSR, Corporate Social and Financial
Performance: an empirical study on a Japanese Company examined the
relationship between corporate social performance (CSP) and corporate
financial performance (CFP) through a quantitative analysis. The study was
conducted on 295 companies which is one-tenth of the listed companies in
Japan. The result showed a significant relationship among CSP, Equity Capital
Ratio and the number of employees.
11. Andy Lockell, Jereany Moon and Wayne Visser (2006) The study on
CSR in management research by tried to investigate the status of CSR research
within the management literature. The study particularly examines the focus
and nature of knowledge, the changing salience of this knowledge. The study
present empirical evidence based on publication and citation analysis of
research published from 1992-2002. The findings showed that the most
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popular issues investigated have been environmental and ethics (for CSR
research published in management journals).
12. Samuel Odowu and Papasoplomou Loanna (2007) conducted a study on
twenty companies in U.K. They promulgated that the U.K companies has now
become ethical in the content of social responsibility as companies disclose its
CSR with a view of public benefits, government request and issue information
to stakeholders because the companies is of the view that stakeholders of
twenty first century are better educated than the past.
13. Vasanthi Srinivasan (2010) in his study on CSR and Ethics in Medium,
Small and Micro Enterprise in India attempts to draw from the existing body
of knowledge from both the academic and popular literature in India to
identify the CSR practices and develop a research agenda for responsible
business practices in the small-medium enterprise in India. The findings
highlighted that most of the studies done in the Indian context have largely
been qualitative and exploratory in nature. The study also revealed that since
small-medium enterprises contribute significantly to the economy and are
geographically spread in a country like India, adoption of CSR and ethical
practices is crucial to a balanced development. There is a rarity of academic
research in this area and therefore the researcher opines that a study of the
intra-country similarities and differences in adoption of CSR practices in
small-medium enterprises could be a valuable exercise for policy makers.
14. Jermy Moon in his paper on “Government as a driver of Corporate Social
Responsibility” examined the role of government in driving corporate social
responsibility among the corporate. The study exposed that the drivers of CSR
are related with business and society. The study further discovered other
country’s situation and how their government entered into business for driving
CSR.
15. Shashank Shah and Sudhir Bhaskar (2010) made a case study of Bharat
Petroleum Corporation Ltd. (an Indian Public Sector Organization). They
found that there is a broad relationship between the organization and the
society. The organization used the resources of the society like human,
material etc and in reverse they provide services to the society. The study also
revealed that BPCL has taken a lot of initiatives in order to serve the society.
16. Debabrata Chatterjee (2010) in his research paper entitled “Corporate
Governance and CSR: The case of three Indian companies” tried to analyse the
corporate governance practices of three prominent Indian firms viz; ITC Ltd.,
Infosys Technologies Ltd., and Reliance Industries Ltd. The study was made
taking four parameters i.e., Approach to Corporate Governance, Governance
Structure and Practices, Board Committees and CSR activities. The study
found that though the Corporate Governance practices are exemplary, there
exist differences in the way the companies adopt these practices. Infosys seems
to be doing much better than the other two.
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17. A paper on CSR in rural development sector: Evidences from India by

Sanjay Pradhan and Akhilesh Ranjan (2010) concludes that social
responsibility is regarded as an important business of Indian companies
irrespective of size, sector, and business goal. 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.
18. Prasenjit Maiti (2011) on his paper entitled “It is Politics or Profits or
even Compassion? Unraveling the Motivation for Corporate Citizenship” tried
to analyse theoretically the motives of corporate before their CSR initiatives.
The study found that CSR is related to profits, power plays, politico-legal
equation, situation of market flux, responsible images, humane concerns and
other ethical dynamics.
19. Monika Hartman (2011) in her article “CSR in the food sector” analysed
the importance of CSR in food sector particularly those companies which have
high brand. The study found that SMEs are less capable of discharging their
obligation towards society. Further the study revealed that food sector always
tries to improve the controlling and discharging its services towards
consumers. It was also found that consumers show preference for those brands
or food sector that give importance to CSR activities.
20. Mallen Baker (2012) in his article on “Four emerging trends in Corporate
Responsibility” tried to elucidate three basic things about the trends of CSR
that have changed from last so many years. Firstly, the relationship between
business and society has changed. They have come closer because of the social
and environmental problem prevailing around the world. Secondly, the
strategy of the businessman to develop business also affected the society a lot.
Their new ideas, concept, developments also came with CSR management that
reflects in their product and services. Lastly, the changes of CSR are also
affected by other parties like outside agencies and the firm’s own goals that
interfere the firm’s activity.
21. Bibhu Prasad and Mohanty (2012) made a study on “Sustainable
Development Vis-à-vis Actual CSR”. The findings showed that companies
today invests in a lot of areas like child labour, ground water, food, education,
etc but they are not aware of the essential need of the poor. The study
suggested that though profit earning is a natural fact of companies, CSR is
beyond the natural and statutory obligation of the companies. The study
concluded that sustainable development is the development of the society as
well as the company in a balanced way.
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22. Harbajan Bansal, Vinu Parida and Pankaj Kumar (2012) in their
paper entitled “Emerging trends of CSR in India” analysed 30 companies of 11
sectors listed in the Bombay Stock Exchange with the help of their annual
reports. Some of these sectors were Transport Equipment sector, Finance and
Metal Mining sector, IT & Power, Capital goods, Telecom, Housing, FMCG,
Oil & Gas, Cipla etc. The study concluded that the companies today are
working not only to earn profit but have also realized the importance of being
social friendly. Social Responsibility today has started taking a turn in the new
direction.
23. Harish Kumar (2012) in his research article entitled “CSR Revisited” has
thrown lights on four different approaches of companies towards CSR viz;
Good Governance, Ruinous CSR, Discretionary CSR, and Illusion CSR. He
also tried to highlight argument against the CSR as well as the CSR driver. The
researcher also found eight factors that drive the CSR initiatives. They are
Philanthropic Attitude, Governmental Actions, Environmental Concern,
Ethical Consumerism, Crises and Calamities, Globalization and Market force,
Social Awareness & Education, and Social Expectation.
24. Dr M. Ramana Kumar (2013) in his study on CSR (Analysis of select
Indian Private and Public sector companies) tried to analyse the CSR activities
carried out by Indian Private (Reliance Industries Ltd.) and public sector
companies (ONGC) and also study the Indian government policies and
programmes of CSR. The study revealed that though the Indian public and
private firms are making efforts in the CSR areas, still there is a requirement of
more emphasis on CSR. The study found that there is a significant difference
in the CSR practices of RIL and ONGC as the CSR budget of ONGC is more
than RIL during the year 2009-10, 2010-11, and 2011-12 and average CSR
score of ONGC is more than that of RIL during 2009 to 2013.
25. Andrew et al (1989) used descriptive statistics to confirm the earlier
findings that HR is the most disclosed theme followed by product, community
and lastly by environment. The study also found 15 that medium to large
companies made more social disclosures. These disclosures were mainly
declarative and no enough evidence could be gathered to confirm or refute the
association between industry and corporate social reporting.
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CHAPTER 3
THE CONCPECTUAL BACKGROUND
3.1 INTRODUCTION
Corporate Social Responsibility, which is a term used to describe the voluntary
actions taken by companies to address social, environmental, and economic
issues. The goal of CSR is for companies to not only focus on maximizing
profits but also to consider their impact on society and the environment.
There are various ways in which companies can demonstrate their
commitment to CSR, such as donating to charitable causes, implementing
sustainable business practices, and treating their employees fairly.
Additionally, companies may also engage in activities such as volunteering,
partnering with local communities, and implementing ethical business
practices.
The concept of CSR has gained increasing importance in recent years, with
consumers, investors, and other stakeholders increasingly demanding that
companies act in a socially responsible manner. As such, many companies
have made CSR a central part of their business strategies, recognizing that
being a socially responsible company is not only good for society and the
environment but also for their long-term success.
Corporate Social Responsibility (CSR) or Social Impact is a form of
international private business self-regulation which aims to contribute to
societal goals of a philanthropic, activist, or charitable nature by engaging in,
with, or supporting professional service volunteering through pro
bono programs, community development, administering monetary grants to
non-profit organization for the pubic benefit, or to conduct ethically oriented
business and investment practices. While once it was possible to describe CSR
as an internal organizational policy or a corporate ethic strategy similar to
what is now known today as Environmental, Social, Governance (ESG); that
time has passed as various companies have pledged to go beyond that or have
been mandated or incentivized by governments to have a better impact on the
surrounding community. In addition- national and international standards,
laws, and business models have been developed to facilitate and incentivize
this phenomenon. Various organizations have used their authority to push it
beyond individual or even industry-wide initiatives. In contrast, it has been
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considered a form of corporate self-regulation for some time, over the last
decade or so it has moved considerably from voluntary decisions at the level of
individual organizations to mandatory schemes at regional, national, and
international levels. Moreover, scholars and firms are using the term “creating
shared valve", an extension of corporate social responsibility, to explain ways
of doing business in a socially responsible way while making profit.
Considered at the organisational level, CSR is generally understood as a
strategic initiative that contributes to a brand's reputation As such, social
responsibility initiatives must coherently align with and be integrated into a
business model to be successful. With some models, a firm's implementation
of CSR goes beyond compliance with regulatory requirements and engages in
"actions that appear to further some social good, beyond the interests of the
firm and that which is required by law"
Furthermore, businesses may engage in CSR for strategic or ethical purposes.
From a strategic perspective, CSR can contribute to firm profits, particularly if
brands voluntarily self-report both the positive and negative outcomes of their
endeauor. In part, these benefits accrue by increasing positive public relations
and high ethical standards to reduce business and legal risk by taking
responsibility for corporate actions. CSR strategies encourage the company to
make a positive impact on the environment and stake-holders including
consumers, employees, investors, communities, and others From an ethical
perspective, some businesses will adopt CSR policies and practices because of
the ethical beliefs of senior management: for example, the CEO of outdoor-
apparel company Patagonia, Inc argues that harming the environment is
ethically objectionable
Proponents argue that corporation increase long-term profits by operating with
a CSR perspective, while critics argue that CSR distracts from businesses'
economic role. A 2000 study compared existing econometric studies of the
relationship between social and financial performance, concluding that the
contradictory results of previous studies reporting positive, negative, and
neutral financial impact, were due to flawed empirical analysis and claimed
when the study is properly specified, CSR has a neutral impact on financial
outcomes. Critic questioned the "lofty" and sometimes "unrealistic
expectations" in CSR. or that CSR is merely window- dressing, or an attempt
to pre-empt the role of governments as a watchdog over
powerful multinational corporations. In line with this critical perspective,
political and sociological institutionalist became interested in CSR in the
context of theories of globalization, neoliberalism, and late-capitalism.
Definition
Since the 1960s, corporate social responsibility has attracted attention from a
range of businesses and stakeholders and been referred to by a number of other
terms, including "corporate sustainability", "sustainable business", "corporate
conscience", "corporate citizenship", "purpose," "social impact,"
"conscious capitalism", and "responsible business".
A wide variety of definitions have been developed but with little consensus.
Part of the problem with definitions has arisen because of the different
interests represented. A business person may define CSR as a business
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strategy, an NGO activist may see it as 'greenwash' while a government

official may see it as voluntary regulation. "In addition, disagreement about the
definition will arise from the disciplinary approach." For example, while an
economist might consider the director's discretion necessary for CSR to be
implemented a risk of agency costs, a law academic may consider that
discretion to be an appropriate expression of what the law demands from
directors. In the 1930s, two law professors, A.A.Berle and Merrick Dodd,
famously debated how directors should be made to uphold the public interest:
Berle believed there had to be legally enforceable rules in favour of labour,
customers and the public equal to or ahead of shareholders, while Dodd argued
that powers of directors were simply held on trust.
Corporate social responsibility has been defined by Sheehy as "international
private business self-regulation." Sheehy examined a range of different
disciplinary approaches to defining CSR. The definitions reviewed included
the economic definition of "sacrificing profits," a management definition of
"beyond compliance", institutionalist views of CSR as a "socio-political
movement" and the law's focus on directors' duties. Further, Sheehy
considered Archie B. Carroll's description of CSR as a pyramid of
responsibilities, namely, economic, legal, ethical, and philanthropic
responsibilities. While Carroll was not defining CSR, but simply arguing for
the classification of activities, Sheehy developed a definition differently
following the philosophy of science—the branch of philosophy used for
defining phenomena.
Carroll extended corporate social responsibility from the traditional economic
and legal responsibility to ethical and philanthropic responsibility in response
to the rising concerns on ethical issues in businesses. This view is reflected in
the Business Dictionary that defines CSR as "a company's sense of
responsibility towards the community and environment (both ecological and
social) in which it operates. Companies express this citizenship (1) through
their waste and pollution reduction processes, (2) by contributing educational
and social programs, and (3) by earning adequate returns on the employed
resources."
Deep CSR and the Truly Responsible Enterprise
The "deep" definition for CSR is the following: The Truly Responsible
Enterprise (TRE):
 sees itself as a part of the system, not a completely individual economic actor
concerned only about maximizing its own profit,
 recognises unsustainability (the destruction of natural environment and the
increase of social injustice) as the greatest challenge of our age,
 accepts that businesses and enterprises have to work on solutions according to
their economic weight,
 honestly evaluates its own weight and part in causing the problems (it is best
to concentrate on 2–3 main problems),
 takes essential steps – systematically, progressively, and focused– towards a
more sustainable world.
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The five principles of the TRE are 1) minimal transport, 2) maximal fairness,
3) zero economism, 4) maximum middle size, 5) product or service falling to
the most sustainable 30%.
Consumer perpectives
Businesses have changed when the public came to expect and require different
behaviour. I predict that in the future, just as in the past, changes in public
attitudes will be essential for changes in businesses' environmental practices.
Most consumers agree that while achieving business targets, companies should
engage in CSR efforts at the same time. Most consumers believe companies
doing charity work will receive a positive response. Somerville also found that
consumers are loyal and willing to spend more on retailers that support charity.
Consumers also believe that retailers selling local products will gain loyalty.
Smith (2013) shares the belief that marketing local products will gain
consumer trust. However, environmental efforts are receiving negative views
given the belief that this would affect customer service. Oppewal et al. (2006)
found that not all CSR activities are attractive to consumers. They
recommended that retailers focus on one activity. Becker-Olsen (2006) found
that if the social initiative done by the company is not aligned with other
company goals it will have a negative impact. Mohr et al. (2001) and Groza et
al. (2011) also emphasise the importance of reaching the consumer.
Approaches
Some commentators have identified a difference between the Canadian
(Montreal school of CSR), the Continental European, and the Anglo-
Saxon approaches to CSR. It has been described that for Chinese consumers a
socially responsible company makes safe, high-quality products; for Germans
it provides secure employment; in South Africa it makes a positive
contribution to social needs such as health care and education. Even within
Europe, the discussion about CSR is very heterogeneous.
A more common approach to CSR is corporate philanthropy. This includes
monetary donations and aid given to non-profit organizations and
communities. Donations are made in areas such as the arts, education, housing,
health, social welfare, and the environment, among others, but excluding
political contributions and commercial event sponsorship.
Another approach to CSR is to incorporate the CSR strategy directly into
operations, such as procurement of Fair -Trade tea and coffee.
Creating shared value, or CSV, is based on the idea that corporate success and
social welfare are interdependent. The Harvard Business Review article
"Strategy & Society: The Link between Competitive Advantage and Corporate
Social Responsibility" provided examples of companies that have developed
deep linkages between their business strategies and CSR. CSV acknowledges
trade-offs between short-term profitability and social or environmental goals,
but emphasizes the opportunities for competitive advantage from building a
social value proposition into corporate strategy. CSV gives the impression that
only two stakeholders are important – shareholders and consumers.
Many companies employ bench-marking to assess their CSR policy,
implementation, and effectiveness. Benchmarking involves reviewing
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competitor initiatives, as well as measuring and evaluating the impact that

those policies have on society and the environment, and how others perceive
competitor CSR strategy.
Cost- benefit analysis
In competitive markets, the cost- benefit analysis of CSR initiatives can be
examined using a resource- based view (RBV). According to Barney (1990),
"formulation of the RBV, sustainable competitive advantage requires that
resources be valuable (V), rare (R), inimitable (I) and non-substitutable (S)." A
firm introducing a CSR-based strategy might only sustain high returns on their
investment if their CSR-based strategy could not be copied (I). However,
should competitors imitate such a strategy, that might increase overall social
benefits? Firms that choose CSR for strategic financial gain are also acting
responsibly.
RBV presumes that firms are bundles of heterogeneous resources and
capabilities that are imperfectly mobile across firms. This imperfect mobility
can produce competitive advantages for firms that acquire immobile resources.
McWilliams and Siegel (2001) examined CSR activities and attributes as a
differentiation strategy. They concluded that managers could determine the
appropriate level of investment in CSR by conducting cost-benefit analysis in
the same way that they analyse other investments. Reinhardt (1998) found that
a firm engaging in a CSR-based strategy could only sustain an abnormal return
if it could prevent competitors from imitating its strategy.
 Moreover, when it comes to cost-benefit analysis, one should look at Waddock

and Graves (1997), who showed that corporate social performance was
positively linked to financial performance, meaning that the benefit of being
socially responsible outweigh the costs. McWilliams and Siegel (2000) noted
that Waddock and Graves had not taken innovation into account, that
companies that did CSR were also very innovative, and that the innovation
drove financial performance, not CSR. Hull and Rothenberg (2007) then found
that when companies are not innovative, a history of CSR does help financial
performance.
CSR and Corporate Financial Performance
The relationship between corporate social responsibility and a firm's corporate
financial performance is a phenomenon that is being explored in a variety of
research studies that are being conducted across the world. Based on these
research studies, including those conducted by Sang Jun Cho, Chune Young
Chung, and Jason Young, a positive relationship exists between a firm's
corporate social responsibility policies and corporate financial performance.
To investigate this relationship, the researchers conducted a regression
analysis and preceded the analysis with the provision of several measures that
they utilized to serve as proxies for key financial performance indicators (i.e.
return on assets serves as a proxy for profitability).
History of Corporate Social Responsibility
American President Calvin Coolidge said in the 1920s that “the chief business
of the American people is business.” It was a popular observation in a time of
economic prosperity, when issues such as energy security and climate change
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were practically non-existent.
Almost a century later, things are very different. Now, more than ever, private
enterprise is being called upon to exercise social responsibility, especially
when it comes to the environment. This trend reflects the view that companies
ought to do more than simply meet the letter of the law and the bare minimum
of ethical business behaviour. Today we discuss the idea of "corporate social
responsibility."
President Coolidge, like many American presidents before and since, kept
government out of the affairs of business as much as possible. But starting in
the 1960s and 1970s, the environmental impact of an ever-expanding economy
was generating more and more protest from citizens. The result was a wave of
legislation designed to reduce the pollution produced by business activity.
Those laws had positive effects and are now vital parts of the American
regulatory framework. But despite these regulations, controlling pollution
continues to be a challenge. And now there are even larger problems on the
horizon.
Even though businesses today are more efficient and use fewer resources to
make goods—thanks to technological advances— many ecosystems continue
to suffer. This is because the scale of economic activity grows every year,
despite environmental improvements by individual enterprises.
Starting a few years ago, many citizens in the U.S. and around the world began
calls for more action from private enterprise on these social issues—beyond
compliance with regulations and traditional charity-related work. The result
was a new movement known as corporate social responsibility, or CSR.
Type of CSR
1. Environmental CSR – Companies focus on environmental protection and

conservation in this category. They launch initiatives to reduce pollution or
emission, offset carbon footprint, recycle waste, and use renewable energy
sources.
2. Ethical CSR – The ethical responsibility of a business has to do with the
moral values and ethical beliefs of organizations. It usually covers all the
stakeholders of the company – employees, suppliers, and investors. Issues like
gender equality, reasonable working hours, high minimum wage, etc., fall
under ethical CSR.
3. Philanthropic CSR – Businesses’ donations and contributions made to charity
are considered philanthropy. Helping malnourished children or rescuing people
in war-torn regions come under this.
4. Economical CSR – The last type of social responsibility focuses on the
financial aspects of environmental, ethical, philanthropic, and social
initiatives. A company should not just make profits but also practice fair
measures like paying taxes responsibly to support the economy
Example of Corporate Social Responsibility
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Example #1
Let’s begin with a simple example. Firm PQR sells electronic devices and
appliances. Due to the mounting concern about e-waste management, PQR has
decided to introduce an e-waste collection program. Through this program,
individuals who own a PQR product can collect and sell any e-waste to their
nearest PQR store by weight.
That is, customers can sell 1 pound of e-waste for $5. Also, customers selling
e-waste from PQR products will get an additional $3 per pound. The firm will
recycle the collected e-waste. Customers will be able to visit their PQR
membership account and check the contributions made by them and others.
They can also view the total quantity of e-waste recycled, recycling videos,
etc.
Through this program, PQR sells itself. For example, only those individuals
who own a PQR product can participate in this program, encouraging others to
buy from the company. Also, it has a good image among the public for
addressing a significant issue. Further, the company can segregate the
components and sell them as scrap.
Example#2
Here are the recent examples of two electric power distribution companies,
Duke Energy Corporation and Southern Company. Following a United States
Supreme Court ruling on June 30, 2022 which restricted the authority of the
Environmental Protection Agency (EPA) to control and regulate emissions by
power plants run on coal and gas; the two companies have decided to closely
work with their stakeholders to reduce emissions and work towards
decelerating climate change.
Many investors are already extremely conscious about investing in companies.

With the rising popularity of impact investing and Environmental, Social, and
Governance (ESG) investing, firms have been pressured to limit the negative
effects on society and the environment. Duke Energy has decided to retire
from operating its coal-powered plant by 2035, while Southern Co. is on its
transition to net zero emission by 2050.
Importance
CSR in today’s world is a huge part of corporate governance and a company’s

ethics. Even if not mandatory, every company has a social responsibility.
However, it should not be considered an expenditure but an investment for
better long-lasting gains.
CSR is important because it can increase the reputation and project an ethical
image of the firm. Hence, people are generally motivated to buy from such
firms, as they too want to be a part of their contribution to society. Moreover,
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it creates a bond between the company and the people, thus ensuring customer
loyalty.
Often, governments provide subsides to such firms, as they are contributing to

the full-fillment of national goals. The subsidies include tax credit, rebates and
other incentives. These factors help companies improve sales and avail
incentives, thus, increasing profits.
Finally, CSR initiatives have the potential to kick-start commercial activity.

Usually, in times of crisis, consumers are unable to spend. When companies
with corporate social responsibility work together by contributing a part of
their profits, customers are in a position to spend money. One activity propels
another, and the economy is operating at full efficiency in no time.
What is the purpose of corporate social responsibility?
The purpose of CSR is to contribute to society, augment the company’s

profile, earn customer loyalty, and hence make profits.
What is corporate social responsibility in business ethics?
CSR as a part of business ethics is gaining prominence now. Companies must

take up social responsibility, as customers notice this. If firms do not give back
to society, customers will hesitate to buy from them.
Why do companies engage in corporate social responsibility?
Companies with corporate social responsibility engage in it for three reasons:

to convince the public that the business is ethical and give the organization a
social facelift, which will help them make more profits. Secondly, CSR has the
potential to propel economic activities in times of crisis, which will again
benefit the company in the long run. Lastly, not all businesses focus solely on
the profit side. Some might actually want to give back to society.
Is corporate social responsibility mandatory?
No. CSR is not mandatory in most countries. However, in today’s world, if

companies are reluctant to take up CSR activities, they might lose customers.
Corporate Social Responsibility under Companies Act, 2013

The new Companies Act, 2013 makes it mandatory for every company having
net worth of rupees five hundred crore or more, or turnover of rupees one
thousand crore or more or a net profit of rupees five crore or more during any
financial year, to spend, in every financial year at least two percent of the
average net profits of the Company made during the three immediately
preceding financial years towards CSR activities. For this purpose, the net
profit and average net profit shall be calculated in accordance with the
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provisions of section 198 of the Act read with the Companies (Corporate
Social Responsibility Policy) Rules, 2014.
CSR Thrust Areas
The Company will focus its efforts through programs designed in the domains
of education, health and environment. The Company may also form its own
Foundations / Trusts for carrying out socio-economic projects as approved by
the Board or alternatively make contributions to its Associate Companies
Corporate Foundations / Trusts towards its corpus for projects approved by the
Board.
A Company may also collaborate with group companies for undertaking
projects or programs or CSR activities in such a manner that the CSR
Committees of respective companies are in a position to report separately on
such projects or programs in accordance with the prescribed CSR Rules.
Our commitment to CSR will be manifested by investing resources in any
of the following areas:
(i) Eradicating hunger, poverty and malnutrition, promoting preventive health
care and sanitation and making available sake drinking water;
(ii) Promoting education, including special education and employment enhancing
vocation skills especially among children, women, elderly, and the differently
abled and livelihood enhancement projects;
(iii) promoting gender equality, empowering women, setting up homes and hostels
for women and orphans; setting up old age homes, day care centers and such
other facilities for senior citizens and measures for reducing inequalities faced
by socially and economically backward groups;
(iv) ensuring environmental sustainability, ecological balance, protection of flora
and fauna, animal welfare, agroforestry, conservation of natural resources and
maintaining quality of soil, air and water;
(v) protection of national heritage, art and culture including restoration of
buildings and sites of historical importance and works of art; setting up public
libraries; promotion and development of traditional arts and handicrafts;
(vi) measures for the benefit of armed forces veterans, war widows and their
dependents;
(vii) Training to promote rural sports, nationally recognized sports, Paralympic
sports and Olympic sports;
(viii) contribution to the Prime Minister's National Relief Fund or any other fund set
up by the Central Government for socio-economic development and relief and
welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes,
minorities and women;
(ix) Contributions of funds provided to technology incubators located within
academic institutions which are approved by the Central Government;
(x) Rural development projects.
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CSR Surplus:
The surplus arising out of the CSR projects or programs or activities shall not
form part of the business profit of the Company.
Implementation of CSR initiatives:
The Board level Corporate Social Responsibility Committee (CSR Committee)
of the Company shall be responsible for monitoring the CSR Policy from time
to time. The CSR Committee shall approve and recommend to the Board, the
projects or programs to be undertaken, the modalities of execution and
implementation schedule from time to time.
Further, to ensure that there is focus and maximum impact, the CSR
Committee will endeavor to work on selected projects over a longer period of
time so as to ensure that the outcomes of the projects can be measured.
Monitoring / Review Mechanism
The CSR Committee of the Board will undertake the CSR initiatives / projects
on periodical basis and suggest additional measures/areas and update Board of
Directors. In order to ensure transparency and communication with all
stakeholders, the CSR Policy will be uploaded on the Company website so that
it is available in the public domain.
Executing Agency / Partners
CSR initiatives will be implemented by the Company either directly or through
Govt. agencies & local bodies or through implementing partners which include
NGO having an established track record of at least 3 years in carrying on the
specific activity.
The following minimum criteria will be ensured while selecting NGO /
voluntary organizations for program execution
a) The NGO is a registered Society/ Public Charitable Trust/ Section 25 Not
for Profit Organizations/company established under section 8 of the Act etc.
b) The NGO has a permanent office/address in India
c) The NGO has a valid Income Tax Exemption Certificate / PAN
d) The NGO has submitted a detailed project proposal and budget which has
been approved by the CSR Council.
e) The NGO has submitted its Annual Report / Balance Sheet. For CSR
activities undertaken through other Executing Agency, the Company will
specify the projects or programs to be undertaken through these agencies, the
modalities of utilization of funds on such projects or programs.
Benefits of Corporate Social Responsibility
As important as CSR is for the community, it is equally valuable for a

company. CSR activities can help forge a stronger bond between employees
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and corporations, boost morale, and aid both employees and employers in
feeling more connected to the world around them. Aside from the positive
impacts to the planet, here are some additional reasons businesses pursue
corporate social responsibility.
Brand Recognition
According to a study published in the Journal of Consumer Psychology,

consumers are more likely to act favourably towards a company that has acted
to benefit its customers as opposed to companies that have demonstrated an
ability to delivery quality products. Customers are increasingly becoming
more aware of the impacts companies can have on their community, and
many now base purchasing decisions on the CSR aspect of a business. As a
company engages more in CSR, they are more likely to receive
favourable brand recognition.
Investor
In a study by Boston Consulting Group, companies that are considered leaders

in environmental, social, or governance matters had an 11%
valuation premium over their competitors. For companies looking to get an
edge and outperform the market, enacting CSR strategies tends to positively
impact how investors feel about an organization and how they view the worth
of the company.
Employee Engagement
In yet another study by professionals from Texas A&M, Temple, and the
University of Minnesota, it would found that CSR-related values that align
firms and employees serve as non-financial job benefits that strengthen
employee retention. Works are more likely to stick around a company that
they believe in. This in turn reduces employee turnover, disgruntled workers,
and the total cost of a new employee.
Risk Mitigation
Consider adverse activities such as discrimination against employee groups,

disregard for natural resources, or unethical use of company funds. This type
of activity is more likely to lead to lawsuits, litigation, or legal proceeds
where the company may be negatively impacted financially and be captured
in headline news. By adhering to CSR practices, companies can mitigate risk
by avoiding troubling situations and complying with favourable activities.
Scope
Initially, CSR emphasized the official behaviour of individual firms. Later, it
expanded to include supplier behaviour, the uses to which products were put,
and how articles were disposed of after they lost value. Malcolm McIntosh
notes also that focussing on the identifiable behaviour of individual businesses
risks not including what he calls "unincorporated market behaviour" within the
scope of CSR - actions attributable to market processes, and also calls for
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other factors including "brand citizenship" and "illegitimate, informal or illegal

activity" to be considered as part of a more complete picture.
The term "brand citizenship" has been put forward because the public
perception of an organisation may be associated with its branding rather than
its corporate identity: McIntosh uses Virgin as an example. Similarly, Anne
Bahr Thompson uses the same term and observes that companies adopting
socially responsible behaviours are primarily investing in their reputation.
Supply chain
In the 21st century, corporate social responsibility in the supply chain has
attracted attention from businesses and stakeholders. A corporations' supply
chain is the process by which several organizations, including suppliers,
customers, and logistics providers work together to provide a value package of
products and services to the end-user, who is the customer.
Corporate social irresponsibility in the supply chain has greatly affected the
reputation of companies, leading to a lot of costs to solve the problems. For
instance, incidents like the 2013 Savar building collapse which killed over
1000 people, pushed companies to consider the impacts of their operations on
society and the environment. On the other hand, the horsemeat scandal of 2013
in Europe affected many food retailers, including Tesco, the largest retailer in
the United Kingdom, leading to the dismissal of the supplier. Corporate social
irresponsibility from both the suppliers and the retailers has greatly affected
the stakeholders who lost trust in the affected business entities, and although
sometimes it is not directly undertaken by the companies, they become
accountable to the stakeholders. These surrounding issues have
prompted supply chain management to consider the corporate social
responsibility context. Wieland and Handfield (2013) suggested that
companies need to include social responsibility in their reviews of component
quality. They highlighted the use of technology in improving visibility across
the supply chain.
Corporate social initiative
Corporate social responsibility includes six types of corporate social
initiatives:
 Corporate philanthropy: company donations to charity, including cash, goods,

and services, sometimes via a corporate foundation
 Community volunteering: company-organized volunteer activities, sometimes
while an employee receives pay for pro-bono work on behalf of a non-profit
organization
 Socially-responsible business practices: ethically produced products that
appeal to a customer segment
 Cause promotions and activism: company-funded advocacy campaigns
 Cause-related marketing: donations to charity based on product sales
 Corporate social marketing: company-funded behaviour-change campaigns
All six of the corporate initiatives are forms of corporate citizenship. However,
only some of these CSR activities rise to the level of cause marketing, defined
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as "a type of corporate social responsibility (CSR) in which a company's

promotional campaign has the dual purpose of increasing profitability while
bettering society."
Companies generally do not have a profit motive when participating in
corporate philanthropy and community volunteering. On the other hand, the
remaining corporate social initiatives can be examples of cause marketing, in
which there is both a societal interest and profit motive.
Implementation
CSR may be based within the human resources, business development or
public relations departments of an organisation, or may be a separate unit
reporting to the CEO or the board of directors.
Engagement plan
An engagement plan can assist in reaching the desired audience. A corporate
social responsibility individual or team plans the goals and objectives of the
organization. As with any corporate activity, a defined budget demonstrates
commitment and scales the program's relative importance.
Accounting. Auditing, and reporting
Social accounting is the communication of social and environmental effects of
a company's economic actions to particular interest groups within society and
to society at large.
Social accounting emphasizes the notion of corporate accountability. Crowther
defines social accounting as "an approach to reporting a firm's activities which
stresses the need for the identification of socially relevant behaviour, the
determination of those to whom the company is accountable for its social
performance and the development of appropriate measures and reporting
techniques."
Reporting guidelines and standards serve as frameworks for social
accounting, auditing, and reporting:
 Account Ability’s AA1000 standard, based on John Elkington’s triple

bottom(3BL) reporting
 The Prince's Accounting for Sustainability Project's Connected Reporting
Framework.
 The Fair Labour Association conducts audits based on its Workplace Code of
Conduct and posts audit results on the FLA website.
 The Fair Wear Foundation verifies labour conditions in companies' supply
chains, using interdisciplinary auditing teams.
 Global Reporting Initiative’s Sustainability Reporting Guidelines
 Economy for the Common Good Balance Sheet
 Good Corporation's standard developed in association with the Institute of
Business Ethics
 Synergy Codethic 26000 Social Responsibility and Sustainability Commitment
Management System (SRSCMS) Requirements—Ethical Business Best
Practices of Organizations—the necessary management system elements to
obtain a certifiable ethical commitment management system. The standard
scheme has been built around ISO 26000 and UNCTAD Guidance on Good
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Practices in Corporate Governance. The standard is applicable to any

organization.
 Earthcheck Certification / Standard
 Social Accountability International's SA8000 standard
 Standard Ethics Aei guidelines
 The ISO 14000 environmental management standard
 The United Nations Global Compact requires companies to communicate on
their progress (or to produce a Communication on Progress, COP), and to
describe the company's implementation of the Compact's ten universal
principles.
 The United Nations Intergovernmental Working Group of Experts on
International Standards of Accounting and Reporting (ISAR) provides
voluntary technical guidance on eco-efficiency indicators, corporate
responsibility reporting, and corporate governance disclosure.
 The FTSE Group publishes the FTSE4Good Index an evaluation of CSR
performance of companies.
 Ethical Quote (CEQ) tracks the reputation of the world's largest companies on
Environmental, Social, Governance (ESG), Corporate Social Responsibility,
ethics and sustainability.
 The Islamic Reporting Initiative (IRI) is a non-for-profit organization that
leads the creation of the IRI framework; the guiding integrated CSR reporting
framework based on Islamic principles and value
In nations such as France, legal requirements for social accounting, auditing
and reporting exist, though international or national agreement on meaningful
measurements of social and environmental performance has not been
achieved. Many companies produce externally audited annual reports that
cover Sustainable Development and CSR issues ("Triple Bottom Line
Reports"), but the reports vary widely in format, style, and evaluation
methodology (even within the same industry). Critics dismiss these reports as
lip service, citing examples such as Enron yearly "Corporate Responsibility
Annual Report" and tobacco companies' social reports.
In South Africa, as of June 2010, all companies listed on the Johannesburg
Stock Exchange (JSE) were required to produce an integrated report in place
of an annual financial report and sustainability report. An integrated report
reviews environmental, social, and economic performance alongside financial
performance. This requirement was implemented in the absence of formal or
legal standards. An Integrated Reporting Committee (IRC) was established to
issue guidelines for good practice.
One of the reputable institutions that capital markets turn to for credible
sustainability reports is the Carbon Disclosure Project or CDP.
Verification
Corporate social responsibility and its resulting reports and efforts should be
verified by the consumer of the goods and services. The accounting, auditing,
and reporting resources provide a foundation for consumers to verify that their
products are Socially sustainable. Due to an increased awareness of the need
for CSR, many industries have their own verification resources. They include
organizations such as the Forest Stewardship Council (paper and forest
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products), International Cocoa Initiative, and Kimberly Process (diamonds).

The United Nations Global Compact provides frameworks not only for
verification, but also for reporting human rights violations in corporate supply
chains.
Ethics training
The rise of ethics training inside corporations, some of it required by
government regulation, has helped CSR to spread. Such training aims to help
employees make ethical decisions when the answers are unclear. The most
direct benefit is reducing the likelihood of "dirty hands fines, and damaged
reputations for breaching laws or moral norms. Organizations see increased
employee loyalty and pride in the organization.
Common actions
Common CSR actions include:
 Environmental sustainability: recycling, waste management, water

management, renewable energy, reusable materials, 'greener' supply chains,
reducing paper use, and adopting Leadership in Energy and Environmental
Design (LEED) building standard.
 Human capital enhancement: Companies provide additional resources
for capacity building of local employees, including technical and professional
training, adult basic education and language classes.
 Community involvement: This can include raising money for local charities,
providing volunteers, sponsoring local events, employing local workers,
supporting local economic growth, engaging in fair trade practices, etc.
 Ethical marketing: Companies that ethically market to consumers are placing a
higher value on their customers and respecting them as people who are ends in
themselves. They do not try to manipulate or falsely advertise to potential
consumers. This is important for companies that want to be viewed as ethical.
Social license to operate
Social License to Operate can be determined as contractual grounds for the
legitimacy of activities and projects a company is involved in. It refers to the
level of support and approval of a company's activities by its
stakeholders. Displaying commitment to CSR is one way to achieve a social
license, by enhancing a company's reputation.
As stated in Enduring value: the Australian minerals industry framework for
sustainable development the concept of the 'social license to operate', then
defined simply as obtaining and maintaining broad community support and
acceptance. Unless a company earns and maintains that license social license
holders may intend to block project developments; employees may leave the
company for a company that is a better corporate citizen: and companies may
be under ongoing legal challenge.
In research of Requisite Organization, Elliott Jaques defines Social License to
Operate for the company as the social contract the company has with the social
license holders (employees, trade unions, communities, government) for them
to manifest positive intention to support the business short- and long-term
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objectives by "providing managerial leadership that nurtures the social good

and also gives the foundation for sustainable growth in organizational results."
The primary objective for the companies is to obtain and maintain the
Social License to Operate. Based on the Requisite Organization to achieve
this goal a company needs to:
 Identify the business strategy and business objectives

 Identify the social license holders (employees of a company, labour unions,
local and national governments, communities, activist groups, etc.) for every
business objectives
 Identify the support that the company desires to achieve from the social license
holders by specifying for every business objective social license elements
(target of support, context of support, time of support, action of support)
 Quantitatively measure the intention (positive or negative) of the social license
holders to support the business objectives
 Identify the factors that negatively impact the intention of the social license
holders to support the business objectives (strength of their belief in support,
their evaluation of support outcomes, the pressure to provide support,
enablers/disablers of support, etc.)
 Develop the Social License Development Strategy to remove the negative
factors and ensure the positive intention of all the social license holders to
support all the business objectives of the company.
 Perform ongoing monitoring and quantitative measurement of changes in the
Social License to Operate of the company
Human Resources
A CSR program can be an aid to, recruitment and retention particularly within
the competitive graduate student market. Potential recruits often consider a
firm's CSR policy. CSR can also help improve the perception of a company
among its staff, particularly when staff can become involved through payroll
giving, fundraising activities, or community volunteering. CSR has been
credited with encouraging customer orientation among customer-facing
employees.
CSR is known for impacting employee turnover. Several executives suggest
that employees are their most valuable asset and that the ability to retain them
leads to organizational success. Socially responsible activities promote
fairness, which in turn generates lower employee turnover. On the other hand,
if irresponsible behaviour is demonstrated by a firm, employees may view this
behaviour as negative. Proponents argue that treating employees well with
competitive pay and good benefits is seen as socially responsible behaviour
and therefore reduces employee turnover. Executives have a strong desire for
building a positive work context that benefits CSR and the company as a
whole. This interest is driven particularly by the realization that a positive
work environment can result in desirable outcomes such as more favourable
job attitudes and increased work performance.
The IBM Institute for Business Value surveyed 250 business leaders
worldwide in 2008. The survey showed that businesses have assimilated a
much more strategic view with 68% of companies utilizing CSR as an
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opportunity and part of a sustainable growth strategy. Developing and

implementing a CSR strategy represents a unique opportunity to benefit the
company. However, only 31% of businesses surveyed engaged their
employees on the company's CSR objectives and initiatives. Employee
engagement on CSR initiatives can be a powerful recruitment and retention
tool. Moreover, employees tend to avoid employers with a bad reputation.
Risk Management
Managing risk is an important executive responsibility. Reputations that take
decades to build up can be ruined in hours through corruption scandals or
environmental accidents.These situations draw unwanted attention from
regulators, courts, governments, and the media. CSR can limit these risks.
Sustainability is key to resilience across value chains. As companies prefer
working with long-lasting partners, those that have implemented CSR
practices will be preferred over ones that have not in order to minimize
reputational as well as other damages. High levels of CSR compliance within
supply chains (including Tier 1 and beyond) will also help reduce
vulnerabilities and eliminate environmental, social, and economic risks
through implementing a sustainability-focused procurement strategy.
With effective CSR policies, a company is better situated to mitigate
legislative and legal risks through complying with emerging CSR-related laws
and regulations, pre-empting costly lawsuits and non-compliance actions, and
addressing sources of non-compliance by fostering corporate alignment around
the relevant issues.
Brand differentiation
CSR can enhance a brand's reputation by "inducing a desire to support and
help the company that has acted to benefit consumers". In this way, CSR
serves to enhance brand perceptions, which can lead to positive product
evaluations, though this effect is dependent upon a variety of factors, including
the degree to which consumers value close relationships or believe that the
CSR initiative is self-serving, whether the CSR program may be perceived to
negatively affect product quality, consumers' consumption-related goals (i.e.,
whether their consumption is socially versus product-motivated), or
consumers' attributions toward the motives of the CSR endeavour.
Some companies use their commitment to CSR as their primary positioning
tool, e.g.,The Co-operative Group, The Body Shop, and America Apparel.
Others use CSR methodologies as a strategic tactic to gain public support for
their presence in global markets, helping them sustain a competitive advantage
by using their social contributions as another form of advertising.
Companies that operate strong CSR activities tend to drive customers'
attention to buy products or services regardless of the price. As a result, this
increases competition among firms since customers are aware of the
company's CSR practices. These initiatives serve as a potential differentiator
because they not only add value to the company, but also to the products or
services. Furthermore, firms under intense competition are able to leverage
CSR to increase the impact of their distribution on the firm's performance.
Lowering the carbon footprint of a firm's distribution network or engaging in
fair trade are potential differentiators to lower costs and increase profits. In this
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scenario, customers can observe the company's commitment to CSR while

increasing company sales.
On the other hand, stage two focuses on improving operational effectiveness in
the workplace. The researchers assert that programs in this stage strive to
deliver social or environmental benefits to support a company's operation
across the value chain by improving efficiency. Some of the examples include
sustainability initiatives to reduce resource use, waste, and emission that could
potentially reduce costs. It also calls for investing in employee work
conditions such as health care and education, which may enhance productivity
and retention. Unlike philanthropic giving, which is evaluated by its social and
environmental return, initiatives in the second stage are predicted to improve
the corporate bottom line with social value. Bimbo the largest bakery
in Mexico is an excellent example of this. The company strives to meet social
welfare needs. It offers free educational services to help employees complete
high school. Bimbo also provides supplementary medical care and financial
assistance to close gaps in the government's health coverage.
Reduced scrutiny
Corporations are keen to avoid interference in their business through taxation
or regulation. A CSR program can persuade governments and the public that a
company takes health and safety, diversity, and the environment seriously,
reducing the likelihood that company practices will be closely monitored.
Supplier relation
Appropriate CSR programs can increase the attractiveness of supplier firms to
potential customer corporations. For example, a fashion merchandiser may
find value in an overseas manufacturer that uses CSR to establish a positive
image and to reduce the risks of bad publicity from uncovered misbehaviour.
A price-focused procurement strategy has limitations for companies with high
CSR expectations. According to Boston Consulting Group, “businesses that
are considered leaders in environmental, social and governance criteria have
an 11% valuation premium over their competitors.” Such companies look for
suppliers who share their social, environmental, and business ethics values,
which in turn would trigger common innovations that would attract more
customers and generate further value for the whole supply chain for a win-win
business relationship through a series of interconnected activities implemented
holistically. Furthermore, supplier relations are crucial for a company's CSR
profile as 70% of businesses’ social and environmental impacts occur in their
supply chain. Through the spill over effect, CSR programs encourage
sustainable practices within different industries. Additionally, a CSR-focused
supplier relations management improves collaboration with suppliers,
increases the satisfaction of customers’ expectations and requirements,
expands the market opportunities, enhances investor relations, and promotes
the development of more sustainable products. Furthermore, CSR supply
chain imperatives can leverage their responsible commitment to forge robust
and lasting relationships with important stakeholders and positively influence
the decision-making of consumers, partners, investors, and talent. Through
constructing this reputational capital, companies have access to earn consumer
loyalty, attract top talent, and strengthen employee morale and commitment.
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Crisis management
CSR strategy or behaviours related to CSR was discussed by many scholars in
terms of crisis management like responses to boycott in an international
context. Ang found that relationship building through providing additional
services rather than price-cutting is what businesses in Asia feel more
comfortable with as a strategy during an economic crisis. Regarding direct
research about strategies in cross-cultural crisis management, scholars found
that CSR strategies could make effects through empirical case studies
involving multinational businesses in China. They found that meeting local
stakeholders' social expectations can mitigate the risk of crises. The strategy
utilized by Arla Foods works and has helped the company in regaining most of
its lost market share among many countries in the Middle East. Arla Foods
founded funding for children with cancer and they donated ambulances to
refugees in Lebanon. As Arla Foods did, they tried to contribute to solving
social problems of children's access to health care which were local priorities.
Other researchers analysed the case of multinational enterprise strategies under
the context of conflicts between Lebanon and Israel. During the conflNct,
many companies stressed seeking to help the local community. In the post-
conflict stage, managers highlighted their philanthropic programs and
contributions, in terms of monetary in-kind donations to the refugees or
businesses that were directly affected. For example, Citibank has provided
monetary assistance to some local businesses affected by the war. Another
activity done by a Lebanon company was a fund-raising campaign.
Criticisms and concerns
CSR concerns include its relationship to the purpose of business and the
motives for engaging in it.
Nature of business
Milton Friedman and others argued that a corporation's purpose is to maximize
returns to its shareholders and that obeying the laws of the jurisdictions within
which it operates constitutes socially responsible behaviour. Friedman argued
each person should be free to spend their own money on social causes if they
wished, but that business owners should avoid putting a "tax" on consumers as
"unwitting puppets" of socialism by raising prices to support business practices
with social goals unrelated to profit.
While some CSR supporters claim that companies practicing CSR, especially
in developing countries, are less likely to exploit workers and communities,
critics claim that CSR itself imposes outside values on local communities with
unpredictable outcomes.
Better governmental regulation and enforcement, rather than voluntary
measures, are an alternative to CSR that moves decision-making and resource
allocation from public to private bodies. However, critics claim that effective
CSR must be voluntary as mandatory social responsibility programs regulated
by the government interferes with people's plans and preferences, distorts the
allocation of resources, and increases the likelihood of irresponsible decisions.
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Motives
Some critics believe that CSR programs are undertaken by companies to
distract the public from ethical questions posed by their core operations. They
argue that the reputational benefits that CSR companies receive (cited above as
a benefit to the corporation) demonstrate the hypocrisy of the
approach. Moreover, some studies find that CSR programs are motivated by
corporate managers' personal interests at the cost of the shareholders so they
are a type of an agency problem in corporations.
Others have argued that the primary purpose of CSR is to provide legitimacy
to the power of businesses. As wealth inequality is perceived to be increasing
it has become increasingly necessary for businesses to justify their position of
power.
Joel Bakan is one of the prominent critics of the conflict of interest between
private profit and a public good characterizing corporate officials of publicly
listed corporations are constrained by law to maximize the wealth of their
shareholders. This argument is summarised by Haynes that "a corporate
calculus exists in which costs are pushed onto both workers, consumers and
the environment". CSR spending may be seen in these financial terms,
whereby the higher costs of socially undesirable behaviour are offset by a CSR
spending of a lower amount. Indeed, it has been argued that there is a "halo
effect" in terms of CSR spending. Research has found that firms that had been
convicted of bribery in the US under the Foreign Corrupt Practices Act
(FCPA) received more lenient fines if they had been seen to be actively
engaging in comprehensive CSR practices. It was found that typically either a
20% increase in corporate giving or a commitment to eradicating a significant
labour issue, such as child labour, was equated to a 40% lower fine in the case
of bribing foreign officials.
Aguinis and Glavas conducted a comprehensive review of CSR literature,
covering 700 academic sources from numerous fields including organization,
behaviour, corporate strategy, marketing, and HRM. It was found that the
primary reason for firms to engage in CSR was the expected financial benefits
associated with CSR, rather than being motivated by a desire to be responsible
to society. Consistent with this analysis, consumers respond less favourably to
CSR initiatives that they believe are tainted with self-serving motives".
Ethical ideologies
CEOs' political ideologies are evident manifestations of their different personal
views. Each CEO may exercise different powers according to their
organizational outcomes. Their political ideologies are expected to influence
their preferences for CSR outcomes. Proponents argue that politically liberal
CEOs will envision the practice of CSR as beneficial and desirable to increase
a firm's reputation. They tend to focus more on how the firm can meet the
needs of society. As a consequence, they will advance with the practice of
CSR while adding value to the firm. On the other hand, property rights may be
more relevant to conservative CEOs. Since conservatives tend to value free
markets, individualism, and the call for respect of authority, they will not
likely envision this practice as often as those identifying as liberals might.
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The financials of the company and the practice of CSR also have a positive
relationship. Moreover, the performance of a company tends to influence
conservatives more likely than liberals. While not seeing it from the financial
performance point of view, liberals tend to hold a view that CSR adds to the
business's triple bottom line. For example, when the company is performing
well, it will most likely promote CSR. If the company is not performing as
expected, they will rather tend to emphasize this practice because it will
potentially envision it as a way to add value to the business. In contrast,
politically conservative CEOs will tend to support the practice of CSR if they
hold a view that it will provide a good return to the financials of the company.
In other words, these types of executives tend to not see the outcome of CSR
as a value to the company if it does not provide anything in exchange.
Misdirection
There have been unsubstantiated social efforts, ethical claims, and outright
greenwashing by some companies that have resulted in increasing consumer
cynicism and mistrust. Sometimes companies use CSR to direct public
attention away from other, harmful business practices. For
example, McDonald’s Corporation positioned its association with Ronald
McDonald House and other children's charities as CSR while its meals have
been accused of promoting poor eating habits.
Acts that may initially appear to be altruistic CSR may have ulterior motives.
The funding of scientific research projects has been used as a source of
misdirection by firm Stanley B. Prusiner who discovered the protein
responsible for Creutzfeldt- Jakob disease (CJD) and won the 1997 Nobel
prize in Medicine, thanked the tobacco company RJ Reynolds for their crucial
support. RJ Reynolds funded the research into CJD. Proctor states that "the
tobacco industry was the leading funder of research into genetics, viruses,
immunology, air pollution" anything which formed a distraction from the well-
established research linking smoking and cancer.
Research has also found that corporate social marketing a form of CSR
promoting societal good, is being used to direct criticism away from the
damaging practices of the alcohol industry. It has been shown that
advertisements that supposedly encourage responsible drinking simultaneously
aim to promote drinking as a social-norms. Companies may engage in CSR
and social marketing, in this case, to prevent more stringent government
legislation on alcohol marketing.
Controversial industries
Industries such as tobacco, alcohol, or munitions firms make products that
damage their consumers or the environment. Such firms may engage in the
same philanthropic activities as those in other industries. This duality
complicates assessments of such firms concerning CSR.
Stakeholder influence
One motivation for corporations to adopt CSR is to satisfy stakeholders
beyond those of a corporation's shareholders.
Branco and Rodrigues (2007) describe the stakeholder perspective of CSR as
the set of views of corporate responsibility held by all groups or constituents
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with a relationship to the firm. In their normative model, the company accepts
these views as long as they do not hinder the organization. The stakeholder
perspective fails to acknowledge the complexity of network interactions that
can occur in cross-sector partnerships. It relegates communication to a
maintenance function, similar to the exchange perspective.
Ethical consumerism
The rise in popularity of ethical consumerism over the last two decades can be
linked to the rise of CSR. Consumers are becoming more aware of the
environmental and social implications of their day-to-day consumption
decisions and in some cases make purchasing decisions related to their
environmental and ethical concerns
One issue with the consumer's relationship with CSR is that it is much more
complex than it first appears. This phenomenon could be described as the
"CSR-Consumer Paradox" or mismatch that occurs where consumers report
that they would only buy from companies with good social responsibility.
Many consumers want to buy from responsible companies, but surveys
indicate an ethical purchases are a small percentage of household expenditures.
The discrepancy between consumer beliefs and intentions, and actual
consumer behaviour, means CSR has a much lesser impact than consumers
initially say it does.
One theory for explaining this discrepancy is the "bystander apathy" or
the bystander effect. This theory stems from social psychology and states that
the likelihood of an individual acting in a given situation is greatly reduced if
other bystanders do nothing even if that individual strongly believes in a
certain course of action. It would suggest an "If they do not care then why
should I?" mentality. Even if a consumer is against the use of sweatshops or
wants to support green causes, they may continue to make purchases from
companies that are socially irresponsible just because other consumers seem
apathetic towards the issue.
Another explanation is that of reciprocal altruism. In the evolutionary
psychology of human behaviour: people only do something if they can get
something back in return. In the case of CSR and ethical consumerism,
however, consumers get very little in return for their investment. Ethically
sourced or manufactured products are typically higher in price due to greater
costs. However, the reward for consumers is not much different from that of a
non-ethical counterpart. Therefore, evolutionary speaking making an ethical
purchase is not worth the higher cost to the individual even if they believe in
supporting ethically, environmentally, and socially beneficial causes.
Socially responsible investing
Shareholders and investors, through socially responsible investing (SRI), are
using their capital to encourage behaviour they consider responsible. However,
definitions of what constitutes ethical behaviour vary. For example, some
religious investors in the US have withdrawn investment from companies that
violate their religious views, while secular investors divest from companies
that they see as imposing religious views on workers or customers.
Public policies
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Some national governments promote socially and environmentally responsible

corporate practices. The heightened role of government in CSR has facilitated
the development of numerous CSR programs and policies. Various European
governments have pushed companies to develop sustainable corporate
practices. CSR critics such as Robert Reich argued that governments should
set the agenda for social responsibility with laws and regulations that describe
how to conduct business responsibly.
Collective bargaining is way nations promote CSR. In Germany, CSR is kept
at the industry level instead of the workplace; this has been viewed as one of
the strengths of the German government's push for CPR. Germany also
established the German Trade Union Confederation in 1949 to further advance
CSR; the confederation represents the interests of 45 million workers in
Germany. Job security, wage increases with industry growth are key aspects of
collective bargaining in the German labour system.
There is a higher percentage of workers in unions in countries like Sweden and
Iceland which have more Social- Democratic elements in their Nordic Model
than the U.S. and the U.K.
The U.S. and the U.K are Liberal Market Economies (LMEs) and the German
economy falls under Coordinated Market Economy (CMEs) which are
Varieties of Capitalism. In comparison with the U.S. that covers 25.5% of its
blue and white-collar workforce under collective bargaining and the U.K. that
covers 29% of its workforce, Germany covers a significantly higher 57% of its
workforce under collective bargaining.
Regulation
Fifteen European Union countries are actively engaged in CSR regulation and
public policy development. CSR efforts and policies are different among
countries, responding to the complexity and diversity of governmental,
corporate, and societal roles. Some studies have claimed that the role and
effectiveness of these actors were case-specific. This variety among company
approaches to CSR can complicate regulatory processes.
Canada adopted CSR in 2007. Prime Minister Harper encouraged Canadian
mining companies to meet Canada's newly developed CSR standards.
The 'Heilbronn Declaration' is a voluntary agreement of enterprises and
institutions in Germany especially of the Heilbronn-Franconia region signed
on 15 September 2012. The approach of the 'Heilbronn Declaration' targets the
decisive factors of success or failure, the achievements of the implementation,
and best practices regarding CSR. A form of responsible entrepreneurship
shall be initiated to meet the requirements of stakeholders' trust in the
economy. It is an approach to make voluntary commitments more binding.
In opposition to mandated CSR regulation, researchers Armstrong and Green
suggest that all regulation is "harmful", citing regulation as the cause for North
Korea's low economic freedom and per capita GDP. They further claim
without source that "There is no form of market failure, however egregious,
which is not eventually made worse by the political interventions intended to
fix it," and conclude "there is no need for further research on regulation in the
name of social responsibility."
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Laws
In the 1800s, the US government could take away a firm's license if it acted
irresponsibly. Corporations were viewed as "creatures of the state" under the
law. In 1819, the United States Supreme Court in Dartmouth College vs.
Woodward established a corporation as a legal person in specific contexts.
This ruling allowed corporations to be protected under the Constitution and
prevented states from regulating firms. Countries have included CSR policies
in government agendas.
On 16 December 2008, the Danish parliament adopted a bill making it
mandatory for the 1100 largest Danish companies, investors, and state-owned
companies to include CSR information in their financial reports. The reporting
requirements became effective on 1 January 2009. The required information
included:
 CSR/SRI policies
 How such policies are implemented in practice
 Results and management expectations
CSR/SRI is voluntary in Denmark, but if a company has no policy on this it
must state its positioning on CSR in financial reports.
In 1995, item S50K of the Income Tax Act of Mauritius mandated that
companies registered in Mauritius pay 2% of their annual book profit to
contribute to the social and environmental development of the country. In
2014, India also enacted a mandatory minimum CSR spending law.
Under Companies Act, 2013, any company having a net worth of 500 crore or
more or a turnover of 1,000 crore or a net profit of 5 crore must spend 2% of
their net profits on CSR activities. The rules came into effect on 1 April 2014.
The only mandatory CSR Act in the world thus far was passed by the Indian
parliament in 2013 as Section 135 of the Companies Act. According to that
bill, all firms with a net worth above 5 billion rupees (approx. $75 million),
turnover over 10 billion rupees (approx. $150 million), or net profit over 50
million rupees (approx. $750,000) are required to spend at least 2% of their
annual profits (averaged over three years). The Act requires that all businesses
affected establish a CSR committee to oversee the spending. Before this law's
passage, CSR laws applied only to public sector companies.
Unlike global definitions of CSR which are in the triple bottom line, corporate
citizenship, sustainable business, business responsibility, and closed-loop
realm, in India CSR is a philanthropic activity. What has changed since
formalizing it in 2014 is the shift in focus from institution building (schools,
hospitals, etc.) to focus on community development.
Crises and their consequences
Crises have encouraged the adoption of CSR. The CERES principles were
adopted following the 1989 Exxon Valdez incident. Other examples include
the lead paint used by toymaker Mattel, which required the recall of millions
of toys and caused the company to initiate new risk management and quality
control processes. Magellan Metals was found responsible for lead
contamination killing thousands of birds in Australia. The company ceased
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business immediately and had to work with independent regulatory bodies to

execute a clean-up. Odwalla experienced a crisis with sales dropping 90% and
its stock price dropping 34% due to cases of E.coli. The company recalled all
apple or carrot juice products and introduced a new process called flash
pasteurization as well as maintaining lines of communication constantly open
with customers.
National and regional approaches

Corporations that employ CSR behaviours do not always behave consistently
in all parts of the world. Conversely, a single behaviour may not be considered
ethical in all jurisdictions. E.g., some jurisdictions forbid women from driving,
while others require women to be treated equally in employment decisions.
CSR in the European Union
The European Commission presented a green paper for the European
Communities, as the EU was then called, "promoting a European framework
for Corporate Social Responsibility" in 2001. In that document CSR was
defined as a concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis.
By 2011, the Commission recognised a "strategic approach" to CSR as
"increasingly important too the competitiveness of enterprises. Believing that
enterprises can "significantly contribute to the European Union's treaty
objectives of sustainable development and a highly competitive social market
economy", therefore presented a revised strategy in October 2011, A renewed
EU strategy 2011–14 for Corporate Social Responsibility. In this document,
CSR was defined more briefly as the responsibility of enterprises for their
impact on society.
In parallel with CSR, the alternative term "responsible business conduct"
(RBC) introduced by the OECD (see OECD Guidelines for Multinational
Enterprise) was also adopted. No longer treating CSR as a "voluntary" or is
some sense "additional" aspect of managing an enterprise, the commission
now stated that
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.
Actions planned under the 2011–2014 agenda were aimed at:
 Enhancing the visibility of CSR and disseminating good practices

 Improving and tracking levels of trust in business
 Improving self- and co-regulation processes
 Enhancing market reward for CSR
 Improving company disclosure of social and environmental information
 Further integrating CSR into education, training, and research
 Emphasising the importance of national and sub-national CSR policies, and
 Better aligning European and global approaches to CSR.
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 Subsequently, the Commission published a staff working document in March

2019 which looks at progress in implementing CSR/RBC and business and
human rights.
UK retail sector
A 2006 study found that the UK retail sector showed the greatest rate of CSR
involvement Many of the big retail companies in the UK joined the Ethical
Trading Initiative an association established to improve working conditions
and worker health.
Tesco (2013) reported that their 'essentials' are 'Trading responsibility',
'Reducing our Impact on the Environment', 'Being a Great Employer' and
'Supporting Local Communities'. J Sainsbury employs the headings 'Best for
food and health', 'Sourcing with integrity', 'Respect for our environment',
'Making a difference to our community', and 'A great place to work', etc. The
four main issues to which UK retail companies are committed: environment,
social welfare, ethical trading, and becoming an attractive workplace.
Anselmsson and Johansson (2007) assessed three areas of CSR performance:
human responsibility, product responsibility, and environmental responsibility.
Martinuzzi et al. described the terms, writing that human responsibility is "the
company deals with suppliers who adhere to principles of natural and good
breeding and farming of animals, and also maintains fair and positive working
conditions and workplace environments for their employees. Product
responsibility means that all products come with a full and complete list of
content, that country of origin is stated, that the company will uphold its
declarations of intent and assume liability for its products. Environmental
responsibility means that a company is perceived to produce environmental-
friendly, ecological, and non-harmful products". Jones et al. (2005) found that
environmental issues are the most commonly reported CSR programs among
top retailers.
CSR and US corporation updates
An article published in Forbes.com in September 2017 mentioned the yearly
study of Boston-based reputation management consulting company Reputation
Institute (RI) which rates the top 10 US corporations in terms of corporate
social responsibility. RI monitors social responsibility reputations by focusing
on the perception of consumers regarding company governance, positive
impact on the community and society, and treatment of the workforce. It rates
each criterion with the firm's proprietary Rep-Trak Pulse platform. Forbes
identified companies like Lego, Microsoft, Google, Walt Disney Company,
BMW Group, Intel, Robert Bosch, Cisco Systems, Rolls-Royce Aerospace,
and Colgate-Palmolive.
According to the CSR Journal, the millennial generation worldwide helps
propel brands toward social responsibility. Many millennials want to conduct
business with companies and trademarks that employ pro-social
themes, sustainable manufacturing processes, and ethical business practices.
Nielsen Holdings published its Annual Global Corporate Sustainability Report
in 2017 concentrating on global responsibility as well as sustainability.
Nielsen's 2015 report showed that 66 percent of consumers will spend more on
products that come from sustainable brands. Another 81 percent expect their
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preferred corporate institutions to reveal in public their statements about

corporate citizenship
The National Association on the Advancement of Colored People (NAACP)
through its chief executive officer Derrick Johnson shared the organization's
insights on how American corporations can help in the realization of social
justice. According to the article from Yahoo News, the NAACP has been
engaged in a crusade for racial justice and economic opportunities during the
last 109 years. This organization believes all citizens in the United States must
be held liable in ensuring democracy works for all people
Access To Capital
CSR (Corporate Social Responsibility) is the ethical and voluntary behavior of
a company towards its stakeholders, including its customers, employees,
investors, suppliers, and the environment. Access to capital refers to the
availability of financial resources that a company can use to fund its activities.
CSR activities can be funded through various sources of capital, such as
equity, debt, and grants. Equity capital is raised by issuing stocks, while debt
capital is raised through loans or bonds. Grants can be obtained from
government agencies, philanthropic organizations, or other sources that
support CSR activities.
Access to capital can be a challenge for companies that prioritize CSR
activities because these activities may not generate the same financial returns
as traditional business activities. However, companies that can demonstrate a
strong commitment to CSR may be able to access capital from socially
responsible investors or impact investment funds that prioritize investments in
companies with a positive social or environmental impact.
In addition to traditional sources of capital, some companies are exploring
innovative financing mechanisms for CSR activities, such as social impact
bonds or crowdfunding platforms.
Ultimately, access to capital for CSR activities depends on the company's
ability to demonstrate a clear and measurable impact on society or the
environment. Companies that can effectively communicate the value of their
CSR initiatives to investors and stakeholders are more likely to access the
capital needed to support these activities.
Understanding of the corp social responsible (CSR)
Corporate social responsibility is a broad term that can mean different things
depending on the business and the industry. Firms can do good for society and
build their brands simultaneously through corporate social responsibility
(CSR) projects, charity, and volunteer work.
CSR is important for both businesses and the communities they serve. CSR
activities can strengthen the connection between employees and companies,
boost morale, and make both employees and employers feel more connected to
the world.
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A company must first be accountable to itself and its shareholders before being
socially responsible. Businesses that do CSR programmes have usually grown
big enough to be able to give back to society. CSR is often a strategy used by
big companies because of this. A company's duty to set ethical standards for its
peers, competitors, and industry grows the more visible and successful it is.
Classifications of CSR
Corporate social responsibility is a broad term that means different things to

different people and is used in different ways by different companies. Its basic
idea is that a company should run in a way that is sustainable economically,
socially, and environmentally.
Corporate social responsibility projects usually fall into the following

categories:
Environmental responsibility- Environmental responsibility tries to reduce
pollution and greenhouse gas emissions and encourage the use of natural
resources sustainably.
Human rights obligations

Initiatives for human rights responsibility include:
 Fair labour practices (like getting the same pay for the same work).
 Fair trade practices.
 A refusal to use child labour.
 philanthropic obligation
Philanthropic duties include:
 Funding educational programmes.

 Helping with health initiatives.
 Giving money to good causes.
 Helping with projects to make the community look better.
 Economic responsibility
Economic responsibility projects involve improving the company's business

operations while doing good things for the environment, like switching to a
new way of making things to cut down on waste.
Why CSR is good for business?
Corporate social responsibility can be seen as a type of public relations. Still,

social responsibility at work can also make a company more competitive.
Corporate social responsibility is good for business in several ways, including:
Greater brand recognition, image, and reputation

CSR helps businesses because it helps them build and keep a good reputation
and/or brand equity.
Increased customer retention and sales
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Customers of a company that does CSR think that by buying from that
company, they are helping the company give money to good causes.
Operational Cost Reduction
 Putting money into making operations more efficient cuts costs and is good for
the environment.
 Retaining important and talented people
 When employees know that a company does corporate social responsibility
(CSR), they are more likely to stay with the company and be committed to it.
Facilitated access to capital
 Many investors are more likely to back a company that does corporate social
responsibility (CSR).
 Regulatory burden reduction
 Strong partnerships with regulatory groups can make it easier for a company to
follow the rules.
What are the most significant advantages of corporate social

responsibility?
CSR is important to businesses for many different reasons. Here are some
frequent advantages:
 improved employee performance, engagement, talent acquisition, and

retention
 less money spent and less garbage
 community support, brand recognition, and customer loyalty have improved.
What are the four things that companies need to do for society?
Usually, corporate social responsibility is split into four areas: the

environment, giving back to the community, ethics, and the economy.
What are some examples of social responsibility on the part of a business?
Companies have a social duty:-
 Getting rid of more carbon.

 Doing work for charity.
 Buying goods that were made ethically.
 Putting money into companies that are good for the environment.
 Participating in volunteer activities.
 enhancing labour policies
Why is it important for a business to be socially responsible?
CSR is an important part of any business. It lets businesses and organisations

connect with customers, but it also gives them a way to work with the
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community around them in a good way.
What benefits does CSR have?
Corporate social responsibility, or CSR, is how a business gives back to the

community or makes it a better place to live. CSR can be shown in many
ways, such as by giving money to charity, having employees volunteer, using
good production methods for the environment, treating workers fairly, and so
on.
What risks and dangers does CSR have?
CSR has some risk factors as well:
 Greenwashing is an example of CSR that isn't sincere or just on the surface.

This can hurt a company's reputation.
 Profits can be wasted on the "smoke and mirrors" of corporate social
responsibility, which doesn't do much for the company.
 A cost of the agency is that managers might use money from shareholders to
pay for their activities.
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CHAPTER 4
DATA ANALYSIS AND INTERPERTATION
4.1 INTRODUCTION
Data analysis and interpretation refers to the process of extracting insights and
meaning from data through a systematic and organized approach. It involves
examining data sets, identifying patterns, relationships, and trends, and
drawing conclusions based on the findings.
The process of data analysis and interpretation typically involves several steps,
including:
Data cleaning and preparation: This involves organizing, sorting, and cleaning
data to ensure accuracy and consistency.
Exploratory data analysis: This involves using visual tools and statistical
methods to identify patterns and relationships in the data.
Statistical analysis: This involves applying statistical models to the data to test
hypotheses, make predictions, and identify significant relationships.
Data visualization: This involves presenting data in graphical form to make it
easier to understand and identify patterns.
Interpretation and communication: This involves drawing conclusions based
on the analysis and communicating the findings in a clear and meaningful way.
The goal of data analysis and interpretation is to make sense of the data and
use it to inform decision-making. It is a critical process in many fields,
including business, healthcare, social sciences, and more, and is essential for
making informed decisions based on data-driven insights.
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4.2. Data Analysis

1.Prescribed CSR Expenditure of MARUTI SUZUKI (crore)
Years Expenditure
2019-2020 168.2
2020-2021 140.940
2021-2022 96.12
180
160
140
120
100
80
60
40
20
0
2019-2020 2020-2021 2021-2022
expende琀椀ure Column1 Column2
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CSR expenditure of Maruti Suzuki
Chart Title
14
12
10
0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3
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Chart Title
6
0
Chart Title
6
0
Interpretation:
The Prescribed CSR Expenditure of Maruti Suzuki (in crore) for the years
2019-2020, 2020-2021, and 2021-2022 were 168.2, 140.940, and 96.12
respectively.
The trend shows a decline in the prescribed CSR expenditure of Maruti Suzuki
over the years. In 2019-2020, the prescribed expenditure was highest at 168.2
crore, which decreased to 140.940 crore in 2020-2021 and further reduced to
96.12 crore in 2021-2022.
The decline in CSR expenditure could be due to several factors, such as
changes in the company's CSR strategy, economic conditions, or company's
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performance. However, it's important to note that even with the decrease,
Maruti Suzuki's CSR expenditure is still substantial and reflects the company's
commitment to corporate social responsibility.
2. CSR Activities
 Zakat
Zakat is a form of charitable giving in Islam, which involves donating a
percentage of one's wealth to help those in need. In the context of Corporate
Social Responsibility (CSR), Zakat can be considered as a part of a company's
CSR activities, as it involves giving back to the community and helping those
who are less fortunate.
Some of the Zakat CSR activities that companies can undertake include:
Providing financial support to charitable organizations that work towards
alleviating poverty, hunger, and providing healthcare and education to the
underprivileged.
Supporting programs that provide vocational training and job opportunities to
help people improve their economic situation.
Donating to disaster relief efforts, such as natural disasters, pandemics, or
other emergencies.
Supporting initiatives that aim to promote sustainable development, such as
programs that provide clean water, energy-efficient technology, or help to
preserve the environment.
Providing aid to refugees and displaced people, including providing shelter,
food, and other essential supplies.
Supporting initiatives that promote social justice and human rights, such as
campaigns that aim to end discrimination, oppression, or promote equality and
inclusion.
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Overall, Zakat CSR activities can help companies to fulfill their social
responsibility, contribute to the betterment of society, and create a positive
impact on the communities they serve.
 Donations
Donations are a common way for companies to contribute to Corporate Social
Responsibility (CSR) activities. By making donations, companies can support
various social, environmental, and humanitarian causes that align with their
values and goals.
Donations in CSR activities can take many forms, such as:
Cash donations: This involves giving money to support a specific project,
organization, or cause.
In-kind donations: This involves donating goods or services instead of cash,
such as donating computers, food, clothing, or providing pro bono services to a
non-profit organization.
Employee matching donations: This involves companies matching their
employees' charitable donations to encourage greater participation and
increase the impact of their contributions.
Corporate foundation donations: This involves creating a corporate foundation
or trust to provide funding for various social and environmental causes.
Cause-related marketing: This involves partnering with a non-profit
organization or cause to donate a portion of the company's sales or profits to
the cause.
Donations in CSR activities can have a significant impact on the community
and society. They can help address social and environmental issues, support
education and research, and provide aid to those in need. Moreover, donations
can also help build the company's reputation, improve employee engagement,
and create positive brand awareness.
 Charity
Charity programs are a type of Corporate Social Responsibility (CSR) activity
that involves donating funds, goods, or services to support various charitable
causes. The primary goal of charity programs is to provide financial and other
resources to those in need, such as the underprivileged, disabled, or victims of
natural disasters or emergencies.
Charity programs in CSR activities can take various forms, including:
Cash donations: This involves donating money to a specific charity or cause,
such as a disaster relief fund, health or education program, or other non-profit
organization.
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In-kind donations: This involves donating goods or services instead of money,

such as donating food, clothing, medical supplies, or providing pro-bono
services to a non-profit organization.
Sponsorship: This involves supporting a specific event, program, or project,
such as sponsoring a charity walk, a children's education program, or a health
awareness campaign.
Employee volunteering: This involves encouraging employees to volunteer
their time and skills to support various charitable causes or non-profit
organizations.
Charity programs in CSR activities can help companies build their reputation,
improve employee morale and engagement, and enhance their relationships
with the community. They can also provide an opportunity for companies to
demonstrate their commitment to social responsibility and create a positive
impact on society.
 Sponsorship
Sponsorship is a type of Corporate Social Responsibility (CSR) activity that
involves providing financial or other support to an event, activity, or
organization that aligns with the company's values and goals. The primary
objective of sponsorship in CSR activities is to create a positive impact on
society and the community while enhancing the company's reputation and
brand awareness.
Sponsorship in CSR activities can take many forms, such as:
Event sponsorship: This involves sponsoring a specific event, such as a charity
walk, a cultural festival, or a sports tournament.
Program sponsorship: This involves sponsoring a specific program or
initiative, such as a health or education program, a youth development
program, or an environmental conservation project.
Non-profit sponsorship: This involves sponsoring a non-profit organization
that aligns with the company's values and goals, such as an organization that
works towards poverty alleviation, healthcare, or education.
Cause-related marketing sponsorship: This involves partnering with a non-
profit organization or cause to promote the company's products or services
while donating a portion of the profits to the cause.
Sponsorship in CSR activities can help companies to build their reputation and
brand awareness, improve their relationships with the community and
stakeholders, and create a positive impact on society. It can also provide an
opportunity for companies to demonstrate their commitment to social
responsibility and contribute to the betterment of society.
 Branch Opening
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Branch opening is a type of Corporate Social Responsibility (CSR) activity

that involves opening new branches or offices in underserved or
underprivileged communities to provide access to financial services and
support economic development. This type of CSR activity can have a
significant impact on the community by providing access to financial services,
creating employment opportunities, and supporting local businesses.
Branch opening in CSR activities can take many forms, such as:
Opening branches in underserved or rural areas: This involves opening new
branches or offices in areas that are underserved or lacking access to financial
services.
Providing financial literacy programs: This involves offering financial literacy
programs to individuals and small businesses to help them manage their
finances effectively and make informed financial decisions.
Offering microfinance services: This involves offering small loans to
individuals and small businesses to help them start or expand their businesses
and support economic development.
Providing training and employment opportunities: This involves providing
training and employment opportunities to local individuals to support
economic development and reduce unemployment in the community.
Branch opening in CSR activities can help companies to build their reputation,
increase their customer base, and support economic development in
underserved communities. It can also provide an opportunity for companies to
demonstrate their commitment to social responsibility and create a positive
impact on society.
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3. Number of Corporate Social Responsibility from 2011-2015

Years Total Contribution
Amount
2011 3,300,000
2012 8,000,000
2013 7,800,000
2014 8,750,365
2015 5,500,000
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2011 2012 2013 2014 2015
Series 1 Column1 Column2
No. of CSR
Interpretation:
Based on the given data, the table shows the number of Corporate Social
Responsibility (CSR) activities carried out by a company between 2011 and
2015, along with the total contribution amount for each year. The
interpretation of this data is as follows:
The number of CSR activities carried out by the company increased from 2011
to 2012, with a significant jump from 3.3 million in 2011 to 8 million in 2012.
This indicates that the company may have made a concerted effort to increase
its CSR activities during this period.
From 2012 to 2014, the number of CSR activities remained relatively stable,
with a slight increase in 2014 compared to the previous year. This suggests that
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the company may have established a consistent level of CSR activities during
this period.
In 2015, the number of CSR activities dropped to 5.5 million, which is lower
than the previous years. This may indicate a change in the company's CSR
strategy or a shift in priorities.
The total contribution amount for CSR activities increased from 2011 to 2014,
with the highest amount of 8.75 million in 2014. However, the contribution
amount dropped significantly to 5.5 million in 2015. This may suggest that the
company reduced its CSR spending in that year.
The data shows that the company has engaged in CSR activities consistently
over the years, with some fluctuations in the number of activities and the
contribution amount. The data highlights the importance of monitoring and
evaluating CSR activities to ensure that they are aligned with the company's
goals and objectives.
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4.Total assets of Maruti Suzuki Limited from financial year 2020-2022 ( in

billion Indian rupees)
Years Amounts
2019-2020 625.52
2020-2021 701.61
2021-2022 733.94
760
740
720
700
680
660
640
620
600
580
560
2019-2020 2020-2021 2021-2022
Total Assets of Maruti Suzuki Limited
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Interpretation:
Chart Title
6
0
The table provides the total assets of Maruti Suzuki Limited in billion Indian
rupees for the financial years 2019-2020, 2020-2021, and 2021-2022. The
interpretation of this data is as follows:
The total assets of Maruti Suzuki Limited increased steadily from 625.52
billion rupees in 2019-2020 to 733.94 billion rupees in 2021-2022.
The increase in total assets over the years indicates the company's growth in
terms of its assets base. This can be attributed to factors such as increased
production, sales growth, and expansion in the domestic and international
markets.
The significant increase in total assets from 2020-2021 to 2021-2022,
compared to the previous years, suggests that the company may have
undertaken significant investments or acquisitions during this period.
The increasing trend in total assets over the years is a positive sign for the
company as it indicates its overall financial strength and stability. This, in turn,
can help the company to attract investors and obtain financing at competitive
rates.
5.Corporate Social Responsibility (CSR) Implementation: A Review and a
Research Agenda Towards an Integrative Framework
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Interpretation:
The CSR implementation literature uses a wide variety of research methods.
36% of the research studies used qualitative research methods, 53% used
quantitative methods, and only 11% of the studies have used mixed methods.
The use of qualitative methods can be explained by the exploratory nature of
the studies, which accounted for 49% of the empirical research, while a
majority of 51% studies were explanatory in nature. However, given the
growing adoption of CSR by different organizations across industries and
countries, scholars have delved into examining implementation of CSR from a
more explanatory nature as the trend line.
CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
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5.1 FINDINGS
1. Decreasing trend in CSR expenditure: There seems to be a decreasing trend
in CSR expenditure by Maruti Suzuki from 2019-2020 to 2021-2022. This
trend may be due to a variety of factors, such as changes in business priorities
or economic challenges.
2. Zakat and charity programs are a significant focus of CSR activities: The
fact that zakat and charity programs make up 44% and 28% of CSR activities,
respectively, suggests that the company places a significant emphasis on
supporting social welfare and community development initiatives. This may
reflect the company's commitment to its stakeholders and a desire to make a
positive impact on the communities in which it operates.
3. Donations are also a key part of CSR activities: Donations make up 22% of
CSR activities, which indicates that the company is also committed to
supporting charitable organizations and causes. This may reflect a desire to
contribute to broader social and environmental issues, such as poverty
reduction, education, and healthcare.
4. Limited focus on sponsorships and branch openings: The fact that
sponsorships and branch openings make up only 2% and 4% of CSR activities,
respectively, suggests that the company places less emphasis on these
activities. This may reflect a strategic decision to focus on more direct social
welfare and community development initiatives, rather than marketing or
expansion efforts.
5. The data shows that the number of CSR contributions made by the company
varied from year to year during the period in question. The number of
contributions made in 2011 was only one-third of the number made in 2012,
and the number of contributions made in 2015 was significantly lower than the
number made in 2014.
6. The total amount of CSR contributions made by the company varied from
year to year during the period in question. The highest contribution amount
was in 2014, while the lowest contribution amount was in 2015.
7. Quantitative methods are more commonly used: The data shows that the
majority of research studies on CSR implementation (53%) used quantitative
research methods. This suggests that CSR scholars tend to use empirical data
and statistical analysis to study CSR-related phenomena.
8. Qualitative methods are also used: While quantitative methods are more
common, the data shows that a significant proportion of research studies
(36%) used qualitative methods. This suggests that CSR scholars also value
the insights and perspectives that can be gained from in-depth interviews,
focus groups, and other qualitative research techniques.
9. Exploratory studies are common: The data suggests that almost half of the
empirical research studies (49%) were exploratory in nature. This suggests that
many CSR scholars are interested in exploring new and emerging CSR-related
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phenomena, such as new forms of CSR practices, the motivations of CSR

adopters, or the impact of CSR on stakeholders.
10. Growing interest in explanatory studies: The data suggests that there is a
growing trend towards explanatory studies of CSR implementation. While
exploratory studies are still common, a majority of studies (51%) were
explanatory in nature. This suggests that scholars are increasingly interested in
understanding why and how CSR practices are adopted, and what factors
influence their effectiveness.
11. Need for mixed methods approaches: The data suggests that only a small
proportion of studies (11%) have used mixed methods approaches, which
combine qualitative and quantitative research techniques. However, given the
complexity and multi-dimensional nature of CSR, mixed methods approaches
may be particularly valuable in understanding the full range of factors that
influence CSR implementation and its outcomes. Therefore, there may be
opportunities for scholars to adopt more integrated research methods in future
studies of CSR implementation.
5.2 SUGGESTIONS
Focus on sustainability: Maruti Suzuki India Ltd can prioritize sustainability in
their CSR initiatives by investing in renewable energy, promoting eco-friendly
practices, and reducing their carbon footprint. This can help the company to
address environmental challenges and contribute to the larger goal of
sustainable development.
Support local communities: Maruti Suzuki India Ltd can also focus on
supporting local communities through their CSR initiatives. This can be done
by investing in education, healthcare, and skill development programs, among
other initiatives. By doing so, the company can create positive social impact in
the areas where they operate.
Foster employee engagement: Maruti Suzuki India Ltd can encourage their
employees to get involved in CSR activities by providing them with
opportunities to volunteer and participate in CSR programs. This can not only
help to foster a sense of purpose and pride among employees, but also create a
positive image of the company among stakeholders.
Partner with other organizations: Maruti Suzuki India Ltd can also partner with
other organizations to amplify the impact of their CSR initiatives. By
collaborating with NGOs, government agencies, and other companies, Maruti
Suzuki India Ltd can leverage their resources and expertise to create more
meaningful and sustainable CSR programs.
Monitor and evaluate CSR programs: Maruti Suzuki India Ltd can also ensure
the effectiveness of their CSR initiatives by monitoring and evaluating their
programs on a regular basis. By measuring the impact of their programs, the
company can identify areas of improvement and make necessary changes to
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ensure that their CSR initiatives are aligned with their business goals and
create value for their stakeholders.
5.3 CONCLUSION
The study of CSR at Maruti Suzuki India Ltd reveals that the company has
been actively engaged in CSR activities and has made significant contributions
towards sustainable development. The company's CSR initiatives have focused
on environmental sustainability, community development, and employee
engagement. Maruti Suzuki India Ltd has been successful in partnering with
various organizations and stakeholders to create a positive social and
environmental impact in the areas where they operate.
The study also suggests some areas for improvement, such as focusing on
sustainability, supporting local communities, fostering employee engagement,
and monitoring and evaluating CSR programs. By addressing these areas,
Maruti Suzuki India Ltd can enhance the effectiveness of their CSR initiatives
and create more value for their stakeholders.
Overall, the study of CSR at Maruti Suzuki India Ltd highlights the
importance of corporate social responsibility in the automotive industry and
demonstrates the positive impact that companies can make by integrating
social and environmental considerations into their business practices.
BILIOGRAPHY
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REFERENCES
• Arora, B. & Puranik. (2004). A Review of Corporate Social Responsibility in
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• Bansal, H., Parida, V. & Kumar, P. (2012). Emerging trends of Corporate
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• Chatterjee, D. (2010). Corporate Governance and Corporate Social
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• Green Paper: Promoting a European Framework for Corporate Social
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• Hartman, M. (2011). Corporate Social Responsibility in the food sector.
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Social Responsibility. Retrieved on http://www.indiacsr.in. |
• Moon, J. (2004). Government as a driver of Corporate Social Responsibility:
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http://www.ecrc.org.eg/Uploads/documents/Articles_Government%20as%20a
%20driver%20for%20 CSR (6-3).pdf |
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66

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Website
https://www.csreurope.org/
https://www.bsr.org/
https://www.corporateresponsibilityassociation.org/
https://www.marutisuzuki.com/
https://www.marutisuzukicorporate.com/
https://www.marutisuzukifleet.com/
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lOMoARcPSD|31720244

MMS (University of Mumbai)

Scan to open on Studocu

Studocu is not sponsored or endorsed by any college or university

“A STUDY ON CO-OPRATIVE SOCIAL RESPONSIBILITY

Submitted in Partial Fulfillment for the award of the Degree

MASTERS OF MANAGEMENT STUDIES

Under University of Mumbai

SHRUTI VIJAY MHATRE

ROLL NO. MS2122048

Under the Guidance of

Prof. TEJASVI BHOSALE

INSTITUTE OF MANAGEMENT & COMPUTER STUDIES

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I, SHRUTI VIJAY MHATRE the student of MMS Semester IV,

Is a bonafied work undertaken by me and it is not submitted to any

Name of the Students: SHRUTI VIJAY MHATRE

Roll Number: MS2122048

Signature of the Student:

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Signature Signature Signature

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I take this opportunity to express my gratitude and extend my

I would also like to thank our project guide Prof. TEJASVI

SIGNATURE AND NAME OF THE STUDENT WITH DATE

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Title of the study: A STUDY ON CO-ORPOREATE SOCIAL

A study on Corporate Social Responsibility (CSR) at Maruti Suzuki India

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Graph Title Page No.

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 Institutes of Driving and Traffic Research (IDTRs):

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Upgradation of Government ITI:

In partnership with state governments, the Company is adopting ITIs and

In 2016-17, the Governments of Japan and India signed an agreement to create

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Maruti Suzuki regularly undertakes initiatives to upgrade shared community

1.2 OBJECTIVES OF THE STUDY

 To assess the effectiveness of Maruti Suzuki's CSR initiatives in addressing

1.3 RESEARCH METHODOLOGY

1.3.1 RESEARCH TYPE

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already available information and it lays particular emphasis on analysis and

1.3.2 DATA COLLECTION

a. Primary Data: The data is major through observation and discussion.

Magazines, Journals, Case Studies, News Articles etc

1.4 SCOPE OF THE STUDY

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1.5 IMPORTANCE OF THE STUDY

1.6 LIMITATION OF THE STUDY

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imperative for their companies to operate in a safe, socially responsible and

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17. A paper on CSR in rural development sector: Evidences from India by

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