CSR has a long history associated with it impacts on organizations behavior. CSR is originally considered an American and European concept. During the 1990s the idea of CSR became almost universally approved, also CSR was coupled with strategy literature and finally, in the 2000s.
In India as in the rest of the world there is a growing realization the capital markets and corporations are. After all, created by society and must therefore serve it, not merely profit from it. And those consumers and citizens campaigns can make all the difference.
For over 50 years, Hindalco has worked in the hinterlands of India to better the quality of life of the underprivileged sections of society. This study is undertaken to provide a systematic analysis of:
2. CSR has a long history associated with it impacts on organizations
behavior. CSR is originally considered an American and European
concept. During the 1990s the idea of CSR became almost
universally approved, also CSR was coupled with strategy
literature and finally, in the 2000s.
In India as in the rest of the world there is a growing realization
the capital markets and corporations are. After all, created by
society and must therefore serve it, not merely profit from it. And
those consumers and citizens campaigns can make all the
difference.
For over 50 years, Hindalco has worked in the hinterlands of
India to better the quality of life of the underprivileged sections of
society. This study is undertaken to provide a systematic analysis
of:
the general aspect of CSR
CSR of Hindalco.
3. Author – Rob Gray, Simon Lavers , Reza Kouhy (Department of
Accounting and Business Finance, University of Dundee, Dundee,
Scotland).
Book – Environmental Reporting on Corporate Social Responsibility
Author – Crane , A.Matten.D.
Book – Corporate Social Responsibility: readings and cases in a
global context
Author – Tim Mohin (Director of Corporate Responsibility for advance
micro devices )
Book- Changing Business from Inside Out
Author – Dr. Poonam Kumar (presently working as a faculty member and
the head of centre for corporate citizenship in the Asia Pacific
Institute of Management).
Title – Research work
4. To know how the companies has fulfill its responsibilities
towards the stakeholders; what specific activities, programmes
and strategies it has set, devised and implemented for the same
To know the way to promote consistency and best practices in
Corporate Social Responsibility and governance
To discuss the various activities of Hindalco relating to CSR in
India.
To analyses the contribution of Hindalco towards the CSR
activities.
5. Data Source
Exhaustive literature survey regarding the topic and related concept has
been done. Secondary data inclusive of qualitative and quantitative data
was collected from various sources including books, newspaper and
website. Various reports about the CSR spending of the company were
collected from leading newspaper like “Times of India”, “The Telegraph”
etc. The yearly economic data was collected from company’s annual report
from the websites.
Methods of Analysis
Case study analysis.
Statistical analysis by using statistical tool.
Time Period of Study
Financial Year 2009-2010 to 2013-2014
6. According to the World Business Council for Sustainable
Development (WBCSD), “Corporate Social Responsibility is the
continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the
workforce and their families as well as of the local community and
society at large”
The emerging concept of corporate social responsibility (CSR) goes
beyond charity and requires the company to act beyond its legal
obligations and to integrated social, environmental and ethical concerns
into company’s business process. The ever-increasing role of civil
society has started to put pressure on the companies to act in an
economically, socially and environmentally sustainable way.
The evolution of Corporate Social Responsibility in India refers to
change over time in India of the cultural norms of corporation
engagement..
7. Setting up public libraries
Setting up homes and hostels for orphans
Setting up old age homes
Setting up day care centre
Works to maintaining safe drinking water available
Maintaining quality of soil, air water
Conservation of natural resources
Promoting health care and sanitations
8. Increase customer retention
Develop and enhance relationship with customer,
supplier and networks
Improve your business reputation and standings
Increase staff morale and skill development
Innovations in processes, products and services
Communities provide the license to operate
Attracting and relating employees
Enhancing corporate reputations
9. Established in 1958, Hindalco Industries Ltd. is an aluminium manufacturing
company and is a subsidiary of the Aditya Birla Group Its headquarters are at
Mumbai, Maharashtra, India. The metals Flagship Company of the Aditya Birla
Group is the world's largest aluminum rolling company and one of the biggest
producers of primary aluminum in Asia. It ranks among the global top five
aluminium producers based on shipments & is a integrated producer with low cost
base and strong presence across the value chain.
The company has annual sales of US$ 15 billion and employs around 20,000
people. It is listed in the Forbes Global 2000 at 895th rank. Its market capitalization
by the end of May 2013 was US$ 3.4 billion.
For over 50 years, Hindalco has worked in the hinterlands of India to
better the quality of life of the underprivileged sections of society. Today, they
have reached out to millions of people in the villages, of whom more than 60
per cent live below the poverty line. Their needs include: access to water,
agriculture and sustainable livelihood, healthcare, and education. The Company
also works to bring about social reform through widow re-marriage and dowry-
less marriages. They work in partnership with government agencies and the
beneficiaries to provide these necessities and encourage social reform.
11. PARTICULARS 2013-14 2012-13 2011-12 2010-11 2009-10
TURNOVER 27850.93 26056.93 28296.96 25255 20516.43
PAT 1413.33 1699.2 2237.2 2136.92 1915.63
CSR SPEND 11.3064 13.254 17.002 16.24 14.94
The following data gives us an idea about the profit
after tax of the company and the CSR rate and actual
spending amount during the last five years:
All Figures in Cores
12. In the following table shows much amount is spent for the welfare
of the society in 2013-14 in the different sectors:
PARTICULARS AMOUNT
All Figures in Lakhs
PERCENTAGE
Education 339 30%
Health 407 36%
Community
Development
101 9%
Environment 11 1%
Others 271 24%
13. This pie chart shows the percentage of CSR spend in
different sectors by the company:
14. The following column charts shows the distribution of CSR
amount in different sector in the FY 2013-14:
.
15. Company’s vision:
“To actively contribute to the social and economic development of the
communities in which we operate. In so doing build a better, sustainable way of
life for the weaker sections of society and raise the country’s human development
index”
Reaching out to under served communities is the part of our DNA
Believe in the trusteeship concept.
-Mrs. Rajashree Birla
To measure the impact of the work done, asocial satisfaction, social audit or
impact assessment study is carried out by a third party. Their Board of Directors
Management and all of the employees subscribe to the philosophy compassionate
care. They believe on Act, on an ethorse of the generosity and compassion
characterized by the willingness to build a society that works for everyone. This is
the cornerstone of our Corporate Social Responsibility Policy.
16. The CSR policies focus on to improve lives and sustain our planet
through contribution to local communities and society at large.
Most companies in India engage in CSR activities are based
among the local communities near their area of operations.
Today, organization that wants to achieve long term success must
consider the Triple Bottom Line: Economic, Environment, Social
(or Profit, Planet, People)
Hindalco reached out to millions of people in the villages of whom
more than 60% live below the poverty line.
In the last 5years the company had spend a huge amount of
money for the CSR activities. In the Financial Year 2013-2014 the
company had spend Rs.11.3064 cores for the CSR related
activities.
17. Mainly based on secondary data, no primary data is available.
Very short time period available to complete such project.
For statistical analysis only Bar Graph and Pie Chart have
been considered.
Non Co-operation of different sector for collection of
information regarding the topic.
No comparison between CSR of Hindalco and other company
have been considered.
Miscellaneous
18. We would like to identify the following aspects of the CSR for
further study.
Through CSR it is possible to presents an opportunity to
demonstrate corporate values, distinctiveness, and employee
brand as well as driver governance.
Develop a strategic approach to CSR based on understanding
of the impacts and the tripping in resource shortage or price
rises.
Initiatives through CSR by Indian companies especially in the
Education and Environment Protection.
CSR can play a valuable role in ensuring the invisible hand
acts, as intended, to produce the social good.
19. The present study highlights Corporate Social Responsibility
(CSR) is a tool that promotes, besides profit making,
empowerment of members of the community as a way of
giving back to them. CSR is an important inclusive concept
which has forced organizations to involve stakeholders in their
decision-making. In other words, while it is justifiable for a
company to make a profit, it should do more than that by
being philanthropic, by doing more for society and by
complying with the laws that govern that country, including
caring for the environment. Focus areas that have emerged as
per the CSR activities of Hindalco are Education, Health care,
Sustainable livelihood, Infrastructure development, and
espousing social causes. They believe and act on the
generosity and compassion characterized by the willingness to
build a society that works for everyone. This is the
cornerstone of our Corporate Social Responsibility Policy.
20. Press releases, Reports, Corporate Brochures etc.
Chartered Institute of Personnel and Development (CIPD). (2002). Corporate Social
Responsibility and HR's Role. London, UK: Author.
European Alliance for CSR. (2008). valuing non-financial performance: A European
framework for company and investor dialogue. Author.
Grant Thornton. (2008). Corporate Social Responsibility: A Necessity Not a
Choice. Bangkok: Author.
Rakesh Bharti Mittal and his members, A hand book on Corporate Social Responsibilities,
Lockwood, N. (2004). Corporate Social Responsibility: HR's Leadership
Role. HR Magazine, Retrieved December 23, 2008,
from http://findarticles.com/p/articles/mi_m3495/is_12_49/ai_n8583189/pg_1?tag=artBod
y;col1
Websites
www.google.co.in
www.wikipedia.info
www.ask.in
www.hindalco.com