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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my
guide Manali Bhattacharya for her exemplary guidance, monitoring and constant
encouragement throughout the course of this project. The blessing, help and
guidance given by her time to time shall carry me a long way in the journey of life
on which I am about to embark.
I also want to thank almighty, my parents, brother, sisters and friends for their
constant encouragement without which this assignment would not have been
possible.
Rituparna Roy
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INTRODUCTION
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WHAT IS CSR???
• “CorporateSocial Responsibility is the continuing commitment by business
to behave ethically and contribute to economic development while
improving the quality of life of the workforceand their families as well as of
the local community and society at large”
• Thus, the meaning of CSR is twofold. On one hand, it exhibits the ethical
behavior that an organization exhibits towards its internal and external
stakeholders (customers as wellas employees). On the other hand, it
denotes the responsibility of an organization towards the environmentand
society in which it operates.
CSR is also referred to as:
• ‘corporate’ or ‘business responsibility’
• ‘corporate’ or ‘business citizenship’
• ‘community relations’
• ‘Social responsibility’.
The Importance of CSR
• Stronger performanceand profitability
• Improved relations with the investment community and access to capital
• Enhanced employee relations and company culture
• Risk management and access to socialopportunities
• Stronger relationships with communities and legal regulators
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So what is the main strategy behind adopting CSR?
1. Is it justdeveloping a sustainablecompetitive advantage?
2. When it comes to corporatesocial responsibility (CSR), including corporate
philanthropy, is virtue always its own reward?
3. Should companies erect “Chinese Walls” between their good works and
the work thatmakes them money?
4. What is the appropriate balance between altruism for its own sake and
using altruism to supporta company’s brand?
There are no easy answers tothese questions, but there are
overarching principles that canguide a company.
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• Principle 1: The closer the connection between a company’s CSRactivities
and its underlying business, themore appropriateit is to link the two in
brand marketing activities.
• Principle 2: When a company’s charitableactivities are not closely
connected with its business, createa separatebrand for these
initiatives…and treat it as an extension of the corporate brand.
• Principle 3: Employees represent the most powerfulbrand communications
channel…so keep them informed and engaged in CSR activities.
• Principle 4: Research is critical to determine the ideal relationship between
a company’s brand and its philanthropic or volunteer efforts.
So at glance if we combine all this principles we cansay:
 Achieving the right relationshipbetweenacompany’s brand and its
philanthropic or volunteer efforts is adelicate balancing act. But it’s well
worththe effort. This whitepaper identifies four overarching principles
that can guide a company inaligning corporate social responsibility
activities withthe corporate brandfor authenticity andimpact.
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CSR IN INDIAN COMPANIES
(Private or Public)
Corporatesocial responsibility is very wideand it has different meaning to
everyoneand different in each country. According to Lord Holmes and Richard
Watts, “CSR is the continuing commitmentby business to behave ethically and
contribute to economic developmentwhile improving the quality of life of the
workforce and their familiesas well as of the local community and society at
large”.
’Bowen has defined ‘Corporate SocialResponsibility’ as “Obligation to pursue
those policies, to make those decisions, or to follow those lines of action which are
desirable in terms of the objectivesand values of our society.”
Without society business cannotexist. They providebetter and useful services
and products to the society in exchange of a money price. For their survival, both
business and society depend completely on each other. At present, due to
globalization and consumers’ expectations, companies are facing very high and
tough competition in the market. In this type of situation, it is essential for a
business to survivein market that is to increase its connectivity to the society in a
positive manner. So CSR is an idea that refers to a business’ responsibilities
towards differentgroups of the society in which it exists and grows.
The main and important objective for every company is to profit-maximization.
But it is indispensablefor every business thatthese profits havenot been gained
in an unethical manner and contributes a partof these profits to the society. The
scopeof CSR is justbeyond any limitations.
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This pyramid gives a better view of the concept CSR. This is given in the book
“corporatesocial responsibility pyramid” written by LawrenceJ. Gitman and Carl
McDaniel. Ithas four levels and each level shows a set of responsibilities.
In the bottom (blue level), economic responsibilities are important for the
existence of the business. Themain and important aim of every business is to gain
profit becausethese profits help them to keep running in the market. So firstly
the survivalhas to be assured to go into the next level.
The second level (green level) shows the legal responsibilities. These
responsibilities are very essential to stand by the law of the country and particular
industry to which the corporatebelongs.
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The next level is ethical responsibilities. After the assuranceof survivaland
legality of the company, it can concentrate on working ethically. Ethics generally
representa set of principles that prescribea distinct behavior code and tell what
is right or wrong. In an ethical manner conducting the activities of business is
always prescribed.
The last and the highest level of CSR pyramid is capture by philanthropic
responsibilities. These responsibilities can be fulfilled in different ways such as
donating company equipments and products, making charity at causes like
droughtrelief, flood relief, education for poor people, making cash contributions
in social events and many more this type of causes. These activities are not a part
of daily activities of business. Theseactivities are carried out for the welfareof
society differently.
BIRLA and TATA are the famous and leading companies in India that are
contributed towards the corporatesocial responsibility till when this concept was
not famous in India. Today India is considered to be one among the top Asian
countries as far as CSRare concerned. In 2009, India ranked fourth among Asian
countries surveyed by ASR (Asian Sustainability Ranking). On individual level also,
there are four Indians outof ’48 Heroes of Philanthropy’ according to 2009 and
2010 listof Forbes Asia (The Hindu dated March 5, 2010).
Mukesh Ambani the Chairman of Reliance Industries defines CSRas “Continuous
Social Responsibility” and also said it is a combined effortof corporateworld,
governmentand people together. Also he said that businesses should notbe
calculated only on the basis of financial returns buton social returns as well (The
Economic times Dated 11 July 2011).
The giant of cola industry, cocacola India won the Golden Peacock Global Award
for corporatesocial responsibility. This award has been given by the Deputy
Minister of Economy and Innovation, Governmentof Portugal, Antonio Castro
Guerra recently. This award has been gifted to this company in community
development-for replenishment of ground water and setting goals to reach a ‘net
zero’ balance with respect to groundwater usage in 2009. In partnership, coca
cola with Rotary Internationalhas launched ‘Elixir of Life’ which is a project to
providepotable water to 30,000 underprivileged children in and around Chennai.
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THE TWO BRANDS WHICH I CONSIDERED
PERFORMING CORPORATE SOCIAL
RESPONSIBILITY (CSR) ARE-
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LITERATURE REVIEW
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The term ‘corporatesocialresponsibility’ is very wide and complex and it has
different meaning to different academicians and researchers. Butgenerally, it is
commonly used to mention those activities taken by the corporatewith the aim
of the welfare of society. This term become an essential part of every corporate
structureand nobody neglect this fact to survivein the marketthen they never
neglect their responsibilities towards the society.
CSR has so many dimensions. According to the C.krishna, this term has positive
and negative side. The aim of positive side is to solve society problems and
making the society a better place to live. And the negative side aims of neglect
public criticism and no welfare. Social reformand social movement, he mentioned
further. In other way, CSRstates that it is as a moral duty, civic responsibility, and
natural obligation and as legal compulsion.
According to Adolf Berle, he states that CSR AS “The corporation’s is not purely
economic, though to be so indeed its primary functions; not purely economic,
though profitis surely its purpose” .Heclearly stressed on the fact that though
the main aim of the company is to making profits, yet this is not only the purpose
and there are responsibilities beyond economic responsibilities.
On the other hand Bowen defines that CSR is indispensablefor the sake of
survivalof business in its existing form. “it’s becoming increasingly obvious that
the freedomof choice and delegation of power such as businessmen exercise
would hardly be permitted to continue without someassumption of social
responsibility. If a business neglects its duties towards thesociety in which it
exists, the society will not allow enjoying freedom in its activities.
Everybody has differentmeaning of corporatesocial responsibility but the most
common definition accepted by many researchers that is “CSRis a commitment to
improvecommunity well being through discretionary business practices and
contributions of corporateresources”. This is the very simple but complete
definition of the term corporatesocial responsibility.
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Advantagesof CSR in Indian Companies
The term CSR becoming famous and earning importanceall over the world. The
corporateis getting awareof the benefits of adopting corporate social
responsibility. These can be long-termand immediate in nature. The government
has mentioned a share/percentageof net profitto be mandatory allocated for
CSR activities by the public sector units. On the other way, in private sector there
is no such mandatory requirementin India but the governmentis planning to
make it mandatory to someextent. There are some benefits of CSR for Indian
companies
1. Enhanced Brand Image and Goodwill: The term CSR is very powerfulin India
and it is helping the Indian companies to enhance their brand image and the
goodwill of their company. Customers do more trustonly on those companies
which are socially responsible. Today due to competition in market place it is very
tough to build goodwill but CSR is the helping tool towards this.
2. Increasedsales:Indian companies arefacing high competition to their local
competitors and foreign as well. It has become very difficult for Indian companies
to increase their sales due to globalization and economic liberalizations. The
companies which undertakepollution free production and protect the
environment, products not tested on animals,
Undertake legal activities etc. getting good responsefromcustomers and secure
the larger sales.
3. Easier access tocapital:The very important benefit of CSR to Indian companies
is easier access to capital. The companies which are involved in CSR activities are
more trustworthy in the eyes of financing agencies and investors.
The above discussion revels that the companies that are engaged in CSR do not
get only profit or economic advantage but also securelot of trust and loyalty by
their customers. Thesecompanies gain positive brand image and make strong
goodwill for the company. Also the governmentdoes not put strict laws to these
companies in getting licenses etc. From Human Resourceside also, they can
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attract best human talent available in the industries compared to other
companies not adhering corporatesocial responsibility.
The term corporatesocial responsibility has earned prominencefromall avenues.
Organizations or companies mustrealize that governmentcannot uplift the
society alone. They haveto contribute something and help the governmentand
take advantage fromgovernmentin several issues. Itis the benefit of companies,
governmentand society. Duet to this the companies can increase their brand
image in the society and think for the future planning. The competitor risks also
reduced for those companies which are doing these activities.
GOVERNMENT INITIATIVES TO PROMOTE CORPORATE
SOCIAL RESPONSIBILITY AMONG COMPANIES
Although corporateIndia is involved in CorporateSocial Responsibility activities,
the central governmentis working on a framework for quantifying the Corporate
Social Responsibility initiatives of companies to promotethem further. According
to Minister of CorporateAffairs, Mr.Salman Khurshid, oneof the ways to attract
companies towards CorporateSocial Responsibility work is to develop a systemof
CorporateSocial Responsibility credits, similar to the systemof carbon credits
which are given to companies for green initiatives.
Pharmaceuticals Company Jubilant Organosys Ltd., already runs anti-tuberculosis
programmed with the governmentof Uttar Pradesh. Apartfromschools and
hospitals that are run by trusts and societies, the governmenttoo is exploring to
widen the scope of public-privatepartnerships to build and maintain schools and
hospitals in return for a fixed annuity payment
Besides the private sector, the governmentis also ensuring that the public sector
companies participate actively in CorporateSocial Responsibility initiatives. The
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Department of Public Enterprises (DPE) has prepared guidelines for central public
sector enterprises to take up importantCorporate Social Responsibility projects to
be funded by 2-5 percent of the company’s netprofits.
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OBJECTIVE
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UNDERSTANDING THE EFFECT OF
CORPORATESOCIAL RESPONSIBILITY IN
CREATING BRAND IMAGE
Exposureto any type of well-conceived promotional initiative for a brand leads to
more positive feelings and judgments about the brand in a consumer’s mind. A
promotional initiate emphasizing a brand’s affiliation with a social causehas a
high degree of affinity. How much a given initiative will help or hurta given brand
will depend on the characteristics of its target markets. A high degree of affinity
can enhance the effectiveness of a promotionalinitiative that increases the
likelihood of consumers treating the initiative as an important and positively
weighted attribute of the brand. However, when a promotionalinitiative does not
mention an affiliation, consumers may weighta brand’s styleof marketing as a
negative attribute. Consumers would weigh the style of marketing as positive
with those types of affiliations that have affiliation with a causelike cancer
research, environmentalprotection or disaster relief. Moreover, a social-cause
affiliation could also have a “halo effect” on how a brand is seen on other
attributes, such as trustworthiness or quality.
Those initiatives in which the logic behind the brand’s affiliation can be easily
recognized by mostconsumers – typically producea more positiveeffect on
consumer brand judgments and feelings than initiatives with weaker fit. When a
brand promotes a high-fit social-cause, it may be more likely to be viewed by
some consumers as opportunistic and seeking commercial gain.
Whether to pursueaffinity marketing in general or societal marketing in
particular, the companies should recognizethat every brand is different. While,
for example, a low-fit societal marketing initiative might work best for one brand,
it might do less for another brand’s image. Itis recommended to do careful
experimental research to refine and test ideas for affinity marketing initiatives
against one another and against other kinds of marketing initiatives.
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The management of socially responsible behavior is important becauseof its
impact on the perception of the brand image. Enriching a brand with ethical and
social questions increases its value. These associations influence the consumer in
their assessmentof products and increased brand loyalty. Many proactive
corporations monitor customer satisfaction closely and as a result individuals may
express their trust and appreciation of the CorporateSocial Responsibility efforts
by continuing to buy its products. Thus, the familiarity or the degree of general
user knowledgeof a company resulting fromtheir experiences with that firmand
their loyalty may lead to conditioning the perception of corporate behavior.
Customers‟ experience could allow them to develop strong beliefs and a more
elaborate cognitive structurewhich implies possiblereference schemes to make
different appraisals, as compared to the customers ata lower awareness level.
Companies that have made CorporateSocial Responsibility a central part of their
businesses arereaping the benefits as improved brand image. Itworks bestfor
those companies in which responsibility is a corecompany value and informs all
aspects of the business.
CorporateSocial Responsibility initiatives are not only about philanthropy but
translating these ideas into practical business strategies. CorporateSocial
Responsibility driven efforts does not only relate to donating money but it talks
about integrating social and ethical practices into business strategies that help the
consumer in creating a positive brand image. With the increasein Corporate
Social Responsibility awareness somecompanies promote a very elementary
understanding of corporategovernanceand ethical standards.
Another importantaspect of CorporateSocial Responsibility is that it channelizes
funds of socially responsibleinvestors in promoting CorporateSocial
Responsibility among investors.
The content of CorporateSocial Responsibility creates an emotional connection
with consumers and builds connections between the brand, its CorporateSocial
Responsibility initiatives and the viewers. Promoting brand image with the help of
CorporateSocial Responsibility initiatives encourages positive comments and
ultimately has a positive effect on the brand, becausethe company is being
transparentabout its external communications and internal practices which show
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alignment. The benefits of using CorporateSocial Responsibility in branded
content are endless; foremostit helps to build a brand’s reputation and is a point
of differentiation.
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METHODOLOGY
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MAHINDRA FARM EQUIPMENT SECTORS NAGPUR CSR
ACTIVITIES
Nagpur: Mahindra’s FarmEquipment Sector’s (FES) Nagpur plant recently
undertook a series of CorporateSocial Responsibility (CSR) activities in Nagpur
focusing on health, education and environment. These activities wereconducted
by Employee Social Options (ESOPs) volunteers fromits Nagpur plant.
Employee Social Options programmefromMahindra was initiated with goal of
having a Mahindra employee contributing to society every day of the year,
somewherein the world.
ESOPs provideeach employee with an option to contribute to a socially relevant
activity in a focused way.
Employees can select froma wide range of activities including volunteering at
schools, functioning as visiting faculty at educational institutions, etc.
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The activities conducted by Mahindra Nagpur plant were as follows –
Education
As part of the first initiative, ESOPs volunteers gaveaway scholarships to six
meritorious students pursuing the Bachelors of Engineering (BE) course. The
ESOPs volunteers also spend time with these students on a regular basis and
motivate them.
In another education related initiative, ESOPs volunteers fromthe Nagpur plant
came together to sponsor theeducation of 4 Nanhi Kalis. Nanhi Kali is an
education programmerun by the KC Mahindra Education Trustto help educate
underprivileged girl children who would otherwisebe bereft of education.
As partof the firstinitiative, ESOPs volunteers gaveaway scholarships to six
meritorious students pursuing the Bachelors of Engineering (BE) course. The
ESOPs volunteers also spend time with these students on a regular basis and
motivate them.
In another education related initiative, ESOPs volunteers fromthe Nagpur plant
came together to sponsor theeducation of 4 Nanhi Kalis. Nanhi Kali is an
education programmerun by the KC Mahindra Education Trustto help educate
underprivileged girl children who would otherwisebe bereft of education.
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Environment
Nagpur plant organized a plantation drive in coordination with the State Reserve
Police Force (SRPF) camp, Amravatito plant 1 lakh saplings. Based on the
planning, 10 Esops volunteers and 5 volunteers fromthe community gathered on
19th June to take part in plantation drive.
In another environmentrelated activity, ESOPs volunteers distributed uniforms
to nature friends during the World Environment Week. The Green Champs from
FES, Nagpur identified a team of 40 people who are working for natureat Nagzira
village and forest. Esops volunteers met the DivisionalForestOfficer and
discussed the idea with him after which these people who are working to protect
the environmentwere identified. This team is working on plantation, educating
society on environmental concerns and also protecting the animals of the Nagzira
forest. A small function was organized at Nagzira village where the uniforms were
distributed to these nature friends.
Health
The Nagpur plant has been running a mobile dispensary sinceMarch 2008. Six
locations near the factory have been identified. The mobile dispensary travels 5
days a week whereone doctor, a male nurseand an Esops volunteer travel in the
vehicle
The medicines are procured by the team and given free of cost to these patients
who are mainly children and senior citizens.
22 Esops volunteers have worked hard and have reached to 712 patients in June
2010
Foundations
At Mahindra, we believe that real change comes about when people give not just
their money, but their time as well. We’refortunate to be able to give both. Our
many foundations and initiatives harness thousands of employee volunteer hours
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and put millions of our own dollars to work expanding opportunities for
disadvantaged groups.
We create outreach programs thatdraw from our core competencies and partner
with NGOs to supportkey initiatives in areas outside our in-house expertise. Our
efforts are broadly organized around education, health, and the environment. In
all our initiatives, we seek partnerships with the people we serveand the other
stakeholders who contribute to solutions, fromlocal governments to NGOs. Our
foundations supporthard and careful work over the long term; so that we can
create lasting transformations in the communities webelong to and serve.
They created the Tech Mahindra Foundation in 2007 as a major
initiative to help the economically disadvantaged build better lives. Launched
with a corpus of Rs 250 million (aboutUS $5.45 million), Tech Mahindra
contributes 1.5 percent of its profit after tax every year. Thanks to generous
contributions fromthe company and employees alike, the Foundation is able to
spend more than Rs 60 million (aboutUS $1.3 million) each year on social
programs.
The Tech Mahindra Foundation partners with 55 NGOs to build relationships with
local communities. These organizations promotevocational, technical, and
professionaleducational programs which empower women, children, the
disabled, and the economically disadvantaged to riseaccording to their own
potential. As part of our education building initiative, wedonate computers to
education programs.
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The Mahindra Satyam Foundation is the largest corporate
volunteering program in the country
With 16,000 registered volunteers who havecontributed 850,000 volunteer
hours in 2009-10. Weuseour corecompetencies—technology, process, and
management—as change agents to create the greatest impact on people’s lives.
In 2005, our commitment to our communities was recognized with the Corporate
Citizen Award for Corporate Social Responsibility from Business World and the
Federation of Indian Chambers of Commerce (FICCI) and Industry’s Socio-
Economic Development Foundation (SEDF).
In 2008, weinitiated the Shiksha Samman Award in collaboration with the
Municipal Corporation of Delhi in order to celebrate excellent teachers. Each
year, we honour thirty outstanding teachers working in municipal schools with
scholarships for professionaldevelopment, cash awards, and Teaching Learning
Material (TLM) kits with materials for planned activities. Public recognition helps
disseminate best practices, encourageinnovation and effort to galvanize teachers
to be the best they can be.
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C.S.R activities by Aditya Birla group
Before CorporateSocial Responsibility found a place in corporate lexicon, it
was already textured into our Group's valuesystems. As early as the 1940s,
our founding father Shri G.D Birla espoused the trusteeship concept of
management. Simply stated, this entails that the wealth that one generates
and holds is to be held as in a trustfor our multiple stakeholders. With regard
to CSR, this means investing part of our profits beyond business, for the larger
good of society.
While carrying forward this philosophy, our legendary leader, Mr. Aditya Birla,
weaved in the concept of 'sustainablelivelihood', which transcended cheque
book philanthropy. In his view, it was unwiseto keep on giving endlessly.
Instead, hefelt that channelizing resources to ensurethat people have the
wherewithalto make both ends meet would be more productive. He would
say, "Givea hungry man fish for a day, he will eat it and the next day, he
would be hungry again. Instead if you taught him how to fish, he would be
able to feed himself and his family for a lifetime."
Taking these practices forward, our chairman Mr. Kumar Mangalam Birla
institutionalized the concept of triple bottom line accountability represented
by economic success, environmentalresponsibility and socialcommitment. In
a holistic way thus, the interests of all the stakeholders havebeen textured
into our Group's fabric.
Our community work is a way of telling the people among whom weoperate
that We Care.
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Our strategy our projects are carried out under the aegis of the "Aditya Birla
Centre for Community Initiatives and Rural Development", led by Mrs.
RajashreeBirla. The Centre provides the strategic direction, and the thrust
areas for our work ensuring performancemanagementas well.
Our focus is on the all-round development of the communities around our
plants located mostly in distant ruralareas and tribal belts. All our Group
companies —- Grasim, Hindalco, Aditya Birla Nuvo and UltraTech have Rural
Development Cells, which are the implementation bodies.
Our partners in development are governmentbodies, districtauthorities,
village panchayats and the end beneficiaries — the villagers. The Government
has, in their 5-year plans, specialfunds earmarked for human development
and we recourseto many of these. At the sametime, we network and
collaborate with like-minded bilateral and unilateral agencies to shareideas,
draw fromeach other's experiences, and ensurethat efforts are not
duplicated. At another level, this provides a platform for advocacy.
Our project operations
the geographic reach, annual spends
the footprintof our community work straddles 3,000 villages across thelength
and breadth of our country. Wereach out to more than 7 million people
annually. Over 60 per cent of these live below the poverty line and belong to
scheduled castes and tribes. The Group spends in excess of Rs.130 crore
annually, inclusive of the running of 18 hospitals and 42 schools.
The Group transcends the conventional barriers of business and reaches out
to the marginalised as a matter of duty and to bring in a more equitable
society.
Our focus areas
our rural development activities span fivekey areas and our single-minded
goal here is to help build model villages that can stand on their own feet. Our
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focus areas are healthcare, education, sustainablelivelihood, infrastructure
and espousing socialcauses.
Education
Formaland non formaleducation and adult education
Scholarship for girls, technical education for boys
Distance education and girl child education and computer education.
Health care and familywelfare
Pulse polio program, mobile clinics doctor visits, medical camps, safedrinking
water sanitation household toilets community hospital
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Infrastructuredevelopment
Community centres, schools in villages, health care centres and hospitals,
roads, homes for homeless, ruralelectrification.
Social causes
Widow Remarriage
Social security
Culture and sports
Women empowerment
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ANALYSIS AND DESCRIPTION
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QUESTIONNAIRE
1. Do you have any knowledge about Corporate Social
Responsibility?
2. People who wish to actively participate in CSR activity.
YES
40%
NO
60%
Knowledge about CSR activities
Young
45%
Middleaged
35%
Old
20%
People who wants to participate
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3. Do you think CSR builds Brand Image?
4. If Yes, why?
 Mr Bairagi from Kolkata, age 25 says “CSR activity is something which
helps the brand to become more popular among the common mass.
Therefore in this way the brand gains more popularity and thus builds its
brand image”
 Mrs Das from Kolkata, age 35 says “CSR is something which is not very
common among the masses but the activities they do attract audience
and thus it works hugely for the brand.
 MRs Roy from Noida, age 23 says “Obviously CSR activities helps in
brand building because it makes the brand perform all sorts of social
activities which is very Nobel and helps to gain importance for the
particular brand”
YES
85%
No
15%
CSR builds Brand Image
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8. People who can recall P&G CSR activity like SHIKSHA are-
50%
30%
20%
People who can recall P&G CSR activity
Young Mddle Aged Old
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CONCLUSION
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Success Stories
Johnson & Johnson – The "Johnson's Baby Cares" campaign supported Savethe
Children and the healthy development of moms and babies, while addressing the
basic care needs of families during crisis situations through productdonations,
educational initiatives and financial support.
Walmart and the Walmart Foundation – The campaign supported VFW, Service
Nation, Operation Home front, the American Red Cross, USCOCHiring Our Heroes
programand the NYC Veterans Day Parade.
L'Oreal – The "Life Ride for a Cure" campaign helped supportAIDS research.
Macy's – The "Believe" campaign supported the Make-a-Wish Foundation
AvonFoundation for Women – The "Avon Walk for BreastCancer" program
supported breastcancer research.
UNICEF – The "Tap Project" helped to provideclean water to children around the
world and received supportfromcorporatesponsors,including Giorgio Armani
Fragrances, ZAGAT.com, OpenTable.com, Seamless.comand Yelp.com
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The benefits of using Corporate Social Responsibility in branded content are
endless. The most important one is that it helps to build a brand’s reputation and
is a point of differentiation. Italso encourages consumer trustand loyalty. If the
consumers seethat brands areaddressing the issues that are importantto them,
it follows that they are likely to continue to buy their products.
CorporateSocial Responsibility initiatives can be extremely effective at forging
deep meaningful connections with its consumers thattransforms theloyalty of
the consumer to them as a promoter of the company within their socialnetworks.
The social canvas becomes a means of amplifying the largeness of the brand’s
message. In a country like India, there seems to be a great opportunity for brands
to find larger canvases for their brands. Perhaps morebrands need to wakeup to
that.
CorporateSocial Responsibility is not a marketing gimmick but one way in which
responsiblecompanies can use advertising and buying to help play their part in
promoting sustainable behavior. It’s a great contribution in which consumers,
stakeholders and companies can take small steps to improving lives.”
The need for more emphasis on the CorporateSocial Responsibility concept and
its company-to-consumer communication is mandatory. Though a number of
companies‟ websites and their annual reports include information on these
practices but it is seen that either this information does not reach the consumers
or the currentcommunication strategy is not strong enough to link the Corporate
Social Responsibility actions to brands.
“Everyonewants to make a difference and this goes some small way in allowing
us all to make a contribution. Yes, it is shopping. Yes, it is advertising. No one is
saying it’s the answer to everything, but it’s a small step that allows all of us to
make a difference”
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LIMITATIONS
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Some of the limitations I faced while making this project on “CSR
activity helps in brand building” are-
 The common people have very less knowledge about CSR
activities. Thus it was little difficult to do the survey with them.
 Secondly, people were not ready to go through the survey as
because they were not comfortable with the subject as well.
 Thirdly, though most of them think that yes CSR activity helps in
brand building but few people think it is only done in order to
advertise the following brand.
 Time was also one of the limitations which I faced while making
this project.
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REFERENCES AND
BIBLIOGRAPHY
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INTERNET -
www.sciencedirect.com
www.indiacsr.in
www.wikipedia.org
BOOKS-
Public Relation: Theory and Practice
By Jane Johnston; Clara Zawawi
Qualitative Research Methods in Public Relations
and Marketing Communications
By Christine Daymon; ImmyHolloway
Mixed Media: Moral Distinctions in Advertising,
Public Relations, and Journalism
By Thomas H. Bivins.
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SAMPLE
QUESTIONNAIRE
Survey on CSR building Brand Image
Participant’s Name:____________________________
Telephone: _______________________
Occupation:__________________
1. Concerning Corporate Social Responsibility (CSR) I consider
that....
1.1 I have no idea of what it is
1.2 I have only little knowledge about the subject
1.3 I have been making some effort to better understand the
advantages and disadvantages
1.4 I think actively on it and it is an aim to my organisation
2. Lately, I consider that I have been endeavoring to follow the
evolution of CSR through…
2.1 Participation in training courses and/or seminars
2.2 Participation in workshops
2.3 Research in the Internet
2.4 Technical magazine reading
2.5 I have not been doing no effort on the matter
42
3. To my organisation, "being socially responsible" means…
3.1 To accomplish the environmental legislation
3.2 To integrate volunteering actions
3.3 To bestow upon needed institutions
3.4 To promote equal opportunities between women and men at all
levels within the company
3.5 To integrate ethics or develop an ethical code
3.6 To assume social and environmental care in organisations
activities
3.7 I am not sure
4. I suppose I would be interested in participating in initiatives
(informative or collaborative) about CSR through…
4.1 Collaboration with other organizations
4.2 Training courses/workshops on the subject
4.3 Seminars / Colloquies / Conferences / Congresses
4.4 Integration in the national CSR net
4.5 Integration in the International CSR net
5. I am capable to pay more for a product produced by a “socially
responsible" enterprise
No ___
Yes ___
6. Do you think CSR builds Brand Image?
No ___
Yes ___
43
7. If Yes, why?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
8. Can you recall any brand performing CSR activities?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
End of the questionnaire - Thank you for your collaboration!

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Dissertation 2014

  • 1. 1 ACKNOWLEDGEMENT I take this opportunity to express my profound gratitude and deep regards to my guide Manali Bhattacharya for her exemplary guidance, monitoring and constant encouragement throughout the course of this project. The blessing, help and guidance given by her time to time shall carry me a long way in the journey of life on which I am about to embark. I also want to thank almighty, my parents, brother, sisters and friends for their constant encouragement without which this assignment would not have been possible. Rituparna Roy
  • 3. 3 WHAT IS CSR??? • “CorporateSocial Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforceand their families as well as of the local community and society at large” • Thus, the meaning of CSR is twofold. On one hand, it exhibits the ethical behavior that an organization exhibits towards its internal and external stakeholders (customers as wellas employees). On the other hand, it denotes the responsibility of an organization towards the environmentand society in which it operates. CSR is also referred to as: • ‘corporate’ or ‘business responsibility’ • ‘corporate’ or ‘business citizenship’ • ‘community relations’ • ‘Social responsibility’. The Importance of CSR • Stronger performanceand profitability • Improved relations with the investment community and access to capital • Enhanced employee relations and company culture • Risk management and access to socialopportunities • Stronger relationships with communities and legal regulators
  • 4. 4 So what is the main strategy behind adopting CSR? 1. Is it justdeveloping a sustainablecompetitive advantage? 2. When it comes to corporatesocial responsibility (CSR), including corporate philanthropy, is virtue always its own reward? 3. Should companies erect “Chinese Walls” between their good works and the work thatmakes them money? 4. What is the appropriate balance between altruism for its own sake and using altruism to supporta company’s brand? There are no easy answers tothese questions, but there are overarching principles that canguide a company.
  • 5. 5 • Principle 1: The closer the connection between a company’s CSRactivities and its underlying business, themore appropriateit is to link the two in brand marketing activities. • Principle 2: When a company’s charitableactivities are not closely connected with its business, createa separatebrand for these initiatives…and treat it as an extension of the corporate brand. • Principle 3: Employees represent the most powerfulbrand communications channel…so keep them informed and engaged in CSR activities. • Principle 4: Research is critical to determine the ideal relationship between a company’s brand and its philanthropic or volunteer efforts. So at glance if we combine all this principles we cansay:  Achieving the right relationshipbetweenacompany’s brand and its philanthropic or volunteer efforts is adelicate balancing act. But it’s well worththe effort. This whitepaper identifies four overarching principles that can guide a company inaligning corporate social responsibility activities withthe corporate brandfor authenticity andimpact.
  • 6. 6 CSR IN INDIAN COMPANIES (Private or Public) Corporatesocial responsibility is very wideand it has different meaning to everyoneand different in each country. According to Lord Holmes and Richard Watts, “CSR is the continuing commitmentby business to behave ethically and contribute to economic developmentwhile improving the quality of life of the workforce and their familiesas well as of the local community and society at large”. ’Bowen has defined ‘Corporate SocialResponsibility’ as “Obligation to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectivesand values of our society.” Without society business cannotexist. They providebetter and useful services and products to the society in exchange of a money price. For their survival, both business and society depend completely on each other. At present, due to globalization and consumers’ expectations, companies are facing very high and tough competition in the market. In this type of situation, it is essential for a business to survivein market that is to increase its connectivity to the society in a positive manner. So CSR is an idea that refers to a business’ responsibilities towards differentgroups of the society in which it exists and grows. The main and important objective for every company is to profit-maximization. But it is indispensablefor every business thatthese profits havenot been gained in an unethical manner and contributes a partof these profits to the society. The scopeof CSR is justbeyond any limitations.
  • 7. 7 This pyramid gives a better view of the concept CSR. This is given in the book “corporatesocial responsibility pyramid” written by LawrenceJ. Gitman and Carl McDaniel. Ithas four levels and each level shows a set of responsibilities. In the bottom (blue level), economic responsibilities are important for the existence of the business. Themain and important aim of every business is to gain profit becausethese profits help them to keep running in the market. So firstly the survivalhas to be assured to go into the next level. The second level (green level) shows the legal responsibilities. These responsibilities are very essential to stand by the law of the country and particular industry to which the corporatebelongs.
  • 8. 8 The next level is ethical responsibilities. After the assuranceof survivaland legality of the company, it can concentrate on working ethically. Ethics generally representa set of principles that prescribea distinct behavior code and tell what is right or wrong. In an ethical manner conducting the activities of business is always prescribed. The last and the highest level of CSR pyramid is capture by philanthropic responsibilities. These responsibilities can be fulfilled in different ways such as donating company equipments and products, making charity at causes like droughtrelief, flood relief, education for poor people, making cash contributions in social events and many more this type of causes. These activities are not a part of daily activities of business. Theseactivities are carried out for the welfareof society differently. BIRLA and TATA are the famous and leading companies in India that are contributed towards the corporatesocial responsibility till when this concept was not famous in India. Today India is considered to be one among the top Asian countries as far as CSRare concerned. In 2009, India ranked fourth among Asian countries surveyed by ASR (Asian Sustainability Ranking). On individual level also, there are four Indians outof ’48 Heroes of Philanthropy’ according to 2009 and 2010 listof Forbes Asia (The Hindu dated March 5, 2010). Mukesh Ambani the Chairman of Reliance Industries defines CSRas “Continuous Social Responsibility” and also said it is a combined effortof corporateworld, governmentand people together. Also he said that businesses should notbe calculated only on the basis of financial returns buton social returns as well (The Economic times Dated 11 July 2011). The giant of cola industry, cocacola India won the Golden Peacock Global Award for corporatesocial responsibility. This award has been given by the Deputy Minister of Economy and Innovation, Governmentof Portugal, Antonio Castro Guerra recently. This award has been gifted to this company in community development-for replenishment of ground water and setting goals to reach a ‘net zero’ balance with respect to groundwater usage in 2009. In partnership, coca cola with Rotary Internationalhas launched ‘Elixir of Life’ which is a project to providepotable water to 30,000 underprivileged children in and around Chennai.
  • 9. 9 THE TWO BRANDS WHICH I CONSIDERED PERFORMING CORPORATE SOCIAL RESPONSIBILITY (CSR) ARE-
  • 11. 11 The term ‘corporatesocialresponsibility’ is very wide and complex and it has different meaning to different academicians and researchers. Butgenerally, it is commonly used to mention those activities taken by the corporatewith the aim of the welfare of society. This term become an essential part of every corporate structureand nobody neglect this fact to survivein the marketthen they never neglect their responsibilities towards the society. CSR has so many dimensions. According to the C.krishna, this term has positive and negative side. The aim of positive side is to solve society problems and making the society a better place to live. And the negative side aims of neglect public criticism and no welfare. Social reformand social movement, he mentioned further. In other way, CSRstates that it is as a moral duty, civic responsibility, and natural obligation and as legal compulsion. According to Adolf Berle, he states that CSR AS “The corporation’s is not purely economic, though to be so indeed its primary functions; not purely economic, though profitis surely its purpose” .Heclearly stressed on the fact that though the main aim of the company is to making profits, yet this is not only the purpose and there are responsibilities beyond economic responsibilities. On the other hand Bowen defines that CSR is indispensablefor the sake of survivalof business in its existing form. “it’s becoming increasingly obvious that the freedomof choice and delegation of power such as businessmen exercise would hardly be permitted to continue without someassumption of social responsibility. If a business neglects its duties towards thesociety in which it exists, the society will not allow enjoying freedom in its activities. Everybody has differentmeaning of corporatesocial responsibility but the most common definition accepted by many researchers that is “CSRis a commitment to improvecommunity well being through discretionary business practices and contributions of corporateresources”. This is the very simple but complete definition of the term corporatesocial responsibility.
  • 12. 12 Advantagesof CSR in Indian Companies The term CSR becoming famous and earning importanceall over the world. The corporateis getting awareof the benefits of adopting corporate social responsibility. These can be long-termand immediate in nature. The government has mentioned a share/percentageof net profitto be mandatory allocated for CSR activities by the public sector units. On the other way, in private sector there is no such mandatory requirementin India but the governmentis planning to make it mandatory to someextent. There are some benefits of CSR for Indian companies 1. Enhanced Brand Image and Goodwill: The term CSR is very powerfulin India and it is helping the Indian companies to enhance their brand image and the goodwill of their company. Customers do more trustonly on those companies which are socially responsible. Today due to competition in market place it is very tough to build goodwill but CSR is the helping tool towards this. 2. Increasedsales:Indian companies arefacing high competition to their local competitors and foreign as well. It has become very difficult for Indian companies to increase their sales due to globalization and economic liberalizations. The companies which undertakepollution free production and protect the environment, products not tested on animals, Undertake legal activities etc. getting good responsefromcustomers and secure the larger sales. 3. Easier access tocapital:The very important benefit of CSR to Indian companies is easier access to capital. The companies which are involved in CSR activities are more trustworthy in the eyes of financing agencies and investors. The above discussion revels that the companies that are engaged in CSR do not get only profit or economic advantage but also securelot of trust and loyalty by their customers. Thesecompanies gain positive brand image and make strong goodwill for the company. Also the governmentdoes not put strict laws to these companies in getting licenses etc. From Human Resourceside also, they can
  • 13. 13 attract best human talent available in the industries compared to other companies not adhering corporatesocial responsibility. The term corporatesocial responsibility has earned prominencefromall avenues. Organizations or companies mustrealize that governmentcannot uplift the society alone. They haveto contribute something and help the governmentand take advantage fromgovernmentin several issues. Itis the benefit of companies, governmentand society. Duet to this the companies can increase their brand image in the society and think for the future planning. The competitor risks also reduced for those companies which are doing these activities. GOVERNMENT INITIATIVES TO PROMOTE CORPORATE SOCIAL RESPONSIBILITY AMONG COMPANIES Although corporateIndia is involved in CorporateSocial Responsibility activities, the central governmentis working on a framework for quantifying the Corporate Social Responsibility initiatives of companies to promotethem further. According to Minister of CorporateAffairs, Mr.Salman Khurshid, oneof the ways to attract companies towards CorporateSocial Responsibility work is to develop a systemof CorporateSocial Responsibility credits, similar to the systemof carbon credits which are given to companies for green initiatives. Pharmaceuticals Company Jubilant Organosys Ltd., already runs anti-tuberculosis programmed with the governmentof Uttar Pradesh. Apartfromschools and hospitals that are run by trusts and societies, the governmenttoo is exploring to widen the scope of public-privatepartnerships to build and maintain schools and hospitals in return for a fixed annuity payment Besides the private sector, the governmentis also ensuring that the public sector companies participate actively in CorporateSocial Responsibility initiatives. The
  • 14. 14 Department of Public Enterprises (DPE) has prepared guidelines for central public sector enterprises to take up importantCorporate Social Responsibility projects to be funded by 2-5 percent of the company’s netprofits.
  • 16. 16 UNDERSTANDING THE EFFECT OF CORPORATESOCIAL RESPONSIBILITY IN CREATING BRAND IMAGE Exposureto any type of well-conceived promotional initiative for a brand leads to more positive feelings and judgments about the brand in a consumer’s mind. A promotional initiate emphasizing a brand’s affiliation with a social causehas a high degree of affinity. How much a given initiative will help or hurta given brand will depend on the characteristics of its target markets. A high degree of affinity can enhance the effectiveness of a promotionalinitiative that increases the likelihood of consumers treating the initiative as an important and positively weighted attribute of the brand. However, when a promotionalinitiative does not mention an affiliation, consumers may weighta brand’s styleof marketing as a negative attribute. Consumers would weigh the style of marketing as positive with those types of affiliations that have affiliation with a causelike cancer research, environmentalprotection or disaster relief. Moreover, a social-cause affiliation could also have a “halo effect” on how a brand is seen on other attributes, such as trustworthiness or quality. Those initiatives in which the logic behind the brand’s affiliation can be easily recognized by mostconsumers – typically producea more positiveeffect on consumer brand judgments and feelings than initiatives with weaker fit. When a brand promotes a high-fit social-cause, it may be more likely to be viewed by some consumers as opportunistic and seeking commercial gain. Whether to pursueaffinity marketing in general or societal marketing in particular, the companies should recognizethat every brand is different. While, for example, a low-fit societal marketing initiative might work best for one brand, it might do less for another brand’s image. Itis recommended to do careful experimental research to refine and test ideas for affinity marketing initiatives against one another and against other kinds of marketing initiatives.
  • 17. 17 The management of socially responsible behavior is important becauseof its impact on the perception of the brand image. Enriching a brand with ethical and social questions increases its value. These associations influence the consumer in their assessmentof products and increased brand loyalty. Many proactive corporations monitor customer satisfaction closely and as a result individuals may express their trust and appreciation of the CorporateSocial Responsibility efforts by continuing to buy its products. Thus, the familiarity or the degree of general user knowledgeof a company resulting fromtheir experiences with that firmand their loyalty may lead to conditioning the perception of corporate behavior. Customers‟ experience could allow them to develop strong beliefs and a more elaborate cognitive structurewhich implies possiblereference schemes to make different appraisals, as compared to the customers ata lower awareness level. Companies that have made CorporateSocial Responsibility a central part of their businesses arereaping the benefits as improved brand image. Itworks bestfor those companies in which responsibility is a corecompany value and informs all aspects of the business. CorporateSocial Responsibility initiatives are not only about philanthropy but translating these ideas into practical business strategies. CorporateSocial Responsibility driven efforts does not only relate to donating money but it talks about integrating social and ethical practices into business strategies that help the consumer in creating a positive brand image. With the increasein Corporate Social Responsibility awareness somecompanies promote a very elementary understanding of corporategovernanceand ethical standards. Another importantaspect of CorporateSocial Responsibility is that it channelizes funds of socially responsibleinvestors in promoting CorporateSocial Responsibility among investors. The content of CorporateSocial Responsibility creates an emotional connection with consumers and builds connections between the brand, its CorporateSocial Responsibility initiatives and the viewers. Promoting brand image with the help of CorporateSocial Responsibility initiatives encourages positive comments and ultimately has a positive effect on the brand, becausethe company is being transparentabout its external communications and internal practices which show
  • 18. 18 alignment. The benefits of using CorporateSocial Responsibility in branded content are endless; foremostit helps to build a brand’s reputation and is a point of differentiation.
  • 20. 20 MAHINDRA FARM EQUIPMENT SECTORS NAGPUR CSR ACTIVITIES Nagpur: Mahindra’s FarmEquipment Sector’s (FES) Nagpur plant recently undertook a series of CorporateSocial Responsibility (CSR) activities in Nagpur focusing on health, education and environment. These activities wereconducted by Employee Social Options (ESOPs) volunteers fromits Nagpur plant. Employee Social Options programmefromMahindra was initiated with goal of having a Mahindra employee contributing to society every day of the year, somewherein the world. ESOPs provideeach employee with an option to contribute to a socially relevant activity in a focused way. Employees can select froma wide range of activities including volunteering at schools, functioning as visiting faculty at educational institutions, etc.
  • 21. 21 The activities conducted by Mahindra Nagpur plant were as follows – Education As part of the first initiative, ESOPs volunteers gaveaway scholarships to six meritorious students pursuing the Bachelors of Engineering (BE) course. The ESOPs volunteers also spend time with these students on a regular basis and motivate them. In another education related initiative, ESOPs volunteers fromthe Nagpur plant came together to sponsor theeducation of 4 Nanhi Kalis. Nanhi Kali is an education programmerun by the KC Mahindra Education Trustto help educate underprivileged girl children who would otherwisebe bereft of education. As partof the firstinitiative, ESOPs volunteers gaveaway scholarships to six meritorious students pursuing the Bachelors of Engineering (BE) course. The ESOPs volunteers also spend time with these students on a regular basis and motivate them. In another education related initiative, ESOPs volunteers fromthe Nagpur plant came together to sponsor theeducation of 4 Nanhi Kalis. Nanhi Kali is an education programmerun by the KC Mahindra Education Trustto help educate underprivileged girl children who would otherwisebe bereft of education.
  • 22. 22 Environment Nagpur plant organized a plantation drive in coordination with the State Reserve Police Force (SRPF) camp, Amravatito plant 1 lakh saplings. Based on the planning, 10 Esops volunteers and 5 volunteers fromthe community gathered on 19th June to take part in plantation drive. In another environmentrelated activity, ESOPs volunteers distributed uniforms to nature friends during the World Environment Week. The Green Champs from FES, Nagpur identified a team of 40 people who are working for natureat Nagzira village and forest. Esops volunteers met the DivisionalForestOfficer and discussed the idea with him after which these people who are working to protect the environmentwere identified. This team is working on plantation, educating society on environmental concerns and also protecting the animals of the Nagzira forest. A small function was organized at Nagzira village where the uniforms were distributed to these nature friends. Health The Nagpur plant has been running a mobile dispensary sinceMarch 2008. Six locations near the factory have been identified. The mobile dispensary travels 5 days a week whereone doctor, a male nurseand an Esops volunteer travel in the vehicle The medicines are procured by the team and given free of cost to these patients who are mainly children and senior citizens. 22 Esops volunteers have worked hard and have reached to 712 patients in June 2010 Foundations At Mahindra, we believe that real change comes about when people give not just their money, but their time as well. We’refortunate to be able to give both. Our many foundations and initiatives harness thousands of employee volunteer hours
  • 23. 23 and put millions of our own dollars to work expanding opportunities for disadvantaged groups. We create outreach programs thatdraw from our core competencies and partner with NGOs to supportkey initiatives in areas outside our in-house expertise. Our efforts are broadly organized around education, health, and the environment. In all our initiatives, we seek partnerships with the people we serveand the other stakeholders who contribute to solutions, fromlocal governments to NGOs. Our foundations supporthard and careful work over the long term; so that we can create lasting transformations in the communities webelong to and serve. They created the Tech Mahindra Foundation in 2007 as a major initiative to help the economically disadvantaged build better lives. Launched with a corpus of Rs 250 million (aboutUS $5.45 million), Tech Mahindra contributes 1.5 percent of its profit after tax every year. Thanks to generous contributions fromthe company and employees alike, the Foundation is able to spend more than Rs 60 million (aboutUS $1.3 million) each year on social programs. The Tech Mahindra Foundation partners with 55 NGOs to build relationships with local communities. These organizations promotevocational, technical, and professionaleducational programs which empower women, children, the disabled, and the economically disadvantaged to riseaccording to their own potential. As part of our education building initiative, wedonate computers to education programs.
  • 24. 24 The Mahindra Satyam Foundation is the largest corporate volunteering program in the country With 16,000 registered volunteers who havecontributed 850,000 volunteer hours in 2009-10. Weuseour corecompetencies—technology, process, and management—as change agents to create the greatest impact on people’s lives. In 2005, our commitment to our communities was recognized with the Corporate Citizen Award for Corporate Social Responsibility from Business World and the Federation of Indian Chambers of Commerce (FICCI) and Industry’s Socio- Economic Development Foundation (SEDF). In 2008, weinitiated the Shiksha Samman Award in collaboration with the Municipal Corporation of Delhi in order to celebrate excellent teachers. Each year, we honour thirty outstanding teachers working in municipal schools with scholarships for professionaldevelopment, cash awards, and Teaching Learning Material (TLM) kits with materials for planned activities. Public recognition helps disseminate best practices, encourageinnovation and effort to galvanize teachers to be the best they can be.
  • 25. 25 C.S.R activities by Aditya Birla group Before CorporateSocial Responsibility found a place in corporate lexicon, it was already textured into our Group's valuesystems. As early as the 1940s, our founding father Shri G.D Birla espoused the trusteeship concept of management. Simply stated, this entails that the wealth that one generates and holds is to be held as in a trustfor our multiple stakeholders. With regard to CSR, this means investing part of our profits beyond business, for the larger good of society. While carrying forward this philosophy, our legendary leader, Mr. Aditya Birla, weaved in the concept of 'sustainablelivelihood', which transcended cheque book philanthropy. In his view, it was unwiseto keep on giving endlessly. Instead, hefelt that channelizing resources to ensurethat people have the wherewithalto make both ends meet would be more productive. He would say, "Givea hungry man fish for a day, he will eat it and the next day, he would be hungry again. Instead if you taught him how to fish, he would be able to feed himself and his family for a lifetime." Taking these practices forward, our chairman Mr. Kumar Mangalam Birla institutionalized the concept of triple bottom line accountability represented by economic success, environmentalresponsibility and socialcommitment. In a holistic way thus, the interests of all the stakeholders havebeen textured into our Group's fabric. Our community work is a way of telling the people among whom weoperate that We Care.
  • 26. 26 Our strategy our projects are carried out under the aegis of the "Aditya Birla Centre for Community Initiatives and Rural Development", led by Mrs. RajashreeBirla. The Centre provides the strategic direction, and the thrust areas for our work ensuring performancemanagementas well. Our focus is on the all-round development of the communities around our plants located mostly in distant ruralareas and tribal belts. All our Group companies —- Grasim, Hindalco, Aditya Birla Nuvo and UltraTech have Rural Development Cells, which are the implementation bodies. Our partners in development are governmentbodies, districtauthorities, village panchayats and the end beneficiaries — the villagers. The Government has, in their 5-year plans, specialfunds earmarked for human development and we recourseto many of these. At the sametime, we network and collaborate with like-minded bilateral and unilateral agencies to shareideas, draw fromeach other's experiences, and ensurethat efforts are not duplicated. At another level, this provides a platform for advocacy. Our project operations the geographic reach, annual spends the footprintof our community work straddles 3,000 villages across thelength and breadth of our country. Wereach out to more than 7 million people annually. Over 60 per cent of these live below the poverty line and belong to scheduled castes and tribes. The Group spends in excess of Rs.130 crore annually, inclusive of the running of 18 hospitals and 42 schools. The Group transcends the conventional barriers of business and reaches out to the marginalised as a matter of duty and to bring in a more equitable society. Our focus areas our rural development activities span fivekey areas and our single-minded goal here is to help build model villages that can stand on their own feet. Our
  • 27. 27 focus areas are healthcare, education, sustainablelivelihood, infrastructure and espousing socialcauses. Education Formaland non formaleducation and adult education Scholarship for girls, technical education for boys Distance education and girl child education and computer education. Health care and familywelfare Pulse polio program, mobile clinics doctor visits, medical camps, safedrinking water sanitation household toilets community hospital
  • 28. 28 Infrastructuredevelopment Community centres, schools in villages, health care centres and hospitals, roads, homes for homeless, ruralelectrification. Social causes Widow Remarriage Social security Culture and sports Women empowerment
  • 30. 30
  • 31. 31 QUESTIONNAIRE 1. Do you have any knowledge about Corporate Social Responsibility? 2. People who wish to actively participate in CSR activity. YES 40% NO 60% Knowledge about CSR activities Young 45% Middleaged 35% Old 20% People who wants to participate
  • 32. 32 3. Do you think CSR builds Brand Image? 4. If Yes, why?  Mr Bairagi from Kolkata, age 25 says “CSR activity is something which helps the brand to become more popular among the common mass. Therefore in this way the brand gains more popularity and thus builds its brand image”  Mrs Das from Kolkata, age 35 says “CSR is something which is not very common among the masses but the activities they do attract audience and thus it works hugely for the brand.  MRs Roy from Noida, age 23 says “Obviously CSR activities helps in brand building because it makes the brand perform all sorts of social activities which is very Nobel and helps to gain importance for the particular brand” YES 85% No 15% CSR builds Brand Image
  • 33. 33 8. People who can recall P&G CSR activity like SHIKSHA are- 50% 30% 20% People who can recall P&G CSR activity Young Mddle Aged Old
  • 35. 35 Success Stories Johnson & Johnson – The "Johnson's Baby Cares" campaign supported Savethe Children and the healthy development of moms and babies, while addressing the basic care needs of families during crisis situations through productdonations, educational initiatives and financial support. Walmart and the Walmart Foundation – The campaign supported VFW, Service Nation, Operation Home front, the American Red Cross, USCOCHiring Our Heroes programand the NYC Veterans Day Parade. L'Oreal – The "Life Ride for a Cure" campaign helped supportAIDS research. Macy's – The "Believe" campaign supported the Make-a-Wish Foundation AvonFoundation for Women – The "Avon Walk for BreastCancer" program supported breastcancer research. UNICEF – The "Tap Project" helped to provideclean water to children around the world and received supportfromcorporatesponsors,including Giorgio Armani Fragrances, ZAGAT.com, OpenTable.com, Seamless.comand Yelp.com
  • 36. 36 The benefits of using Corporate Social Responsibility in branded content are endless. The most important one is that it helps to build a brand’s reputation and is a point of differentiation. Italso encourages consumer trustand loyalty. If the consumers seethat brands areaddressing the issues that are importantto them, it follows that they are likely to continue to buy their products. CorporateSocial Responsibility initiatives can be extremely effective at forging deep meaningful connections with its consumers thattransforms theloyalty of the consumer to them as a promoter of the company within their socialnetworks. The social canvas becomes a means of amplifying the largeness of the brand’s message. In a country like India, there seems to be a great opportunity for brands to find larger canvases for their brands. Perhaps morebrands need to wakeup to that. CorporateSocial Responsibility is not a marketing gimmick but one way in which responsiblecompanies can use advertising and buying to help play their part in promoting sustainable behavior. It’s a great contribution in which consumers, stakeholders and companies can take small steps to improving lives.” The need for more emphasis on the CorporateSocial Responsibility concept and its company-to-consumer communication is mandatory. Though a number of companies‟ websites and their annual reports include information on these practices but it is seen that either this information does not reach the consumers or the currentcommunication strategy is not strong enough to link the Corporate Social Responsibility actions to brands. “Everyonewants to make a difference and this goes some small way in allowing us all to make a contribution. Yes, it is shopping. Yes, it is advertising. No one is saying it’s the answer to everything, but it’s a small step that allows all of us to make a difference”
  • 38. 38 Some of the limitations I faced while making this project on “CSR activity helps in brand building” are-  The common people have very less knowledge about CSR activities. Thus it was little difficult to do the survey with them.  Secondly, people were not ready to go through the survey as because they were not comfortable with the subject as well.  Thirdly, though most of them think that yes CSR activity helps in brand building but few people think it is only done in order to advertise the following brand.  Time was also one of the limitations which I faced while making this project.
  • 40. 40 INTERNET - www.sciencedirect.com www.indiacsr.in www.wikipedia.org BOOKS- Public Relation: Theory and Practice By Jane Johnston; Clara Zawawi Qualitative Research Methods in Public Relations and Marketing Communications By Christine Daymon; ImmyHolloway Mixed Media: Moral Distinctions in Advertising, Public Relations, and Journalism By Thomas H. Bivins.
  • 41. 41 SAMPLE QUESTIONNAIRE Survey on CSR building Brand Image Participant’s Name:____________________________ Telephone: _______________________ Occupation:__________________ 1. Concerning Corporate Social Responsibility (CSR) I consider that.... 1.1 I have no idea of what it is 1.2 I have only little knowledge about the subject 1.3 I have been making some effort to better understand the advantages and disadvantages 1.4 I think actively on it and it is an aim to my organisation 2. Lately, I consider that I have been endeavoring to follow the evolution of CSR through… 2.1 Participation in training courses and/or seminars 2.2 Participation in workshops 2.3 Research in the Internet 2.4 Technical magazine reading 2.5 I have not been doing no effort on the matter
  • 42. 42 3. To my organisation, "being socially responsible" means… 3.1 To accomplish the environmental legislation 3.2 To integrate volunteering actions 3.3 To bestow upon needed institutions 3.4 To promote equal opportunities between women and men at all levels within the company 3.5 To integrate ethics or develop an ethical code 3.6 To assume social and environmental care in organisations activities 3.7 I am not sure 4. I suppose I would be interested in participating in initiatives (informative or collaborative) about CSR through… 4.1 Collaboration with other organizations 4.2 Training courses/workshops on the subject 4.3 Seminars / Colloquies / Conferences / Congresses 4.4 Integration in the national CSR net 4.5 Integration in the International CSR net 5. I am capable to pay more for a product produced by a “socially responsible" enterprise No ___ Yes ___ 6. Do you think CSR builds Brand Image? No ___ Yes ___
  • 43. 43 7. If Yes, why? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ 8. Can you recall any brand performing CSR activities? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ End of the questionnaire - Thank you for your collaboration!