Corporate Social Responsibility

 

CORPORATE SOCIAL RESPONSIBILITY . 



 



Edited by  Dr. M. VASAN 

Head, PG & Research Department of Commerce, K.S.Rangasamy College of Arts & Science (Autonomous), Tiruchengode ‐ 637 215 Tamil Nadu

    





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PREFACE The real success of Indian democracy is being attributed to its social responsiveness towards all of its citizens. Nevertheless, in the endeavour of sustaining a true and vibrant democracy, the country strives very hard to extent the facilities and benefits to all strata of the society due to its constrained resources. Therefore, the Government of India needs a helping hand from corporate sector to ensure better standard of living of its people. In this regard, the corporate India is expected to play a constructive role by undertaking activities which may ultimately lead to social rejuvenation, development and empowerment of unprivileged people. If this happens, India is very proud to be one of the countries in the world to attain real inclusive growth. Hence, it is felt that Corporate Social Responsibility (CSR) activities of companies are really a key to unlock both economic and social disparities, which in turn, benefits the person in the last mile. Moreover, the Companies Act, 2013 has directed corporate India to work towards a growth based socio-economic-environment development model. The present book is an attempt to provide the emerging trends and best practices in CSR implementation, models of partnership, managerial and organizational challenges and issues in monitoring and evaluation of projects related to CSR in the public and private sector. I thank all paper contributors for their continued support, encouragement, inspiration to complete this task. Without their help it will be difficult task for me to complete this volume.

Dr. M. VASAN

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Book Specifications  

Book Title

Corporate Social Responsibility

Editor’s Name

Dr. M. Vasan

Genre

Corporate Affairs, Business and Management

ISBN No.

978-1512053005

Language

English

Publication Year

2015

Edition

First Edition

Book Price

Rs 500

No. of Pages

107

Page Size

8``X8.5``

Publisher & Printed By

EduPedia Publications Pvt Ltd D/351, Prem Nanar-3, Suleman Nagar, Kirari, Nagloi, New Delhi, PIN-Code 110086, India Contact : +919557022047 or +919958037887 Email : [email protected]



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Chapter

CONTENTS

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Corporate Social Performance, Ethical and Social Responsiveness of Technological Innovation - The Case of Monsanto´s Capital Reputational ‐ José g. Vargas- Hernández Corporate social responsibility in India: A Study in the Light of the Companies Act, 2013 - Swapan Kumar Roy and Suhas Roy Role of Government and Non Governmental Organizations in Corporate Social Responsibility - R. Mubeen Role of CSR in Initiating Women Entrepreneurship - N.Brindha and A.Abirami Corporate Social Responsibility: An Indian Perspective - S Lawrence Leve Corporate Social Responsibility in India - Bh.L.Mohanraju Emergence and Significance of CSR in the Current Business Scenario - K.Priyadarshini and P.Jeyabharathy Corporate Social Responsibility Planning and Strategy - Luda Joycee Role of CSR in Social Development - Dr.C.Thilakam and S.Mahadevi A study on Corporate Social Responsibility and Usage of Plastic Bags in Small and Medium Size Retail Business in Madurai - Kumaran Thayumanavan Impact of Corporate Social Responsibility on Business Performance - Mariya Nathalie Vanhaltren

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2

3

4 5 6 7

8 9 10

11

24

30 37 42 51

58 62 68

76

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CSR Initiatives By Indian Corporates - A Case Study

88

13

- S.Thulasimani Corporate Social Responsibility In India - Issues And Challenges - Ch.Venkat Rajam

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LIST OF CONTRIBUTORS 1. ABIRAMI. A, Research Scholar, Ph.D. Scholar (PT), Bharathiar University, Coimbatore, Tamilnadu. 2. BRINDHA, N. (Dr) Professor in Management Department, Karpagam Engineering College, Coimbatore, Tamilnadu. 3.

JEYABHARATHY .P, Assistant Professor, Department of Youth Welfare Studies, Madurai Kamaraj University, Madurai, Tamilnadu.

4. JOSÉ G. VARGAS-HERNÁNDEZ, L.E. Jesús Orozco Gómez, University Center for Economic and Managerial Sciences, University of Guadalajara, Zapopan, Jalisco, México. 5. KUMARAN THAYUMANAVAN, Assistant Professor, OAA-MAVMM School of Management, Madurai, Tamilnadu. 6. LAWRENCE LEVE .S, Research Scholar, St. Joseph’s Institute of Management, St. Joseph’s College, Tiruchirappalli, Tamilnadu. 7. LUDA JOYCEE, Assistant Professor of Commerce, Holy Cross College, Trichy, Tamilnadu. 8. MAHADEVI S, Research Scholar (FT), Department of Manonmaniam Sundaranar University, Tirunelveli, Tamilnadu.

Commerce,

9. MARIYA NATHALIE VANHALTREN, Assistant professor of Business Administration, Holy Cross College, Tiruchirappali, Tamilnadu. 10. MOHANRAJU, Bh.L., Assistant Professor, DNR School of Business Management Bhimavaram, 534 202, W.G.Dt., Andhra Pradesh. 11.

PRIYADARSHINI .K, Research Associate, Women’s Studies Center, Madurai Kamaraj University, Madurai, Tamilnadu.

12. R.MUBEEN, Ph.D Research Scholar, Department of Commerce, K.S.Rangasamy College of Arts and Science, Tiruchengode, Tamilnadu. 13.

SUHAS ROY, Associate Professor of Economics, Bethuadahari College, Bethuadahari, Nadia- 741126, West Bengal.

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Swapan Kumar Roy (Dr), Assistant Professor in Commerce, Bethuadahari College, Bethuadahari, Nadia- 741126, West Bengal.

15. THILAKAM .C (Dr) Professor of Commerce, Manonmaniam Sundaranar University, Tirunelveli, Tamilnadu. 16. THULASIMANI .S, Ph D Research Scholar, Bharathiar University, Coimbatore, Tamilnadu. 17. VENKAT RAJAM .CH., Research Scholar, Department of Commerce & Business Management, Kakatiya University, Warangal, Telangana State.

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CORPORATE SOCIAL PERFORMANCE, ETHICAL AND SOCIAL RESPONSIVENESS OF TECHNOLOGICAL INNOVATION - THE CASE OF MONSANTO´S CAPITAL REPUTATIONAL JOSÉ G. VARGAS- HERNÁNDEZ Introduction In recent decades, society's concern has focused on demographic matters primarily associated with strong population growth, mainly in developing countries; whose threat to natural resources and the environment in general, provide serious consequences on socioeconomic impacts not only in those developing economies, but also in other developed nations. The impacts of population growth have been problematic after market changes and the heavy losses in the production of agricultural fields, as a result of strong drought and frost problems. From the perspective that there is not sufficient access to nutritious foods that reduce the rate of malnutrition in the population who are at all stages of life, the problem has been classified as food insufficient and unsustainable. In this way, the implementation of public policies and new alternatives based on actions that favor attention deficiency problem in food production is a challenge in each of the economies taking care not mainly relying on imports of basic grains. So, before that problem, numerous studies suggest that genetic modified (GM) crops represent a viable option that can contribute to increased yields and agricultural production, without being necessary to increase the area under cultivation, forest rescuing the imminent logging and deforestation to expand agricultural land. The rescue alternative of ecosystem pointed to the investment and development of GM crops, and that agriculture biotechnology enables to obtain healthier foods with better flavor and reduced pesticide use, increased crop yields, better management of water and reduced greenhouse gas emissions and other benefits, which not only supports to farmers, but also benefits families and consumers in general. For this reason, companies like Monsanto are at the forefront of technology and pose to be found in the best position to contribute to the global challenges facing society today, generating enough food for the growing population which is increasingly every day in an effort to abate hunger and extreme poverty by developing sustainable agriculture. The purpose of this chapter is to analyze under the frameworks of corporate ethical business and corporate social responsibility, the relationship of corporate social performance and reputational capital as an ethical questioning of technological innovation. To achieve this purpose it is used the case of the firm Monsanto.

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Background Today, sustainable agriculture has been presented as the solution to the problems of food shortage facing most economies around the globe, so that companies like Monsanto, Bayer, Syngenta and DuPont Pioneer American, have expressed to be prepared to reduce poverty and ensure food security through processes such as genetic improvement. The seed business by itself, it is quite competitive, and unlike many others, the purchase of the input is performed annually as seasonal or peak period and depending on the good or bad experience in the harvest, which will determine the purchase of the same or another seed for the next season, ensuring competition and constant innovation of the company. While the leading biotechnology that has been at the forefront and the public focus has been Monsanto, it has been mainly in regard to such innovation and improvement of agricultural seeds. Because anti-biotechnology activist groups and unfair competitors or followers companies that have taken pains to make propaganda against, trying to prove that the success is due to anti-competitive behavior and further damaging the company's reputation. Reputational capital is a valuable tool that the company develops over time and can make decisions about which products to buy, where to invest and where to work. In this way, the strategic value of a reputation characterizes the company making it attractive or not and expanding their options not only for managers, but for the general public consumer. In the business environment, corporate reputation can be considered as an intangible asset and strategic organization capable of representing a proof of competitiveness of the firm. For this purpose, it was selected the firm Monsanto. Meanwhile, Kaplan & Norton (1996) suggest that the proper management of intangible assets may be favorable to business relationship with customers, ensuring the loyalty of existing ones and offering services which allow customers cleave segments and other market areas.

Problem Delimitation Thus, in an environment that historically technological contributions and achievements of Monsanto have represented a chronological sum of mistakes, the reputational capital of the firm is a problem to be analyzed. Because the bad reputation of the company, the innovations achieved not only generate uncertainty in the population, but a full assurance that their biotechnological contributions represent a danger to humanity that should be closely studied.

Justification In the context in which Monsanto is developing, it is in the best position to meet the demand for food that suggests a growing world population and fight hunger through the development of sustainable agriculture, not only supplying the agricultural sector with seeds, but products of biotechnology, agrochemical and technology in general.

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However, one of the main contributions of Monsanto and perhaps the most representative made lately, has been the production of GM foods. Against this production of GM foods, several international environmentalists’ organizations have struggled since its inception. The GM foods are the same ones that Greenpeace (2011) has defined as living with a technique artificially created by inserting a plant or animal genes of viruses, bacteria, plants, animals and even humans, in order to produce an insecticidal substance or give resistance to herbicides. This invention has been the trigger for society to turn against Monsanto's activities, arguing that the production of this type of seed varieties not only limits natural native varieties of the region, pollutes wildlife, reduce biodiversity and chemically contaminate soil and groundwater. Missouri´s firm through its actions and creations, historically has been involved or has been responsible for various adverse events: i)

In the beginning, Monsanto made strategic alliances with one of the most controversial groups in history: Monsanto who became one of Coca-Cola main suppliers, mainly saccharin and other sweeteners. ii) Participated in the production of the first nuclear bomb used during World War II, and then operated an American plant of nuclear in the early 80's. iii) The creation of the pesticide DDT in 1944. The substance was banned in countries like Hungary, Norway, Sweden and the U.S. itself. iv) The company Monsanto acted as a supplier of Agent Orange to the U.S. Army during the Vietnam War, substance which killed around 400,000 people, causing damages to around half a million babies in the following years. v) Creating the growth hormone "bovine somatotropin" (BST), used in countries like Brazil, United States and Mexico, whose use has been banned in the rest of the world to be linked with health problems, such as cancer. vi) The main use of aspartame causing cancer and diabetes. Monsanto through a vertical integration Strategy, founded in 1980 the company NutraSweet, building a monopoly of poisons no calorie sweeteners. vii) Reduction in seed variety. Using horizontal integration (buying organic seed companies) Monsanto over the years has been commissioned to market only exclusive products they produce. viii) Using genetic and toxic methods of bees on crops. ix) Creating herbicides "non-selective" as Roundup (the patent expired in 2000) whose main ingredient is Glyphosate that kills plants by inhibiting their ability to generate aromatic amino acids. Given these developments, Monsanto has acquired the title of the worst company in the world, so without making value judgments, such appointment is based on the market power that the company has, since despite this, its sales and global presence foster its growth and power.

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Assumption Despite the deniability strategy and conduct a carry on whitewash of responsible image, according to Delgado (2006), the more powerful the technology, the consequences can be profound. Then, the bad reputation of Monsanto creates uncertainty and mistrust in society in regard to innovations, assuming its actions are the cause of danger to people and the environment in general.

Theoretical Framework The connotation of the literature review arises regarding theoretical models, by which it is possible to understand the behavior of Monsanto in these 112 years, determined by the realization of important strategic alliances with other transnationals (TNCs), purchases and acquisitions of firms that have facilitated some processes execution and reduce its competition. Similarly, the theoretical conception of the various expansion strategies implemented by the leading producer of genetic modified organisms (GMOs) is identified by the link between reputation management and the ability to create value for the firm, understanding the nature of reputation as enterprise resource.

Strategic Alliances According to Hitt, Horkisson & Kim (1997), in business, formalizing a partnership is carried out in response to a particular strategy that might well be addressed with the implementation of another strategy. Thus, Tallman & Shenkar (1994) propose that an alliance can conceive how a managerial process and organizational issues arising from whether economic or not, and by means of a cost-benefit assessment of the process of this alliance. Incidentally, Das & Teng (1997) determined that proper management of the alliance is a necessary process, though not sufficient, for the success of the same, whose decision should be made based on formalization of the strategy to continue the business, since according Ariño & de la Torre (1998), these partnerships evolve while the company strategy does. Therefore, according to McKelvey (1997) and Alcázar & Martínez (2004), the evolution of a company that has strategic alliances with other companies, is designed simultaneously with the changing environment (Ariño & De la Torre, 1998). Thus, a match between the goal of the alliance and strategies of the companies involved is made based on the competitive environment, institutional and organizational in which they operate.

Vertical Integration Currently, companies face some problems that can lead to aggravated constraints which hinder the achievement of goals or objectives thereof, being necessary to resort to various strategies to obtain new advantages over the competition.

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According to Villarreal & Gomez (2009), integration is a strategy that allows increasing the benefits and profits of organizations by improving processes, adding value and increasing profitability, allowing better opportunities to stay in the industry. Business integration can occur vertically, one in which the firm attempts to control the successive stages of the value chain of the product, or by way of horizontal integration, one in which it fosters cooperation with competitors in the same stage of the value chain. According to Colangelo (1995), vertical integration produces higher yields than horizontal integration. However, Hill & Gareth (2005), state that horizontal integration increases the profitability as it tends to reduce costs. By contrast, vertical integration according to Mpoyi (2003), can determine the degree to which the company controls the production and distribution. Similarly, the sequence of activities is the process which provides value to the product, which is described by the principle of the value chain by Porter (1990).

Acquisitions Among the strategies used by firms to gain size and generate competitiveness, there are activities such as the purchase of a company by another, also known as acquisition, whose cause according Zozaya (2007), is mostly facing threats or seize market opportunities. According to Abellán (2004), the combination of interests of the various actors involved in the management of the firm can lead to be chosen by the strategy of a merger or acquisition. At company level, acquisitions often have significant impact on variables to determine the success and value of the firm, such as employment, stock price, market power, profits and/or profitability, growth rate, productivity and technological performance to name a few.

Intangible Assets In business management, intangible assets were introduced in the late 90's by Richard Hall. Intangible assets can be understood as business factors represented by an idea or knowledge that can drive the organization into positions where it is possible to achieve competitive advantages. In this respect, contributions like Itami (1991) consider organizational intangibles by way of invisible assets, the relevant factors such as technology, brand image, consumer confidence, organizational culture, and management capabilities. Tissen, Andriessen & Deprez (2000), conceived of intangible assets through business skills that allow them to generate sustainable competitive advantages, arguing that the proper management of these skills can create economic value for the firm. While Lev (2001), refers to intangible assets as assets arising from knowledge, Kaplan & Norton (2004), understood as determining factors for achieving the strategic objectives set by the companies.

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While, according to the different views of these assets, it is difficult to define a single approach, it can be possible to steer it in three main groups common to any corporate entrepreneurship: 1) Human capital includes skills, attitudes and aptitudes of firm personnel. 2) Organizational capital includes items related intangible knowledge held by the company from its daily management. 3) Relational capital includes the status of relations of the firm with its stakeholders. Based on the diversity of ideas described above, from positions such as accounting, strategic, knowledge management, information technology and human resources, it is noteworthy that all relate to the concept of intangible assets, knowledge and intellectual capital.

Intellectual Capital In terms of strategic management, a pioneer in promoting the concept of intellectual capital was Stewart (1991), who referred to this concept considering the sum of elements of the human factor in the company, able to provide a competitive advantage market. In this regard, Edvinsson & Malone (1997) refer to intellectual capital by way of knowledge that can be transformed into inventions, technologies, processes and software, providing added value to the company. Meanwhile, Hand & Lev (2001) refer to this concept, by its origin from three main areas, innovation, organizational practices and human talent. Thus, according to various theoretical approaches, it can be identified that the terms of intangible assets and intellectual capital are often used interchangeably. However, it is prudent to mention that the existence of intangible resources not necessarily refers to the intellectual capital of the firm, since it is usually considered only the culmination of the management process, determining even the generation or destruction of firm value.

Generating Business Value According to Mandel, Hamm & Farrell (2006), over 50% of the market value of the companies in the Fortune ranking of 500 is made up of intangible assets. Therefore, most of the wealth and growth of the developed economies are due to intangible asset management. In the field of business, to determine the value of a firm is one of the great challenges, this due to the nature of the resources and liabilities intangible, difficult to quantify objectively in the financial statements. Barney (1991) considers the resource-based view and the business capabilities of intangible resources of the firm, which can create competitive advantages and thus create value for the company, provided that: 1) The resource provides financial value to the organization, 2) Only some organizations have, that is, there are few,

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3) The resource is inimitable, and 4) There are no substitutes on the market. Thus, it is possible to attribute a monetary value to the competitive advantages of the firm, since this process represents a quantifiable measure of the value recognized by investors.

Business Reputation In the organizational sense or at firm level, Fombrun (1996) mentions that reputation is an intangible asset of companies that represents the identity and transmits signature hallmarks by which succeeds in changing behavior of their stakeholders. Therefore, the degree of perception of the name of the firm, having customers, investors, suppliers, creditors, employees and the general public are called organizational reputation. Thus, the institutional reputation refers to the way in which external agents conceive of corporate reputation, i.e. how they see, hear and opinions regarding the target company, either locally or internationally. To analyze this concept of institutional reputation, it has been chosen the transnational corporation Monsanto. According to Villafañe (2004), it is possible to identify three organizational dimensions around the concept of reputation: 1) Axiological dimension: Within which it incorporates the cultural values of the organization, corresponding for the ethical question about the relationship with third parties and being a socially responsible company, 2) Corporate dimension of service: In which are included commitments arising in the course of time in relation to the key players, and 3) Management corporate dimension: Corresponding to the proactive attitude. According to Costa (2004), reputation arises from the history of the company, on the credibility of its organizational objective and the means to achieve this goal by making use of resources such as corporate culture, based on the recognition that the company makes of its identity.

Factors Influencing Development of Business Reputation While organizational reputation represents a certain strategic value to the company, the difficulty of it lies in measuring the impact it creates in every organization. Hillenbrand & Money (2007) raise some reputational models about the analysis of such an intangible asset, emphasizing the theoretical and conceptual foundations for the various interest groups, whose value appreciates or it is lost over time. Fombrun (2001) proposes five basic principles to generate organizational prestige: 1) The principle of differentiation: Positioning in the minds of the stakeholders. 2) The principle of concentration. The clear focus of the actions and communications on the subject of interest from trading.

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3) Principle of consistency: The integration and coordination of organizational initiatives, to involve stakeholders. 4) Identity principle: Carry out a performance, public or private, in accordance with the principles and values that govern the existence of the organization. 5) Principle of transparency. Maintaining strong levels of communication with stakeholders, and the people in general over the daily management of the organization. Meanwhile, Villafañe (2004) refers to the need for hand social interests and business on maximizing profits for reinvestment. Business viability depends on factors such as ethics and sustainability. Corporate reputation then is measured by: 1) Financial economic results 2) Quality of commercial offer 3) Corporate culture and work quality 4) Ethics and corporate responsibility 5) Innovation 6) Global dimension and international presence While the principles of reputational assets is about building conceptual parameters that allow the perception to be forwarded to the stakeholders, factors refer to specific quantifications that determine the levels of perceived reputational to keep stakeholders.

Technological Innovation According to Moreno (1985), innovation is understood from the definition of technology. It is described from the use of knowledge to produce goods or provide services. However, in the theory of innovation there are two main approaches conceived. One is tracked to the technical question in which tangible objects encompass a humanistic approach that relates to the transformation of objects for the benefit of mankind, for meeting the needs of the population, as well as greater control over the environment. According to Escorsa (2003), technological innovation focuses primarily toward obtaining results, mainly characterized by: 1) Having a novelty character to satisfy the needs of the population. 2) Include the introduction of a technical change in products and services. 3) Provide a socially visible utility. Similarly, according to Pérez (2005), technological innovation can be seen as a process that starts from an idea, based on the identification of a need for the development of a product or service commercially accepted.

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In an innovative approach to processes, the strategy of "Technology Brokering" and building social capital, whose main exponent is Hargadon (2003), argues that technological innovation is related to the social metaphor of Burt (2000), who proposes that the social structure is a type of capital that creates a competitive advantage to achieve the goals set by groups or individuals. However, the change in scientific development and application of techniques for the generation of technologies with commercial validity, involves a series of steps that interrelate with other activities incurring in vanishing points that encourage interconnections.

Corporate Ethical and Social Responsiveness The globalization economic processes have an enormous impact on corporate ethical conduct and social responsibility of some issues. Global corporations operating in highly competitive and changing markets, facing turbulent domestic environments with complex social and environmental issues requires a strong corporate culture to sustain an ethical business behavior and social responsibilities under the pressure of public scrutiny. According to Van Luijk (1993) the corporation is seen as a party which does have the (social) responsibility to voluntarily contribute to the achievement of a reasonable level of prosperity in society. However, increasing globalization and a growing mistrust has brought some corporate ethical business scandals. Business ethics is related with the firm´s internal values that shape corporate culture as a framework to sustain decisions regarding social responsibility concerning the external environment. Corporations may adhere to voluntary and market-based mechanisms of corporate social responsibility are instruments for encouraging best practice behaviors and good corporate citizenship. Thus, firms may define and determine themselves the standards of ethical behavior and monitor for compliance. An ethical corporate decision is moral and legal to all the stakeholder interests including the global community. Corporations adopt codes of ethics to strength ethical safeguards and develop policies on corporate social responsibility (Hunt and Hansen, 2007). Principles of corporate ethics and social responsibility develop corporate culture to regulate internal behaviors and external relationships. Corporate culture is a major force that influences business ethical values and its impact on other issues such as corporate leadership and decisions on caring for people and the environment, etc. (Walker, June 10, 2007). Corporate ethical decisions are made within the context of firm’s relationships with other stakeholders and interactions with the environment. Ethical decisions can be made guided by a normative ethics (Jones, 1991). Ethical business decisions and practices reflect some patterns of corporate culture in terms of the values, norms, behaviors, attitudes, beliefs, etc (Donaldson and Dunfee, Summer 1999). Corporate ethical decision behavior occurs when the firm follows the standard of fairness encourage moral development and treating others properly when dealing with

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people (Garaventa, December 1994; Miceli and Near, 1994). Corporate unethical decision behavior occurs when the corporation gains at the expense of the whole society or other stakeholders. However, when agents are making ethical decisions to resolve some issues, the values of moral agents may enter into conflict, creating an ethical dilemma. Corporate social responsibility is the obligation of Corporations to make decisions and take actions to contribute to both the firm interests and the welfare of society (Szwajkowski, 1986; Davis, Frederick, and Blostrom, 1979). Social responsibility is the obligation to make decisions and take actions that contribute to the social welfare and interests (Walker, June 10, 2007). Corporate social responsibility has been defined as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (The World Business Council for Sustainable Development, 2000). Corporate social responsibility reflects the firm relationships to its internal and external environment, meaning to be a good corporate citizen. The internal and external environments consist of various sectors and stakeholders. The corporate social responsibility concept implies the reintegration of firms into a social contract that allows the stockholders to make profits while contributing to the well-being of the stakeholders and the society as a whole. Corporate social responsibility focus on long-term sustainability of business, environmental development and distribution of well-being by attending to stakeholder priorities and acknowledging the debt owed to communities. Corporate social responsibility is more qualitative approach than the business practices of traditional corporate philanthropy and ethical business. The relationship between corporate ethical and social responsiveness to financial performance is highly contestable, although research a positive relationship. Researchers have reported a link between corporate social responsibility (CSR), and financial performance of the firms (Garone, 1999; Roman, 1999; Stanwick, 1998; Waddock and Graves, 1997). Reputational capital is an emerging business perspective on corporate social responsibility for sustaining markets by creating confidence with all the key stakeholders.

Corporate Social Performance The transformation of Monsanto from a chemical company into a leading competitor as an arrogant biotechnology firm, has experienced critical relationships, protest and controversy from various stakeholders (O’Sullivan, October 2006; Wheeler, Colbert, and Freeman, Spring 2003; Post, Preston, and Sachs, Fall 2002). Monsanto styles itself as an agricultural firm that applies innovation and technology to help farmers grow yield and produce healthier foods, better animal feeds and reduce the impact on the environment. Monsanto is the world leader in GMOs depending upon the natural environment which affects by its business activities.

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Monsanto has an aggressive market oriented strategy supported by political lobbying and litigation and achieving more power than some state governments, leading to Chomsky (2010, 2011) to argue that according to the nature of this corporation it has more rights than people and therefor it has no social responsibility. Monsanto has enough power to influence governments on environment and infrastructure putting biodiversity at risk and danger. However, Monsanto is focused on the market with outcome-driven performance measures (Thompson, 2001, p.195) where money is more important than ethics. The highest priority of Monsanto is Monsanto. Monsanto faces various ethical dilemmas. Corporations have adopted code of ethics to guide the decision making when facing ethical dilemmas. Ethical dilemmas entail conflicting values between the needs of the corporation and the whole society such as the case of Monsanto. It was too late when Monsanto announced that would not market the strain Roundup ready to avoid the consumer’s resistance. This announcement, unfortunately did not remove the ethical dilemma. There is an ethical dilemma since farmers become dependent from Monsanto´s technology when requiring purchasing seeds for every planting. Furthermore, GM seeds contaminate natural seeds causing natural plants to disappear. Scientific reports sustain the spreading of super weeds that are immune to Monsanto’s pesticides raising concerns on negative health and environmental impacts. Besides, Monsanto is involved in high profile lawsuits against farmers for claims of seed patent violations. On the issue of social justice, Monsanto has a record of alleged bullying and prosecuting for patent infringement, stealing intellectual property and for saving seeds. Monsanto faces ethical dilemmas involved in producing and marketing biotechnological products that have been proven to have health and environmental side effects. Other ethical dilemma is the patent protection of seeds considered to be proprietary goods introducing genes to force new purchases. Monsanto has been accused of hiding illegal pollution and bribing national governments. On the issue of social justice, Monsanto has a record of alleged bullying and prosecuting for patent infringement, stealing intellectual property and for saving seeds. Besides, Monsanto has a monopoly in some bio-technological products profiting at the expenses of human health, biodiversity and the environment. The reputation of Monsanto has been damaged by the strategic misalignment of the firm engaged in a consultative process with NGOs on marketing its biotechnological products while seeking approval to introduce the controversial genetic modified seeds in developing countries (Kluger, 1999). Monsanto treats corporate social responsibility as a public relations program arising out of some projects and partnerships. Framed on the corporate social responsibility (CSR) perspective, Glover (2007) argues that the Monsanto Smallholder Programme (SHP) represented the values and principles of sustainability. The Monsanto Smallholder Programme could be a good intention and vision linked to the concept of

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sustainability and integrated into its business strategy. The purpose of the programme was to support agriculture in less developed countries. Monsanto conceptualized this programme as the transfer, adoption and commercialization of modern farming technology with a contribution for market and socioeconomic development. The role of the farmers was to consume the biotechnological products. The programme was based on how Monsanto might develop and deliver technologies to alleviate world hunger. Monsanto claimed that it was involved in smallholder projects in Mexico, India, Indonesis, Kenya and South Africa. The market development and competitiveness strategy of Monsanto as well as Shapiro’s vision of sustainability ran into problems due to the campaigns supported by anti-GM activists. Also, the Programme was undermined by competing financial and commercial pressures to achieve higher returns on investments in GM biotechnology. It is clear that Monsanto had exploited the Programme more as a public relations instrument than a social responsibility commitment. Grameen and CARE organizations cancelled their collaboration with Monsanto on community development projects. Monsanto came under pressure in 1999 when the share price fall down due to the protests about its genetically modified products. In sum, the introduction of GM seeds by Monsanto had a negative impact on brand reputation, stockholder and reputational values caused by perceptions of behaving socially irresponsible. The New Monsanto Pledge adopted by Monsanto was the response to this crisis portraying the provision of technology for sustainable agriculture and food security. According to this Pledge, Monsanto is committed to the value of integrity to its multiple stakeholder interest with whom it builds business relationships. The Monsanto Pledge lists integrity as the foundation of its business ethics but pushes for excessive use of its products. Regarding its pledge for dialogue, Monsanto refuses engaging in thoughtful dialogue and acknowledge responsibility for various biological and environmental disasters. On the pledge for transparency, Monsanto is determined to defend safety and benefits of GM crops and in doing so have threatened states and defeating laws, regulations and measures for product transparency. The benefits pledge restates Monsanto’s raison d’être to produce and sell biotechnology inputs. In line with the pledge of sharing, Monsanto is endorsing the marketing activities to sell its products expanding to the developing markets and sharing its GM crops whether the farmers like it or not. Monsanto also shares employees with governments. Despite the pledge to respect, Monsanto has a record of utter disrespect for an array of issues such as human health and safety. Monsanto’s pledge, “Growth for a Better World,” makes for hypocrisy and hypo-crazy reading: “We want to make the world a better place for future generations. As an agricultural company, Monsanto can do this best by providing value through the products

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and systems we offer to farmers.
With the growth of modern agricultural practices and crops that generate ever-increasing yields, we are helping farmers around the world to create a better future for human beings, the environment, and local economies.” In congruency with its own CSR report “United in growth” the definition of sustainability relies on to set the parameters of its intentions. However, a more transparent report may clarify its definition of sustainability while mentioning how its engagements with stakeholders are hurt by its control over the seed market. Corporate governance means for Monsanto “to learn from the experiences of others and encourage new ideas in corporate social responsibility." Stakeholders and social activists pressure Monsanto to honor ethical, social and environmental responsibilities considered as important as economic and legal issues. Business ethics encompasses the subjective views concerning the morality of business (Thompson, 2001, p.12). Monsanto has published various reports on the results of implementing the Pledge to highlight the benefits of GM biotechnology influencing the small farmers on the appropriateness of transgenic crops. The Monsanto Smallholder Programme and the Monsanto Pledge are two important instruments to manage the crisis and to respond to social activists and consumers against GM technology, although there is self interest in developing and exploiting new markets, as it is clearly stated in its sharing pledge. To safeguard its corporate integrity, it is highly recommended that Monsanto proceeds to an analysis and evaluation of the main factors, including corporation efforts, procedures, rules, measures and stakeholders expectations. According to the analysis of O'Brien (2001) Monsanto could implement an aligned strategy focused on a socially and human rights anchored set of bio-engineering competences in developing country markets to avoid the resistance of social activists. Monsanto should avoid the arrogance and admit that the market need to be more regulated and controlled on important issues such as environmental standards and practices, corporate accounting. It is an imperative for Monsanto to develop a long-term ethicallydriven program of corporate social responsibility aimed to obtained social identity and reputation. Monsanto needs to transform itself, and set out on a transition towards the implementation a more aligned sustainable strategy to generate revenue.

Contextual Framework While almost since the origin of mankind, according to Delgado (2006), biology through a series of processes and mechanisms of trial and error has been used as a tool to transform nature by various techniques. With respect to agricultural development, the contribution of Mendel's laws set the tone for the selection process improvement and subsequently crosslinking "manual" between compatible species bringing hybridization (Bisang, Campi, & Cesa, 2009).

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According Solbrig (2004), invention and idea of carrying out the modification of the characteristics of living organisms for specific purposes of the interest is shown and technological development for thousands of years. Since the application of biotechnology in the production focuses on natural resources, it is important to highlight the significant competition in innovation and scientific complexity that generates about the universe framing the technological development and taking shape in a small number of companies that generate these advances, such Monsanto is the case. In that perspective, though, the transnational of Missouri was founded in 1901, its expansion began in 1928 through the acquisition of companies in the chemical and textile industry. It was until 1981 when it established as a focus of biotechnology research and in 2000 it achieved consolidation dedicated exclusively to the agrochemical industry. Today, according to Pérez & Medina (2008), Monsanto has over 14,000 employees and has presence in countries on five continents, including: Argentina, Germany, Australia, Austria, Bangladesh, Belgium, Brazil, Bulgaria, Canada, Chile, China, Colombia, Croatia, Czech Republic, Denmark, Ecuador, France, Greece, Guatemala, Honduras, Hungary, India, Indonesia, Ireland, Italy, Japan, Jordan, Kenya, Korea, Malawi, Malaysia, Mexico, Netherlands, new Zealand, Nicaragua, Pakistan, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Russia, Senegal, Singapore, Slovakia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, Uganda, Ukraine, United Kingdom , United States, Venezuela, Vietnam and Zimbabwe. As in most of those countries where environmental advocacy groups are leading protests and demonstrations by countless violations on genetic manipulation of natural products (transgenic), loss of biodiversity, market monopoly, violation of food sovereignty movement and displacement of peoples and land concentration, among others, are leading campaigns on the history and impact of the company.

Method In the present study, it was conducted a review of novel electronic materials and critical of the current situation of the company, supported by a qualitative analysis of the main theoretical approaches that explain the behavior and strategies taken by Monsanto.

Analysis of Results The global expansion strategy has allowed Monsanto to seize food problems of the population, taking into account their strengths and favorable conditions obtained from experience by acquiring other companies and integrating both vertically and horizontally organizations on five continents, transforming key processes and providing technology. The growth and expansion strategy that Monsanto has been characterized by allying with dubious companies like Coca-Cola than in Asian countries is called "toxic-tail", accused of selling harmful products that cause cancer and poison people, water and earth. The 14   

NutraSweet Company is in the segment of carbonated beverages that produce carcinogens. Calgene, Inc., a leader in plant biotechnology, and Dekalb Genetics Corp., the second largest producer of seed corn "improved" in the United States, or by dubious good intentions by buying business-oriented organic seed production. The human health problems and environmental pollution arising from the errors in products and processes have evolved in reliability problems to the company, expressed through a series of contingencies that discuss the positioning and consolidation of quality in biotech innovations Monsanto. While social controversies and conflicts of value arising on the development of the company are the result of the interests of various groups: Scientists and technologists, entrepreneurs and investors, farmers, politicians, and citizens in general, have led to important and significant ethical judgments and mobilizations against transnational, based mainly on how to operate the company. The main accusations against transnational include human rights violations and ancestral rights of indigenous peoples, compulsive evictions, unlawful coercion, murder, looting of commons, destruction of the territories where they operate, destruction of native forest, effects on the health of populations, impacts on local sovereignty, national and popular, violation of labor rights, concentration, privatization and foreign ownership of land. According to Proceso de Justicia Popular (2012), as demonstrations against such activities, the multinational has had to face a number of complaints and prosecutions carried out around the world, such as: A. The complaint filed by the association Eaux et Rivières de Bretagne in 2001 by announcing that its Roundup product was efficient and had no risks for the environment. B. The complaint by the residents of Anniston (Alabama) in 2002, for polluting the water sources of the village with the chemical PBC. C. A lawsuit in 2004 for 350 million dollars for the use of aspartame in their sweeteners despite its toxic effect to the brain. D. A complaint in 2004 in Andhra Pradesh by the use of infants in "horrendous conditions" in cottonseed fields. As a protest, in order to manifest and protest against the company, there have been several demonstrations and popular resistances. A. The campaign in Mexico: "Without corn there is no country" (“Sin Maíz no hay País") firmly rejects GM maize, and advocates for the defense of the Mexican countryside, protection of Mexican corn, food sovereignty and the reactivation of the Mexican countryside. B. The campaign led by the Peasant Association Scimitar River Valley (Asociación Campesina del Valle del Río Cimitarra). "Monsanto Mata" in Colombia.

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C. The Campaign in Latin America, "Latin American Network for GMO-Free" ("Red por una América Latina Libre de Transgénicos"), to declare the Andean region, the center of origin of potato, transgenic potato free. D. The network of civil society organizations and people's movements lead the "Campaign for a GMO-Free Brazil" ("Campaña por un Brasil Libre de Transgénicos"). E. Global Protest against Monsanto on behalf of more than 200,000 people in 40 countries on May 25, 2013 by the indignation of the inaction of the governments to the detrimental effect with GM products and their production without any impediment. By way of response, Monsanto has directed its strategy faking transparency through the "green washing" program, whereby attempts to convince the public that favor the preservation of the environment, and convincing politicians that their activities are popular support.

Conclusions and Recommendations Due to the larger social interest in reducing risks to the environment and human health, the relationship between society and techno-scientific power further conflict, has become controversial. The controversies generated around innovations in the development field denote that the industrial model characterized by ignorance and little or no participation of the society is no longer adequate. Only the evidence of damage already caused to health or the environment is a cause justifiable for the modification or withdrawal of such technological inventions. Given the technological development, issues such as prevention and accountability represent moral obligations by Global Bioethics, so that genetic modification seen as a cultural intervention must be assessed in context. Despite laundering strategy that manages Monsanto responsible image, the bad reputation that characterizes it, along with the increasingly encourages rejection information available to the company and the products it develops and produces.

Social, Managerial, Policy and Research Implications The findings of this analysis have various social, managerial and policy research implication. Large corporations should consider that their research, innovation, production and marketing activities must contribute to the well-being of society as a whole and to satisfy the different interests of stakeholders while procuring the expected return on investment for the stockholders. Corporations should consider in their long-term strategic planning the formulation and implementation of ethical and social responsiveness strategies and activities.

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On the managerial implications, managers should be considered as moral agents when making ethical decisions, implementing strategies and taking actions, while maintain a good balance between and among the different interests of stakeholders and stockholders. Regarding policy implications, it can be concluded out of this analysis that public servers, bureaucrats, politicians and legislators of local, state and national governments, and public agencies have to be aware of Corporation´s innovation, production and marketing no sustainable practices damaging the human health and environmental sustainability. But being aware is the first step. They should formulate policies to regulate these practices and protect natural resources.

References Abellán, D. (2004), Mergers and Acquisitions: a survey of motivations. Documento de trabajo 0401. Universidad Complutense de Madrid. Alcázar, F. M. & Martínez F. S. (2004), El proceso de alianzas estratégicas desde el enfoque de la teoría evolutiva de alianzas. Investigaciones Europeas de Dirección y Economía de la Empresa. Universidad de Cádiz. Vol. 10(3), pp.189-207. Ariño, A. & De la Torre, l. (1998). Learning from Failure: Towards an Evolutionary Model of Collaborative Ventures. Organization Science, Vol. 9, 306-325. Barney, J. B. (1991). Types of Competition and the Theory of Strategy: Toward an Integrative Framework. Academy of Management Review, Vol.11(4), pp. 791-800. Bisang, R., Campi, M., Cesa, V. (2009). Biotecnología y desarrollo. Comisión Económica para América Latina y el Caribe (CEPAL). Naciones Unidas, Santiago de Chile. Kaplan, R. S., & Norton, D. P. (2004). Measuring the Strategic Readiness of Intangible Assets. Harvard Business Review, Vol. 82(2), pp. 52-63. Kluger, J. (1999). The Suicide Seeds, Time Magazine, February 1, 1999, pp. 44-45. Lev, B. (2001). Intangibles: Management, Measurement, and Reporting. The Brookings Institution. Washington D.C. (USA). Mandel, M.; Hamm, S. & Farrell, C. J. (2006). Why The Economy is a lot stronger than you think. Business Week, ProQuest, No. febrero 13 2006, pp. 62-70. Mckelvey, W. (1997). Quasi-natural Organization Science. Organization Science, vol. 8(4), pp. 352-380. Wheeler, B. Colbert, and R. E. Freeman (Spring 2003). Focusing on Value: Reconciling Corporate Social Responsibility, Sustainability, and a Stakeholder Approach in a Networked World, Journal of General Management 28, no. 3 (Spring 2003). 1–28. World Business Council for Sustainable Development. (2000). Corporate social responsibility. www.wbcsd-org.ae.psiweb.com/publications/prmedia, pp.1-2. Zozaya, G. N. (2007). Las fusiones y adquisiciones como fórmula de crecimiento empresarial. Ministerio de Industria, Turismo y Comercio. Dirección General de Política de la PYME. Madrid.

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CORPORATE SOCIAL RESPONSIBILITY IN INDIA: A STUDY IN THE LIGHT OF THE COMPANIES ACT, 2013 SWAPAN KUMAR ROY AND SUHAS ROY Introduction Corporate Social Responsibility is a much talked about subject today. The concept of CSR is not a new one. It is almost as old as civilization. Initially, charity and philanthropy were the main drivers of corporate social responsibility. It is built on the Gandhian Principle of “Trusteeship Concept” which stated that the industry leaders had to manage their wealth so as to benefit the common man. Globally, the concept of CSR has encompassed all related concepts such as triple bottom line, corporate citizenship, philanthropy, shared value, corporate sustainability and business responsibility. It plays a vital role for the sustainable development of all stakeholders viz., employees, customers and many more. With the passage of time, it has got its legal status and has become an integral part of the corporate strategy. The Companies Act, 2013 has introduced several provisions that would change the way of doing business by the Indian corporate and one such provision is spending on CSR activities. The CSR activities were largely done voluntarily by the leading companies since long time, but now it has included in law.

Objectives of the Study The objectives of the study are:  To discuss about the conceptual aspect of Corporate Social Responsibility (CSR);  To study the provisions of the Companies Act, 2013 in the context of Corporate Social Responsibility;  To throw light on the activities of CSR performed by different Indian Companies;  To make concluding remarks.

Methodology The entire gamut of the study has been based on the secondary sources of data. Different books, journals, annual reports of different companies, newspapers and relevant websites have been consulted in order to make the study an effective one.

What is Corporate Social Responsibility (CSR)? Corporate Social Responsibility (CSR) is interchangeably used as Corporate Conscience, Corporate Citizenship, Social Performance or Sustainable Responsible Business/ Responsible Business. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowen’s “Social Responsibilities of the Business”. However, the term CSR gained popularity in 1990s when the German Betapham, a generic pharmaceutical company decided to implement CSR. Corporate social responsibility means the obligation, which a corporation owes to the society. World Bank Group defines CSR as “It is the commitment of businesses to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their lives in ways that are good for

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business and for development”. According to World Business Council for Sustainable Development, Corporate Social Responsibility is - “It is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. The European Commission defines Corporate Social Responsibility as “The responsibility of enterprises for their impacts on society and outlines what an enterprise should do to meet that responsibility”. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line-Approach”). Triple bottom line (TBL) incorporates the notion of sustainability into business decisions, coined by John Elkington in 1994. It is an accounting framework with 3 dimensions: social, environmental and financial. The TBL dimensions are also commonly called the 3 Ps: people, planet and profit and are referred to as the “three pillars of sustainability”. CSR is the process of assessing an organization’s impact on society and evaluating their responsibilities. CSR begins with an assessment of a business and their customers, suppliers, environment, communities and employees.

Why CSR? CSR is getting importance because of the following reasons:  It can act as a driver for the development of new markets and create real opportunities for growth.  It strengthens relationships with customers, suppliers and networks.  It enables continuous improvement and encourages innovation.  It enhances ability to manage stakeholder expectations.  It encourages more social and environmental responsibility from the corporate sector at a time when the consumer confidence and the levels of trust in business is getting damaged.  It can enhance brand image and reputation and generate ability to attract and retain employees.  It can provide access to investment and funding opportunities.  It can differentiate yourself from your competitors.  It generates positive publicity and media opportunities due to media interest in ethical business activities.

CSR and the Companies Act, 2013: Some Relevant Points A. Background: The Companies Act, 2013 was enacted on 29th August 2013. After several deliberations, the Companies Bill, 2011 was approved by the Lok Sabha on 1812-2012 as Companies Bill, 2012. The Bill was then considered and approved by the Rajya Sabha on 08-08-2013 and has received the President’s assent on 29-8-2013. On publication in the Gazette of India on 30-8-2013, the Bill became the Companies Act, 2013 to replace the nearly 60-year-old Companies Act, 1956. The Companies Act, 2013 has 470 sections. The entire Act has been divided in 29 chapters with 7 schedules. The section 135 of the new Companies Act, 2013 deals with the Corporate Social

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Responsibility (CSR). In order to encourage more entities to participate in the process of development of the society through CSR, the Government of India has notified the rules for CSR spending u/s 135 of the New Companies Act 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014 effective from 1st April 2014. India became the first country to mandate spend on CSR activities through a statutory provision. B. Eligibility Criteria: Every company having net worth of Rs.500 crore or more, or turnover of Rs.1000 crore or more or a net profit of Rs.5 crore or more during any financial year will have to comply with the CSR provisions as laid down under the Act. C. Composition of CSR Committee: Every qualifying company shall constitute a Corporate Social Responsibility Committee of the Board consisting of 3 or more directors, out of which at least 1 director shall be an independent director. The Board’s report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee. D. Mandate of Corporate Social Responsibility Committee:  The CSR Committee shall formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII.  It shall recommend the amount of expenditure to be incurred on the activities as specified in Schedule VII and  It shall monitor the CSR Policy of the company from time to time. E. Responsibility of the Board: The Board of every company shall:  After taking into account the recommendations made by the CSR Committee, approve the CSR Policy for the company and disclose contents of such policy in its report and also place it on the company’s website, if any, in such manner as may be prescribed; and  Ensure that the activities as are included in CSR Policy of the company are undertaken by the company.  Ensure that the company spends, in every financial year, at least 2% of the average net profits of the company made during the 3 immediately preceding financial years on specified CSR activities. Provided that the company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for CSR activities. Provided further that if the company fails to spend such amount, the Board shall, in its report made under clause (0) of sub -section (3) of section 134, specify the reasons for not spending the amount. “Average net profit” shall be calculated in accordance with the provisions of section 198 of the Companies Act, 2013.

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F. Activities which may be introduced by companies in their CSR Policies(Schedule-VII):  Eradicating extreme hunger and poverty;  Promotion of education;  Promoting gender equality and empowering women;  Reducing child mortality and improving maternal health;  Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases;  Ensuring environmental sustainability;  Employment enhancing vocational skills;  Social business projects;  Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the SCs, the STs, other backward classes, minorities and women; and  Such other matters as may be prescribed.

Indian Companies and Corporate Social Responsibility 

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Here are some glimpses of activities of some Indian companies with regard to CSR: TATA: TATA group is considered to be a pioneer in the area of CSR and has played an active role in nation-building and socio-economic development since the early 1990s. From its inception, the TATA group has taken up a number of initiatives for the development of the society. Programmes of TATA Steel Rural Development Society (TSRDS) cover issues like education, irrigation, afforestation, adult literacy, vocational training, handicrafts and rehabilitation of the handicapped persons. The Community Development and Social Welfare Department (CDSW) at TATA steel carries out medical and health programmes, blood donation drives and drug de-addiction etc. Steel Authority of India (SAIL): SAIL was founded with well-articulated socioeconomic objectives towards the people of India - employees, customers, suppliers and community. It has taken successful actions in the field of environment conservation, health and medical care, education, women upliftment, providing drinking water and ancillary development. Ashok Leyland: The Company operates a Fun Bus in Chennai and New Delhi. This bus, equipped with a hydraulic lift, takes differently abled children and those from orphanages and corporation primary schools on a day’s picnic. The Company also runs AIDS awareness and prevention programmes in its Hosur factories for about 3.5 lakh drivers. Bharat Petroleum Corporation: Its rain water harvesting project Boond, in association with the Oil Industries Development Board, selects draught-stricken villages to turn them from ‘water-scarce to water-positive’. Some of BPCL’s other social programmes include adoption of villages, prevention and care for HIV/AIDS and rural health care.

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Indian Oil Corporation: It runs the Indian Oil Foundation (IOF), a non-profit trust, which works for the preservation and promotion of the country’s heritage. IOCL also offers 150 sports scholarships every year to promising younger stars. Oil & Natural Gas Corporation: It offers community-based health care services in rural areas through 30 Mobile Medicare Units (MMUs). The ONGC-Eastern Swamp Deer Conservation Project works to protect the rare species of Eastern Swamp Deer at the Kaziranga National Park in Assam. ONGC also supports education and women empowerment. Reliance Industries Ltd: It launched a countrywide initiative known as ‘Project District’. It is meant for restoring/bringing back the eye sights of visually challenged Indians from the economically weaker sections of the society. Birla: The Birla Groups of companies are also among the pioneers in the field of CSR in India. As a part of the Aditya Vikram Birla Group’s Social Reach, the Birla group runs many hospitals, adult education and schools all over India. This group rehabilitates handicapped persons. It also provides vocational training and has adopted several villages under its Village Infrastructure Development Programme. Mahindra & Mahindra: Nanhi Kali, a programme run by the KC Mahindra Education trust, supports education of the underprivileged girls. The trust has awarded grants and scholarships to the students. In vocational training, the Mahindra Pride School provides livelihood training to youth from socially and economically disadvantaged communities. M & M also works for causes related to environment, health care, sports and culture. ACC: ACC are setting up schools, health centres, agro-based industries and improving the quality of rural life. BHEL: It is actively involved in the welfare of the surrounding communities. It is also providing drinking water facilities, construction of roads and culverts, provision of health facilities, educational facilities etc. NTPC: NTPC has established a trust to work for the cause of the physically challenged people.

Concluding Remarks CSR is a part and parcel of the corporate strategy. The concept of CSR has been gaining importance with the passage of time. Needless to mention that many leading companies are involved in the activities of CSR and trying to contribute to sustainable development. The compliance of the activities as specified in VII Schedule of the New Companies Act by the qualifying companies will yield revolutionary changes in the society in particular and the country at large. There will have the transparency and accountability while performing CSR activities. Good CSR practices can only bring in greater benefits in the form of enhancing corporate reputation, attracting and retaining employees.

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References Pandab, S. K. (2013), Law Point Publications, Companies Act, 2013, Indian Journal of Research, Vol-1, Issue-9, September, 2012 Ashwani Singla and Prema Sagar (2004). Trust and Corporate Social responsibility: Lessons from India. Journal of Communication Management, Vol. 8 Iss: 3, pp.282- 290. Balasubramanian, N.K, (2003). CSR as an Instrument of Global Competitiveness,IIMB Management Review, Dec, pp. 61-7 Companies Act, 2013 – Challenges and Opportunities for Corporate Growth, Global Publications – 2014. The Chartered Accountant, Vol-59, No-6, December, 2010 www.forbesindia.com www.business-standard.com www.csr-weltweit.de www.dnaindia.com www.unido.org www.social-economy-training.eu www.gtw3.grantthornton.in

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ROLE OF GOVERNMENT AND NON-GOVERNMENTAL ORGANIZATIONS IN CORPORATE SOCIAL RESPONSIBILITY R. MUBEEN Introduction Corporate responsibility involves a commitment by a company to manage its roles in society - as producer, employer, marketer, customer and citizen - in a responsible and sustainable manner. That commitment can include a set of voluntary principles - over and above applicable legal requirements - that seek to ensure that the company has a positive impact on the societies in which it operates. Strategies related to production and marketing of goods and services, business ethics, environmental practices, treatment of employees, approach to human rights and community engagement are all inherent to a comprehensive corporate responsibility approach. As a member of society, business creates value for shareholders, employees, customers and society at large. Private enterprise is unmatched in its ability to assemble people, capital and innovation to create meaningful jobs and profitably produce goods and services that meet the needs and requirements of the world's people. Companies are an integral part of society and are committed to operating in a responsible and sustainable manner. A wide variety of corporate initiatives, all of which have benefited from a process of innovation and continuous improvement, have been developed to put that commitment into practice. As additional initiatives are developed by both public and private institutions, this process of innovation can only be maintained by assuring that corporate responsibility initiatives remain voluntary, flexible, and provide a role for companies in decision-making processes. Bureaucratizing or restricting these multi-faceted and innovative efforts will eliminate the very value they provide to companies and the commensurate benefits to a civil society: an incentive to exceed the norm. Responsible and often progressive business practices in areas such as ethics, community engagement, philanthropy, procurement, employee satisfaction and environmental protection are well established. Implementing policies and practices in these areas has become part of what is generally considered sound management. Corporate responsibility integrates these activities into a single concept that can generate additional value by supporting business objectives, promoting dialogue with key stakeholders and responding to customer needs. Many companies that have integrated social and environmental aspects into their business plans have found that they can improve relations with legal and political entities, effectively address the concerns of external stakeholders, discover areas of strategic advantage and improve their management systems. Integrating such aspects into performance objectives can help companies align their business objectives with the societal expectations. Improved performance in these areas may generate intangible assets, such as employee commitment

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Role of Government in CSR CSR is considered by the three governments to be a cross-governmental issue with a broad agenda touching on social, environmental and international issues. In each country, different ministries introduce CSR initiatives into their specific policy areas in parallel; however, there is often limited coordination between them. There is a strong connection between CSR and sustainable development. In the United Kingdom and Italy, CSR is seen as the business contribution to this agenda; in Norway, the Ministry of the Environment is introducing CSR elements into its sustainability agenda. With respect to the institutionalization of CSR within governmental Business Ethics: A European Review. Governments are interested in CSR because the respective business efforts can help to meet policy objectives on a voluntary basis. This motivation touches not only on policy objectives related to sustainable development and environmental protection, but also to foreign policy goals such as human development and development assistance (Haufler 2001, 29). As the CSR critic Henderson (2001b, 28) puts it provocatively, CSR is now “a common body of doctrine” that requires businesses to ”play a leading part in achieving the shared objectives of public policy and making the world a better place”. Second, CSR policies are regarded as an attractive complement for hard-law regulations in cases where new regulations are politically not desirable or infeasible (in particular at the international level; for examples see Haufler 2001). Compared to hard-law regulations, the soft-law character of CSR and CSR policies implies comparatively low political costs in terms of resistance by special interest groups (Moon2002, 399f; 2007, 302). Some scholars argue that contemporarily (at least until the financial and economic crisis of 2008/2009), corporations are less likely to be the subject of state interventionism than they were in Keynesian times until the late 1970s. To put it positively, a decrease of state interventionism “might open up the possibilities for more ‘responsible’ forms of interaction between stakeholder groupings”, including new forms of government interventions such as CSR policies (Mellahi & Wood 2003). In this sense, Haufler (2001) frames CSR as an element of the “’third way’ between socialism and capitalism” that provides social protections while strengthening national economic competitiveness. Third, governments inevitably define CSR negatively with conventional social and environ-mental regulations because the ‘voluntary business contribution to sustainable development’ starts where the legal framework ends (McWilliams & Siegel 2001). In addition, governments seek to play a more active role in defining the concept and also fostering the respective practices positively with softer, non-binding initiatives.

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Role of NGO’s in CSR Non-governmental organizations (NGOs) have played a major role in pushing for sustainable development at the international level. Campaigning groups have been key drivers of inter-governmental negotiations, ranging from the regulation of hazardous wastes to a global ban on land mines and the elimination of slavery.  Individuals and the institutions in their interactions need to take into account the potential effects of their exchange.  The broader view of CSR is applicable to government, media, industry, NGOs and other variety of social institutions.  The new focuses on the need for socially driven investments, consistency in profits, fair wealth distribution and good governance. NGOs are actively intervening by way of stakeholder and community engagement action programmes. How far the NGOs in the nation can join hands with the corporate in their effort to social and environmental development is the prime concern of this article. The corporate social responsibility blends the objective of social development and environmental protection thorough ethical effort. Many non-governmental organisations in India are engaged in social development and environmental development activities. These organisations are good enough to support the industrial development by ensuring community participation the developmental process. The concept of corporate social responsibility is underpinned by the idea that corporations can no longer act as isolated economic entities operating in detachment from broader society. Corporate Social Responsibility to be looked upon as mutual support programs that ensure development of community near by the industrial area with the expansion and development of the industrial organisations. The community today needs external agency intervention in the alleviation of many social problems like poverty, health, unemployment, community education, homelessness and eco development programs. By looking upon the needs of the community, the organisation gets an opportunity to understand the social needs of the people and it will enable them to intervene into such social issues and finding solution to the many basic needs. It develops greater trust and confidence on the community on the business organisation effort in their real development. Integrated community investment strategies align internal community-related issues and link business goals with community needs. Here the role of NGOs can be better realized. The NGOs existing within the industrial location and closer to the community can better act as moderators and facilitators in the realization of their social need and better environmental protection. The industrial expansion is a threat to the people living nearby and it invites protest from many like consumer, investors, activist groups, government regulators and other stakeholders. To develop a better rapport with the community in the implementation of the developmental activities the NGOs can play better role with the industry and community. They can help the industrial management in convincing the expansion program to the community and there by develop a proactive and social environmental and industrial development policy. Lower operating costs, enhanced

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brand image and reputation, reduced regulatory oversight, product safety and decreased liability, improved financial performance etc are the benefit to the organisation. The benefit of CSR not only for the community and organisation but also for the employees. The Research demonstrates Corporate Social Responsibility initiatives have a positive impact on employee morale, motivation, commitment, loyalty, training, recruitment and turnover. Benefits in these areas have been found to improve the bottom line of companies. Three surveys across Europe, the USA and a survey involving 25 countries found employees felt greater loyalty, satisfaction and motivation when their companies were socially responsible. The impact of these HR initiatives gives better brand image to the organisation in the labour market and it in turn help the HR department to get potential employees who believe in similar values system. The ultimate goal of such effort is the development of an 'organisational culture' which establishes harmonious relationship with the Community-Employee and Organisation at large. This establishes that fact that many Corporate Social Responsibility initiatives reflect the essence of Human Resource Management activities. But NGOs are not only focusing their energies on governments and intergovernmental processes. With the retreat of the state from a number of public functions and regulatory activities, NGOs have begun to fix their sights on powerful corporations - many of which can rival entire nations in terms of their resources and influence. Aided by advances in information and communications technology, NGOs have helped to focus attention on the social and environmental externalities of business activity. Multinational brands have been acutely susceptible to pressure from activists and from NGOs eager to challenge a company's labour, environmental or human rights record. Even those businesses that do not specialize in highly visible branded goods are feeling the pressure, as campaigners develop techniques to target downstream customers and shareholders. In response to such pressures, many businesses are abandoning their narrow Milton Friedmanite shareholder theory of value in favour of a broader, stakeholder approach which not only seeks increased share value, but cares about how this increased value is to be attained. Such a stakeholder approach takes into account the effects of business activity - not just on shareholders, but on customers, employees, communities and other interested groups. There are many visible manifestations of this shift. One has been the devotion of energy and resources by companies to environmental and social affairs. Companies are taking responsibility for their externalities and reporting on the impact of their activities on a range of stakeholders. Nor are companies merely reporting; many are striving to design new management structures which integrate sustainable development concerns into the decision-making process.

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Much of the credit for creating these trends can be taken by NGOs. But how should the business world react to NGOs in the future? Should companies batten down the hatches and gird themselves against attacks from hostile critics? Or should they hold out hope that NGOs can sometimes be helpful partners? For those businesses willing to engage with the NGO community, how can they do so? The term NGO may be a ubiquitous term, but it is used to describe a bewildering array of groups and organizations - from activist groups 'reclaiming the streets' to development organizations delivering aid and providing essential public services. Other NGOs are research-driven policy organizations, looking to engage with decision-makers. Still others see themselves as watchdogs, casting a critical eye over current events. Although it is often assumed that NGOs are charities or enjoy non-profit status, some NGOs are profit-making organizations such as cooperatives or groups which lobby on behalf of profit-driven interests. For example, the World Trade Organization's definition of NGOs is broad enough to include industry lobby groups such as the Association of Swiss Bankers and the International Chamber of Commerce. Such a broad definition has its critics. It is more common to define NGOs as those organizations which pursue some sort of public interest or public good, rather than individual or commercial interests. Even then, the NGO community remains a diverse constellation. Some groups may pursue a single policy objective - for example access to AIDS drugs in developing countries or press freedom. Others will pursue more sweeping policy goals such as poverty eradication or human rights protection.

Conclusion The government's approach to promoting CSR should seek to mainstream CSR within community policies, engage the public and private sectors and promote greater transparency in the marketplace. The Government's approach to CSR should centre around productivity and competitiveness and on achieving transparency in the market to promote an effective dialogue with stakeholders. But NGOs are not only focusing their energies on governments and inter-governmental processes. With the retreat of the state from a number of public functions and regulatory activities, NGOs have begun to fix their sights on powerful corporations many of which can rival entire nations in terms of their resources and influence. Not all NGOs are agreeable to collaboration with the private sector. Some will prefer to remain at a distance, by monitoring, publicizing, and criticizing in cases where companies fail to take seriously their impacts upon the wider community. However, many are showing a willingness to devote some of their energy and resources to working alongside business, in order to address corporate social responsibility.

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References Baxi Ajit Prasad C V (2006), Corporate Social Responsibility Concepts and Cases, Excel Books, New Delhi, p.15-53 Haufler,V. (2001): A Public Role for the Private Sector: Industry Self-Regulation in a Global Economy, Washington: Brookings Institution. Henderson, D. (2001), “The Case against Corporate Social Responsibility”, Policy 17(2), pp.28-32 John Hancock (2005), Investing in CSR, Kogan page ,London and Sterling, p.1-17 McWilliams, A. and Siegel, D. (2001) “Corporate Social Responsibility: A Theory of the Firm Perspective”, Academy of Management Review, 26/1, pp.117-127. Mellahi, K. and Wood, G. (2003), “The Role and Potential of Stakeholders in Hollow Participation: Conventional Stakeholder Theory and Institutional Alternatives”, Business and Society Review, 108/2, pp.183-202. Moon, J. (2002) “The Social Responsibility of Business and New Governance”, Government and Opposition, 37/3, pp.385-408. Moon, J. (2007) “The Contribution of CSR to Sustainable Development”, Sustainable Development, 15, pp.296-306.

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ROLE OF CSR IN INITIATING WOMEN ENTREPRENEURSHIP N.BRINDHA AND A.ABIRAMI Introduction Today’s world is changing at a startling pace. Political and economic transformations seem to be occurring everywhere - as countries convert from command to demand economies, dictatorships move toward democracy, and monarchies build new civil institutions. These changes have created economic opportunities for women who want to own and operate businesses. CSR can range from charitable programs and community service, to environmentalimpact awareness. The goal of CSR is to ensure that companies uphold and promote high ethical standards as they simultaneously pursue profits. Today, women in advanced market economies own more than 25% of all businesses and women-owned businesses in Africa, Asia, Eastern Europe, and Latin America are growing rapidly. Moreover, the presence of ethical values of the entrepreneur represents a fundamental driving force in determining the spreading of a philosophy of governance and corporate management, as well as guiding towards the adoption of CSR and sustainability practices. There are actually two different types of corporate social responsibility to consider. The first one consists of corporations providing funding and resources for worthwhile social causes, such as donating money or employee time to charities. However, another type of CSR involves putting together a real plan to produce products or provide services that are in the best interests of society. These include things like using safe materials in design and manufacture, corporate environmental initiatives, and other factors such as job creation and economic development. So women’s business associations play a vital role in identifying appropriate and/or emerging sectors where women entrepreneurs can succeed. The areas that are likely to take off quickly during a nation’s market revitalization are public relations, transport, delivery, producing and marketing consumer goods, commercial banking, financial services, insurance, and other service-related industries. As the global impact of women entrepreneurs is just beginning to gain intensity, this paper examines how women entrepreneurs are initiated by CSR, the support rendered by CSR to carry out their business, how women’s business associations promote entrepreneurs, and to what extent women contribute to international trade etc.

Women in Entrepreneurship and CSR Entrepreneurship has gained currency across the sphere and femaleentrepreneurship has become an important module. India is one of the fastest emerging economies and the importance of entrepreneurship is realized across the gamut. “Women Entrepreneurship” means an act of business ownership and business creation that empowers women economically increases their economic strength as well as position in society.

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Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms corporate social responsibility A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates.   Women-entrepreneurs have been making a considerable impact in all most all the segments of the economy. “Women Entrepreneur” is a person who denies the role of their personal needs to participate and be accepted economically independent. Strong desire to do something positive is a high-quality women entrepreneur who contributes to the position values of family and social life.

Role of Women as an Entrepreneur In the last decade, there has been a remarkable shift it emphasizes from the traditional industry to non-traditional industry and services. Based on this concept, some important opportunities are being identified, considering the socio-economic, cultural and educational status and motivational level of women entrepreneurs, particularly projects with low investment, low technical know-how and assured market are suggested for them for the production of many goods and services. At present they are supposed to possess the traits like Creativity, Quality to working hard, Determination, Ability and desire to take risk, Profit earning capacity.

Role of CSR in Initiating Women Entrepreneur  Access to Business Opportunities - by directly incorporating women in their value chain, companies can open up a world of business opportunity and the potential for a sustainable source of income. For example, Coca-Cola’s 5 by20 initiative is one of the flagship corporate initiatives in this area. They aim to “enable the economic empowerment of 5 million women entrepreneurs across our global value chain by 2020” – from fruit farmers to micro-distributors.  Access to finance – Women frequently face disproportionate hurdles in accessing financial services. Financial institutions can of course focus on developing products to provide appropriate access to business capital for women. There are various options for doing so, from partnering with a micro-finance institution to establishing relationships with banks to encourage them to use purchase order agreements with the company as collateral. Working with the International Finance Corporation, CocaCola has announced a three-year, USD100m joint initiative to provide business women in their supply chain with financial backing.  Access to networks - research by the Asia Foundation identified access to networks as one of the key barriers to women’s entrepreneurship. One way companies’ can help

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address this is via mentoring programmes – the connections afforded by such a programme can open otherwise hidden doors for women entrepreneurs. The Bank of America, for example, runs their Global Ambassadors Program in partnership with Vital Voices, and matches accomplished professionals, including Bank of America executives and other leaders from the private and public sectors, as mentors for emerging women leaders in developing countries.

Benefits of CSR in Empowering Women Entrepreneurs Given the crucial role of women in our system, and the economic barriers too many women still face, we have made women’s economic empowerment a priority. Our 5 by20 women’s initiative launched in 2010 and continues to grow and gain momentum. The 5 by20 initiative aims to enable the economic empowerment of 5 million women entrepreneurs in our global value chain by 2020. In collaboration with nongovernmental organizations (NGOs), governments and businesses, female entrepreneurs are associated with the business gain access to three essential economic enablers: business skills training, loans and financial services and assets, and peer networks and mentoring. The 5 by 20 initiative focuses on women in six segments of our value chain: producers, suppliers, distributors, retailers, recyclers and artisans. By year’s end, 5 by 20 programs were operating in Brazil, China, Costa Rica, Egypt, Haiti, India, Kenya, Mexico, Nigeria, the Philippines, South Africa and Thailand. New 5 by20 programs were under development in 10 additional countries as well. Most of the women we have enabled thus far are retailers. Three quarters of the women enabled are new to our value chain. In all, the 5 by20 initiative has enabled approximately 3,00,000 women since the launch of the program in 2010 through December 31, 2012.

Motivating Women Entrepreneurs through CSR It was found that the women entrepreneurs are opportunity-driven rather than necessity-driven, and that they mention economic independence, passion and creating jobs as their main reasons for launching their business ventures. About 85 percent of high-growth women entrepreneurs have the ambition to keep growing their business. These high-growth businesses belong to traditional or non-mature sectors such as food and beverages and services, which tend to have lower rates of potential growth than sectors like software and Internet, which are preferred by high-growth men entrepreneurs. High-growth women entrepreneurs are defined as women entrepreneurs whose businesses have experienced growth rates of more than 20% for at least three years. These women can be an important source of growth because they create jobs, promote innovation and reduce the gender gap,” said Nancy Lee, General Manager of the MIF. “But until now, there has been very little research on who they are and how they see their successes and challenges. Although many women mentioned that they had more difficulties than men when they started, 88 percent of high-growth women entrepreneurs stated that being a woman was not an obstacle to growing a business. Women entrepreneurs initially 32   

imagine their businesses to be more restricted in reach. However, once the business grows their ambitions match those of male entrepreneurs. Only 40 percent of women’s businesses have international reach, while 71 percent of men’s businesses cross borders.

Women Entrepreneurs in Global Economy Cultural and social traditions play a large role in determining who within a society becomes an entrepreneur. For example, social conditions in some societies inhibit women from starting their own businesses. For a female business owner, the process of starting and operating a new enterprise can be difficult because often they lack the skills, education, and support systems that can expedite their business pursuits. Women’s motivations for starting a business are related to their need to be independent, achieve job satisfaction, attain personal accomplishment and fulfillment, be creative and economically self-sufficient. Men and women entrepreneurs are found in two distinct sectors: the formal or traditional mainstream sector, and the informal or marginalized sector. An informal sector that operates outside the formal sector is very active in developing and transitional economies.

Barriers Faced by Women Doing International Business Obstacles that women face in international business include limited international business experience, inadequate business education, and lack of access to international networks. Challenges common to all enterprises include securing funding, developing marketing and management skills, and devising suitable business strategies to thrive in globalized social and economic environments. Other impediments for women are societal, cultural, and religious attitudes. In revitalizing economies they may also face intractable infrastructure problems.

Successful Leading Business Women in India 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Akhila Srinivasan, Managing Director, Shriram Investments Ltd Chanda Kocchar, Executive Director, ICICI Bank Ekta Kapoor, Creative Director, Balaji Telefilms Jyoit Naik, President, Lijjat Papad Kiran Mazumdar-Shaw, Chairman and Managing Director, Biocon Lalita D Gupte, Joint Managing Director, ICICI Bank Naina Lal Kidwai, Deputy CEO, HSBC Preetha Reddy, Managing Director, Apollo Hospitals Priya Paul, Chairman, Apeejay Park Hotels Rajshree Pathy, Chairman, Rajshree Sugars and Chemicals Ltd Ranjana Kumar, Chairman, NABARD Ravina Raj Kohli, Media personality and ex-President, STAR News Renuka Ramnath, CEO, ICICI Ventures Ritu Kumar, Fashion Designer

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15. 16. 17. 18. 19. 20. 21.

Ritu Nanda, CEO, Escolife Shahnaz Hussain, CEO, Shahnaz Herbals Sharan Apparao, Proprietor, Apparao Galleries Simone Tata, Chairman, Trent Ltd Sulajja Firodia Motwani, Joint MD, Kinetic Engineering Tarjani Vakil, former Chairman and Managing Director, EXIM Bank Zia Mody, Senior Partner, AZB & Partners

Strategies for Promoting Women Entrepreneurship by CSR  Education has been instrumental in increasing the participation of women in entrepreneurial activities. The formal education not only helps in acquisition of requires knowledge for a job, but it is a liberating force and barriers of caste and class, smoothing out inequalities imposed by birth and other circumstances.  Establishment of proper training institutes for enhancing their level of workknowledge, skills, risk-taking abilities, enhancing their capabilities.  Potential women entrepreneurs should be exposed to different types of emerging opportunities.  Housewives should be motivated to learn additional income.  A Women Entrepreneur's Guidance Cell should be set up to handle the various problems of women entrepreneurs all over the state.  Positive attitudinal change in the society recognizing the role of women as entrepreneur may lead to the development of appropriate environment in which women will be able to exploit their entrepreneurial talents  Offering seed capital, up-liftmen schemes, women entrepreneurs fund etc. to encourage them economically.  To extend confessional rates facilities and schemes for women entrepreneurs to prosper in the field of enterprise. Thus by adopting the aforesaid measures in letter and spirit the problems associated with women can be solved.

Future Prospects for Development of Women Entrepreneurs Education is a boon to mankind, while lack of education to a person is a bane now-adays. Today the role of Women entrepreneur in economic development is inevitable because women are entering not only in selected professions but also in professions like trade, industry and engineering. The industrial structure and the enterprises are undergoing a radical change. Information Technology has transformed the very technique of doing business. Individually, business ownership provides women with the independence they crave and with economic and social success they need. Nationally, business ownership has great importance for future economic prosperity.

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Globally, women are enhancing, directing, and changing the face of how business is done today. Ultimately, female business owners must be recognized for who they are, what they do, and how significantly they impact the world’s global economy. Government should extend better educational facilities and schemes to women folk. Adequate training programs on management skills should be provided to women community. Encourage women’s participation in decision making. Vocational training should be extended to women community to enable them to understand the production process and management. Training on professional competence and leadership skills should be extended to women entrepreneurs.

Conclusion India is a male dominated society and women are assumed to be economically as well as socially dependent on male members. The absolute dependence seems to be diluted among the high and middle class women as they are becoming more aware of personal needs and demanding greater equality. Women entrepreneurs faced lots of problems at start-up as well as operating stage like, non availability of finance, restricted mobility freedom and having to perform dual role one at home and other at work. Technological advancement and information technology explosion have reduced the problem of women entrepreneurs. Along with technological revolution, mental revolution of society is needed to change the attitude of the society and provide women with democratic and entrepreneurial platform. Globally, women are enhancing, directing, and changing the face of how business is done today. Ultimately, female business owners must be recognized for who they are, what they do, and how significantly they impact the world’s global economy. Thus, Women have the potential and the determination to set up, uphold and supervise their own enterprises in a very systematic manner. Appropriate support and encouragement from the Society in general and family members in particular is required to help these women scale new heights in their business ventures. The right kind of assistance from family, society and Government can make these Women Entrepreneurs a part of the mainstream of national economy and they can contribute to the economic progress of India.

References Bangera, L.C: Entrepreneurial Role in Nursing Sick Units.the financial Express,August 26, 1980. Drucker,Peter F:Innovation and Entrepreneurship, William HeinemannLtd., London,1985. David Waldman, Ron S. Kenett &Tami Zilberg 2006. “Corporate Social Responsibility: What it really is, why it’s so important & how it should be managed. Journal of management studies, pg 43:1703-1725.

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Kabeer, Naila. 1999. Resources, Agency, Achievements: Reflections on the Measurement of Women s Empowerment. Development and Change Vol. 30, Institute of Social Studies, Oxford, UK. New guidelines on corporate social responsibility in India: “Old wine in new bottle”. “India CSR” Suresh Kr. Pramar. August 5th, 2011. Malhotra, A., R. Pande, and C. Grown (2003). Impact of Investments in Female Education on Gender Equality. International Center for Research on Women: Washington, DC.

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CORPORATE SOCIAL RESPONSIBILITY: AN INDIAN PERSPECTIVE LAWRENCE LEVE S Introduction The evolution of CSR in India refers to changes over time in India of the cultural norms of Corporates engaged in CSR activities. Businesses are managed to bring about an overall positive impact on the communities, cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact that not only public policy but even corporate should be responsible enough to address social issues. Thus companies should deal with the challenges and issues looked after to a certain extent by the states. CSR is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives while at the same time addressing the expectations of shareholders and stakeholders. Anything that is beneficial for the society can be called CSR and such activity must be shown by company on their website and company should take approval from board. CSR is an important element of development because companies need to look after their communities, particularly those that are operating in rural areas. But, CSR also has an environmental aspect that the business might influence based on their operation Many companies might have motivations for doing CSR such as the genuine care of their environment and society that would eventually become their source of human capital as well as raw materials that they need to sustain. Also, some companies will see it as an important element of gaining societal acceptance for their operations. It is really true for the companies that are operating in remote areas, like mining and oil and gas companies. They are often encountered by many communities that indigenously live there, and the companies have to live with these communities. Another aspect on CSR is that companies should see it as a voluntary action rather than something that is highly regulated. Because it is something that is good for the company to do, it’s not something that the company has to do because of law or anything else. On the other hand, companies should not be really forced to do CSR as mandatory action, because again, the development players are not just companies. It also includes government as well as civil society and the community itself.

Data and Methodology The data of this study is secondary data which we have collected from different sources such as official websites of department Corporate Affair minister, Newspaper Articles, Research Papers and Magazine Articles. As we know the traditional perspective stressed on Corporate Philanthropy which means charity for Social, Cultural and Religious purposes and Modern Perspective stressed on long term interest of stakeholders and sustainable development. The main aim behind this study is to see why is vital for Corporation? Why should they contribute for Country's Economic Development? and What

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are the Important steps Government should take to improve contribution of corporate for CSR activities? We have examined the data from various sources and analyzed the same. We have not used any statistical tools and techniques because we are not trying to establish any relationship between different variables rather through discussions and analytical thinking we tried to see how our country has changed its policy over the period of time and what are the result of these policies are.

Policy in India Under the Companies Act, 2013, that replaces the nearly six-decade old legislation governing the way corporate function and are regulated in India, profitable companies with a sizeable business would have to spend every year at least 2 per cent of three-year average profit on CSR works. This would apply to the companies with a turnover of Rs 1,000 crore and or more or net worth of Rs 500 crore and more or net profit of Rs 5 crore and more. As per new proposals, from the beginning of 2013- 14, Top earning PSUs like ONGC, BHEL and NTPC may have to double their expenditure on CSR as per the new draft guidelines being finalised by the Department of Public Enterprises (DPE). PSUs with net profit between Rs 100-500 crore are required to earmark 2-3% of their income. They have to ensure that they spend full amount earmarked for, otherwise, they have to disclose why they have not spent these fund. Public sector companies with a profit of less than Rs 100 crore are required to contribute 3% of their income for undertaking such activities. The proposed guidelines stated that if Public Sector Units (PSU's) are unable to spend the earmarked amount for CSR in a particular year, it has to be spent in the next two years. The guidelines continue to exempt sick and loss-making PSUs from allocation of budget for undertaking CSR activities.

Stipulation of the Company Act, 2013 Every company with net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more or a net profit of Rs 5 crore or more during any financial year to constitute a CSR Committee of the Board consisting of three or more directors, of which at least one director shall be an independent director. The Board’s report to disclose the composition of the CSR Committee. Main Functions of the CSR Committee 1. Formulate and recommend to the board, a CSR policy indicating the activity or activities to be undertaken by the company as specified in Schedule VII of the Act. 2. Recommend the amount to be spent on these activities. 3. Monitor the company's CSR policy periodically. After the CSR Committee makes it recommendations, Board of the company shall approve the CSR Policy and disclose contents of such policy in its report and also place it on

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the company's website. Further, details about the policy developed and implemented by the company on CSR initiatives during the year to be included in the Board's report every year. Board to ensure that the activities listed in the CSR Policy are undertaken by the company. Board to ensure that at least 2% of average net profits of the company in the three immediately preceding financial years are spent in every financial year on such activity. Preference to be given to the local area and areas around the company operates for CSR spending. If a company fails to provide or spend such amount, Board to specify reasons in its report for that failure. Companies required to comply with CSR shall give additional Information by way of notes to the Statement of Profit and Loss about the aggregate expenditure on CSR activities. Schedule VII of the Companies Bill 2012 prescribes activities that may be included by companies in their CSR policies: 1. Eradicating extreme hunger and poverty; 2. Promotion of education; 3. Promoting gender equality and empowering women 4. Reducing child mortality and improving maternal health; 5. Combating human immunodeficiency virus, acquired immune 6. deficiency syndrome, malaria and other diseases; 7. Ensuring environmental sustainability; 8. Employment enhancing vocational skills; 9. Social business projects; 10. Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socioeconomic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; and; 11. Other matters as may be prescribed. Sachin pilot, Corporate Affair Minister has said there would also be a national level CSR body to monitor the activities. So that Central Govt is planning to have a Special Purpose Vehicle to monitor spending of CSR Fund and Projects. Govt want that there should be full utilisation of CSR fund.

Effects of CSR a. The contribution of CSR is not to contribute in one sector of society only rather to help businesses and to nurture the society over a period of time. Company can contribute under CSR in any of the sector (Education, Health, Environment, Upliftment for the society etc.) which they like most and which is beneficial for the organization point of view. b. Corporations should participate effectively and efficiently for CSR contribution as corporations are involved with numbers' of stakeholders like customers, employees, suppliers, government, creditor, financial institutions, etc. so they have the responsibility to take care of the interest of all the stakeholders for their own sustainable growth.

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c. Every Corporation must take initiatives for CSR practices to make this planet a better place to live and not just this, it will also help corporations to build their goodwill. d. Corporations can differentiate themselves from their rivals by taking CSR initiatives. e. Company can take CSR as an opportunity and a platform for growth and survive. f. A properly implemented CSR concept can bring along a variety of competitive advantages, such as enhanced access to capital and markets, increased sales and profits, operational cost savings, improved productivity and quality, efficient human resource base, improved brand image and reputation, enhanced customer loyalty, better decision making and risk management processes. g. Neither central government nor state government can tell corporate how to spend money towards welfare for society. The decision rest on board how money spend in various CSR activity.

Limitations in CSR Policy 1. No incentive if company pay more than 2% of net profit. 2. Carry forward of such a contribution not being mentioned under the provision of CSR. It means if any of the company not able to spend 2% of average profit in any financial year so that expenditure not being carry forward for next year. 3. Company does not have adequate profits or is not in a position to spend prescribed amount on CSR activities, the directors would be required to give suitable disclosure/reasons in their report to the members. 4. It is not clear whether the Section 25 companies or charitable organisations set up by them would be included towards CSR. 5. According to the proposed rules, activities relating to eradicating extreme hunger and poverty; promotion of education, gender equality and empowerment of women; reducing child mortality and improving maternal health; combating HIV-AIDS, malaria and other diseases; ensuring environmental sustainability, employment enhancing vocational skills; and contribution to the Prime Minister’s National Relief Fund or any other Central or state fund would be considered as CSR activity under the Act.

Review of Literature a. According to Geoffrey heal suggested that CSR is an important part of corporate strategy in sectors where inconsistencies arise between corporate profit and social goals, or discord can arise over fairness issues. There are number of social sectors where corporate can play a valuable role under CSR and can produce social goods for its society. According to him CSR program can be profitable element for company strategy, reducing risk management, Generating brand equity, improving relations with regulators, lower cost of capital, improved human relation and employee productivity and to the maintenance of relationship that are important to long term profitability.

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b. According to Anupam Sharma and Ravi Kiran, them CSR is emerging as a new field in the management research. In India, many firms have taken the initiatives of CSR practices which have met with varying needs of society. According to him number of IT and Auto industry is more going for taking up CSR initiatives while FMCG sector. Authors said that India has entered or taken a transformational change by involving into new CSR initiatives. c. According to Kishor Neelakantan, the enactment of the company act 2013 will create a big regulatory push for CSR activities and this is mandatory for all company operating in India. so it is good for economic development but how Shareholder think about it while evaluating company? So according to author suggests that framework for investors to evaluate companies’ CSR efforts which is based on four key parameters- Integrity, strategic orientation, efficiency and transparency. d. According to Rahul Hakhu Company should be forward looking to adopt in their corporate policy and take initiative for applying this in the business so that they can achieve competitive advantage, profitability in the light of liberalized world. He emphasis that government want that corporation should be more responsible for the economic development of country, and growth of CSR lead to transformation of agrarian economy to the path of industrialization. He suggested that CSR provides valuable information to companies of India and other stakeholders about the prospect of development, reputation.

Existing CSR Activities of Leading Companies 1. ONGC CSR projects focus on higher education, grant of scholarship and aid to deserving young pupils of less privileged sections of society, facilities for constructing schools etc. 2. SAIL has taken successful actions in environment conservation, health and medical care, education, self employment programmers, sports and games etc. 3. BHEL has developed a CSR scheme and its mission statement on CSR is "Be a committed Corporate Citizen, alive towards its CSR". BHEL undertakes socio economic and community development programmes to promote education, improvement of living conditions and hygiene in villages. 4. Reliance Industries initiated a project named as “Project- Drishti” to bring back the eyesight of visually challenged Indians from the economically weaker sections of the society. This project has brightened up the lives of over 5000 people so far. this project has also creating awareness about the compelling need for eye donation 5. Mahindra & Mahindra launched a unique kind of ESOPs- Employee Social Option in order to enable Mahindra employees to involve themselves in socially responsible activities of their choice. It also contributes under Mahindra Hariyali, Mahindra pride school, Mahindra Education Trust. Under Mahindra Hariyali, over one million trees have been planted across the country, to increase the country green cover. 6. Infosys: As a leading software company Infosys is into the providing language and computer education. Company has special program for unprivileged children by whom

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company teaches them various skills and change their outlook too. Company also donates carom, chess board, chocolates etc. to the needy ones.CSR activity includes Blood donation camp and infosys foundation has been working in the sectors of health care, education, environment preservation and social rehabilitation. 7. Wipro: Company has taken various initiatives to women empowerment. Three main CSR activities include environment sector, education sector and energy conservation. 8. ITC: ITC Limited (ITC) is among one of India's leading private sector companies having a assorted portfolio of businesses. ITC is working with the concept of ‘Triple bottom line’ that will contribute to the growth of economy, environment and social development. Major focus area of the company is on raising agricultural productivity and helping the rural economy to be more socially inclusive. 9. Maruti Suzuki is an automobile industry works upon global warming and global issues like climate Change Company has been strongly investing on environmental friendly products and manufacturing best products for the society. Maruti Suzuki is working upon conserving environment and preserving natural environment. Concept of reduce, reuse and recycle has been promoted by company in all the manufacturing units. 10. Gail ltd is largest state owned natural gas processing and Distribution Company. It contributes towards corpus of GAIL charitable and education trust, natural calamities or disaster, SC/ST minority’s population. Its objective to satisfy its entire stakeholder. It participates in an activity which is directly or indirectly benefits the communities. it enhance the quality of life and economic well being of local population. 11. IBM is a software company. Company is committed towards the implementation of its environment policy, health services; provide hygiene and safety work place to its employee.

Conclusion From the limited experience over the last few years, some lessons nonetheless emerge. Government introduce CSR because they wants corporation to become more responsible for the society or for its stakeholders itself. As we know, CSR offer real opportunities for the corporations to contribute in various activities which directly or indirectly help welfare of the society. Corporations are social entity so they must take care of all stakeholders, it is vital for them to take charge of this responsibility in efficient way so that all participant of corporation feel satisfied. As we know Corporates can't stand alone they also needs the support of their society at large which is important for their development and goodwill. Many large corporations now taking steps to improve their environmental and social performance through the use of voluntary initiatives such as codes of conduct, environmental certification and reporting, social audits, fair trading schemes and social investment programmes. Corporates and government must work together and through this, they can bring dramatically changes in the welfare schemes of society.

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References GovtCan’tTellCompaniesHowtoSpend CSR money:SachinPilothttp://www.indiacsr.in /en/?p=13220 Initiative of major companies of India with focus on Health, Education and Environment. http://en.wikipedia.org/wiki/Corporate_social_responsibility http://www.unrisd.org/unrisd/website/newsview.nsf/0/B163470112831808C1256DA90 041ECC5?Open http://knowledge.wharton.upenn.edu/article/corporate-social-responsibility-in-india-no-cleardefinition- but-plenty-of-debate

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CORPORATE SOCIAL RESPONSIBILITY IN INDIA BH. L. MOHANRAJU Introduction The importance of CSR emerged significantly in the last decade. Over the time, CSR expanded to include both economic and social interests. Along with this it also broadened to cover economic as well as social interests. Companies have become more transparent in accounting and display ‘public reporting’ due to pressures from various stakeholders. It is possible for companies to behave in the ‘desired’ ethical and responsible manner towards consumers, employees, communities, stakeholders and environment. They have started incorporating their CSR initiative in their annual reports. Objectives i) To study the CSR status in India. ii) To understand the meaning and various models of CSR. iii) To study the policies governing CSR in India. iv) To study the challenges faced by CSR in India. v) To make suggestions for accelerating CSR initiatives.

Research Methodology The research paper is an attempt of exploratory research, based on the secondary data sourced from journals, magazines, articles and media reports.

CSR Concept, Definitions, Models In India, the ethical model promoted by Mahatma Gandhi during 1930s is well known which stated the role of family-run-businesses conducting social and economic activities. This was followed by the Statist model propounded by Pt. Jawaharlal Nehru. In this model, statedriven policies included state ownership and extensive corporate regulation and administration. At the global level, the first attempt to define CSR is contributed by many to Howard Bowen’s Social Responsibilities of the Businessmen (1953) who questioned the status and degree of responsibilities that business people should accept. Milton Friedman introduced liberal model which stated that corporate responsibility primarily focus on owner objectives and stakeholder responsiveness which recognizes direct and indirect stakeholder interests. During 1980s, the CSR concept grew to integrate corporate objectives with the social responsibility of business thereby making it responsible to care for environment, employees and also make good profits. In the 1990s, Peter Drucker and many other authors propagated CSR as a part of corporate strategy. The approach to CSR has also changed from Agency theory to Stakeholder theory. Again, the stakeholder model emphasizes on survival of the corporation which throngs upon not only the responsibility towards shareholders but also towards employees, governments and customers. CSR is interchangeably used with several terms like business ethics, corporate citizenship, social and environmental responsibility, corporate sustainability.

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World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” The European Commission's definition of CSR is: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." According to CSR Asia, "CSR is a company’s commitment to operating in an economically, socially and environmentally sustainable manner whilst balancing the interests of diverse stakeholders.” Today the concept of CSR has undergone radical change. It has integrated social as well as environmental issues into their missions and decisions. Companies take keen interest in informing about their CSR activities to their stakeholders as well. Across the globe, business enterprises have undertaken CSR initiatives in the areas of water conservation, healthcare, rural welfare, environment protection, poverty alleviation, education, community investment projects, culture and heritage, bio-diversity, disaster management and relief, culture and heritage, green environment, product responsibility, governance, waste management and gender equality.

CSR in India In developing economies like India, CSR is seen as part of corporate philanthropy in which corporations augment the social development to support the initiatives of the government. However with time, the scenario of CSR has changed from being philanthropic to being socially responsible to multi stake holders. The period of 1960s and 1970s saw an emergence of CSR activities being inbuilt in corporate philanthropy (Mohan, 2001). India has been named among the top ten Asian countries paying increasing importance towards corporate social responsibility (CSR) disclosure norms. India was ranked fourth in the list, according to social enterprise CSR Asia's Asian Sustainability Ranking (ASR), released in October 2009. ‘Sustainability in Asia ESG reporting uncovered’ (September 2010) is based on four parameters viz. General, Environment, Social and Governance. In its study based on 56 companies in India, it observed that India is ranked second in country ranking in Asia and is ranked one ranking in general category. It is observed that reporting is strongly followed by companies as well as they seek international development standards. It could be attributed to the Indian government compelling the public sector companies to provide for community investment and other environmental, social and governance liabilities. A key finding of the survey conducted in June 2008, aimed at understanding of the role of corporations in CSR, carried out by TNS India ( a research organization) and the

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Times Foundation, revealed that over 90 per cent of all major Indian organizations surveyed were involved in CSR activities. Besides the public sector, it was the private sector companies that played dominant role in CSR activities. A study on the CSR activities of 300 corporate houses, conducted by an industry body in June 2009, revealed that Corporate India has spread its CSR activities across 20 states and Union territories, with Maharashtra gaining the most from them. The study also revealed that about 36 per cent of the CSR activities are concentrated in the state, followed by about 12 per cent in Gujarat, 10 per cent in Delhi and 9 per cent in Tamil Nadu. The companies have on an aggregate, identified 26 different themes for their CSR initiatives. Of these 26 schemes, community welfare tops the list, followed by education, the environment, health, as well as rural development Another study conducted by Economic Times revealed that donations provided by listed companies grew by 8 per cent during the financial year 2008-2009 and that 760 companies donated US$ 170 million in the same year, up from US$ 156 million in the yearago period. As many as 108 companies donated over US$ 216,199, up 20 per cent over the previous year.

CSR Controversy Many countries separate philanthropy from social responsibility. While in India, it is seen as weapon for social activities including recruitment and retention. Also, many argue that it helps in building an image of the organization. While some argue that government does away with their role of playing a regulatory body over the powerful business houses. Others criticize that CSR is not their basic economic role of business. Some even say that CSR is put in place to gain commercially as well. It is also argued that CSR initiatives undertaken result into deviation from basic business roles. While some others state that the impact of the CSR is not only impacts profits but benefits the society at large. In the light of these arguments, the trend of increased CSR initiatives cannot be ignored clearly reflecting the awareness the companies in India have gathered today.

CSR in SMEs The concept of CSR has extended to SMEs as well. This sector was never taken into account for deliberations and conventional approach to CSR is generally assumed to be the part of large companies. It is a well known fact that SMEs produce large proportion of country’s output, provides huge employment and generate substantial revenues to the government not only in developed countries but developing countries as well. Small to medium-sized enterprises account for about 90 percent of businesses worldwide and are responsible for around 50 to 60 percent of employment. They, potentially have a significant impact on social welfare. As the SMEs also include stakeholders and an impact on the society, it is necessary to understand the role of SMEs in CSR activities. However, it is difficult to enroll the concept for SMEs as they face challenges of survival, time and resource constraints, fear of additional regulations and no systematic incentives. General problems like lack of information, getting trained employees, and getting support from related officials

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are other limiting factors for SMEs to get involved in CSR activities. However, there are several benefits available to SMEs like small number of employees with quick communication and decision making, unique selling propositions and competitive benefits through their products and services, cost and efficiency savings. According to a study by the European Commission in 2007 (‘CSR in SMEs - SMEs Good practice’), CSR can positively influence SMEs’ competitiveness in numerous ways. SMEs can provide with improved products, high customer loyalty, motivated employees, innovative and creative employees, cost savings, inceased profitability due to optimum resource utilization, enhanced networking with business partners and improved company image. Thus, it is advisable for the government to look into policies and legislations for the benefits of SMEs adapting CSR and take up initiatives aimed at encouraging SME involvement in CSR which should be easily accessible and relevant.

Policy Initiatives In 2009, the government made it mandatory for all public sector oil companies to spend 2 per cent of their net profits on corporate social responsibility. The central government is working on a framework for quantifying the CSR initiatives of companies to promote them further. To ensure the active participation of public sector companies in CSR initiatives, the government in planning to introduce certain legislations. The Department of Public Enterprises (DPE) has prepared guidelines for central public sector enterprises to take up important corporate social responsibility projects to be funded by 2 to 5 per cent of the company's net profits. As per the guidelines, companies with net profit of less than US$ 22.5 million will earmark 3 to 5 per cent of profit for CSR, companies with net profit of between US$ 22.5 million - US$ 112.5 million, will utilise 2 to 3 per cent for CSR activities and companies with net profit of over US$ 112.5 million will spend 0.5 to 2 per cent of net profits for CSR. This proposal was discussed two years earlier as well however due to protests from companies, it became voluntary exercise. As reported in Times of India, February 10, 2011, the Ministry of Company Affairs (MCA), which is finalizing the new Companies Bill, has accepted a Parliamentary Standing Committee's recommendation on the issue. However it has proposed that companies with a turnover of Rs 1,000 crore or net profit of Rs 5 crore or more must earmark 2 per cent of their net profit for the preceding three years on CSR. In case if the companies fail to comply with the prescribed spend, it will have to list out the reasons for the shortfall toits shareholders. The revised Companies Bill will be placed in Parliament during the Budget session that starts later this month.

CSR Initiatives and Green Measures India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has set up a global platform to showcase all the work done by Indian firms. Confederation of Indian Industry (CII) and the TVS Group collaborated to form the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007. It provides consultancy services and technical assistance on social development and CSR.

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According to a National Geographic survey which studied 17,000 consumers in 17 countries, Indians are the most eco-friendly consumers in the world. India topped the Consumer Greendex, where consumers were asked about energy use and conservation, transportation choices, food sources, the relative use of green products versus traditional products, attitudes towards the environment and sustainability and knowledge of environmental issues.  Reliance Industries and two Tata Group firms-Tata Motors and Tata Steel are the country's most admired companies for their corporate social responsibility initiatives, according to a Nielsen survey released in May 2009.  As part of its Corporate Service Corps (CSC) programme, IBM has joined hands with the Tribal Development Department of Gujarat for a development project aimed at upliftment of tribals in the Sasan area of Gir forest.  The financial services sector is going green in a steady manner. Efforts by companies such as HSBC India, Max New York Life and Standard Chartered Bank have ensured that the green movement has kept its momentum by asking their customers to shift to e-statements and e-receipts.  State-owned Navratna Company, Coal India Ltd (CIL) will invest US$ 67.5 million in 2010-11 on social and environmental causes.  Public sector aluminium company NALCO has contributed US$ 3.23 million for development work in Orissa's Koraput district as part of its Corporate Social Responsibility (CSR).

Challenges of CSR 

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It is important for CSR strategies to become central to business strategy and part of the long-term planning process. Stakeholders are questioning more on CSR initiatives of the companies today. They are challenging the companies’ decisions-making in this direction. It has become imperative to incorporate stakeholders’ views. In India the CSR managers face number of challenges in managing CSR activities. The biggest problem is of lack of budget allocations followed by lack of support from employees and lack of knowledge as well. Lack of professionalism is another problem faced by this sector. Absence of training and undeveloped staff are additional problems for reduced CSR initiatives. General Public also do not take enough interest in participating and contributing to CSR activities of companies as they have little or no knowledge about it. The increasing demand for more transparency and accountability on the part of the companies and disclosure of information through formal and improved reporting is also inevitable for the companies. Themore the open and honest disclosure, the stronger and trusting relationships can be built with the stakeholders and consumers. Small companies do not take adequate interest in CSR activities and those which undertake them fail to disclose it to the society. In the process they loose out on people and their trust in them. Media can come up with strong support for informing the people at large about the CSR initiatives taken up by the companies. It can sensitize population and also make

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them aware of the benefits of CSR to them. However, media is not doing enough in this regard. The failure of the government to come up with statutory guidelines to give a definite direction to companies taking up CSR activities, in terms of size of business and profile of CSR activities also results into few companies practicing CSR concept adequately.

Suggestions  Companies can set a network of activities to be taken up in a consortium to tackle major environmental issues. It would also provide an opportunity to learn from each other. Everyone in the organisation needs to recognise their own role in promoting CSR. Companies should provide wider professional development activities.  Training, conferences and seminars could be organised by companies to disseminate and generate new knowledge and information in this sector. A strong budgetary support would definitely help to grow this sector and research related to respective industry would enhance their organisation’s contribution further. Government regulations which are supporting in this direction could attract more response from organisations. All this would also lead to benchmark CSR activities.  Companies need to involve their stakeholders in order to build meaningful and long term partnerships which would lead to creating a strong image and brand identity. It is also suggested to review existing policies in order to develop more meaningful visions for the companies and broaden their contributions to reach to local communities.

Conclusion Corporate sustainability is an evolving process and not an end. The Companies bill is a good initiative on the part of the government however what would be included in ‘spending’ on CSR is unclear and is left for the companies to decide. Across the globe, the concept of CSR has been accepted as an element for success and survival of business along with fulfilling social objectives. However, the challenge for the companies is to determine a strong and innovative CSR strategy which should deliver high performance in ethical, environmental and social areas and meet all the stakeholders’ objectives.

References Banerjee , P. K. (2003), “Corporate Governance & Business Ethics in the 21st Century”, ICFAI Journal of Corporate Governance, Vol III No 2. Brown K (2001), "Corporate Social Responsibility: Perceptions of Indian Business", in Mehra M (Ed.), Retrieved from www.csmworld.org/public/ pdf/social_respons.pdf (Accessed February 10th 2011). EU Green Paper (2001), Promoting a European Framework for Corporate Social Responsibility, Brussels, Commission of the European Communities, Retrieved from www.btplc.com/Societyandenvironment/ Reports/GreenpaperonCSR.pdf (Accessed February 10th 2011).

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Krishnan, S. (2001). “Corporate social responsibility: How and why in India”, Retrieved from http://www.coolavenues.com/know/ m/corporate_citizenship.php3 (Accessed February 10th 2011) Mohan, A. (2001), “Corporate Citizenship: Perspectives from India” , Journal of Corporate Citizenship, Spring, pp 107-117. Moon, J. (2002). “Corporate Social Responsibility: An Overview”, International Directory of Corporate Philanthropy, London, Europa Publications. Read-Brown Alex, Bardy Florent, Lewis Rebecca, (2010), “Sustainability in Asia ESG reporting uncovered”, Retrieved from www.asiansr.com/sustainabilityin_ asia

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EMERGENCE AND SIGNIFICANCE OF CSR IN THE CURRENT BUSINESS SCENARIO K. PRIYADARSHINI AND P. JEYABHARATHY Introduction Corporate social responsibility is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance within the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.

Objective of the Study The primary objective of the present study is to present an overview of the corporate social responsible activities by the Indian companies, the government’s enforcements and to throw light on the times of India survey on CSR.

Methodology This study is based on secondary data which were collected from various websites and related articles. The study also covers two cases of Indian context based on the reports of the individual companies.

Evolution of Corporate Social Responsibility in India It refers to changes over time in India of the cultural norms of corporations' engagement of corporate social responsibility (CSR), with CSR referring to way that businesses are managed to bring about an overall positive impact on the communities, cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact that not only public policy but even corporate should be responsible enough to address social issues. Thus companies should deal with the challenges and issues looked after to a certain extent by the states.

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Among other countries India has one of the most richest traditions of CSR. It has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of corporates has to be in line with their attitude towards mainstream business- companies setting clear objectives, undertaking potential investments, measuring and reporting performance publicly. The First Phase At the pre industrialisation period before1850, the wealthy people of the country helped the people during epidemics and famine through their own money The Second Phase The second phase, was during the independence movement, According to Gandhi, Indian companies were supposed to be the "temples of modern India". Under his influence businesses established trusts for schools and colleges and also helped in setting up training and scientific institutions. The operations of the trusts were largely in line with Gandhi's reforms which sought to abolish untouchability, encourage empowerment of women and rural development. The Third phase This is the period which the public sector enjoyed enormous growth and the people also felt that contribution by the public sector undertaking alone is not enough for the economic and social development of the country and there is a need of private participation. In 1965 Indian academicians, politicians and businessmen set up a national workshop on CSR aimed at reconciliation. They emphasized upon transparency, social accountability and regular stakeholder dialogues. In spite of such attempts the CSR failed to catch steam The Fourth Phase This is the phase started from 1980 till now, were the economy faced a lot of changes like globalistion and liberalisation, because of these radical changes CSR gain momentum. Figure1 shows the driving factors why the companies opt for CSR A report from global accounting and consulting firm Grant Thornton that used data collected in late 2010 and early 2011 noted that CSR activities across the world have increased dramatically in recent years as "businesses realize their value not only commercially, but also in terms of boosting employee value, attracting staff and cutting costs." Incidentally, "Saving the planet" came in sixth in the survey of drivers of CSR. The Grant Thornton International Business Report was launched in 1992 and now covers over 11,000 respondents per year in 39 economies.

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Figure 1: Driving Factors for CSR Globally 70

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63 56

60 50

44

40

40

39

38

30 20 10 0

Recruitment/retention of staff

Cost management

Public attitudes/building brand

Tax relief

Saving the planet

Investorrelations

Government pressure

Source: Grant Thornton Report From figure 1 it is understood that Even the employees want to work in a CSR accredited firm, only 56% infer CSR as a brand building activity and 40% say that they are doing it in real environmental consciousness and very pathetic is 38% accept that they are doing it under government pressure.

Times of India Survey on CSR The times foundation joined hands with TNF foundation, a international market research agency conducted a survey on CSR. The research activity comprised of 100 companies including the public sector, nationalized private sector and the private companies. The questionnaire was administered to chairman and CSR heads of the companies. The following figure shows that CSR spending pattern of public sector, private sector of national and multinational companies in various issues.

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From the above figure education is given more emphazise among the other issues like health, microfinance and the least importance is given to livelihood promotion. The spending pattern of the public sector companies for the environment issues should be really appreciated. women issues also should be still focused.

From the above figure it is inferred that the public sector’s CSR had attained a maturity level where as other private sector undertakings CSR policy is still growing.

Considering the above figure all the firms need strong policies to be framed by the government and another important criteria is companies want less monitoring and regulation.

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The firms consider goodwill as the main boon obtained from their CSR activities. The multinational companies perceive branding as a main advantage where they differ from others.

Benefits of CSR CSR is very beneficial to both the organization and the society. Some of them are presented below i) Improved Financial Performance: An recent study has found that stake holder balanced companies showed four times the growth rate and eight times employment growth, when compared to companies that focused only on shareholders and profit maximization. ii) Enhanced Brand Image and Reputation: A company considered socially responsible can benefit both by its enhanced Reputation with the Public as well its reputation within the business. iii) Increased sales and customer loyalty: A number of studies have suggested a large and growing market for the products and services of companies to be socially responsible. iv) Increased ability to attract and retain employees: Companies perceived to have strong CSr commitments often found it easier to recruit employees particularly in tight labour markets. Retention levels are higher too. v) Reduced Regulatory oversight: Companies that demonstrate that they are engaging in practices that satisfy and go beyond regulatory compliance requirements are given less scrutiny and more free reign by both National and Local Government Entities. vi) Easier access to Capital: It is clear that companies addressing ethical, social and environmental responsibilities have rapidly growing access to capital that might not otherwise have been available. vii) Case studies of CSR in India: The corporate social responsibility of Indian companies is illustrated with the following cases.

CANON India As a responsible business, Canon India takes pride in being socially inclined and focuses on sustained and effective CSR projects. The three core areas that Canon India supports are Eye Care, Education and Environment. The CSR policy aligns with the corporate philosophy of Kyosei, which means living and working together for common good. Our employees are encouraged to volunteer their time and skills and enjoy the experience of giving back to the communities in which their work.To make a long term and sustainable impact in the core areas supported by iCare, CSR at Canon India has adopted a village to develop and strengthen Eye Care facilities and Education in the community. Ferozpur Namak village is situated in Mewat district, Haryana. The implementing partner for the project is CAF India with direct support in the village from NGO SARD and ICARE Hospital in Noida. The three core projects that will be undertaken in the village are:

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(i) Set up of a Vision Center (ii) Supporting the local Government School Today's buzzword, Corporate Social Responsibility or CSR has been part of the Tata Group ever since the days of Jamshetji Tata. Even while he was busy setting up textile ventures, he always thought of his workers' welfare and requirements of the country. From granting scholarships for further studies abroad in 1892 to supporting Gandhiji's campaign for racial equality in South Africa to giving the country its first science centre, hospital and atomic research centre to providing relief and rehabilitation to natural disaster affected places - they have done it all. TATA Group of Companies Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is that 'give back to the people what you have earned from them'. So from the very inception, Jamshetji Tata and his family have been following this principle." Moreover 'he says that for any business to sustain in the long run they have to look beyond business. Ages ago when Corporate Social Responsibility was either the government, or charitable organisations headache, the Tatas aggressively worked for the upliftment of the community. Tata initiated various labour welfare laws, like the establishment of Welfare Department was introduced in 1917 and enforced by law in 1948 or Maternity Benefit was introduced in 1928 and enforced by law in 1946. Further, different Tata companies have been actively involved in various social work. Like Tata Consultancy Services runs an adult literacy programme, Titan has employed 169 disabled people in blue collar workforce at Hosur, Telco is fighting against Leprosy at Jamshedpur, Tata Chemicals runs a rural development programme at Okhamandal and Babrala, Tata Tea's education programme and Tata Relief Committee (TRC) which works to provide relief at disaster affected areas.

Conclusion CSR is so important to both the country and the company. In any society there is one section that makes huge profits and richer than the rest which leads to disparity. Over a period of time it has been witnessed that corporations die out if they do not support the masses. Compared to western world our rural masses are still suffering without even the essential needs like education and health. It is a high time for the corporate to join hands with our government in rendering their services to the people of our country, then only we can achieve “Inclusive growth”.

Reference Adnan Safi and Muhammad Ismail Ramay(2013), Corporate Social Responsibility and Consumer Behavior: A Study from Pakistan, Information Management and Business Review Vol. 5, No. 4, pp. 194-202, April 2013 (ISSN 2220-3796). Bangera, L.C: Entrepreneurial Role in Nursing Sick Units.the financial Express,August 26, 1980.

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IBM Launches Leadership Programs for Women. The Economic Times dated November 10, 2011. IBM to Increase Leadership Pool of Women Professionals by 20% in Tech & 15% in Sales Dept. The Economic Times dated November 10, 2011. Iza Gigauri (2012), Impact of Corporate Social Responsibility on Consumer Purchase Decision, American-Eurasian Journal of Scientific Research, 7 (5): 2012 ISSN 18186785, pp. 207-211. More Women Leaders, Better Corporate Social Responsibility. The Economic Times dated November 22, 2011. Muhammad Adnan Khurshid, Omair Mujahid Malik and Ahmed Ali Soliman(2013), Corporate Social Responsibility Awareness: An Exploratory Study among MBA Students International, Journal of Arts & Sciences (IJAS) Conference for Academic Disciplines, Harvard University, USA, 26-30 May 2013. Women Matter 2: Female Leadership, A Competitive Edge for the Future. McKinsey & Company. www.canon.co.in www.tata.in

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CORPORATE SOCIAL RESPONSIBILITY PLANNING AND STRATEGY LUDA JOYCEE Introduction Corporate social responsibility (CSR) The Company must act responsibly, and criteria for social responsibility must be adopted to contribute toward consolidating better companies not only in social terms – that is, companies which are more useful to society – but better companies in purely economic terms – that is, better quality, more efficient, more competitive companies.

Purpose of CSR The needs of current and future generations require respect for natural resources and the development of standards to protect environmental and social values. The role of the business sector is critical to the achievement of this goal. Addressing common problems is in business' best interest as they will require a health operating community. This requires corporate social responsibility considerations. The proper understanding of CSR means that companies need to work with stakeholders affected by a business decision. This will result in the development of economically viable products that will help to improve social conditions and environmental protection. Companies risk tarnishing their name or their brand if they fail to achieve positive performance or engage in questionable behavior.

CSR Planning When CSR activities are being planned at a new or existing foreign site, the first step is to take stock of the situation. The company’s CSR-relevant principles and values, as well as the applicable guidelines and systems, need to be adapted to local circumstances. Each country’s specific conditions, the needs of the various stakeholders, and local cultural and socioeconomic characteristics must be considered.

Strategic Plan for Corporate Social Responsibility The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principles, respect for people and for the environment. The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined: 1. Minimize the environmental impact. 2. Guarantee transparency with the investment community. 3. Ensure that employees are motivated and involved in the continuous improvement of the company. 4. Maintain a close relationship with the client to guarantee client satisfaction. 5. Extend the commitment to Social Responsibility to suppliers and sub-contracted companies. 6. Involvement with the community and the society as a whole. 58   

7. Encourage and systematize communication channels. 8. Guarantee that the implementation of the Strategic Plan for Corporate Social Responsibility is controlled and monitored. Strategic Line 1: Minimize Environmental Impact  Identify and evaluate the activity’s main environmental impacts.  Establish improved objectives to reduce the activity’s environmental impacts.  Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date.  Systematically control water and energy consumption and the production of residues.  Manage residues appropriately.  Optimize energy consumption. Strategic Line 2: Guarantee Transparency with the Investment Community  Comply with the rules on transparency and adopt the recommendations from the Code and Report.  Guarantee two-way communication with the investment community.  Have a system for the evaluation, application and monitoring of opinions and demands from the investment community. Strategic Line 3: Ensure that Employees are Motivated and Involved in the Continuous Improvement of the Company  Increase the representation of women.  Ensure employment of disabled personnel.  Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the training sessions.  Provide training to new employees on the commitments to Corporate Social Responsibility.  Develop a system of management by objectives.  Develop a system to encourage employee participation through suggestions.  Guarantee coherence, equal opportunities and no discrimination.  Protect the stability of the workforce.  Evaluate the level of employee satisfaction.  Adopt the necessary measures (ergonomics in space, material, equipment, etc.) to guarantee a good work environment.  Ensure basic health, safety and accident prevention measures are taken.  Encourage good environmental practices at home amongst employees.  Prepare an employee’s code of ethics. Strategic Line 4: Maintain a Close Relationship with the Client to Guarantee Client Satisfaction  Evaluate the level of client satisfaction.  Communicate all information about a product or service offered clearly and transparently.  Encourage good environmental practices amongst clients.

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Strategic Line 5: Extend the Commitment to Social Responsibility to Suppliers and Subcontracted Companies  Homologate product supplies based on established environmental and social criteria.  Include requisites, based on established criteria, in the contractual agreement.  Establish a system for evaluating suppliers and subcontracted companies, based on criteria established in the previous point. Strategic Line 6: Involvement with the Community and Society as a Whole  Develop a system of communication to improve dialogue with the local community.  Be an active member of associations and groups with a close relationship.  Prepare a Sponsorship and Social Action Plan and a Sponsorship manual. Strategic Line 7: Encourage and Systematize Communication Channels  Develop a communication plan to make all interested and potentially interested parties aware of the Strategic Plan for Corporate Social Responsibility, so as to contribute to its implementation.  Increase contents of information on Social Responsibility in the existing communication channels.  Create, within each company, two-way communication channels with employees.  Establish a program of social activities for employees.  Create a working group to encourage dialogue with employees.  Ensure that each company has a formally established system to collect queries and suggestions from clients, as well as mechanisms to respond, monitor and record them.  Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees, clients, local community). Strategic Line 8: Guarantee that the Implementation of the Strategic Plan for Corporate Social Responsibility is Controlled and Monitored  Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies.  Update the data for the indicators with the frequency established in each case.  Report the results of the indicators for each company to the Social Responsibility Unit, so that they can prepare the triple bottom line.  Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility.  Create a platform for the Strategic Plan for Corporate Social Responsibility.

Conclusion The impact of a company’s action on society Requires a manager to consider his acts in terms of a whole social system and holds him responsible for the effects of his acts at all levels in that system. Business has an obligation to society which extends beyond economic and legal duties Described as one of the most important social movements of our time.

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References Ashwani Singla and Prema Sagar (2004). Trust and Corporate Social responsibility: Lessons from India. Journal of Communication Management, Vol. 8(3), pp.282. Balasubramanian, N.K, (2003). CSR as an Instrument of Global Competitiveness, IIMB Management Review, Dec, pp. 61-7 Bhattacharya, C.B., Sankar Sen and Daniel Korschun (2008), "Using Corporate Social Responsibility to Win the War for Talent," MIT Sloan Management Review, 49 (2), 3744; "The Good Company". The Economist. 2005-01-20. Retrieved 2008-03-07. Gopal K. Kanj, Parvesh K. Chopra (2010), "Corporate Social Responsibility in a Global Economy." Routledge

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ROLE OF CSR IN SOCIAL DEVELOPMENT Dr. C. THILAKAM AND S.MAHADEVI Introduction Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. It is also called as corporate conscience, citizenship, social performance, or sustainable responsible business. CSR policy functions as a built-in, selfregulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. CSR is the deliberate inclusion of public interest into corporate decision-making that is the core business of the company or firm, and the honoring of a triple bottom line: people, planet, profit.

Corporate Social Responsibility in India Corporate Social Responsibility (CSR) is the soul of every business these days. It has also become the password to not only overcome competition but to ensure sustainable growth. It been supported not only by the shareholders but stakeholders by and large encompassing the whole community. CSR in truth is the alignment of business operations with social values. It into account the interests of stakeholders in the company's business policies and actions. It focuses on the social, environmental, and financial success of a company - the so-called triple bottom line - with the aim to achieve social development while achieving business success. More importantly, CSR is the point of convergence of various initiatives aimed at ensuring socio-economic development of the community which would be livelihood oriented as a whole in a credible and sustainable manner. There does seem to be a glimmer of hope from the rapidly growing field of CSR and from the greater involvement of companies in providing private funds for relief.

Role of CSR India is widely regarded as a country in which corporate social responsibility has long played an important role. National and international nongovernmental organizations and UN agencies are involved in the public debate in the business community and the media. However, the involvement of the business community is concentrated among a few longestablished family-owned companies that contribute a significant amount in the field of CSR, in both theory and practice. The Indian subsidiaries of German companies are bound by their parent companies’ guidelines for socially responsible behavior, but how these guidelines are actually implemented is left up to each subsidiary. Their CSR activities focus on their employees (providing training and improving social security), the environment and aid

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efforts within India or in the region, which are currently concentrating on providing help to tsunami victims. Public policymakers are seeking to achieve inclusive and sustainable growth, and calling on private enterprise to contribute its share. There is no evidence of CSR activities in the informal sector of the Indian economy, which is responsible for slightly less than half of GDP and employs some 93 percent of India’s workforce. Indeed, workers in this sector are afforded no rights or protections whatsoever, and all indications are that no efforts are being made to fight poverty, promote education or health, protect the environment or encourage employee participation in business development. The UN Global Compact seeks to promote the CSR activities of businesses in India. However, it has not succeeded in involving important NGOs, or most importantly, the unions. The UN Global Compact is not well known within the business sector or the NGO community. For some time now, German development organizations (GTZ, InWent) have been cooperating closely with the country’s important trade associations. The Indo-German Chamber of Commerce has developed its own approach to CSR, and provides conceptual and advisory support for German companies in India. While CSR is not at the top of the agenda of German political foundations, some of them are starting to devote more attention to this area. The German government, represented by the Ministry of Labor, is working to achieve greater international cooperation on CSR under the Heiligendamm Process, which includes India as one of five outreach countries. Talks have been held in the context of a formalized partnership between Germany and India. Representatives of the German business community meet with embassy officials at least once a year, during their monthly business lunches, to discuss CSR.

Growing Importance of CSR Corporate social responsibility (CSR) is the responsibility recognized by the companies for acting in socially responsible manner. There is no single universally accepted definition of corporate social responsibility, it has generally come to mean business decision making linked to ethical values, legal compliance, and respect for people, community, and environment. CSR expects a company to go further than required by law so as to:  Treat employees fairly and with respect  Operate with integrity and in an ethical manner in all its business dealings with customer,  suppliers, lenders, and others  Respect human rights  Sustain the environment for future generations  Be a responsible neighbor in the community and a good ‘corporate citizen’. Occupational welfare and corporate community welfare or corporate social responsibility (CSR) are of growing importance to governments and service providers as they promise to meet challenges of social problems within changing welfare environments. The modern governments have increasingly Maratha Mandir’s Babasaheb Gawde Institute Of Management Studies resorted to corporate involvement in local services and have also 63   

encouraged the expansion of occupational welfare. Over the last twenty years an increasingly large number of business houses have responded positively to the banner of CSR. This has perhaps been partly due to their aspiration to make their operations more ethical. While for the government, the role the businesses can play in the development of society is quite crucial, the activist community might like to take credit for the growing importance of CSR as a clear victory for their efforts in pressurizing the activities of companies. To put the same in other words, companies introduced CSR reports and programs as a response against damage inflicted on their sale and reputation by attacks from activist groups who aided by 24 hour news media in which corporate wrongdoing has been especially highlighted. While on the one hand this makes compelling news, it puts an ethical pressure on the companies to give back at least a part to society in return what they have gained from it. It is therefore, no longer important for companies to just make profit, the way this profit is generated is deeply investigated by the activists. A company must not be seen violating ethics or law in any of the areas like market behavior, trade policies, employment relations, sourcing of raw materials, human rights, environmental laws or the activists would put pressure on them through media or the other channels. This analysis however fails to appreciate much of the social contributions businesses have been making since long back. The companies may either include CSR report in their annual report and accounts or may publish their separate corporate responsibility report which may be called a ‘social and environmental report’ or a ‘sustainability report’. These reports indicate a company’s commitment toward ethical behavior and highlight their progress towards achieving their strategic CSR objectives. Increasingly more and more companies have begun to incorporate ethics and CSR in their strategic planning and objectives. Many large companies have adopted formal environmental policies with the objectives of creating a sustainable business and being environment friendly. For instance, a company that uses large quantities of timber as raw material might adopt a policy of re-forestation to replace the trees they have cut down.

Benefits of CSR Win new business. Increase customer retention. Develop and enhance relationships with customers, suppliers and networks. Attract, retain and maintain a happy workforce and be an employer of choice. Save money on energy and operating costs and managing risk. Differentiate yourself from your competitors. General innovation and learning and enhance your influence. Improve your business reputation and standing. Provide access to investment and funding opportunities.Maratha Mandir’s Babasaheb Gnawed Institute Of Management Studies  Generate positive publicity and media opportunities due to media interest in ethical business activities.         

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CSR Importance and its Relevance Today The amount of information available to customer about the company, product, brand globally through easy accessible and available mode of information; internet, communication, customer wants to buy product from trusted brand, employee want to work for the company who respect them, NGO’s want to work with company who work with the same vision for the benefit of the people. As said by Peter Duker “The 21st century will be the century of the social sector organization. The more economy, money, and information become global, the more community will matter.” (Corporate watch report, 2006).According to strategic corporate social responsibility by William B. Werther, David Chandler there is three trends which are going to have importance in future are:  Increasing Affluence: Customer from elite level can afford to buy and pay more for premium brand but the poor customer might not be willing to pay so much for brand, instead they would prefer to spend their money on business which can take their business to much better level.  Changing social expectation: Its natural that customer expect more from the company whose product they buy but with recent controversy and scandal of company has reduced the trust and confidence in the regulatory body and organization which manage the corporate.  Globalization and free flow of Information: With growing trend of media and easy access to information through mobile, TV even the minor mistake of the company is brought in public in no time, this sometime fuels the activist group and likeminded people to spread message which can lead to situation like boycott of the product. There can be few key steps to implement CSR successfully (Corporate Social Responsibility, 2014)  Better communication between top management and organization  Appoint for CSR position.  Good relationship with customer, supplier, stakeholder.  Annual CSR audit.  Feedback process

CSR and Brands Brands are the way to success for a business. The sales and revenue of the company are widely dependent on the brand they give to customer. Few of the traits which affect the brand are  Positive Marketing/ Brand Building - Times of India (kalingatimes.com) “Lead India Campaign” by Time of India is perfect example for brand building through CSR. This was the brought by times of India to bring about change in society. It was more of business/brand building strategy than CSR. Such activities knowingly or unknowingly prepare an image in mind of viewers and hence building image.  Brand insurance - NIKE (Corporate Social Responsibility, 2014) NIKE has emerged as one of the most progressive global corporations in terms of CSR because it has

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learned from its past mistakes and attacks by NGOs. As one of the first corporations to have a Vice-President for Corporate Responsibility and to publish an annual CSR Report, the company has done a lot to mitigate public opinion, establish its brand as representative of a much more committed corporate citizen, and ‘insure’ itself against any repeat of the consumer boycotts it faced in the mid-1990s.

Conclusion The concept of corporate social responsibility has gained prominence from all avenues. Organizations must realize that government alone will not be able to get success in its endeavor to uplift the downtrodden of society. The present societal marketing concept of companies is constantly evolving and has given rise to a new concept-Corporate Social Responsibility. Many of the leading corporations across the world had realized the importance of being associated with socially relevant causes as a means of promoting their brands. It stems from the desire to do good and get self satisfaction in return as well as societal obligation of business. CSR can play a valuable role in ensuring that the invisible hand acts, as intended, to produce the social good. In addition, it seems clear that a CSR program can be a profitable element of corporate strategy, contributing to risk management and to the maintenance of relationships that are important to long-term profitability. It can be concluded that in today’s informative world where information are readily available to general public CSR has been an important part of any organization to be successful. Organization in present world cannot be successful without taking into account the social responsibility. CSR has been a vital component for any organization to have perpetual success and to create brand.

References Brown K (2001), "Corporate Social Responsibility: Perceptions of Indian Business", in Mehra M (Ed.), Retrieved from www.csmworld.org/ public/pdf/social_respons.pdf (Accessed February 10th 2011) Charities Aid Foundation (http://www.cafindia.org/): CAF India provides strategic and management support to corporates, individuals and PSUs in order to ensure greater impact of their philanthropic and CSR investments. GiveIndia (http://www.giveindia.org/): GiveIndia is a donation platform that allows companies to support a cause of choice from about 200 NGOs that have been scrutinised for transparency and credibility. http://www.chillibreeze.com/articles_various/CSR-in-India.asp. Krishnan, S. (2001). “Corporate social responsibility: How and why in India”, Retrieved from http://www.coolavenues.com/know/ m/corporate_ citizenship.php3 (Accessed February 10th 2011) Oxfam India (http://www.oxfamindia.org/): The Oxfams are rights-based organisations that fight poverty and injustice by linking grassroots programming (through partner NGOs) to local, national and global advocacy and policy-making.

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Voluntary Action Network India (http://www.vaniindia.org/): Voluntary Action Network India works towards building a society where voluntarism and voluntary organisations play a dominant role in social cohesion, economic empowerment and nation-building. www.k4d.org/Health/sustainable-development-challenges-and-csr-activities-in- india.

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A STUDY ON CORPORATE SOCIAL RESPONSIBILITY AND USAGE OF PLASTIC BAGS IN SMALL AND MEDIUM SIZE RETAIL BUSINESS IN MADURAI KUMARAN THAYUMANAVAN Introduction India consumes around five million metric tonnes of plastic products every year. Of this, plastic bags alone form a large part.Four to five trillion plastic bags are manufactured each year and only 1% of the plastic bags are recycled. It takes 1000 years for polyethylene bags to break down and this leaches toxic substances that enter the food chain. Plastic bags are often mistaken as food by marine mammals and 100,000 marine mammals die a painful death as the plastic wraps around their intestines or they choke to death. The chemical elements in the formulation of additives can harm the environment. Furthermore, their use can also lead to other types of environmental harm, for example, small plastic fragments resulting from the decomposing process are easily carried by air to rivers, lakes, seas, major thoroughfares, cultivations and forests causing considerable damage, ranging from the blocking of plumbing and river drainage systems to the death of animals who choke on plastic fragments found in the environment (ACMINAS, 2011).Plastic bags therefore are the single largest urban impact on the environment. This is the reason why the UN is also proposing a global plastic bag ban - the result would be monumental. According to the survey, 80% of plastic bags are used only once and then thrown away. They are usually reused for storing domestic waste. Every month, Month retailers distribute a billion plastic bags to their consumers. Therefore, Green marketing, therefore, is now in focus. Its main objective is to make people and organizations aware of environmental issues by using marketing strategies. Environmental marketing or green marketing encompasses all activities developed to generate and promote trade in order to satisfy the needs and desires of consumers, provided that they cause the least amount of negative impact on the environment. Tamil Nadu is determined to carry forward its fight against use of low quality plastic, considered an environmental hazard. One of the first states to ban use of plastic less than 40 microns thick, Tamil Nadu is now gearing up to ban use of plastic with a thickness of less than 60 microns. Legislation is in the offing to enforce the new standard. Only in February 2011, the Centre banned use of plastic with less than 40 microns across the country. At least 4,000 tonnes of carry bags and throwaway plastics are manufactured in the state. A notification issued by the Union ministry of environment and forests in 2011 banned use of plastic sachets for storing, packing or selling tobacco and pan masala. Rules are never implemented. Unlike tourist spots like Ooty or Mammallapuram, plastic carry bags with less than 15 or 20 microns are freely available in the market.Importantly, there are also no environmental benefits to banning plastic bags, but there is potential harm. Compared to cloth bags, plastic bags require less energy to produce and less energy to recycle and produce

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less municipal waste. Plastic bags generate fewer greenhouse gas emissions and require less water to produce than paper bags. Cloth bags need to be used 104 times before there is any environmental advantage over plastic bags. But most cloth bags are used half that amount.

Problem Statement Awareness of corporate responsibility is rising and the understanding of the term is moving away from just charitable donations to include environmental matters, health and safety, ethics and other considerations. The use of plastic carrier bags by retailers has been a subject of debate in many states in India.It is about time retailer start thinking of an outright ban on plastic bags as a step in the direction if positive CSR. The retailer should show an increased sense of responsibility towards their people, the environment and the wider community.

Objective of the Study  To investigate Small and Medium Size retailer’s attitude towards the distribution of Plastic bags in Madurai district  To deepen the conceptual understanding of corporate social responsibility (CSR) and retailer’s underlying motivations to engage in CSR  To find out whether retailers in the Madurai are willing to change their purchasing behaviour to reduce negative impacts on the environment.

Review of Literature and Hypothesis Development At the individual level, CSR has been constructed by Ackermann (1975) as managerial discretion. According to this view managerial actions are not fully defined by corporate policies and procedures. So although managers are constrained by their work environment they nonetheless have to weigh the moral consequences of the choices they make. The view of CSR is strongly anchored in the business ethics literature (Jones, 1991; Donaldson &Dunfee, 1994; Crane &Matten, 2003). With Freeman’s (1984) seminal book the focus moved from legitimacy and morals towards a new theory of the firm. Social considerations are thus no longer outside an organization but are part of its purpose of being. CSR thus becomes a question of stakeholder identification, involvement, and communication (Mitchell, Agle, & Wood, 1997; Morsing& Beckmann, 2006; Morsing& Schultz, 2006). Conventional plastic bags, also known as oxo-biodegradable, are used to carry shopping from supermarkets. They emerged in the 1950s in the United States and arrived in Brazil in the 1980s, substituting paper bags, previously used for this purpose (AMIS, 2011).Conventional plastic carrier bags are widely used by retailers in most of Brazil. They are produced using polyethylene, a substance derived from oil and oxidizing additives. They take approximately 400 years to decompose in the soil (PORTALPBH, 2011).

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The following hypothesis was formulated based on the review of literature. H1 Type of Retailer and the demand raised by the customers for Plastic Bags H2 Educational Qualification of the respondents and the awareness level towards Government rules and regulation. H3 Age of the respondent and the Ban of Plastic Bag. H4 Years of Existence and avoiding the Plastic Bag in Future

Research Methodology A quantitative approach was used in this research and the research is descriptive in nature. Measurement and Scaling The conceptualization and development of the questionnaire was based on the existing literature. A typical 5-point Likert scale was used to measure the constructs presented in the proposed model. The survey instrument was refined during a pilot study to ensure the internal consistency of the measured instrument, with the involvement of 10 respondents. The questionnaire contained 37 items in total. The first part of the instrument contained six questions about demographics of the respondents such as, age, education, type of retail outlet etc. The second part of the questionnaire contained six questions about characteristics of the retailers and third part of the questionnaire contains three items regarding CSR and Fourth Section included 22 items, which contained CSR (8 items), Retailer’s Attitude (4 items) Environmental Hazards (3 items) and Plastic Bag and Retailer (7 items). The questionnaires were administered by personal delivery. Convenience sampling approach was adopted in order to collect the primary data and it took a period of 15 days for the entire collection of data. The individuals targeted for the collection of data for this research project were the owner / employee of Textile, Jewellery, Grocery, Book, snacks and Bakery retailers and Small and Medium Size Hotels, in Madurai District. During a fifteen days period, 107 respondents completed the survey. Seventeen responses were discarded due duplicate submissions or incompletion, a net sample of 90 (Size is determined based on the sample standard deviation) usable questionnaires was used in this study. Tools Used For the purpose of data analysis, statistical package for social sciences (SPSS) version 20 was used. Percentage analysis and Chi Square test were used to check the relationship between two variables.

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Analysis and Discussion  30% of the retailers established their business in between 15 and 20 years followed by 23.3% of the respondent’s established their business in between 10 and 15 years.  Most of the respondents (24.4%) are between 36 and 40 years of age andabove 41 years.  Majority of the respondents (21.1) are studied up to HSC followed by 21% of the respondents are graduates.  35.6% of the retail outlets are located inside the shopping complex followed by 22% of the outlets are located along the roadside in Madurai district.  27.8% of the retail outlets are having two employees followed by 23.3% of the retailers having three employees.  16.6% of the respondents are equally selected from Textile, GroceryRetailer, Book Retailer, Snacks& Bakery, Hotel and Jewellery retailers in Madurai district.  When respondents are asked how you woulddefine corporate responsibility, Majority of the respondents informed (36%) that they are conducting business in an ethical and professionalmanner, followed by 30%providing a safe working environment for employees, 24%, giving donations to charity 10% informed that they are taking initiatives to reduce the company’s impact onthe environment.  53% of the retailers stated that they have been questioned by regulators about their impact on the community and on the environment.  Majority of the respondents informed that they are notgiving a lot of importance to CSR.  Overall retailers were positive about the implementation of the ban if the government offer alternative solution at the same cost.  66% of the retailer thought that a total ban on plastic bags is unrealistic; and18% declined to answer this question for various reasons.  Majority of the retailers informed that even though these are called single use Plastic bags, consumers use plastic bags more than once.  The retailers are concerned with environmental issues and are willing to change their behaviour in view of the introduction of substitution of conventional plastic bags by compostable carrier bags.  Another important finding is that very few consumers claimed they had changed their consumer habits due to the new legislation and decided to adopt other measures instead of using conventional carrier bags to transport their shopping.  Very few respondents stated that they started to value green products more after the law relating to compostable bags was introduced and they also believe that this new law may have a positive effect on the environment.

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Chi-square Test Results Table I: Chi Square Test results No. Hypothesis Results Reasons Type of Retailer and the demand Chi Square results, df value = 20, Asymp. Sig. (2-sided) = 0.006 H1 raised by the customer for Plastic Supported Bags Educational Qualification of the Chi Square results, df value = 20, respondents and the awareness Not Asymp. Sig. (2-sided) = 0.250 H2 level towards Government rules and Supported regulation. Age of the respondent and the Ban Not Chi Square results, F value = 20, H3 of Plastic Bag. Supported Asymp. Sig. (2-sided) =0.979 Years of Existence and avoiding the Chi Square results, F value = 16, Not Asymp. Sig. (2-sided)=0.958, H4 Plastic Bag in Future Supported The above Table I shows the results of chi-square Test for four hypotheses. Three of the four hypotheses were not supported by the data, consistent with previous literature in most cases. In the cases, Retailer’s type has relationship with the demand raised by the customer for plastic bag.There is no relationship between Educational Qualification of the respondent and the awareness level towards Government rules and regulation,Age of the respondent and the Ban of Plastic Bagand finally there is no relationship between Years of Existence and avoiding the Plastic Bag in Future. Table II: Corporate Social Responsibility CSR SD D

NA/DA A

SA

CSR needs to be strongly promoted by government 12.2 20.0

26.7

27.8 13.3

I am aware of government rules and regulation regarding 23.3 24.4

28.9

17.8

Responsible businesses go beyond what is required by law

14.4

13.3

52.2 11.1

CSR encompasses a set of activities retailer carry out 24.4 24.4

25.6

16.7

CSR is primarily motivated by public relations or 10.0 23.3

22.2

23.3 21.1

CSR is important to us

14.4

16.7

33.3 28.9

Do you pledge to support the Tamilnadu government aim 11.1 20.0

44.4

14.4 10.0

CSR is a resource intensive and costly concept

24.4

44.4 11.1

8.9

6.7

10.0 10.0

5.6 8.9

Table II shows the Perception of Respondents for Dimensions of Likeability for CSR. It is clear that 27.8% of the retailer agreed that CSR needs to be strongly promoted by government authorities. 28.9% of the retailer neither agreed nor disagreed that they are aware of government rules and regulation regarding the rules for plastic bags. 52.2% of the retailer agreed that the businesses should go beyond what is required by law to make a positive impact on society and the environment. 25.6% of the retailer neither agreed nor

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disagreed that the CSR encompasses a set of activities retailer carry out independently of their daily business operations. 23.3% of the respondents agreed and disagreed that CSR is primarily motivated by public relations or marketing considerations. 33.3% of the retailer agreed that CSR is important to them. 44.4% of the respondents neither agreed nor disagreed to support the Tamilnadu government’s aim to reduce the use of plastic shopping bags within the district. 44.4% of the retailer agreed that CSR is a resource intensive and costly concept. Table III: Retailer’s attitude towards CSR Retailer’s Attitude SD D NA/DA A SA If single-use plastic carryout bags were banned, it will 11.1 20 18.9 i act to o b i e CSR can lead to an increase in profits 27.8 18.9 37.8

23.3 26.7

Do your employees ask customers whether they would 46.7 22.2 13.3 I thought of using alternatives instead of plastic bag 24.4 8.9 23.3

8.9 8.9 31.1 12.2

8.9

8.9

Table III shows the retailer’s attitude towards Plastic Bags. It is clear that 26.7% of the respondents strongly agreed that if single-use plastic carryout bags were banned, it will impacts their business. 37.8% of the respondents neither agreed nor disagreed that CSR can leads to an increase in profits. 46.7% of the respondents strongly disagreed with the statement that do your employees ask customers whether they would like a single-use plastic carryout bag. 24.4% of the retailer strongly disagreed with the statement that I thought of using alternatives instead of plastic bag. Table IV: Environmental Hazards Environmental Hazards SD D NA/DA A SA I know very well that use of plastic bags will harm the 11.1 11.1 24.4

22.2 31.1

Birds and animals are suffering due to the consumption 10

10

40

I agree that the Plastic bags are the major threat to 10

14.4 27.8

18.9

21.1

33.3 14.4

Table IV shows the awareness level of environmental hazards caused due to Plastic Bags. It is clear that most of the respondents (31.1%) strongly agreed thatthey know very well that use of plastic bags will harm the environment. 40% of the respondents agreed that Birds and animals are suffering due to the consumption of plastic bag. 33.3% of the respondents agreed that the Plastic bags are the major threat to environment. Table V: Plastic Bag and the Retailer Plastic Bag and the Retailer SD D NA/DA A SA I will consider the size of plastic bag before purchasing it

23.3 25.6 20

17.8 13.3

I thought of avoiding plastic bag in future

25.6 15.6 25.6

23.3 10

Have you thought of implementing price for carry bags

22.2 23.3 32.2

13.3 8.9

I am using plastic bag due to the demand raised by the 11.1 14.4 21.1

36.7 16.7

I will stop using plastic bag if government give 11.1 14.4 27.8

32.2 14.4

I will stop using plastic bag if consumer avoid it

8.9

43.3 21.1

I would like to see a total ban on the use of plastic bags

24.4 27.8 30

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10

16.7

12.2 5.6

Table V shows the usage of Plastic bag and the retailer attitude towards it. It is clear that 25.6% of the retailer disagreed that they will consider the size of plastic bag before purchasing it. 25.6% of the retailer strongly disagreed that they thought of avoiding plastic bag in future. 23.3% of the respondents disagreed with the statement that have you thought of implementing price for carry bags. 36.7% of the respondents agreed that they are using plastic bag due to the demand raised by the consumer. 32.2% of the respondents agreed that they will stop using plastic bag if government give offer/alternative. 43.3% of the respondents agreed that they will stop using plastic bag if consumer avoids it. 27.8% of the respondents disagreed with the statement that they would like to see a total ban on the use of plastic bags.

Conclusion Banning plastic bags is not just the jurisdiction of government. It is also a retailer’s responsibility and it is not just retail chains that need to make the effort. It is one of the simplest CSR initiatives that can be undertaken. Just the act of charging customers for plastic bags is going to see a dramatic reduction in the number of bags used.Retailer’s have to develop new competitive strategies which take into account the changes that influence consumers, be these personal, psychological or cultural, and within this context, they need to consider consumers' greater awareness of the importance of preserving the environment.

Future Research One of the suggestions for future research is to replicate this study in other areas of the state which have banned the use of plastic carrier bags. It may also be interesting to conduct this research in cities where similar laws have not been passed, so as to compare the behaviour of consumers in these circumstances.

Reference Dees, J. G., Emerson, J., & Economy, P. 2001b. Strategic Tools for Social Entrepreneurs: Enhancing the Performance of Your Enterprising Nonprofit. New York: John Wiley & Sons. Dikgang, Johane and Martine Visser (2010), ‘Behavioral response to plastic bag legislation in Botswana’, Environment for Development, Discussion Paper Series, Resources for the Future, Washington DC,10 - 13. Akullian, A., Caroline Karp, Kemen Austin, and Drew Durbin (2006), ‘Plastic bag externalities and policy in Rhode Island’, Brown Policy Review Paper, Available at: http://seattlebagtax.org/referencedpdfs/en-akullianetal.pdf Cummings, Ronald and Laura O. Taylor (1999), ‘Unbiased value estimated for environmental goods: a cheap talk design for contingent valuation method’, The American Economic Review 89(3):649-665. The Economist (2009), ‘India’s urban environment: heavy baggage ’,January 29th , available at http://www.economist.com/node/13041382.

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Express India (2008),‘Plastic bags banned, blamed for Mahafloods’August 27, available at:http://www.expressindia.com/news/fullstory.php?newsid=53482 Haoran,He (2010), ‘The effects of an environmental policy on consumers: lessons from the Chinese plastic bag regulation’, Working Paper No. 453, University of Gothenburg, Sweden. Naryan, Priya (2001), ‘Analyzing plastic waste management in India: case study of polybags and pet bottles’, M.Sc. Thesis Submitted to the University of Lund, Sweden. Spivy, Angela (2003), ‘Plastic bags-prolific problems, ’Environmental Health Perspectives’111(4):208. The Energy Research Institute (2002), ‘Plastic waste management for Delhi’, Report Submitted to Department of Environment, Government of Delhi, India.

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IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON BUSINESS PERFORMANCE MARIYA NATHALIE VANHALTREN Introduction CSR is concerned with treating the stakeholders of the firm ethically or in a responsible manner. ‘Ethically or responsible’ means treating stakeholders in a manner deemed acceptable in civilized societies. Social includes economic responsibility. Stakeholders exist both within a firm and outside. The natural environment is a stakeholder. The wider aim of social responsibility is to create higher and higher standards of living, while preserving the profitability of the corporation, for peoples both within and outside the corporation. In the refined CSR strategy set forth by the European Commission in 2011 as well as in many past and recent scientific publications, a considerable focus is being set on the benefits of CSR to the society as a whole. Consequently, much effort is being made to promote CSR in all member states and companies of all sizes. Furthermore, member states are not only asked to update their individual CSR strategies, but also to prepare for some further regulatory intentions. Some business associations (e.g. the German Chamber of Commerce and Industry) are rather hesitant to accept mandatory CSR requirements promoted by the Commission, although the value and importance of CSR for society is acknowledged, there is more and more awareness that CSR activities are not only merely of charitable nature, but that they also contribute to a positive image of the company ,like to increase employee and customer satisfaction as well as to other soft factors that need to be taken into account when measuring business success. These developments consequently lead to the question: Is it possible to measure the impact of CSR activities on business performance; and if so, how? This Paper helps us in understanding latest trends in the field of Corporate Social Responsibility and offers a possible way to measure its impact on Business Performance on the basis of the stakeholder concepts.

Definitions CSR (Carrol, 1979) Firms have responsibilities to societies including economic, legal, ethical and discretionary (or philanthropic). Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999) There is a tacit social contract between the firm and society; the contract bestows certain rights in exchange for certain responsibilities. Stakeholder Theory (Freeman, 1984) A stakeholder is “any group or individual who can affect or is affected by the achievement of an organization’s purpose.” Argues that it is in the company’s strategic interest to respect the interests of all its stakeholders.

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Figure: Activities of CSR Management

Business Performance - Definition and Measurement a) Background: Business Performance was traditionally a topic that leaders of large companies paid a good deal of attention to, because it gives vital information about the state of the company, its success, development and future outlook. However, even though for large companies it is inevitable to employ Business Performance Measurement Systems, which are usually supported by Information Technology like Data Mining or Data Warehouse, Small and Medium Sized companies traditionally lack well-performed strategies in this area. Adaption of SMEs: All business processes eventually revolve around the target of contributing to the success of the company in one way or another. While the term “success” describes the positive effective overall turnout of a company´s activities, the term Business Performance in itself is a neutral descriptive concept for the effectiveness and the efficiency of the company´s actions in general or of certain parts or processes of the company in particular. Business Performance can be characterized with attributes, for example as “well” or “poor”, depending on the expectations of the individual. If Business Performance is weak, managers need to intervene in order to return to the path of growth. Especially in a market in which competition is increasing and globalization demands for better competitively, business leaders need to pay close attention to Business Performance. In the following figure displays the Business Performance of a company in relation to its management, to the business strategy and to the company´s processes: It shows the twosided approach to Business Performance. On one hand, there is a normative relation on the side of the company management (top-down relation). The leadership´s inherent responsibility is to set out a Business Strategy in which Business Performance is defined: Business Performance must meet or exceed the expectations of the leadership. On the other hand, the bottom-up relation is a descriptive one: Measurement of Business Performance through selected indicators shows the management if expectations are met and gives vital information about necessary adjustments to the business processes that need to be made. 77   

The figure shows that both, normative definitions and descriptive measurements of Business Performance must be made. Normative definitions of Business Performance are described within the framework of Business Strategies. They include approaches such as Total Quality Management (TQM) and Management by-strategies. Descriptive approaches to Business Performance often focus on selecting indicators in order to show the status quo of the business processes. However, newer developments in Business Strategies, such as the Baldridge Performance Excellence Program and the EFQM model, include the descriptive components already in its strategy model.

Figure: Business Performance in Business Architecture Once indicators are selected, the peculiarities of the different indicators must be identified and a predefined weighing executed in order to measure the current performance of the company. Usually this is not only done once, but in a frequency that allows the administration to evaluate possible improvements or deteriorations and to act upon them in time. The auditing process can be done either internally or externally. Performance Measurement Systems were described in 1995 as “the set of metrics used to quantify both the efficiency and effectiveness of actions”. The measurement process can be done in an automated way using information technology. Often large companies have the financial ability and adequate human resources to purchase and to implement necessary IT equipment, such as software programs like SAS or ORACLE. But SMEs frequently lack these possibilities even though they would like to implement some kind of performance management. For this reason it is inevitable to equip SMEs with easily-understandable systems that contain indicators that are not too difficult to measure. b) The EFQM model as a reference system: EFQM is an abbreviation of the non-profit organization “European Foundation for Quality Management” and was founded in the year 1988 by the presidents of the 14 founding members, among them BOSCH, OLIVETTI, VOLKSWAGEN, FIAT and ELECTROLU. The foundation is based in Brussels, Belgium and has now more than 500 member organizations in more than 55 countries and 50 industries. The intent of establishing this foundation was to provide for a European version of an

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excellent quality award based on the philosophy of Total Quality Management. The most popular quality award at the time was the American Malcolm Baldridge National Quality Award. Less known in western countries but popular in Asia was the Japanese Deming Prize. The initial EFQM model relied to a large decree on the criteria and weighing of the Malcom Baldridge Award. Significant new developments were the inclusion of a broader stakeholder approach and the equal weighing of enablers and results. In the economic and scientific communities of the European Union, the EFQM model soon achieved high recognition and many non-profit organizations became members. In May 2009 - and thus in the middle of the financial and economic crisis- the Board of Governors of the EFQM Foundation formally requested an update of its Business Excellence model. The EFQM Foundation states that its request for the update was influenced by a variety of stakeholders such as members, assessors, partners, trainers, learning networks and even EU representatives. Therefore, the revised model contains up-todate key drivers of Business Excellence. The changes also reflect the increasing awareness for the need of sustainable economic and social performance. In order to measure and compare business performance, criteria’s have been set up by the EFQM and grouped into two main categories: Enablers and Results. Enablers represent factors that help companies achieve their desired results. Excellent businesses have a leadership that supports sustainable development, sets up a consistent strategy, works effectively together with partners, makes use of resources in an optimal way and focuses on people. Next to these factors, the processes, products and services are evaluated. On the results side, not only classical key results like market share and growth, turnover and profit are evaluated, but also soft factors like the impact of the business processes on its own people, on the customers, and on society. Long-term-focused activities like corporate social responsibility are to be considered as important as shareholder value and other rather shortterm-focused factors.

Figure: The EFQM 2010 Model

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According to Serban and Ghentavii, the EFQM-model is used as a diagnostic model and serves as a basis for an expansion that includes aspects of social and environmental responsibility. Using this model, the companies learn to evaluate themselves and to measure their own progress for continual further development. This is difficult to do in prosperous times. It is more difficult to maintain this commitment in a time of rapid technological innovation cycles; rising international competition; fundamentally changing processes; frequent changes in the economic, social, and customer environment; and, last but not least, in a time of financial or economic crisis. Next to a simplification of terms, the weight given to each criteria was changed while still carefully maintaining the equal value between the capacity of an organization, displayed by the five “enablers criteria”, and the performance it delivers for its stakeholders measured by the four “results criteria”. Capacity and performance each account for 50% of the total. Figure 5 shows the new weighting percentages. While the criteria themselves have not changed significantly, there have been some shifts in the underlying fundamental concepts. In an analysis of the revised concepts, one can see that the content has been changed to promote a more balanced and sustainable view of business culture and processes.

Figure: The EFQM 2010 Model While some criteria and weighing of criteria was changed, the underlying structure of the model was not altered. Based upon the well-known Plan-Do-Check-Act-cycle, the system was named RADAR, an acronym for “Results, Approach, Deployment, Assessment and Refinement. The RADAR system is a framework surrounding the actual EFQM criteria and the evaluation process. Similar to the radar system in airplanes or water vessels its function is the surveillance of a changing environment, with the aim of displaying possible negative impacts and therefore prompting adjustments and changes of the system. Its components constitute fundamental core principles that build the basis for all business processes, such as achieving balanced results, adding value for customers and taking responsibility for a sustainable future. All processes must contribute to the goals formulated in the fundamental principles, and the RADAR system ensures that no detachment takes place. Figure 6 shows the RADAR system graphically.

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Figure: RADAR System Surrounding the EFQM Criteria The EFQM model is becoming more and more popular, not only to evaluate and manage quality, but also for other management aspects. It has gained international recognition with a rising number of companies and institutions joining from non EUcountries, such as countries of the Persian Gulf-region.

Corporate Social Responsibility – Historical and Current Developments The European Commission defined CSR in 2006 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”. The individual actions of companies undertaking CSR measures are voluntary and are until now not standardized. Currently, there are voices demanding for legislation on the EU level that aim at raising CSR activities onto a mandatory component of business activities. Proponents of this requirement argue that companies play a vital role in society and therefore should contribute to growth in social issues. Opponents to these demands hold that privately run companies should not be held responsible for activities that should primarily be the domain of public agencies and private initiatives. However, awareness of Corporate Social Responsibility is not a new development. Concern for society and environment can be traced back to the beginning of time. According to one of the oldest known written documents, the account of Genesis by the biblical writer Moses, man was instructed by his Creator to “fill the earth and govern it” (Genesis 1, 28), and is later challenged: “The LORD God took the man and put him in the Garden of Eden to work it and take care of it” (Genesis 2, 15), thus implying a balanced approach to using natural resources and exercising responsibility. During the course of history awareness of social and environmental responsibility developed from individual social and environmental concerns and led to the perception that also collectives, such as profit-oriented businesses, need to partake in responsible activities that do not necessary produce profits visible in the short run. In the ancient Codex Hammurabi, excavated in Susa in 1902 and displayed today in the Louvre, Paris, a number of laws address the responsibility businesses carry for the effects of their products and processes on customers and citizens: For example, if a property developer would build a house that 81   

collapses later because of faulty statics and thereby causes the death of occupants, severe punishment would be due. Hammurabi’s crowning took place around 1800 B.C., and similar laws were set up already about 300 years earlier by the Sumerian king Ur-Nammu. Looking back to the immediate present, between 2006 and 2011 the European Commission worked on refining the definition of CSR as well as its strategy in respect to understanding and practically implying CSR in companies within EU member states. One of the questions addressed was the possible shift from voluntary actions to a mandatory requirement for enterprises to implement a CSR strategy. Business associations by and large have criticized this prospect, largely due to an increased load of reporting duties that would exceed the capacities especially of SMEs. For instance, the Association of German Chambers of Industry and Commerce stated repeatedly that, particularly in SMEs, CSR is a widely spread concern on the management level and that the voluntary approach would lead to best results. Key drivers for change should therefore not be requirements formulated by political institutions, but rather pressure built up by society and different stakeholders, such as customers. Business Associations like the German Chamber of Industry and Commerce took various actions in an effort to publically display the already \existing CSR activities, e.g. by conducting round tables and instigating contests in which commendable CSR activities were rewarded. However, the European Commission altered its 2006 definition of CSR in October 2011adding that “CSR should have in place a process to integrate social, environmental, ethical and human rights concerns into their business operations and core strategy in close collaboration with their stakeholders”. This wording replaces the original solely voluntary approach with a weak requirement, depicted in the word “should”. Concerning SMEs, the commission states that “for most small and medium-sized enterprises, especially micro-enterprises, the CSR process is likely to remain informal and intuitive”. The Commission sets out an action plan for the period between 2011 and 2014 with eight focus areas: 1. CSR and good practices should become more visible. In order to achieve this vision, a new European award is to be established and stakeholders should meet in a more formal way to set common goals and monitor progress in the CSR strategy of the affected companies. 2. Levels of trust should be tracked and improved by the European Commission by launching a public debate on the role and potential of enterprises and by organizing a survey on citizen trust in businesses. 3. Self- and corregulation initiatives are to be guided and improved by the Commission. 4. EU policies in the field of consumption, investment and public procurement are to be aimed enhancing market rewards for responsible business conduct. 5. The Commission intends to develop a legislative proposal for company disclosure of their environmental and social performance. 6. CSR should be integrated in education, training and research with potential funding possibilities. 7. EU member states should present and update their national CSR strategies and 82   

8. CSR should be aligned and embedded in other international programs, including the OECD Guidelines for Multinational Enterprises, the 10 principles of the UN Global Compact, the UN Guiding principles on Business and Human Rights, ILO and ISO 26000 standards. Considering the definition and strategy lined out by the Commission, it becomes evident that CSR will be a focal issue in succeeding years and that all effort is taken to make CSR more verifiable, better known and more widespread. Even though CSR is not a completely new topic, an increased public awareness regarding social responsibility of companies started to develop during the late 50’s and early 60’s of 11 the 20th century. This led to new literature about Corporate Social Responsibility (CSR) as well as to models for corporate conduct. During this era, managers started to ask themselves what was expected of them by society and what their responsibilities ought to be. However, many believed that business and ethics are two contradictory terms and that they are therefore difficult to combine. M. Friedman (1970) for instance argued that CSR served solely the personal benefit of company managers in raising their reputation in society, thus leading to higher personal wages, while shareholders would experience loss because companies were not profiting from CSR activities as these activities would incur only expenses. He argued that businesses should focus only on increasing their profits and not on adding value to society in general. This reasoning was in line with the market driven approach coined by Adam Smith: The invisible hand of free markets would produce best results if all agents would strive to maximize their profits. In this context, one issue that has frequently been addressed is the question, for what and to whom companies actually are responsible when pursuing business. A radically different view have those who argue that a company is responsible for all of its stakeholders and should take greater responsibility for society at large and should seek to solve social and environmental problems in its markets. In other words, this view has expanded the definition of ‘stakeholders’, beyond merely the investors and shareholders, to include all of society. The stakeholder concept was described in a detailed way by E. Freeman (1984). Freeman argued that managers should tailor their policies to satisfy the needs of all the stakeholders, not just those of the shareholders. In this approach, CSR became a strategic mandate for business leaders and thus a favorable task also for the top management level. Ever since, the stakeholder concept has been fine-tuned, and more and more systematic research has been done on the different constituents that should be taken into consideration. According to Carroll and Buchholtz (2003), the stakeholders can be subcategorized into primary stakeholders, consisting of shareholders (owners), employees, customers, business partners, communities, future generations and the natural environment; and secondary stakeholders, made up of the local, state and federal government, regulatory bodies, civic institutions and groups, special interest groups, trade and industry groups, media and competitors. However, the categorization is rather arbitrary and, for the sake of SMEs, the stakeholder concept should be adapted to the individual circumstances of the 83   

company. Since budgets, personnel, and available time for strategic evaluation are usually limited, SMEs should identify key stakeholders and should cater their CSR approaches to an easily comprehensible scope of stakeholders. Donaldson (1990) went a step further: According to him, managers were not only to engage in CSR activities because of strategic reasoning, but rather because of the existence of a “moral mandate” for them to act responsibly, without regard to the effects on the company. However, he also stated that there is a “Business Case” for CSR. Jones(1995) describes the mutual benefit of CSR activities for businesses and their stakeholders, in particular for the stakeholders: Since firms display responsibility by their CSR involvement, they are perceived as trustworthy and thus as safe market transaction partners. One can take this approach a step further and can conclude that companies not involved in CSR will not be attractive to customers, employees, suppliers and other stakeholders, because there is a lack of trust: the company is seen as a profitmaximizing organization with little or no regard to the needs of its business partners or customers and hence unattractive to do business with. Nowadays, however, researchers and authors agree that the address of ethics is crucial to the enhancement of long-term corporate success. Therefore, business ethics has received enormous attention, and numerous books have been written about this subject during the last twenty years. Especially in large companies and due to globalization, there is increased pressure on companies and managers to act ethically and socially responsible. Through the internet, television and press, most customers are aware of issues such as child labor, exploitation of workers, destruction of the environment, etc. As a result, pressure from different stakeholders along with massive media coverage has forced many companies to take action in order to protect their public reputation. Currently, corporate responsibility is the second most important factor in a company’s reputation next to the quality of products. According to some scientific research, customers do not evaluate companies based only on the features of their products and services, but also on what business practices they are engaged in, how their products are produced, and what effect on society the company has. Consequently, issues such as animal testing, environmental damage, irresponsible marketing, violation of land rights, trade union relations, fair wages and working conditions have become highly important for companies to consider since corporate actions now play a central role in customer decision-making. Moreover, managers have realized the enormous costs that public scandals generate such as disruptions, expensive legal entanglements, lower employee morale, difficulties in recruiting, internal fraud and loss of public confidence. Even though there have been a number of scientific articles about the different aspects of CSR – theoretical and empirical approaches – the research is still at an early stage. In one article, the state of knowledge in this field is even described as “embryonic”. However, scientific examination has already taken place and should be considered. The Indirect Approach to Measure the Impact of CSR on Business Performance As outlined above, the EFQM model provides a modern and intuitive approach to integrate CSR activities into the observation of Business Performance and the measurement

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of Business success on a sustainable foundation. Some companies have already implemented new CSR strategies linked with EFQM evaluation. For example, in 2011, the operator of the Ferenc Liszt airport in Budapest announced that, together with business partners, it had developed and deployed a CSR strategy based on the EFQM model. The name given to this undertaking was “Committed to CSR excellence”, thus combining the ideas of quality with its aim for excellence and CSR. According to the company, the aim was not only to implement a fitting strategy for the airport industry (the stated goal was to develop three successful CSR activities within one year), but also to be an example to other Hungarian companies, thus leading by example. Furthermore, the EFQM model provides an ideal framework for the measurement of CSR activities and their influence on Business Performance, in the sense that the model provides guidelines regarding how much weight should be given to different “enablers” and “results” criteria within the overall performance measurement. But how can the CSR component in the evaluation of Business Performance be isolated? First, one needs to identify the contribution of CSR to each examined criteria. Second, since the affected criteria are closely linked to known stakeholders, relevant data of these stakeholders must be collected. An effective method of obtaining data on the basis of the stakeholder concept is the collection of data by means of interviewing different groups, for example in the form of a questionnaire. The satisfaction levels of different stakeholder groups in this concept are the dependant variables, whereas the cumulated CSR activities resemble the independent variable in this simple regression analysis with only one regressor (the CSR activities). In the data collecting process of the dependent variable, the stakeholder satisfaction level, it will be important to eliminate other factors that contribute to the satisfaction level of the examined groups. These factors are e.g. wage, gratification programs, retirement programs, carrier opportunities, an ergonometric workplace and many more. For this reason, the questionnaires must be clearly focused on the effect of only the CSR activities on stakeholder satisfaction. In the case of an employee questionnaire, this can be achieved by formulating questions such as:  “Are you aware of the fact that your company has participated in program?”  “Do you approve of the company´s involvement in program?”  “Does the involvement of the company make you think better of the company?”  “Do you think your company should do more such activities? In which areas?” However, although these questions will already generate some useful information as far as the acceptance and also effects of CSR activities are concerned, they do not automatically offer useful data for an econometric analysis. For this means, another necessary step must be taken: The collected data must be transferred onto a cardinal scale. For this reason, a model must be developed which accounts for all relevant aspects of the effects of CSR activities on the satisfaction level of a number of different stakeholders and, in a further step, on the satisfaction level of all stakeholders. This will be done by first determining satisfaction levels for various stakeholders and then computing a weighed averaged of all satisfaction values in order to obtain a single value which will be used to perform econometric tests:

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In this calculation SSLtot resembles the total satisfaction level and SSLn the satisfaction level of a certain number of stakeholder groups. On the side of the independent variable, the CSR activities, a similar process must be developed. The activities of the company must be transferred into and displayed on a cardinal scale. But how should one measure CSR activities of various companies with differing sizes and, furthermore, how can CSR activities and the impact on stakeholder satisfaction levels be compared? Since companies vary in size and business branch, an optimal solution would be to measure CRS as a budget share of all business expenses per a selected observation period (CSRE). A plausible econometric model equation therefore would be: In this equation the parameter α describes the value for the intercept parameter, β the influence of CSR expenditures on SSLtot and ε depicts an error term. The explanatory parameter β shows the influence of a 1% increase of CSR expenditure on the explained variable, SSLtot. This procedure provides essential information for managers and business owners when CSR budgets are determined. The concept is rather straight-forward and easy to handle once relevant stakeholders are determined and a conclusive concept measuring satisfaction levels is established.

Conclusion Can the impact of CSR on Business Performance be measured? Yes, it can. However, an indirect approach must be chosen. Although it is virtually impossible to subtract out the influence of CSR on Business Performance directly, it is possible to determine the influence of CSR on different stakeholders of the company by using a new approach: It is necessary to measure changes in stakeholder satisfaction levels due to investments in Corporate Social Responsibility. In a further step, a company must then determine how much it should value a rise in SSLtot. The EFQM system provides a useful model to establish the value of corresponding soft factors for long term business success. Further study could focus on the determination of an optimal CSR budget which would provide companies with useful information in their struggle to integrate CSR into their overall business strategies.

References Donaldson.T.Preston (1995):” The Stakeholder Theory of corporation: Concepts, evidence and implications/” Academy Of Management Review. Gemoets, P,(2009).EFQM Transition Guide –How to upgrade to the EFQM Excellence Model 2010.EFQM. http://ec.europa.eu/enterprise/policies/sustainable=business/CSR/index_en.htm. http://www.efqm.org/en/.

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Neely A.G.M et al (1995) “Performance measurement system design: a literature review and research agenda International Journal of Operations & Production Management,15 (4):80:116. Olaru, M,G,Stoleriu: CSR concerns of SMEs in Romania SERBAN.V And M,Ghenta (2009) Excellence Sustainability ,Using the European business excellence EFQM-Model for a sustainable development of the organization. T.A (2007). A history and review of thr Europena Quality Award model. The TQM Magazinee. Bingley,Emerald.19:112-128.

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CSR INITIATIVES BY INDIAN CORPORATES – A CASE STUDY S. THULASIMANI Introduction The 'Global Compact' was launched by UN Secretary General Kofi Annan in 1999. It promotes nine business principles (more recently 10), with considerable emphasis on labour practices. It is broad in scope and does not lend itself to easy measurement of progress. It aims to demonstrate that globalization helps the poor and also to achieve global consensus about the role of contemporary business in society. 'Accountability 1000', in contrast, comes out of the non-government Institute of Social and Ethical Accountability in London. In another contrast, it offers a standard for measuring and reporting ethical behaviour in business. Its designers hope thereby both to improve ethical performance and to be able to judge the validity of companies' ethical claims. The goal is to help business define targets, measure progress towards those targets, audit and report performance, and establish feedback mechanisms. The standard is designed for both internal and external audit procedures and to be applied by businesses of any size. 'Social Accountability 8000' is another voluntary universal standard for companies interested in auditing and certifying their labour practices, together with those of their suppliers and vendors. Like the Global Compact it highlights nine key areas for assessment, but unlike the Compact it seeks to measure performance in these areas. This is despite the inclusion of notoriously hard-to-measure dimensions like 'discipline' and 'discrimination'. The 'Global Reporting Initiative' (GRI), although first conceived by the Coalition for Environmentally Responsible Economies (CERES) in 1997, was launched in New York as recently as 2003. It is designed to promote a widely acceptable framework for the voluntary reporting of economic, environmental and social performance by business and, importantly, is enjoying faster take-up than other CSR frameworks. It offers a corporate disclosure framework, which businesses can use to fully report their performance. The GRI is also leading debate on issues such as TBL in accounting and is acknowledged by many CSR enthusiasts as the leading initiative of its kind. A permanent GRI secretariat has been established in Amsterdam and more than 150 companies have published annual reports based on its guidelines (Fenton-Jones, 2003). Companies using these guidelines dominate the sample of companies assessed in SustainAbility's 2004 Survey of Corporate Sustainability Reporting. The challenge is not to get companies to take on the responsibilities of governments but to help ensure governments fulfil their own responsibilities The evolution of corporate social responsibility in India refers to changes over time in India of the cultural norms of corporations' engagement of corporate social responsibility (CSR), with CSR referring to way that businesses are managed to bring about an overall

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positive impact on the communities, cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact that not only public policy but even corporate should be responsible enough to address social issues. Thus companies should deal with the challenges and issues looked after to a certain extent by the states. Among other countries India has one of the most richest traditions of CSR. Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of corporates has to be in line with their attitudes towards mainstream business- companies setting clear objectives, undertaking potential investments, measuring and reporting performance publicly.

Current Status of CSR in India CSR is not a new concept in India. Ever since their inception, corporates like the Tata Group, the Aditya Birla Group,and Indian Oil Corporation, to name a few, have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. A more comprehensive method of development is adopted by some corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India Limited, and Hindustan Unilever Limited. CSR Law in India The Companies Act, 2013 In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which was passed by both Houses of the Parliament, and had received the assent of the President of India on 29 August 2013. As per the Companies Act, 2013, section 135, every company having a net worth of rupees five hundred crore or more, or a turnover of rupees one thousand crore or more or a net profit of rupees five crore or more, during any financial year, shall ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility policy. The new rules, which will be applicable from the fiscal year 2014-15 onwards, also require companies to set-up a CSR committee consisting of their board members, including at least one independent director. The Act encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities. The ministry’s draft rules, that have been put up for public comment, define net profit as the profit before tax as per the books of accounts, excluding profits arising from branches outside India. The application is to every company, including its holding or subsidiary, and a foreign company having its branch or project office in India.

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Sakthi Masala  Sakthidevi Charitable Trust: Sakthidevi Charitable Trust was founded in the year

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1997 by Shri.P.C.Duraisamy, Founder, Sakthi Masala, to promote the cause of community development services such as upliftment of physically challenged and mentally retarded, Educational Assistance to pursue higher Education, Appreciation to School Toppers in Government Public Examinations, Establishment of Libraries in Government Schools & Mass Tree Plantations are the other social welfare activities of Trust. Sakthi Hospital: Sakthi Hospital is run by the Trust to serve the public and free consultancy by Specialised Doctors is offered in the fields of General Medicine, Ortho, Dental, Eye, ENT, Skin, Gynecology, Peadiatric & Rehabilitation. Periodical Medical Camps are conducted by the Specialised Doctors. The Trust is deputing Doctors and other Staff every week to conduct free Medical Check-up and Counselling for the inmates of "The Home for the Elderly" run by Lions Club of Erode Mid Town. Sakthi School for Mentally Retarded: A Special School is being run by the Trust for Mentally Retarded children upto 14 years, free of cost. After the training by Special Educators the children are being admitted to the regular schools. Slow learners hailing from surrounding villages are given special training by Special Educators during evenings to improve the learning skills. The School is approved by the State Commissioner for the Disabled, Government of Tamilnadu. Sakthi Rehabilitation Centre: Sakthi Rehabilitation Centre run by the Trust is Constructed in 10000 Sq.ft and fully equipped with latest equipments, offers free treatments daily to Physically & Mentally Challenged Children by Qualified Physiotherapists in Exercise Therapy, Electro Theraphy, Speech Therapy, Occupational Therapy. More than 150 children are benefitted. Further, a Dietician is giving advice to the Children/Parents/General public on their diet habits to maintain good health. Educational Assistance Cash Prize to School Toppers: An Educational Assistance Programme, every year is being conducted by the Trust, where Educational assistance is provided to pursue Higher Education in the field of Medical, Engineering, Arts & Science. Erode district Government School Toppers (1st &2nd rank) in 10th & 12th Public Examinations are appreciated with Cash Prize & Certificate. Every year around 450 students are benefitted by these schemes. Vazhikatti (Guide) Project: Under this Project, three Governments Schools located in Manickampalayam, Chithode & Perundurai in Erode district are adopted. Libraries have been established in these schools in the name of "Dr.A.P.J.Abdul Kalam" by the Trust. Staff members are appointed to manage the Library. It benefits over 6000 students and Teachers. Apart from the above, Personality Devevlopment programmes, Computer, Spoken-English, Home Keeping, Tailoring classes are conducted at regular intervals. Tree Plantation: Trust is maintaining a nursery and growing various types of saplings for free supply to needy people, interested in Tree plantation under the

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project called "THALIR". Cash Awards, Shields, Certificates, Gold Medals are given to best tree growers in a function every year to encourage the general public in Tree plantation. More than One Lakh saplings were supplied/planted at free of cost so far.  Aid to Schools: On request from Government / Municipal / Panchayat Schools for construction of additional blocks, Library block, toilets, compound wall, water facilities, etc, the Trust has been donating money for the construction of buildings etc, through Parents Teachers Associations in various rural places in Erode district.  Project "Jeevan": A unique project "JEEVAN" a basic life supporting training programme is being conducted every month from September 2008 for the NCC, NSS, Youth Red Cross, Social Service League Students, Public Service Personnel and other volunteers in partnership with Indian Medical Association Nursing Home Board. This programme will be conducted for 4 years for the benefit of the general public.

Hero Honda The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream. An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community. The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development. This includes:  Installation of deep bore hand pumps to provide clean drinking water.  Constructing metalled roads and connecting these villages to the National Highway (NH -8).  Renovating primary school buildings and providing hygienic water and toilet facilities.  Ensuring a proper drainage system at each of these villages to prevent water-logging.  Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants. Other key projects taken up by the Foundation include:

 The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-educational school with over 1200 students and 61 teachers. The school has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer centre.  Multi-specialty Hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-Jaipur highway.  Raman Munjal Sports Complex: The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and football grounds are used by the

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local villagers. In the near future, sports academies are planned for volley ball and basket ball, in collaboration with National Sports Authority of India. Vocational Training Centre: In order to help local rural people, especially women, Hero Honda has set up a Vocational Training Centre. So far 26 batches comprising of nearly 625 women have been trained in tailoring, embroidery and knitting. The Company has helped women trained at this centre to set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of the women are now selfemployed. Adult Literacy Mission: This Scheme was launched on 21st September, 1999, covering the nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults by getting village heads and other prominent villagers to motivate illiterate adults. Marriages of Underprivileged Girls: Marriages are organized from time to time, particularly for girls from backward classes, by the Foundation by providing financial help and other support to the families. Rural Health Care: Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care and medical camps are now a regular feature in the Hero Group's community outreach program. Environment: For its efforts, Hero Honda was awarded for Safety Performance and Best working condition and Canteen facilities in the plant by the Government of Haryana for 2007. The Company has also been nominated for the Green Manufacturer of the year under the TERI Corporate Award Scheme. A green vendor development program was launched on the World Environment Day June 5, 2007. A green charter was released giving specific guidelines to the vendors and suppliers. A total of 31 vendors were selected in the first phase and in all, 256 vendors will be covered and certified as green vendors over a period of 5 years. Each vendor will initiate EARN programs in the areas of pollution prevention, waste reduction, water conservation, energy conservation and statutory compliances. Each vendor will be evaluated and certified cluster wise.  During the year, an environmental plan to reduce hazardous waste from the pollution control facilities was developed. As much as 30% of sludge generated was reduced through a sludge decanter system.  The company also increased the conversion rate of paint sludge into useful primer from 15 MT to 25MT per month. Hero Honda has also successfully developed primer from the waste paint sludge, which used to be incinerated earlier. This development has been demonstrated to the state authorities, and the Company is seeking authorization to use this practice on a regular basis. The converted primer has already been used on the products, which has passed al l quality parameters.  To fulfill its commitment towards water conservation, a recycling plant of 400KL per day capacity with reverse osmosis technology has been installed which

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recycles the sewage effluent into the process at the Haridwar plant. A similar project has also under progress at the Dharuhera plant and this is likely to be completed in 2008. Community: Hero Honda Motors takes considerable pride in its community relationships, especially ones at the grassroots that have evolved over time. The Company has played a pivotal role in bringing an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream through direct interventions in education, healthcare, vocational training, creation of social and physical infrastructure, and environment management.  Most of the group's social enterprises - including the Rural Development Centre-- are planned and executed by the Raman Kant Munjal Foundation. To help local people, especially women, Hero Honda has set up a vocational training centre which runs a 6 months Diploma Course for Tailoring, Embroidery and carpet weaving, etc.  During the year in review, the Centre was upgraded. It now trains 50 girls per batch up from 25 & the duration of the course was increased from six months to 9 months. The Centre has also been equipped with modern machines to prepare the girls for the Garment Export Industry, where placement is 100%.  Also during the year, women from four villages near the factory at Dharuhera benefitted from food-processing courses conducted at the Centre. In February 2007, the Foundation had set up a computer training & learning centre in partnership with Microsoft. A total of 8 to 10 batches (boys and girls) are run simultaneously consisting of 18- 20 students per batch. Till date, close to 400 students have been trained at the centre. To enhance the value of rural youth in the job market, a spoken English course was started during the year. Currently the course is being run in three Batches during the day. It is proposed to train approx 120 students per year. The Foundation will make an effort to place them with BPO/Call Centres, provided the students also have the requisite computer training.  A vocational centre for boys is expected to start during 2008-09 and will run on the lines of an ITI. The centre will provide training in Fitter, Welding, Carpentry and Plumbing & Electrician Trades. It is planned to train approx. 50 students every year, and efforts will be made to accommodate them in group companies.  The Foundation also runs an Adult Literacy Program, a marriage facilitation service for underprivileged girls, besides doorstep healthcare programs and medical camps for the local population. A graduate teacher from the targeted village is appointed to teach the elders. Approx 650 people have benefited from this scheme spread over 20 villages.  In every CSR Project undertaken, the Foundation always involves either a local NGO preferably the village itself or panchayat members not only during execution but also for subsequent sustainability/maintenance of project. In certain areas such as computer learning by rural youth Udyan Care, a reputed NGO has been made a partner in association with Microsoft. In Projects like Hygiene, Sanitation and Safe Drinking Water, Local Government Representatives such as Block Development Officers are also involved.

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Aditya Birla Group Vision "to actively contribute to the social and economic development of the communities in which we operate. In so doing build a better, sustainable way of life for the weaker sections of society and raise the country's human development index". (Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development). Implementation Process: Identification of Projects Arising from this the focus areas that have emerged are Education, Health care, Sustainable livelihood, Infrastructure development, and espousing social causes. All of our community projects are carried out under the aegis of The Aditya Birla Centre for Community Initiatives and Rural Development Education  Formal schools  Balwadis for elementary education  Quality primary education  Aditya Bal Vidya Mandirs  Girl child education  Adult education programmes Health  Primary health care centres  Mother and Child care projects  Immunisation progr ammes with a thrust on polio eradication  Health care for visually impaired, and physically challenged  Preventive health through awareness programmes. Sustainable Livelihood  Formation of Self Help  Groups for women empowerment  Vocational training through Aditya Birla Rural Technology Parks  Agriculture development and better farmer focus • Watershed development  Partnership with Industrial Training Institutes. Infrastructure Development Basic infrastructure facilities  Housing facilities  Safe drinking water  Sanitati on & hygiene  Renewable sources of energy. Social Change  Dowryless marriage  Widow remarriage  Awareness programmes on anti social issues  De-addiction campaigns and programmes 94   

Espousing basic moral values Expanding the ambit, works carried out by corporates for slum area development will be now considered as social welfare spending activity under the new companies’ law. 

Conclusion In general, organizations have taken initiatives to fulfill their economic responsibilities. The firms with poor reputations are unlikely to gain any immediate benefits from engaging in CSR. However, the firm, which is having good reputation and recognition, should have the intention to provide valuable service rather than to get more and more benefit out of it. Not only the businesses required being responsive to current concerns, but they must also balance present requirements with future demands and issues, as well as balancing local and global concerns. CSR in today’s organizational level is not that much appreciable, yet need to be improved to a better extent by implementing proper guidance on implementing CSR in operations.

References

Corporate Social Responsibility: A case study of TATA group, IOSR Journal of Business and Management, Vol. 3, Issue 5, pp 17-27. Bidhu Kanti Das and P. K. Halder. 2011. Corporate Social Responsibility Initiatives of Oils PSUs in Assam: A case study of ONGC, Management Convergence, Vol. 2, No. 2, pp 75-85. Gautam P. Kanani. 2012. Multinational Companies in Emerging Markets: A Case for Corporate Social Responsibility, BAUDDHIK, Vol. 3, No.1, pp 78-83. Ivan Montiel. 2008. Corporate Social Responsibility and Corporate Sustainability Separate Pasts, Common Futures, Organization & Environment, Sage Publications, Vol. 21, No. 3, pp 245-269. Kamal Naser and Yousef Hassan. 2013. Determinates Of Corporate Social Responsibility Reporting: Evidence From An Emerging Economy, Journal of Contemporary Issues in Business Research, Vol. 2, No. 3, pp 56-74. Kavitha Shanmugam. 2013. Environment CSR initiatives of manufacturing units in India – An empirical study, African Journal of Business Management, Vol. 7(16), pp 15601570. Prasad S. Madan and M. A. Bansode. 2013. Corporate Social Responsibility in Indian Perspective, Excel Journal of Engineering Technology and Management Science, Vol. 1, No. 3, pp 1-7. Revathy. B. 2012. Corporate Social Responsibility - An Implementation Guide for Business, Far East Journal of Psychology and business, Vol. 6, No. 2, pp 15-31.

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CORPORATE SOCIAL RESPONSIBILITY IN INDIA – ISSUES AND CHALLENGES CH. VENKAT RAJAM

Introduction In a societal structure, we have many stakeholders, one amongst them are companies or Corporate Houses. These Corporate houses are meaningfully contributing from their kitty which impact their internal stakeholders and also openhandedly support societal initiatives. In India companies like TATA and Birla are practicing the Corporate Social Responsibility (CSR) for decades, long before CSR become a popular basis. There are many instances where corporate have played a dominant role in addressing issues of education, health, environment and livelihoods through their corporate social responsibility interventions across the country. As per United Nations and the European Commission, Corporate Social Responsibility (CSR) leads to triple bottom-line: profits, protection of environment and fight for social justice. It is expected that Civil society, activist groups, Government and corporate sectors should work together to create appropriate means and avenues for the marginalized and bring them to the mainstream. The success of CSR lies in practicing it as a core part of a company’s development strategy. It is important for the corporate sector to identify, promote and implement successful policies and practices that achieve triple bottom-line results. At one end of the spectrum, CSR can be viewed simply as a collection of good citizenship activities being engaged by various organizations. At the other end, it can be a way of doing business that has significant impact on society. For this latter vision to be enacted in India, it will be necessary to build CSR into a movement. That is to say, public and private organizations will need to come together to set standards, share best practices, jointly promote CSR, and pool resources where useful. An alliance of interested stakeholders will be able to take collective action to establish CSR as an integral part of doing business – this is not a passing fad. There are more than 1,000,000 registered companies in India out of which less than 1percent companies are traded on the Indian Stock Exchange. A new Trend has started in Corporate is the establishment of special committees within the board of directors to oversee CSR activities. Groups of corporate are being encouraged to come together to promote CSR. In 2006, Europe created the European Alliance for CSR. It currently consists of 70 multinational corporate houses and 25 national partner organizations and has become a unique resource for building capability in CSR.

Nature of CSR  Business is the primary source of wealth creation, innovation and employment. Business is an integral part of society and is committed to operating in a responsible and sustainable manner, alongside other actors.  CSR is a positive business-driven response o the business environment of today. CSR is not an add-on for business; it is increasingly being integrated in to business operations,

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governance, management system and thinking. It must therefore, be seen within the context of the totality of a business today.  CSR is a multi-dimensional concept covering social, economic and environmental concerns and is continually evolving within the diversity of the market. This diversity of the market place makes innovation a critical aspect in the development and implementation of the varied CSR initiatives. Efforts to regulate or standardize such as inherently dynamic process of voluntary action would stifle this very.  CSR is not an alternative to regulation. Government must be responsible for the implementation and enforcement of national laws.

Objectives The Present paper is basically concerned with the following objectives: 1. To study the Issues and Challenges for CSR in India. 2. To study comprehensively the corporate social performance towards the stakeholder, employees, creditors, customers etc. 3. To examine the attitude and practices of business ethics by different companies,

Research Methodology Looking into requirements of the objectives of the study the research design employed for the study is of descriptive type. Keeping in view of the set objectives, this research design was adopted to have greater accuracy and in depth analysis of the research study. Available secondary data was extensively used for the study. The investigator procures the required data through secondary survey method. Different news articles, Books and Web were used which were enumerated and recorded.

Issues and Challenges Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them. They imagine that customer satisfaction is now only about price and service, but they fail to point out on important changes that are taking place worldwide that could blow the business out of the water. The change is named as social responsibility which is an opportunity for the business. Some of the drivers pushing business towards CSR include:  The Shrinking Role of Government: In the past, governments have relied on legislation and regulation to deliver social and environmental objectives in the business sector. Shrinking government resources, coupled with a distrust of regulations, has led to the exploration of voluntary and non-regulatory initiatives instead.  Demands for Greater Disclosure: There is a growing demand for corporate disclosure from stakeholders, including customers, suppliers, employees, communities, investors, and activist organizations.  Increased Customer Interest: There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisions of customers. In a recent survey by Environics International, more than one in five consumers reported having either

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rewarded or punished companies based on their perceived social performance. Growing Investor Pressure: Investors are changing the way they assess companies' performance, and are making decisions based on criteria that include ethical concerns. The Social Investment Forum reports that in the US in 1999, there was more than $2 trillion worth of assets invested in portfolios that used screens linked to the environment and social responsibility. Competitive Labour Market: Employees are increasingly looking beyond paychecks and benefits, and seeking out employers whose philosophies and operating practices match their own principles. In order to hire and retain skilled employees, companies are being forced to improve working conditions. Supplier Relations: As stakeholders are becoming increasingly interested in business affairs, many companies are taking steps to ensure that their partners conduct themselves in a socially responsible manner. Some are introducing codes of conduct for their suppliers, to ensure that other companies' policies or practices do not tarnish their reputation. Lack of Community Participation in CSR Activities: There is a lack of interest of the local community in participating and contributing to CSR activities of companies. This is largely attributable to the fact that there exists little or no knowledge about CSR within the local communities as no serious efforts have been made to spread awareness about CSR and instil confidence in the local communities about such initiatives. The situation is further aggravated by a lack of communication between the company and the community at the grassroots. Need to Build Local Capacities: There is a need for capacity building of the local nongovernmental organizations as there is serious dearth of trained and efficient organizations that can effectively contribute to the ongoing CSR activities initiated by companies. This seriously compromises scaling up of CSR initiatives and subsequently limits the scope of such activities. Issues of Transparency: Lack of transparency is one of the key issues brought forth by the survey. There is an expression by the companies that there exists lack of transparency on the part of the local implementing agencies as they do not make adequate efforts to disclose information on their programs, audit issues, impact assessment and utilization of funds. This reported lack of transparency negatively impacts the process of trust building between companies and local communities, which is a key to the success of any CSR initiative at the local level. Non-availability of Well Organized Nongovernmental Organizations: It is also reported that there is non-availability of well organized NGOs in remote and rural areas that can assess and identify real needs of the community and work along with companies to ensure successful implementation of CSR activities. This also builds the case for investing in local communities by way of building their capacities to undertake development projects at local levels. Visibility Factor: The role of media in highlighting good cases of successful CSR initiatives is welcomed as it spreads good stories and sensitizes the local population about

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various ongoing CSR initiatives of companies. This apparent influence of gaining visibility and branding exercise often leads many nongovernmental organizations to involve themselves in event-based programs; in the process, they often miss out on meaningful grassroots interventions.  Narrow Perception towards CSR Initiatives: Nongovernmental organizations and Government agencies usually possess a narrow outlook towards the CSR initiatives of companies, often defining CSR initiatives more donor-driven than local in approach. As a result, they find it hard to decide whether they should participate in such activities at all in medium and long run.  Non-availability of Clear CSR Guidelines: There are no clear cut statutory guidelines or policy directives to give a definitive direction to CSR initiatives of companies. It is found that the scale of CSR initiatives of companies should depend upon their business size and profile. In other words, the bigger the company, the bigger is its CSR program.  Lack of Consensus on Implementing CSR Issues: There is a lack of consensus amongst local agencies regarding CSR projects. This lack of consensus often results in duplication of activities by corporate houses in areas of their intervention. This results in a competitive spirit between local implementing agencies rather than building collaborative approaches on issues. This factor limits company’s abilities to undertake impact assessment of their initiatives from time to time.

Recommendations In order to crystal gaze the future of CSR in India and take time bound steps to mainstream it, the recommendations of the survey are firm indications of the existing state of affairs in the CSR domain; they correspondingly call for necessary and appropriate steps to be initiated to put CSR on firmer ground. Keeping in view the broad results of the survey, the following recommendations are listed for serious consideration by all concerned stakeholders for their effective operationalization to deepen CSR in the company’s core business and to build collaborative relationships and effective networks with all involved. It is found that there is a need for creation of awareness about CSR amongst the general public to make CSR initiatives more effective. This awareness generation can be taken up by various stakeholders including the media to highlight the good work done by corporate houses in this area. This will bring about effective changes in the approach and attitude of the public towards CSR initiatives undertaken by corporate houses. This effort will also motivate other corporate houses to join the league and play an effective role in addressing issues such as access to education, health care and livelihood opportunities for a large number of people in India through their innovative CSR practices. Thus, the social justice agenda of the day would be fulfilled more meaningfully. It is noted that only medium and large corporate houses are involved in CSR activities, that too in selected geographical areas. This issue builds a case for more companies to be brought under the CSR domain. To address the issue of reaching out to wider geographical areas, the involvement of small and medium enterprises (SMEs) in the CSR domain will be e essential. It is recommended that a campaign should be launched to both spread

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awareness on CSR issues amongst the general public as well as to involve SMEs to participate more actively in CSR initiatives. This will help CSR reach out to other locations and cover a large number of communities and help companies play a valuable role in addressing various social and development issues. This approach will help CSR get ingrained into the DNA of core business activities of companies. It is found that corporate houses and nongovernmental organizations should actively consider pooling their resources and building synergies to implement best CSR practices to scale up rejects and innovate new ones to reach out to more beneficiaries. This will increase the impact of their initiatives on the lives of the common people. After all, both corporate houses and non- governmental organizations stand to serve the people through their respective projects and initiatives. It is recommended that the projectisation, scaling up and sustainability of CSR projects need to be safeguarded at all costs for their efficiency and efficacy. It is found that many CSR initiatives and programs are taken up in urban areas and localities. As a result, the impact of such projects does not reach the needy and the poor in the rural areas. This does not mean that there are no poor and needy in urban India; they too equally suffer from want of basic facilities and services. While focusing on urban areas, it is recommended that companies should also actively consider their interventions in rural areas on education, health, girl child and child labor as this willdirectly benefit rural people. After all, more than 70 per cent people still reside in rural India. It is noted that the Government should consider rewarding and recognizing corporate houses and their partner non-governmental organizations implementing projects that effectively cover the poor and the underprivileged. Incentives to be offered to the private sector to strengthen their good work must include a formal partnership with local administration, easy grant of 12A, 80G and Foreign Contribution Regulation Act (FCRA) license and other fiscal incentives including matching project grants and tax breaks for social and development projects. This will be instrumental in encouraging enhanced voluntary participation of greater number of corporate houses in CSR activities. It is noted that CSR as a subject or discipline should be made compulsory at business schools and in colleges and universities to sensitize students about social and development issues and the role of CSR in helping corporate houses strike a judicious balance between their business and societal concerns. Such an approach will encourage and motivate young minds, prepare them face future development challenges and help them work towards finding more innovative solutions to the concerns of the needy and the poor. It is recommended that involvement of professionals from the corporate sector, nongovernmental organizations and business schools would be key in ensuring youth participation in civic issues. It is found that there are approximately 250 corporate houses in the country that are directly involved in various CSR initiatives. These companies continue to decide their own projects depending on a number of parameters. It is found that companies involved in CSR implement projects in the areas of health, education, environment, livelihood, disaster management and women empowerment, to

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mention a few. In many such contexts, it’s noticed that companies end up duplicating each others’ efforts on similar projects in the same geographical locations. This creates problems and induces a competitive spirit amongst companies. Considering the diverse issues and different contexts that exist currently in the CSR domain, it is recommended that companies involved in CSR activities urgently consider pooling their efforts into building a national alliance for corporate social responsibility. This alliance, representing various industry interests, should take up broad development agenda and provide high value services to the poor and the underprivileged. Over the years, the alliance would grow into a special purpose vehicle (SPV) and work closely with stakeholders to raise the level and quality of CSR interventions. There are already such models available in different industry segments both within the country and overseas; all that is needed is to identify and leverage these models to set up a national platform for effective thought alignment between companies and other stakeholders, in order to redefine CSR practices in India. The role and efforts of the private sector in taking development agenda forward with focus on education, health, environment, livelihood, women empowerment, disaster management to mention a few have been visible and effective. Some innovative models are also available of private sector interventions in these areas. In order to push the development agenda in a mission mode, it is recommended that realistic and operational models of engagement between all three important stakeholders - the Government, the non-governmental organizations and the private sector - are jointly explored and addressed.

Conclusion The concept of corporate social responsibility is now firmly rooted on the global business agenda. But in order to move from theory to concrete action, many obstacles need to be overcome. A key challenge facing business is the need for more reliable indicators of progress in the field of CSR, along with the dissemination of CSR strategies. Transparency and dialogue can help to make a business appear more trustworthy, and push up the standards of other organizations at the same time. Some of the positive outcomes that can arise when businesses adopt a policy of social responsibility.

References CSR in India: Some Theory and Practice in Wall Street Journal dated Thursday, April 23, 2009. Ashwani Singla and Prema Sagar (2004). Trust and Corporate Social responsibility: Lessons from India. Journal of Communication Management, Vol. 8(3), pp.282- 290. Balasubramanian, N.K, (2003). CSR as an Instrument of Global Competitiveness, IIMB Management Review, Dec, pp. 61-70. Matilda Jonung and Martin Malhotra (2007). Attitudes towards Sustainable Development and Corporate Social Responsibility Among Future Business Leaders In Bangalore, India. Stockholm School of Economics. Goodwin, F.W. and Bartlett, J.L. (2008) Public Relations and Corporate Social Responsibility (CSR) - Working Paper http://eprints.qut.edu.au

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