CORPORATE SOCIAL RESPONSIBILITY

THROUGH JOINT VENTURE

C.R.ARUNA
R.POORANI
 CORPORATE SOCIAL RESPONSIBILITY AND JOINT VENTURE

• CORPORATE SOCIAL RESPONSIBILITY (CSR, also called corporate conscience, corporate citizenship, social

performance, or sustainable responsible business/ Responsible Business).Corporate Social Responsibility is a concept
whereby companies integrate social and environmental concerns into their business operations and in their interaction with
their stakeholders (employees, customers, shareholders, investors, local communities, government), on a voluntary basis.

• JOINT VENTURE takes place when two parties come together to take on one project. In a joint venture, both parties equally
invest in the project. While joint ventures are generally small projects, major corporations also use this method in order to
diversify. A joint venture can ensure the success of smaller projects for those that are just starting in the business world or for
established corporations. Since the cost of starting new projects is generally high, a joint venture allows both parties to share
the burden of the project, as well as the resulting profits.
• In short The cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a
specific enterprise. - INVESTOPEDIA

• Now Corporate social responsibility when promoted through two parties entering into a joint venture, it becomes possible to
promote a social cause in a better manner and on a wider scale, as the burden to be borne in terms of cost involved needn’t be
borne by an individual Company.
 SUSTAINABILITY

• CSR is closely linked with the principles of Sustainability, which argues that enterprises should make decisions based not
only on financial factors such as profits or dividends, but also based on the immediate and long-term social and
environmental consequences of their activities
 NEED FOR ASSUMPTIONOF SOCIAL RESPONSIBILITIES BY BUSINESS

PUBLIC EXPECTATIONS

LONG RUN PROFIT

ETHICAL OBLIGATION

PUBLIC IMAGE

BETTER ENVIRONMENT

DISCOURAGE OF FURTHUR GOVERNMENT REGULATION

BALANCE OF RESPONSIBILITY AND POWER

STOCK HOLDER INTEREST

POSSESSION OF RESOURCES

SUPERIORITY OF PREVENTION OVER CURE

PYRAMID OF CSR
 EXAMPLE : PEPSICO

PepsiCo entered India in 1989 and has grown to become the country's largest selling food and Beverage Company.
One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term
dynamic needs of consumers in India

CSR Motto :
Performance With Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the
community and world that surrounds it.
At PepsiCo, they are committed to 'Performance with Purpose' - achieving business and CSR Politicies
Human Sustainability Policies
Quality & Food Safety Programs.
Responsible Marketing

Healthcare Reform

Environmental Sustainability Policies

PepsiCo's Environmental Policy

Sustainable Agriculture Policy

Sustainable Packaging Policy 

financial success while leaving a positive imprint on society
 CASE STUDY

• Danone and Grameen Bank Joint Venture was formed in 2006 between
Danone and Muhammad Yunus' Grameen Bank. For both of them,
Bangladesh was a hot spot for their products: Danone for their fortified
yogurt and Grameen for their microfinance.
• . The goal was that Grameen could help Danone create a unique community-
based business model.
• That's the critical first step. When we enter into a new territory in Corporate
Social Responsibility, we need to partner.
• we can't do it alone. This is especially true if we are going global.
• So to do this right, Danone and Grameen entered into a new venture,
together. They didn't just pool their current resources or relationships. It was
not just a press release. It was not the famed "collaboration" which sounds all
too benevolent, but may lack substance.
• Danone and Grameen Venture into a Zone of 40% Poverty
• Forty percent of Bangladeshis live in poverty, with an annual income of $497
per year. Bangladesh has one of the highest child and maternal malnutrition
rates in the world. One-third of its people and 45% of its children under five
suffer from moderate to severe malnutrition .Danone and Grameen's tack was
to go big. Their mission was to reduce poverty by providing nutrition to the
poor of Bangladesh through a unique community-based model. Their initial
goal: to set up a yogurt producing company in a plant near Bogra,
Bangladesh. That's the first point: The production space was locally based
and relevant to the people they were serving.
• Next, they worked on a compelling, meaningful brand. The yogurt was
branded under Grameen Danone Foods Ltd as "shokti," meaning "strength"
in Bengali.
• One cup would provide 30% of a child's recommended
daily nutrients, and it was marketed at a price even the
poorest could afford.
• Thirdly, they funded it with equal commitment: Both
provided funding. It wasn't the traditional 'corporation
donates to a non-profit.' In a similar vein, profits are
reinvested in the company and the market prices are set
to make the enterprise self-sustaining.
• It's the Global Thinking ... That Goes Beyond
• Here's where Grameen and Danone really took their
partnership to the next level. They addressed all these
complex global factors we've discussed. But then they
took an even greater step to integrate themselves into the
local community through more sensitive measures: job
opportunities, green initiatives/solar energy and social
investment.
• Grameen Danone Foods focused on a community model
that maximizes job opportunities and offers competitive
wages. It purchased its milk from nearby micro-farmers
and distributed the yogurt door-to-door with the help of
local, rural saleswomen. In the 30 km radius of its Bogra
plant, Grameen Danone Foods provides 1600 jobs.
• Their partnership is also committed to environmentally
sustainable practices, such as creating packaging which
is biodegradable; the plant uses solar energy.

• A unique aspect is their social investment setup: Danone

Communities is a fund offered by Credit Agricole. The
fund is open to any investor. And instead of providing an
immediate return, up to 20% of profits are invested in
social businesses, such as the Danone plant in Bogra.

• Here's a great way for a company to think about funding

a socially impactful idea, which also has the necessary
bottom line impact.
CURRENT STATE OF CSR

• The basic objective of CSR in these days is to maximize

the company's overall impact on the society and
stakeholders. CSR policies, practices and programs are
being comprehensively integrated by a increasing
number of companies throughout their business
operations and processes. A growing number of corporate
feel that CSR is not just another form of indirect expense
but is important for protecting the goodwill and
reputation, defending attacks and increasing business
competitiveness

•  Bharat Petroleum Corporation Limited, Maruti Suzuki

India Limited, and Hindustan Unilever Limited.
Provision of improved medical and sanitation facilities,
building schools and houses, and empowering the
villagers and in process making them more self-reliant by
providing vocational training and a knowledge of
business operations are the facilities that these
corporations focus on.
• On the other hand, the CSR programs of corporations
like GlaxoSmithKline Pharmaceuticals’ focus on the
health aspect of the community.
INFERENCE

• Danone and Grameen have partnered in a way we need to

scale across the world. It can start small in one local
community. Try out the partnership...and find out what
works and what doesn't. Do your best to make it locally
relevant. Refine, redo and launch your program again
with lessons learned. Then you can scale profitability,
and have a social impact across the world. Smart for
profit-non-profit partnerships such as these pay off