DISSERTATION On“Impact of CSR Activities on Customer’s Perception about the Organization and sales of their Products/services - A case study on HUL, ITC and P&G” Report Submitted in partial fulfillment of Post Graduate Diploma in Management Under Supervision of Prof. NIDHI SHARMA Faculty of GLBIMR Submitted by ANIL KUMAR TIWARY Roll No - GM012 Batch 2010-12 Submitted to G.L.Bajaj Institute Of Management and Research Plot No. 2, Knowledge Park III, Greater Noida- 201306 Website: www.glbimr.org
CERTIFICATEThis is to Certify that the Project work done on Title ““Impact of CSR Activities onCustomer’s Perception about the Organization and sales of theirProducts/services - A case study on HUL, ITC and P&G” is a confidework had been carried out by ANIL KUMAR TIWRY a 2nd year student of G.L.BajajInstitute of Management and Research under my supervision towards partial fulfillment ofPost Graduate Diploma in Management.I wish all the best for his future and Endeavour.DATEPLACE Prof. NIDHI SHARMA
ACKNOWLEDGEMENTI consider my proud privilege to express deep sense of gratitude to Prof. NIDHI SHARMA forher admirable and valuable guidance, keen interest, encouragement and constructive suggestionsduring the course of the project.I would also like to express my hearty gratitude to my other faculties of G. L. Bajaj Institute ofManagement and Research, Greater Noida, U.P. for their valuable guidance and sincerecooperation, which helped me in completing this final project.I sincerely thank all the members of my Department for their immense support and assistanceextended during the course of this project and in making it a valuable experience. ANIL KUMAR TIWARYROLL NO-GMO12
TABLE OF CONTENTSS. No. Page No.1. EXECUTIVE SUMMARY………………………………………………………………12. INTRODUCTION………………………………………………………………………..23. BACKGROUND……………….…………………………………………………………34. SIGNIFICANCE OF THE STUDY…………………….………………………………...65. LITERATURE REVIEW…………………………………………………………………76. RESEARCH METHODOLOGY………….……………………………………………..167. SECONDARY DATA ANALYSIS……………………………………………………..178. DATA ANALYSIS AND INTERPRETATION………………………………………...299. FINDINGS AND CONCLUSION………………………………………………………5010. BIBLIOGRAPHY………………………………………………………………………..5111. ANNEXURE……………………………………………………………………………..52
EXECUTIVE SUMMARYIndian FMCG companies are most actively engaged in responsible activities and rank on top inthe latest Associated Chambers of Commerce and Industry of India (ASSOCHAM) report onCSR by Indian corporates. It has become important for every company to become sociallyresponsible. With Indian consumers becoming more cause conscious, their preferences keep onchanging. So CSR helps the companies to attach the consumers with them. Moreover socialresponsibility is equally important for the economic development of the country. CSR is titled toaid an organizations mission as well as a guide to what the company stands for and will upholdto its consumers. Development business ethics is one of the forms of applied ethics that examinesethical principles and moral or ethical problems that can arise in a business environment.The aim of this project is to study the CSR initiatives taken by HUL, ITC and P&G and to knowthe impact of these initiatives on customer’s perception towards the organization. It will providean insight on the awareness level of consumers about these initiatives.This project has two parts explaining the Secondary Analysis on CSR initiatives by HUL, ITCand P&G and Research on Impact of CSR Activities on Customer’s Perception about theOrganization and sales of their Products/services respectively. A Questionnaire will be used tocollect primary information from customers/general public. This project will help the researcherto find out the reasons for change in perception of consumers due to CSR initiatives. Objectives of the study 1. To study the CSR activities done by the FMCG companies 2. To study the favorable impact of CSR activities on the consumer’s perceptions. 3. To study the impact of CSR activities on the sales of products. 4. To analyze in what ways a company is benefited as a result of execution of CSR activities.
INTRODUCTIONA Statement of Intent generating wealth in a manner that is socially and environmentallysustainable must be the common goal of domestic and international business. In this age of openworld economy, brand reputation, repositioning of government activities and privatization, it isincreasingly important to do business ethically, morally and with concern for the society.Business today is realizing that the world is not made up of strangers. There is bondage- humanbondage. There are customers, employees, shareholders and the neighbors. The business classshould render their support to the general people. If they will be uplifted socially andeconomically, the productivity of the corporate is also bound to increaseSocial responsibility encompasses the sectors like health, education, employment, income andquality of life. It should be binding on the corporate sector to work on the above aspects, whichare thought to be primary social indicators. They have enough money to serve the nation on theabove segments of the society. They should not forget that if general health of the mass weregood, they would have better buying capacity.CSR is a concept where the company indulges in sustainable or responsible activities, whichpoint to its good intentions as a corporate citizen. This can be undertaken as a statutoryobligation to its shareholders, employees or society in general as part of good corporategovernance as defined in the Indian Companies Act or it can be used as a public relations tool togain an image, which the company in question feels is better than it enjoys before it undertakes amajor public relations exercise regarding corporate social responsibility. Therefore, CSR differsfrom company to company and depends on how it is wielded.In some organizations, corporate social responsibility practices talk about development at thegrassroots level through various public and private alliances. But the CSR theory is yet to becomprehended by Indian stakeholders; the concept will take good time to come up in full swingin India."India sets a realistic agenda of grassroots development through alliances and partnerships withsustainable development approaches. At the heart of the solution lies intrinsic coming together ofall stakeholders in shaping up a distinct route for an equitable and just social order," said
Indu Jain, chairperson, The Times of India Group.Although CSR is not a novel concept in India, but its essence is yet to be properly understood bythe stakeholders. Companies like Tata Steel (previously Tisco), Tata Motors (previously Telco),the C K Birla group of companies and others of their ilk have been imbibing the case for socialgood in their operations for decades long before CSR become a popular cause.However, this activity was undertaken those days through non-governmental organizations(NGOs) and not directly through the companys balance sheet or profit and loss account. Later inmany small family run businesses, this mode of money transfer became the norm for evadingcorporate taxes."CSR in India is in a very nascent stage. It is the least understood initiative in the Indiandevelopment sector. Though SR Foils is yet to have a dedicated CSR wing, but we do involveourselves in various CSR activities. We organize hygiene workshops with localities near ouroffice. We try to promote cleanliness and hygiene; we gift free tissues and sanitizers to variousschools," said Rakesh Gupta, managing director, SR Foils.Noticeably, either the companies have recently introduced the concept or some MNCs or privatecompanies engage in CSR activities because the practice is followed by their mother branches intheir respective foreign countries. Hence, its quite obvious that the emphasis on CSR practices isdue to the policy compulsions, and not because of an urge to serve the community.Transnational have traditionally encountered a lot of opposition to their novel products and newways of doing business. They usually come under a lot of fire as they try to re-invent businessactivities, which impinge on the daily life of age-old family run businesses.Recently, Coca-Cola has been offering district football associations Rs 10,000 to conduct a full-fledged football tournament with boys and girls in that district in India.The companys objective clearly to gain brand mileage with cash starved football in India but allthey are achieving is a sense of deprivation by football players who can barely manage atournament with Rs 10,000 in the kitty. This would be a good example of misplaced corporatesocial responsibility.Some think tanks feel that the concept of corporate social responsibility was taken up bycompanies after the petroleum company Shell was forced to take up benign activities after theglobal public boycotted their products and outlets post Shells mishandling the dismantling of theBrent Spar off shore oil storage tank.
BACKGROUNDThe corporate and the government should try to build up a relationship between the business andthe society. The concept of corporate social responsibility (CSR) has so far failed to take deeproot in India because the nomenclature is not properly defined. The CSR is in a nascent stage.Much needs to be done to bring changes in attitude towards CSR and bring awareness among thecorporate about their social responsibilities. The corporate should be made aware about thechanging nature of business due to globalization, transformation of market environment anddeepening of competition. The market economy has paved the way for enterprise-leddevelopment and a new cultural perspective is taking place in Indian business environment thathas a strong bearing on social responsibilities.In 1970, Milton Friedman of New York Times rightly wrote: “the social responsibility ofbusiness is to increase profits.” This view is often held and propounded by those who do not seemuch merit in companies being engaged in issues of Social Responsibility other than the makingof profit. However, increasingly, the profit case, evident indicators that are tangible and thealtruistic/ philanthropic/ ethical case, evident in the intangibles are getting blurred. In this contextthe purpose is to highlight the need for a paradigm shift in the importance of greater investmentin intangibles to enhance corporate value.Significance of CSR for India The ideal corporate citizenship has ethical and philosophicaldimension, particularly in India here wide gap exists between people in terms of income andliving standards as well as social status. A latest survey by the Tata Energy Research Institute(TERI) called ‘Altered Images: the 2001 State of Corporate Responsibility in India Poll’ TracesBack The History Of CSR In India and suggests that there are four models of CSR.Ethical modelThe origin of the first ethical model of corporate responsibility lie in the pioneering efforts of 19th century corporate philanthropists such as the Cadbury brothers in England and the Tata familyin India. The pressure on Indian industrialists to demonstrate their commitment to socialdevelopment increased during the independence movement, when Mahatma Gandhi developedthe notion of ‘trusteeship’, whereby the owners of property would voluntarily manage theirwealth on behalf of the people.
Gandhi’s influence prompted various Indian companies to play active roles in nation buildingand promoting socio-economic development during the 20th century. The history of Indiancorporate philanthropy has encompassed cash or kind donations, community investment in trustsand provision of essential services such as schools, libraries, hospitals, etc. Many firms,particularly ‘family-run businesses’, continue to support such philanthropic initiatives.With Indian consumers becoming more cause conscious, their brand preferences keep shiftingto favor the brand that is socially more responsible. The phenomenon directly creates aconnection between the sales and the CSR. The trend suggests, the better the CSR policy, themore the sales. The trend affects most product categories that are bought on a daily basis, withconsumers making a purchase decision almost every day. This could be one of the major reasonswhy Indian FMCG companies are most actively engaged in responsible activities and rank on topin the latest Associated Chambers of Commerce and Industry of India (ASSOCHAM) report onCSR by Indian corporates. The report says that of 175 Indian companies studied, 52 companiesin the FMCG sector have taken the maximum of CSR initiatives. This was followed by thechemical sector and then the IT sector.Most of the initiatives taken by the companies primarily focus on welfare of the community.Community welfare ranks on top in the priority list in the ASSOCHAM study. The second most-sought-out CSR initiative was providing education and enlightening the rural youth in thecountry. With stringent norms, lure of carbon credits and growing consciousness, environment-based CSR initiatives get the third place in the priority list of Indian corporates. Healthcarefollows environment and becomes priority number four.Though there has been evidence of a paradigm shift from charity to a long-term strategy, theconcept is still believed to be strongly linked to philanthropy. There is a need to bring about anattitudinal change in people about the concept by having more coherent and ethnically drivendiscourses on CSR, wrote Swati Piramal, president, ASSOCHAM, in one of her articles relatedto the report.It has to be understood that CSR is about how companies balance their business ethics andbehavior with business growth and commercial success along with a positive change in thestakeholder community.
SIGNIFICANCE OF THE STUDYThe era of corporate organizations paying lip service to social responsibility is fast coming to anend. The recent past has seen corporate social responsibility becoming a process from a conceptand also organizations deriving value from this initiative. In the light of the above the currentresearch will explore the CSR strategies and initiatives of various selected Indian companies.The study will be based on extant literature and will draw examples from the current Indianscenario. Some primary research is conducted for the Indian corporate houses through their webpages containing information’s about their CSR initiatives. Based on this best practices will bedelineated and recommendations for using corporate social responsibility as a part of businessstrategy by the organizations to leverage their perception among the stakeholders. The study willbe relevant for the industry as well as academia as it will discuss corporate social responsibilityas a strategic move that organizations can incorporate in their overall business strategy, therebyachieving better all-round performance.
LITERATURE REVIEWFMCG companies most active in CSRThe Associated Chambers of Commerce and Industry of India (ASSOCHAM), recently releaseda report saying that Indian companies engaged in FMCG and chemical sectors were most activein CSR. Out of 175 Indian companies studied, 52 companies in the FMCG sector have taken themost amount of CSR initiatives. This was followed by the chemical sector and then the IT sector.Community welfare is the top CSR priority area for most Indian companies. The second mostsought out CSR initiative was providing education and enlightening rural youth in the country.Environment based CSR initiatives placed third with big corporates placing importance oncarbon auditing and working towards reducing their impact. Finally, the corporate sector isinvolved in health care by providing methods to eradicate diseases and educating rural peopleabout hygiene and disease prevention.CSR forms an important tool in branding especially for FMCGs. The Indian FMCG sector is thefourth largest sector in the economy and is set to grow to US$ 33.4 billion by 2015. It ischaracterized by many MNCs operating out of India as well as good distribution networks. TheFMCG sector is also the sector that contributes most towards a growing waste problem withinthe country and this is something that the sector must address. The food-processing industryalone is set to grow by billions of dollars and this will create its own waste streams.The potential for CSR in this sector is vast and hopefully companies galvanize on their growthwill continue to invest in CSR as well.
CSR in India: Community welfare, education and enlightening youth areprioritiesCorporate social responsibility (CSR) is not just charity. It is like an obligation and we owe it tothe next generation, said Union Minister of State for Corporate Affairs and Ministry of MinorityAffairs Salman Khurshid while inaugurating a seminar Corporate sustainability: the driver ofinnovation in Chennai. The minister stressed that sustainability meant justice betweengenerations. He said corporates should realize that they have a responsibility towards the nextgeneration. He agreed that the sustainability concept is taking shape in the country. Earlier, hesaid, it was just a concern for environment, which is gradually expanding to other serious issuesas well. Highlighting the governments efforts, Kurshid said that despite the economic recessionand inflation, the government had not restricted the allocation for the social welfare sector.Addressing the media, Kurshid said that the performance in terms of CSR was easily measurablewith regard to public sector units, as they had been directed to spend a specific portion of theirprofit towards CSR. He also confirmed that certain voluntary guidelines would be introducedwith the launch of the new companies bill. CauseBecause had reported last month that theministry of corporate affairs was revising the guidelines on corporate social responsibility (CSR)issued last year and would be adding detailed norms on environmental sustainability. The newrules will primarily prevent wasteful use of natural resources and ensure scientific treatment ofindustrial waste. The present norms only urged companies to be environmentally conscious andleft it for them to take steps in that direction. They failed to provide a clear framework forcompliance, leading to companies not taking adequate measures. The participants at the eventincluded Sudha Raghunathan, founder and chairperson of Samudaya Foundation and an eminentCarnatic musician. She highlighted the efforts of the organization towards sustainabledevelopment.MB Nirmal, founder-chairman, Exnora International, talked about environment-related worryingissues and also stressed on conservation of farmland. He insisted that as part of their CSR,corporates may grow paddy in place of landscaping as it can help in curbing the food problem. MRafeeq Ahmed, chairman, FICCI, Tamil Nadu State Council, said any business should be
societally and economically responsible, emphasising that people, planet and profit are thethree pillars of corporate sustainability. (source : www.causebecause.com)Corporate Social Responsibility and Inclusive GrowthSince the inception of the double bottom line after Shell’s PR nightmare with Greenpeace, andnow the triple bottom line, corporate social responsibility has become the favorite all-encompassing term and budget for all corporate communication efforts to win over publicopinion. Suddenly everything from sponsoring sporting events like Premier League games tobuilding schools and cultural spaces falls within the scope of CSR. Viewed from anotherdirection, CSR is really not much different from buying ad space on billboards except thateven non-consumer corporations are doing it – i.e., large industrials like steel manufacturers.In developing countries like India, CSR initiatives are even more amorphous, as manycorporations assume roles and responsibilities that are normally handled by the publicsector. When industries set up new manufacturing plants in a rural area, they inevitably alsobring economic growth as well as infrastructural development. For example, Visa Steel in Orissabuilds roads for the communities around its steel mills; Vedanta Aluminum and NALCO all havehealth clinic initiatives for the surrounding rural villages; and of course, there is Tata Steel,which outright adopts villages and takes over most municipal functions (my city, Jamshedpurbeing case in point). It’s a strange niche that CSR fill in India that straddles the public andprivate sectors as corporations to contribute to the community’s growth and fill in gaps where thepublic sector fails.What strikes me, however, about these CSR initiatives is how unrelated the various communityprograms are to the core business of these industries. Each company sponsors a women skillsdevelopment program, a cultural sports and dance event, a basic health clinic, etc. The cookie-cutter similarity of these programs seems to me to be an indication of the lack of internalizationof CSR as a core business activity, even though indirectly, they do contribute to the continuedsuccess of the corporation. I was at the Confederation of Indian Industries’ CSR conference lastweek, during which, each industrial panelist presented the exact same set of CSR initiatives. Ofthe ten panelists, there was only one representative from POSCO Steel who expounded on whyCSR initiatives are crucial to the successful gaining the approval of the local community for
green field projects. In my opinion, ALL CSR representatives should have demonstrated whyand how their initiatives were contributing directly to the company’s bottom line. Otherwise,CSR initiatives become an unsustainable fringe department of a corporation, subject to thefancies of the budget allocator.The good news is that there do exist progressive CSR programs, which are moving towards aninclusive business model. At a subsequent International Business Leaders Forum last week, CSRrepresentatives and NGOs discussed how to internalize the benefits and impact of socialinitiatives in the company’s bottom line. Roads that are constructed in a rural village benefits thecommunity, yes, but it also eases the transportation logistics for the industrial corporation. Evensponsored cultural dances and sporting events help a core business operate by raising thegoodwill of the community and preventing bandhs (strikes). These “inclusive business models”are focused on measuring and quantifying the benefits of seemingly normal CSR activity tocalculate it into the company’s P&L statement. The result is a more sustainable form of socialimpact activity, which is unlikely to disappear when CSR goes out of fashion.The bottom line is that whether it’s called corporate social responsibility or inclusive business,all social initiatives taken up by a private corporation should have an impact that is measured andshown to contribute to the core business. Only then, will CSR stop being seen as a form ofcorporate philanthropy and be seen as a necessary part of doing business.
The challenge of corporate social responsibility in Indiaby John QuigleyThe European Institute for Asian Studies (EIAS), on 29th November, held a lunch briefing withDr C. S. Venkata Ratnam on the challenges of corporate social responsibility (CSR) in India. DrRatnam is the Director of the International Management Institute (IMI) in New Delhi and toldthe meeting that contrary to widespread perceptions, CSR benefits a company more than it costs.The meeting was chaired by Joern Keck, Administrative Board, EIAS. Dr Ratnam said theconcept of CSR had different meanings depending on the stakeholder and that depending on thespecific situation of the enterprises expectations can also vary. A CSR project can begin inresponse to a crisis or adverse publicity that a company may suffer. The motive for launchingCSR can vary between philanthropy or notions of corporate citizenship. In India, over time, theexpectations of the public has grown enormously with demands focussing on poverty alleviation,tackling unemployment, fighting inequality or forcing companies to take affirmative action.The historical driver of CSR has been philanthropy or a sense of ethics. After the Second WorldWar, a variety of national and international regulations arose through bodies such as theInternational Labour Organisation (ILO) emphasising the need for an active social policy fortransnational companies (TNC’s). This additional driver, international institutions, has relevancefor India through the work of the ILO, the OECD, Socially Responsible Investment (SRI), theSA8000 Social Accountability scheme and through the work of the UN Commission on HumanRights which tackled the human rights responsibilities of TNC’s. In India, some public sectorcompanies can spend up to 5% of their profits on CSR activities. Pressure groups have beenquite successful in inducing companies to fund CSR schemes, even to the point of usingkidnapping as a tactic! Forms of CSR differ according to the country or region. In Europe, forexample, notions of CSR probably developed out of the Church and a sense of ethics. In India,CSR has evolved to encompass employees, customers, stakeholders and notions of sustainabledevelopment or corporate citizenship. In transnational companies, the approach to CSR typicallyemerges from one of three elements including a decentralised strategy (which might examinehuman rights), a centralised strategy (which would be company-wide) or a globally integrated
strategy (which would include Coca Cola or oil companies - where local actions can impingeglobally).Many large companies enter into CSR through acts of philanthropy including, for example, BillGates or Warren Buffet. Often, for such companies, the tax advantages are attractive or it maymerely be a clever way to retain control of resources. India has been a major beneficiary from theGates Foundation, particularly in health care. One of the fall outs from the Enron scandal hasbeen that in India individuals have been reluctant to accept directorships of companies.From the perspective of the employee, CSR has been hugely important in India. For example,after 1945, TATA implemented social welfare provisions for its employeeshat have sincebecome the legislative norm. Equally, when companies announce they will reduce the number ofemployees, the workers can be fearful that they benefits they have accrued will be lost. WhileIndia has a large comparative demographic advantage with substantial numbers of graduateengineers, for example, probably only one third are actually employable. There is also concernfrom employees who wonder what would happen to the welfare ethos if an Indian company tookcontrol of a European firm.From the perspective of the customer, CSR initiatives can relate to issues of product quality. Forexample, Sony recently recalled, on a global basis, batteries it used in Dell computers. In Japan,allegations that a particular form of packaging promoted cancer equally led to huge productsafety concerns. The last 15 years has witnessed substantial developments in the area ofconsumer rights. The Indian Supreme Court has declared that it would be better to lose 1000’s ofjobs in order to protect the health of millions through cleaner air and a better environment.From the perspective of stakeholders in the community, the bigger the company thegreater the effort should be to protect the employees or the environment. There is somerecognition that it would be hard for smaller companies to undertake CSR initiatives at that kindof level. Communities can pressure companies to provide and improve civic amenities. Onescheme, the Provision of Urban Amenities in Rural Areas (PURA) aims to prevent unnecessaryurbanisation and help tackle migration from rural areas. Larger companies might also beinterested in providing arts and culture activities as a service to the community as a measure toprotect local culture. Some companies have encouraged skilled employees to teach in a localcommunity. One of the arguments against CSR has been that it lowers company profits but theIMI has shown that many companies say the benefits outweigh the costs. Another argument has
come from some employees who have been hesitant to demand more CSR, seeing a trade-offbetween CSR spending and better employee welfare provision- although these would be in aminority.Bo Jonsson, Administrative Board, EIAS, acted as Discussant, noting the optimistic view of CSRin India that had been outlined but questioned what concept of CSR had been presented. Therecan be different concepts between countries or even within a specific business sector. Companiescan have a relationship to the local community without necessarily calling it CSR. EIAS, MrJonsson said, wants to broaden the research focus between the EU and India on CSR in order tohelp benefit business. Case studies examining current practice are important but CSR should alsobe part of management training. Shareholders will have to be convinced of the value of CSRwhen management is under pressure to deliver profits. To what extent would the Indian tradeunion movement be strong enough to protect workers against any aggressive action bycompanies seeking to divest themselves of their social responsibility to employees. Wouldunions in India be capable of providing nationwide action at the policy level as theimplementation of legislation is severely lacking in India and the inspection regime system is anembarrassment. This failure also lowers public expectations of what can be achieved.CSR-Discovering New MarketsWhat is the benefit of CSR or, alternatively,what is the cost of not engaging in CSR? Ifyou ask the CEO of Hindustan Lever (HUL), he will tell you that without emphasising on CSR,HUL would not be able to secure its market share, including 400 million costumersliving in villages with less than 5,000 inhabitants across India. Its proactive CSR policyallowed the company to consolidate their market position in South Asia. HUL embarked on itsCSR programme, named ‘Shakti’, in 2001 when women Self Help Groups (SHG) emergedaround the country. In anticipation, HUL reached out to SHG members offering to sell HULbrands in their respective villages. Soon, the so-called ‘Shakti Amma’s’ were sellingsalt, soap, detergent and cream in small sized packages fit for consumers at the ‘Base ofthe Pyramid’ (BoP). BoP refers to a socioeconomic group of customers who live on less than oneto three dollars per day and comprise nearly two-third of the world population. Withoutdoubt, the BoP market in Nepal holds the largest group of customers and is untouched for themost part. For HUL, a single Shakti Amma covers approximately 500 BoP costumer and earns
about IRs 18,000 a month. Besides securing their livelihoods, it brought women self esteem anda sense of empowerment. HUL created an extensive direct-sales-network, generating roughlyUSD 250 million annual sales in an unlikely market. This was an ideal winwin situation. So,taking it to the next stage, drawing on their capital of trust, HUL created interactive channels andstarted adult literacy programmes to gain a better understanding of customer demand, securing50 per cent of their revenue in India. What can we learn from HUL’s Shakti case?First, it shows that CSR is more than ‘doing good’. It can effectively promote long term businessgrowth by ‘doing well’. Second, CSR opens the door to develop partnerships(like HUL’s and SHG’s) that allows companies to enter markets that would be otherwiseuneconomic to serve. Third, companies have to move fast into BoP markets to build brandaffinity and loyalty, which are necessary to scale up and secure market share. Lastly, long termbenefits of CSR focused on the BoP lies in the ability to interact with the consumers. So, whatcan your company do to make profit and end poverty?CSR: Looking at the philanthropic side of HULIt began its journey in India 75 years ago, today it is India’s number one fast moving consumergoods (FMCG) company. Its brand touches the lives of two out of three Indians every single day,its mission is to add vitality to life. It is Hindustan Unilever (HUL). Most of us begin our daywith an HUL product or when we are taking a chai break or cooling off on a hot summer day. Aportfolio of products that costs just 0.50 paise and go upto Rs 500, HUL’s brands touch 700million consumers across India everyday. But this FMCG giant believes business must alwayshave a purpose beyond making money.For HUL doing well is equal to doing good. For years now India’s largest FMCG giant hasbelieved that philanthropy is not corporate-social responsibility, so for them it has clearly been abrand led strategy. They continue to focus on health nutrition, hygiene, the environment andlivelihood enhancement. It might look like any other processing unit, but the machine has beendesigned to cut carbon emissions. This technology took four years to develop and today is beingused at eight HUL factories to manufacture the soaps. Like it has at some of its other plants,HUL has adopted a community around its Silvassa plant. Uptill a decade ago, farmers here were
able to grow just one crop during the monsoon months and then communities moved on mass toneighbouring cities seeking petty jobs. HUL under its project Samruddhi, in partnership withNGOs like Vanrai, has set up water shed management systems, check dams and the light toincrease water availability in the area. Today, farmers like Firoz Ratan Gowadia are able tocultivate a second crop with their income rising from about Rs 36,000 to Rs 85,000. HUL andVanrai have also undertaken a forestation in the area bringing close to 40 hectares of land undermango plantations.
RESEARCH METHODOLOGYMarketing Research is the systematic design, collection and analysis of the data and reportingof information and findings relevant to a specific marketing situation facing the company.Research TechniqueIt is imperative to decide upon and document a research methodology well in advance to carryout the research in a most effective and systematic way. This section describes the researchmethodology adopted to serve the objectives of the study in an effective manner. DescriptiveResearch technique is being used for this project. The study would be initiated by the pilot study.Approach of the ProjectBased on the analysis inferences would be drawn about best CSR practices andrecommendations would be made to develop CSR as a tool to leverage the perception oforganization among the stakeholders The study will be relevant for the industry as well asacademia as it will discuss corporate social responsibility as a strategic move that organizationscan incorporate in their overall business strategy, thereby achieving better all-roundperformance.Data Collection ToolsTo study the CSR initiatives the methodology adopted is primary and secondary data analysis.In-depth interviews will be conducted to determine the consumer’s views on the socialresponsibility initiatives of the companies. CSR activities of fmcg companies will be studiedfrom company’s websites.Sample sizeA sample size of aprrox. 100 consumers would be surveyed to study the consumer’s perceptionabout the company. This would give us the clear picture of change in sales of product ofcompany due to CSR initiatives.
SECONDARY DATA ANALYSIS CSR activities by HULGreening Barriers:Water Conservation and Harvesting (linked to product Pureit) :HULs Water Conservation and Harvesting project has two major objectives:a. to reduce water consumption in its own operations and regenerate sub-soil water tables at itsown sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew;b. help adjacent villages to implement appropriate models of watersheddevelopment.Successful water conservation pilot projects :Project KhamgaonSeven years ago, our team from the Khamgaon factory started a pilot watershed managementproject, on a five hectare plot, to prevent soil degradation and to conserve water. The selectedarea was located in a dry and arid region of Maharashtra. The efforts have resulted in the creationof a green belt, which is now a veritable forest with about 6,300 trees. Encouraged by the results,we extended the model to a neighbouring village, Parkhed, in association with The Energy andResources Institute (TERI) and BAIF Development Research Foundation. The community atParkhed constructed 47 percolation bunds, 1,600 trenches, 6,000 running metres of continuouscontour trenching over 100 hectares and five permanent check dams. More than 350 families arereaping the second crop, which is made possible by the check dams.The total land under cultivation during the second crop season is approximately 470 acres. Theannual income of the farmers in the vicinity of the five check dams has increased from anaverage of INR 36,000 to approximately INR 85,000, per farmer. This success has beenattributed to the availability of well water during the Rabi season and an increase in the water
level during the Kharif season. Hence, along with reaping a Rabi crop, the farmers have alsobeen able to almost double the yield of the Kharif crop. This initiative received appreciation atthe Johannesburg World Summit on Sustainable Development.Project SilvassaIn April 2004, Vanarai and HUL started a project in Karchond and later in Dapada, Pati, Sindoni,and Silvassa. Till March 2010, the project has made an impact on water and soil conservation.The project has ensured sustainable development of water and land resources, locals haveattained self-sufficiency in basic needs of food, water, fodder and fuel, and local employmentopportunities have been generated through increased economic activity.The other highlights are:- More than 67 million litres of water have been harvested since 2004- Additional income of INR 160 lakhs was accrued to villagers during project period- 325 families have benefited under various programmes, 130 families now have access to the public toilet facility- Soil conservation treatment has been carried out on 282 hectares of land- 12,000 mango seedlings have been planted- 22 bore wells and 20 open wells were rechargedProject PuducherryIn 2008-09, HULs Puducherry unit partnered with DHAN Foundation, Madurai and identifiedeight village ponds for renovation to enhance the water availability. One of the unique aspects ofthe project was to form social capital by organizing villagers into pond association and empowerthem to execute the physical renovation work. The pilot project has improved water availabilityin eight village ponds by harvesting monsoon run-off. Rainwater harvesting storage of 22300 cu.meter has fulfilled the multiple domestic needs of 4519 households in eight hamlets and 346acres are now irrigated due to the rejuvenation of ground water.
SHAKTI - Changing Lives in Rural IndiaShakti is HULs rural initiative, which targets small villages with population of less than 2000people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, andcreating access to relevant information through the iShakti community portal.In general, rural women in India are underprivileged and need a sustainable source of income.NGOs, governmental bodies and other institutions have been working to improve the status ofrural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised inSelf-Help Groups (SHGs), and improving living standards in rural India. Shakti providescritically needed additional income to these women and their families, by equipping and trainingthem to become an extended arm of the companys operation.Health & Hygiene EducationLifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra,Orissa) with the objective of spreading awareness about the importance of washing hands withsoap.The need for a program of this nature arose from the fact that diarrhoeal diseases are a majorcause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10seconds and one third of these deaths are in India. According to a study done by the LondonSchool of Hygiene and Tropical Medicine, the simple practice of washing hands with soap andwater can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygienepractices leads to high mortality rates in rural India.
Economic Empowerment of WomenThe Fair & Lovely Foundation is HULs initiative which aims at economic empowerment ofwomen across India. It aims to achieve this through providing information, resources, inputs andsupport in the areas of education, career and enterprise. It specifically targets women from low-income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economicempowerment platform and the Foundation is an extension of this promise. The Foundation hasrenowned Indian women, from various walks of life, as its advisors. Among them areeducationists, NGO activists, physicians. The Foundation is implementing its activities inassociation with state governments.Special Education & RehabilitationUnder the Happy Homes initiative, HUL supports special education and rehabilitation ofchildren with challenges.Ankur:In 1993, HULs Doom Dooma Plantation Division set up Ankur, a centre for special education ofchallenged children. The centre takes care of children with challenges, aged between 5 and 15years. Ankur provides educational, vocational and recreational activities to over 35 children witha range of challenges, including sight or hearing impairment, polio related disabilities, cerebralpalsy and severe learning difficulties.Kappagam:Encouraged by Ankurs success, Kappagam ("shelter"), the second centre for special education ofchallenged children, was set up in 1998 on HUL Plantations in South India. It has 17 children.The focus of Kappagam is the same as that of Ankur.Anbagam:Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in theSouth India Plantations. It takes care of 11 children. Besides medical care and meals, they too arebeing taught skills such that they can become self-reliant and elementary studies.
Other Community initiatives:Providing healthcareSanjivani Mobile Medical Facility:We started Sanjivani, a mobile medical service in 2003, tooffer effective medical care in villages surrounding our Doom Dooma factory in Assam. Theobjective has been to meet the basic medical needs of people living in the remote villages inAssam through a free mobile medical facility.Apart from basic medical services, Sanjivani also spreads awareness about hygiene, childimmunisation, family planning etc. The project covers a radius of 40 km around the factory withtwo mobile vans equipped with basic medical equipment and a specialised team comprising onemale and one female doctor, two nurses, a medical attendant and drivers. On an average, 400Sanjivini medical camps are conducted every year in remote villages surrounding our factory.The project is run in close co-ordination with the local administration and its progress isreviewed every quarter.Assisting women through educationFair & Lovely Foundation:Scholarships of up to INR 1 lakh have been awarded to those womenwho do not have the financial strength to realize their dreams, but have the aptitude, drive, andambition to carve a place of pride for themselves in society. The scholarship which was awardedonly to postgraduate studies has now been extended to graduate students as well. Since 2003,more than 790 scholarships have been awarded to women across India.Disaster relief and rehabilitationFloods, Bihar, 2008:We contributed 10,000 kits worth INR 60 lakh as the first installment ofmaterial for immediate relief of the flood affected families in Araria District in Bihar. The kitcontained essential items such as utensils, clothes, blankets, and other useful material.
In all, 12 truckloads of material were distributed to the affected families under the guidance ofthe Araria District Magistrate. A sum of INR 84 lakh was contributed by HUL and ouremployees to rehabilitate the underprivileged amongst the flood-affected families in the villageof Jorgama, Madhepura district, Bihar. The project aims at theconstruction of 100 disaster proofhouses for the purpose of rehabilitation.Tsunami, South India, 2006:We contributed over INR 10 crores towards the relief andrehabilitation of tsunami-affected families by way of providing relief material, land, andconstruction of facilities. We distributed nutritional and personal hygiene products worth INR 5crores for immediate relief to the needy soon after the tsunami hit the region. Later, pursuant to arequest from the Government of Tamil Nadu about the urgent need for housing the affectedfamilies, we donated 5.27 acres of land (market value on a conservative basis is INR 4.5 crores)at Tondiarpet, Chennai, to the government. The complex has 960 permanent houses spread over5.27 acres of land. Our employees also made a contribution of INR 50 lakhs which was used toconstruct the facilities in the complex.Caring for the vulnerableAsha Daan: In 1976, HUL provided a 72,500 sq. ft plot for setting up Asha Daan in the heart ofMumbai. This home is supported by the Missionaries of Charity and cares for abandoned andchallenged children, victims of HIV, and the destitute. We bear the capital and revenue expensesfor maintenance, upkeep, and security of the premises.The needs of the abandoned/challenged children are met by the Sisters of the Home. Specialclasses are arranged that teach the children basic skills, physiotherapy, etc. Whenever necessary,we also arrange for corrective surgery in city hospitals. In 1995, we were able to open a ward forfemale HIV positive patients, which was one of Mother Teresas dearest desires.
CSR Initiatives by P>he entry of P&G into the field of corporate social responsibility with project PEACE – anenvironmental education programme followed by FUTURE FOCUS – first ever career guidanceservice. P&G experimented Cause Related Marketing with different projects like ProjectDRISHTI where Whisper helped to restore eyesight to 250 blind girls through corneal transplantoperations in which P&G contributed Re 1 for every pack of whisper sold Project OPENMINDS to support and educate children across the Australia, ASEAN and the India (AAI)region. For every large size pack of Vicks VapoRub, Whisper, Ariel Power Compact, Head &Shoulders and Pantene purchased by consumers during November 1999 to January 2000,P&G on behalf of consumers contributed the cost of one day’s education of a working child tothe ‘OPEN MINDS’ fund. In India P&G raised Rs. 1.25 crore for ‘OPEN MINDS’ which wasdonated to UNICEF in February 2000 Project POSHAN to combat malnutrition in India. P&Graised Rs. 50 lakhs by contributing Re. 1/- from sales of large size packs of Ariel, Whisper, Head& Shoulders and Pantene sold in the months of May, June and July 2000 andProject SHIKSHA – a unique CRM initiative in association with Sony Entertainment Television.By purchasing packs of Vicks, Whisper, Ariel, Tide, Head & Shoulders and Pantene between21st April – 12th June 2003, this unique education promotion allowed a mother to win Rs. 2lakhs towards Graduate Education Fee of one child (24 such Prizes), or Rs. 5,000 towards NextYear’s Tuition fee for one child (96 such Prizes), and a number of Consolation Prizes, allcourtesy P&G.Pampers and UNICEF working together for healthy babies:Every year, 59,000 people die from maternal and neonatal tetanus—a completely preventabledisease. So for the fourth year running, Pampers is teaming up with UNICEF to deliver thevaccines that vulnerable women and their children need.The effort gets our consumers involved.With the purchase of one pack of Pampers, one dose of the vaccine is donated. Our campaign hascreated the highest awareness ever for maternal and neonatal tetanus, helping put the diseaseback on the agenda of health authorities.Since 2006, a total of 100 million women and theirbabies have been protected against maternal and neonatal tetanus. P&G and UNICEF have alsoteamed up to offer P&G employees in Western Europe the opportunity to take a three-month
paid sabbatical and work with UNICEF. The program is aimed at employees who have alwayswanted to undertake humanitarian work but have not had the chance before.UNICEF benefitsfrom the diverse backgrounds of P&G employees as they apply such skills as communications,promotion, leadership training, and supply chain management. Although resource requirementsfor UNICEF are ever-changing, three to four assignments are expected per year.P&G and Shiksha :India has the world’s largest population of uneducated children, with nearly half of all childrenthere not attending school. The Shiksha program (Shiksha - Hindu for "Education") is dedicatedto fighting that trend, helping to provide access to education for more children. The programfunds NGO efforts to address the underlying causes of poor access to education, such as poverty,health issues, and access to immunization. In cases where schools don’t exist, the program alsofunds their construction. Each time a consumer bought a large pack of any P&G brand in Indiabetween April and June of 2010, part of the proceeds went toward leading children on the path toeducation. Shiksha also benefits from the direct involvement of P&G employees. Each year,employees participate in a Shiksha Walk-a-thon, joining their families and others in raisingawareness for the cause.P&G Children’s Safe Drinking Water ProgramAlmost one billion people in the developing world do not have access to clean drinking water.As a result, thousands of children die every day. The P&G Children’s Safe Drinking Water(CSDW) Program reaches these people through PUR packets, a water purifying technologydeveloped by P&G and the U.S. Centers for Disease Control and Prevention (CDC). One smallPUR packet quickly turns 10 liters of dirty, potentially deadly water into clean, drinkable water.The packets can be used anywhere in the world, including areas affected by natural disaster. ThisLive, Learn and Thrive program provides PUR packets on a not-for-profit basis. Since theprogram began, more than 3 billion liters of purified drinking water in more than 60 countrieshave prevented an estimated 120 million days of diarrheal illness and helped save more than16,000 lives.
CSDW works with over 100 partners to provide PUR packets. The program responds toemergencies including cholera outbreaks, earthquakes, floods and other natural disasters. CSDWand its partners provide clean drinking water in schools, outreach to mothers in health clinics,and clean drinking water for malnourished children, and also help people living with AIDS tolive positively.Disaster Relief at P&GOur global disaster response approach allows us to respond quickly and effectively. Our firstconcern is for the safety and welfare of our employees. Within hours, we are also in contact withour humanitarian partners to understand the scope and impact of the crisis, and how best torespond. The most immediate way we often help is to provide PUR Purifier of Water packets.Natural disasters can leave places that typically have safe drinking water suddenly without it.These packets transform dirty, unsafe water into clean drinking water in 30 minutes, so they canbe very useful in times of crisis. We have worked closely with several of our partners tostrategically place depots of PUR packets around the world, making them more readily availablewhen needed.In addition to cash donations, we often provide products. From our soap and personal hygieneproducts to our laundry, diaper and cleaning products, our brands can help restore a sense ofnormalcy to the disrupted lives of those caught in the aftermath of a disaster.
CSR Initiatives by ITCE-Choupal rural digital-physical infrastructureITCs globally awarded e-Choupal initiative is a powerful illustration of a unique businessmodel that delivers large societal value by co-creating rural markets with local communities.The e-Choupal digital infrastructure enables even small and marginalised farmers in ruralIndia, who are de-linked from the formal market, to access relevant knowledge, market prices,weather information and quality inputs to enhance farm productivity, quality and commandbetter prices - making them more competitive in the national and global markets. Customizedagri-extension services and farmer training schools through a focused programme - "ChoupalPradarshan Khet" - enable farmers to access best practices in agriculture and improveproductivity.Social & Farm ForestryITC procures wood pulp for its Paper and Paperboards business from renewable plantationscultivated by tribals and farmers on their private wastelands. ITC invested in extensive R&D tocreate clonal saplings which apart from being disease resistant, grow much faster and in harsherconditions. A large number of tribals and marginal farmers have benefited by growing thesepulpwood saplings on their private wastelands. ITCs paperboards business is a willing buyer oftheir produce, whilst the growers are free to sell to the highest bidder in the open market.ITC could have taken the easier route by importing pulp, rather than a more difficult route ofmobilising tribals and marginal farmers which involved long gestation and substantialinvestment exposure. However, the adoption of this more challenging route has not only createda source of sustainable livelihoods for a large number of disadvantaged sections of society, buthas also brought a multiplicity of benefits by creating a large green cover that contributessignificantly to groundwater recharge, soil conservation and carbon sequestration.Recently, ITCs social forestry project in Andhra Pradesh was registered under the CleanDevelopment Mechanism of the United Nations Framework Convention on Climate Change.The carbon credits earned will also be shared with the tribals and farmers, enabling them toparticipate in an international carbon market mechanism.
Integrated Watershed DevelopmentRecognising the vital role that irrigation and water play in the rural economy, ITC supports thecreation of watershed projects in water-stressed areas, providing precious water resources foragriculture, rural communities and livestock. Based on a participatory approach that involveslocal communities, the programme facilitates building, reviving and maintaining waterharvesting structures as well as management of water resources to reverse land degradation,provide critical irrigation and increase agricultural productivity.Providing Supplementary EducationITCs Supplementary Learning Centers offer additional coaching that backs up school learning,stemming drop-outs and enabling more children to complete school. ITC also supports outreachprojects, including mobile libraries that foster the reading habit and a roaming laptopprogramme that promotes computer skills and interactive learning.Economic Empowerment of WomenITCs initiatives provide sustainable economic opportunities to poor women in rural areas byassisting them to form microcredit self-help groups that enable them to build up small savingsand finance self-employment and micro-enterprises. A large number of women earn income asself-employed workers or as partners in micro-enterprises. The programme has demonstrated thatextra income in the hands of women leads to significant and positive changes in humandevelopment since it is spent largely on childrens education, health and nutrition, and is acatalyst for gendering development.Livestock DevelopmentITCs livestock development programme assists rural households to upgrade livestock qualitythrough cross-breeding by artificial insemination to boost milk productivity by a factor of 6-9times, leading to a threshold increase in household incomes and thereby an improvement intheir poverty status. Currently, these initiatives reach out to nearly 2,600 villages in 5 states.
Renewable Energy at ITCITC has adopted a conscious strategy to lower its carbon footprint, which has brought immensebenefits: over 30% of the Companys total energy consumption is from renewable sources andcarbon neutral fuels.In keeping with its commitment to utilise an increasing component of renewable energy, ITC hasset up a 14 MW wind energy facility to provide power to the Companys packaging unit inChennai. Additional investments in wind energy, totalling over 25 MW, are also being made tosupplement the power requirements of the ITC Hotels in Mumbai and Chennai.ITC Green BuildingProviding leadership in positive environmental action, the "ITC Green Centre" in Gurgaon,certified by the US Green Building Council for Leadership in Energy & Environmental Design(USGBC- LEED) is one of the first and one of the largest commercial "Platinum Rated"buildings in the world and continues to provide inspiration to the "greener buildings" movementin India. At ITC Green Centre, energy consumption has been reduced significantly throughdesign integration. The building has been designed to maximise the use of natural light duringthe day, largely eliminating the need for artificial lighting. At the same time, glass used for thewindows allows light in, but does not allow heat. This not only keeps the building cool from theinside during the day, but also decreases the load on air-conditioners. There is minimum use ofexterior lighting to limit night sky pollution. Water consumption has been reduced by 40% andwith a water recycling plant, the building is now a zero water discharge building
DATA ANALYSIS1. Reliability Test (Applying Cronbach’s Alpha)Scale: ALL VARIABLES Case Processing Summary N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .704 9 Interpretation : Cronbachs alpha is a measure of internal consistency, that is, how closely related a set of items are as a group. Here the alpha coefficient for the nine items is .704, suggesting that the items have relatively high internal consistency
Frequencies and Mean Statistics Age Gender Ed. Qulf Occupation Location N Valid 100 100 100 100 100 Missing 0 0 0 0 0 Mean 2.19 1.43 2.48 1.98 1.26For Age:Values are : Below 20 = 1, 21-30 = 2, 31-40 = 3, 41-5 0= 4 Age Cumulative Frequency Percent Valid Percent Percent Valid 2 82 82.0 82.0 82.0 3 17 17.0 17.0 99.0 4 1 1.0 1.0 100.0 Total 100 100.0 100.0Interpretation :From the above table we can infer that in a sample size of 100 respondents, Maximum number ofrespondents were between the age group of 21-30 and least number of respondents of age group41-50.
For GenderValues are : 1=Male, 2=Female Gender Cumulative Frequency Percent Valid Percent Percent Valid 1 57 57.0 57.0 57.0 2 43 43.0 43.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis we can infer that out of the total sample of 100 respondents,57% of respondents were male and 43% of respondents were FemaleFor Education Qualification :Values are : 1 = Undergarduate, 2 = Graduate, 3 = Post Graduate Ed. Qulf Cumulative Frequency Percent Valid Percent Percent Valid 1 15 15.0 15.0 15.0 2 22 22.0 22.0 37.0 3 63 63.0 63.0 100.0 Total 100 100.0 100.0
Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, Maximum of the respondents i.e. 63% of the respondents were post graduate.For OccupationValues are : 1 = Service, 2 = Businessman, 3 = Housewife, 4 = Student, 5 = Unemployed Occupation Cumulative Frequency Percent Valid Percent Percent Valid 1 59 59.0 59.0 59.0 2 9 9.0 9.0 68.0 3 11 11.0 11.0 79.0 4 17 17.0 17.0 96.0 5 4 4.0 4.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis we can infer that out of the total sample of 100 respondents,around 60% of sample population is from service class.
For LocationValues are : 1 = Delhi, 2 = Gurgaon, 3 = Faridabad, 4 = Ghaziabad Location Cumulative Frequency Percent Valid Percent Percent Valid 1 85 85.0 85.0 85.0 2 8 8.0 8.0 93.0 3 3 3.0 3.0 96.0 4 4 4.0 4.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis we can infer that out of the total sample of 100 respondents,More than 80% of population were from delhi and rest from the NCR region.
Frequencies and mean Statistics Pref to Product Prodct asso with fmcg pref. CSR must on basis of CSR CSR mkt tool social cause N Valid 100 100 100 100 100 Missing 0 0 0 0 0 Mean 2.31 2.04 2.32 2.38 2.67Values for FMCG preference :1 = HUL, 2 = ITC, 3 = P&G, 4 = DABUR, 5 = OTHERS fmcg pref. Cumulative Frequency Percent Valid Percent Percent Valid 1 31 31.0 31.0 31.0 2 33 33.0 33.0 64.0 3 16 16.0 16.0 80.0 4 14 14.0 14.0 94.0 5 6 6.0 6.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 64% of sample population prefers the products of HUL and ITC. P&G and Daburfollows them.CSR initiatives are must for every company?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
CSR must Cumulative Frequency Percent Valid Percent Percent Valid 1 28 28.0 28.0 28.0 2 47 47.0 47.0 75.0 3 18 18.0 18.0 93.0 4 7 7.0 7.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 75% of sample population agrees that CSR is must for every company as itcontributes to the society.Preference to products on the basis of CSRValues are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree Pref to Product on basis of CSR Cumulative Frequency Percent Valid Percent Percent Valid 1 16 16.0 16.0 16.0 2 46 46.0 46.0 62.0 3 28 28.0 28.0 90.0 4 10 10.0 10.0 100.0 Total 100 100.0 100.0
Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 62% of sample population, while purchasing a product, gives preference toproducts on the basis of CSR initiatives taken by the parent company.CSR is only a marketing tool?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree CSR mkt tool Cumulative Frequency Percent Valid Percent Percent Valid 1 24 24.0 24.0 24.0 2 26 26.0 26.0 50.0 3 38 38.0 38.0 88.0 4 12 12.0 12.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 50% of sample population believes that FMCG companies use CSR as a marketingtoolProducts that you buy must be associated with any social cause?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
Prodct asso with social cause Cumulative Frequency Percent Valid Percent Percent Valid 1 8 8.0 8.0 8.0 2 27 27.0 27.0 35.0 3 55 55.0 55.0 90.0 4 10 10.0 10.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, more than 55% of sample population believes that product which they buy need notto be associated with any social cause.Frequencies Statistics emotional Aware of csr in Pref to company Project attachment rural doing CSR E-choupal Shakti khamgaonN Valid 100 100 100 100 100 100 Missing 0 0 0 0 0 0Mean 2.22 2.73 2.50 1.35 1.72 1.85CSR initiatives make an emotional attachment with the consumer?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
emotional attachment Cumulative Frequency Percent Valid Percent Percent Valid 1 16 16.0 16.0 16.0 2 53 53.0 53.0 69.0 3 24 24.0 24.0 93.0 4 7 7.0 7.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents around 70% of the sample population believes that CSR initiatives make anemotional attachment with the consumers.Aware of CSR initiatives taken by FMCG companies n rural areas?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree Aware of csr in rural Cumulative Frequency Percent Valid Percent Percent Valid 1 9 9.0 9.0 9.0 2 26 26.0 26.0 35.0 3 48 48.0 48.0 83.0 4 17 17.0 17.0 100.0 Total 100 100.0 100.0
Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents around 2/3rd of the sample population is not aware about the various CSR initiativestaken by the FMCG companies. This is the main reason, why consumer’s perception about theorganization doesn not changes despite of CSR initiatives taken by them.Company that you don’t prefer starts doing CSR initiatives, Will it change yourpreference?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree Pref to company doing CSR Cumulative Frequency Percent Valid Percent Percent Valid 1 24 24.0 24.0 24.0 2 27 27.0 27.0 51.0 3 24 24.0 24.0 75.0 4 25 25.0 25.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 1/2 of the sample population(50%) believes their preference towards the companieswill not change even if a company which they don’t prefer, starts doing CSR actitvities.Awareness about the following initiativesE-ChoupalValues are : 1 = Yes, 2 = No
E-choupal Cumulative Frequency Percent Valid Percent Percent Valid 1 65 65.0 65.0 65.0 2 35 35.0 35.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, nearly 2/3rd of sample population (65%) is aware about the famous initiative by ITCi.e. E-Choupal. But rest 1/3rd of the sample population is still not aware of the initiative.ShaktiValues are : 1 = Yes, 2 = No Shakti Cumulative Frequency Percent Valid Percent Percent Valid 1 28 28.0 28.0 28.0 2 72 72.0 72.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, only 28% of sample population is aware about the famous initiative of HUL.Project KhamgaonValues are : 1 = Yes, 2 = No Project khamgaon Cumulative Frequency Percent Valid Percent Percent Valid 1 15 15.0 15.0 15.0 2 85 85.0 85.0 100.0 Total 100 100.0 100.0
Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, only around 1/7 th of the sample population (15%) is aware about the famousinitiative of the HUL.Frequencies Statistics aware of aware of aware of integrated livestock renewable aware of shiksha watershed development energy aware of silvassaN Valid 100 100 100 100 100 Missing 0 0 0 0 0Mean 1.48 1.69 1.81 1.74 1.75Shiksha by P&GValues are : 1 = Yes, 2 = No aware of shiksha Frequency Percent Valid Percent Cumulative Percent Valid 1 52 52.0 52.0 52.0 2 48 48.0 48.0 100.0 Total 100 100.0 100.0Interpretation :
From the above frequency analysis, we can infer that out of the total sample size of 100respondents, only around 1/2 of the sample population (52%) is aware about the Shikshainitiative by P&GIntegrated Watershed Development by ITCValues are : 1 = Yes, 2 = No aware of integrated watershed Cumulative Frequency Percent Valid Percent Percent Valid 1 31 31.0 31.0 31.0 2 69 69.0 69.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 70% of the sample population is not aware of the initiative Integrated WatershedDevelopment by ITCLivestock DevelpomentValues are : 1 = Yes, 2 = No aware of livestock development Cumulative Frequency Percent Valid Percent Percent Valid 1 19 19.0 19.0 19.0 2 81 81.0 81.0 100.0 Total 100 100.0 100.0
Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, only 19% of the sample population is aware of the initiative LivestockDevelopment by ITC. Major portion of the population is not aware of the initiatives.Renewable Energy by ITCValues are : 1 = Yes, 2 = No aware of renewable energy Cumulative Frequency Percent Valid Percent Percent Valid 1 26 26.0 26.0 26.0 2 74 74.0 74.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, only 26% of the sample population is aware of the initiative Renewable Energy byITC. Major portion of the population is not aware of the initiatives.Project Silvassa by HULValues are : 1 = Yes, 2 = No aware of silvassa Cumulative Frequency Percent Valid Percent Percent Valid 1 25 25.0 25.0 25.0 2 75 75.0 75.0 100.0 Total 100 100.0 100.0
Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, only 25% of the sample population is aware of the Project Silvassa by HUL. Majorportion of the population is not aware of the initiatives.CSR helps in economic develpment?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree CSR helps in ECo Develop. Cumulative Frequency Percent Valid Percent Percent Valid 1 29 29.0 29.0 29.0 2 54 54.0 54.0 83.0 3 13 13.0 13.0 96.0 4 4 4.0 4.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, more than 80% of sample population believes that CSR helps in economicdevelopment but they still are not aware of the various CSR initiatives taken by the companiesCSR helps in building a brand?Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
CSR builds a Brand Cumulative Frequency Percent Valid Percent Percent Valid 1 36 36.0 36.0 36.0 2 34 34.0 34.0 70.0 3 12 12.0 12.0 82.0 4 18 18.0 18.0 100.0 Total 100 100.0 100.0Interpretation :From the above frequency analysis, we can infer that out of the total sample size of 100respondents, 70% of sample population believes that CSR is a good marketing tool and it helpsin building a good brand value. Hypothesis TestingHypothesis 1CSR activities do not impact the sales of the product..
Correlations Pref to Product Pref to company Correlations on basis of CSR doing CSR Pref to Product on basis of Pearson Correlation Pref to company 1 .273** CSR doing CSR CSR mkt tool Sig. (2-tailed) .006 Pref to company doing CSR Pearson Correlation 1 .572** N 100 100 Pref to company doing CSR Sig. (2-tailed) Pearson Correlation .273** .000 1 N Sig. (2-tailed) 100 .006 100 CSR mkt tool Pearson Correlation .572** 1 N 100 100 Sig. (2-tailed) .000 **. Correlation is significant at the 0.01 level (2-tailed). N 100 100 **. Correlation is significant at the 0.01 level (2-tailed).Interpretation:From the above correlation we found that CSR does not impact the purchasing behavior of theconsumers as they do not give preference to any of the company or product while purchasing aproduct. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.2nd case
Interpretation:From the above correlation we found that people consider CSR is only a marketing tool so manypeople do not give preference to any of the company or product while purchasing a product. Thecorrelation is significant at 0.01 level. Therefore we accept the hypothesis.Hypothesis 2CSR activities does not change the perception of consumer’s towards the organization
Correlations Pref to Product Aware of csr in on basis of CSR rural Pref to Product on basis of Pearson Correlation 1 .229* CSR Sig. (2-tailed) .022 N 100 100 Aware of csr in rural Pearson Correlation .229* 1 Sig. (2-tailed) .022 N 100 100 *. Correlation is significant at the 0.05 level (2-tailed).Interpretation:From the above correlation we found that people in urban areas are not aware of the CSRinitiatives taken by various FMCG companies, thus their perception about the company ororganization does not changes because of CSR. The correlation is significant at 0.05 level.Therefore we accept the hypothesis.Hypothesis 3People does not have the prior knowledge of the various CSR initiatives taken by the FMCGcompanies.
CSR Initiatives YES NO TOTALE-Choupal 65% 35% 100Shakti 28% 72% 100Project Khamgaon 15% 85% 100Shiksha 52% 48% 100Integrated Watershed 31% 69% 100DevelopmentLivestock Development 19% 81% 100Renewable Energy 26% 74% 100Project Silvassa 25% 75% 100 Awareness ChartInterpretation :From the above analysis, we can see that in all the cases except E-choupal, people are not awareof all the initiatives asked. This is the main reason of why there is no change in consumer’sperception towards the organization. People are not aware of the CSR initiatives taken byFMCG companies in the rural areas. Thus our hypothesis is right. T-Test on Gender and change in perception of consumer due to CSR activities
One-Sample Statistics N Mean Std. Deviation Std. Error Mean Pref to company doing CSR 100 2.50 1.115 .111 Gender 100 1.43 .498 .050 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t df Sig. (2-tailed) Mean Difference Lower UpperPref to company doing CSR 22.429 99 .000 2.500 2.28 2.72Gender 28.740 99 .000 1.430 1.33 1.53 FINDINGS AND CONCLUSION
The study was conducted to find out the impact of CSR activities on customer’s perception aboutthe organization and sales of the product as well as to study the various CSR initiatives of HUL,ITC and P&G. From the above report the finding comes to be that people are not aware of thevarious initiatives taken by the companies. Companies are spending lots of money for thewelfare of the society but people of the society are not fully aware of it. This is the problem withmost of the consumers in urban areas because most of the initiatives and projects are undertakenthe companies in rural areas only. So the awareness level of people is very low in this case.Another finding is that CSR initiatives put a very less impact on the consumer’s perceptiontowards the companies and sales of the products. The consumers are not able to recall anyinitiatives thus their buying behavior does not change and they buy the product which they want.On asking that will they buy a product of company which they don’t prefer, if it start doing CSR,the response was the same. Although people do believe that CSR is good for economicdevelopment but on the other side they also consider it as a good Marketing tool. On askingabout the famous CSR initiatives, people were unable to recall any except E-choupal, famousinitiative by ITC which has also won many awards. Amongst the three chosen FMCGcompanies HUL, ITC and P&G, most of the sample population preferred the products of HULand ITC. Meeting and interacting with the consumers and collecting data was a real goodexperience. BIBLIOGRAPHY
1. Lara Balsara, www.orissadiary.com, Show Bussiness News, Monday, November 22, 2010 2. India ta glance, Trends, Corporate social responsibility, www.ibef.org, 06 June 2010 3. Times of India, Feb 18, 2010 4. www.justmeans.com 5. News, CSR, causebecause.com, CauseBecause Citizen Bureau, December 16, 2010 6. Semantics, Corporate Social Responsibility and Inclusive Growth www.jeannechen.com, May 28, 2010 7. www.eias.org, EurAsia Bulletin, Volume 10 No. 11&12, Nov-December 2006 8. Willem Grimminck, Responsible Business 9. News, Business, CSR, www.moneycontrol.com, Fri, Aug 06, 2010 10. Society, Sustainability, www.hul.co.in 11. Social Responsibility, Sustainability, www.Pg.com ANNEXURE QuestionnaireTo whom it may concern: This study is being conducted to analyze the on impact of CSRactivities on Customer Perception. The responses provided by you would be purely used forresearch purposes only.Q1.Which of the following FMCG company’s products do you prefer?
a. HUL b. ITC c. P&G d. Dabur e. OthersQ2. Do you think CSR initiatives are must for every company? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ3. Do you give preference to a particular company on the basis of its CSR initiatives whilepurchasing a product? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ4. Do you think CSR is only a marketing tool? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ5. Can you recall any of the CSR initiatives by any of the FMCG company?Q6. Is it necessary for you that a product that you buy must be associated with any social cause? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ7. Do you believe that CSR initiatives make an emotional attachment with the consumer? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ8. Are you aware of the various CSR initiatives that companies are undertaking in rural areas? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ9. If a company that you don’t prefer starts doing CSR initiatives, Will it change yourpreference ? Strongly Agree /Agree / Disagree/ Strongly DisagreeQ10. Are you aware of the following famous CSR initiatives? 1. E-Chaopal Yes_____/No _____ 2. Shakti Yes_____/No _____ 3. Project Khamgaon Yes_____/No _____Q11. Are you aware of SHIKSHA, an initiative by P&G? Yes_____/No _____