CORPORATE SOCIAL RESPONSIBILITY

INTRODUCTION
Corporate Social Responsibility is a management concept where companies integrate social
and environmental concerns in their business operations and interactions with their
stakeholders. CSR is generally understood as being the way through which a company
achieves a balance of economic, environmental and social imperatives (Triple-Bottom-Line-
Approach), while at the same time addressing the expectations of shareholders and
stakeholders. In this sense it is important to draw a distinction between CSR, which can be a
strategic business management concept, and charity, sponsorships or philanthropy. Even
though the latter can also make a valuable contribution to poverty reduction, will directly
enhance the reputation of a company and strengthen its brand, the concept of CSR clearly
goes beyond that. A properly implemented CSR concept can bring along a variety of
competitive advantages, such as enhanced access to capital and markets, increased sales and
profits, operational cost savings, improved productivity and quality, efficient human resource
base, improved brand image and reputation, enhanced customer loyalty, better decision
making and risk management processes.

Key CSR issues: environmental management, eco-efficiency, responsible sourcing,

stakeholder engagement, labour standards and working conditions, employee and community
relations, social equity, gender balance, human rights, good governance, and anti-corruption
measures. A properly implemented CSR concept can bring along a variety of competitive
advantages, such as enhanced access to capital and markets, increased sales and profits,
operational cost savings, improved productivity and quality, efficient human resource base,
improved brand image and reputation, enhanced customer loyalty, better decision making and
risk management processes.

BENEFITS OF CSR

Improved financial performance: The study has found that stakeholder balanced
companies showed four times the growth rate and eight times employment growth when
compared to companies that focused only on shareholders and profit maximization.
Enhanced brand image & reputation: A company considered socially responsible can
benefit -both by its enhanced reputation with the public, as well as its reputation within the
business community, increasing a companys ability to attract capital and trading partners.
For example, a 1997 study by two Boston College management professors found that
excellent employee, customer and community relations are more important than strong
shareholder returns in earning corporations a place on Fortune magazines annual Most
Admired Companies list.

Increased sales and customer loyalty: A number of studies have suggested a large and
growing market for the products and services of companies perceived to be socially
responsible. While businesses must first satisfy customers key buying criteria such as
price, quality, appearance, taste, availability, safety and convenience. Studies also show a
growing desire to buy based on other value-based criteria, such as sweatshop-free and
child labour-free clothing, products with smaller environmental impact, and absence of
genetically modified materials or ingredients.

Increased ability to attract and retain employees: Companies perceived to have strong
CSR commitments often find it easier to recruit employees, particularly in tight labour
markets. Retention levels may be higher too, resulting in a reduction in turnover and
associated recruitment and training costs. Tight labour markets as well the trend toward
multiple jobs for shorter periods of time are challenging companies to develop ways to
generate a return on the consideration resources invested in recruiting, hiring, and training.

Reduced regulatory oversight: Companies that demonstrate that they are engaging in
practices that satisfy and go beyond regulatory compliance requirements are being given less
scrutiny and freer reign by both national and local government entities. In many cases, such
companies are subject to fewer inspections and paperwork, and may be given preference or
fast-track treatment when applying for operating permits, zoning variances or other forms
of governmental permission.
 IMPLEMENTATION

In order to get an understanding about implementation theories, theories dealing with a

general implementation strategy theory are initially presented. The general theories on
implementation might give new insights and ideas when answering the research questions. In
the chapter focus will be on theories regarding specific CSR implementation theories,
because this is the main focus in our dissertation.

3.2.1 Strategy implementations top 10 checklist

The key to a successful implementation is an integrated view of the implementation process.

It is also important to understand that a successful CSR implementation is a long-term
process that requires creativity and careful planning. To overcome and improve the
difficulties in the implementation context,compiled a checklist of ten critical points.

Commitment of top management

Involve middle managers valuable knowledge
Communication is what implementation is all about
Integrate point of view
Clear assignment of responsibilities
Preventive measures against barriers
Emphasize teamwork activities
Respect the individuals different characteristics
Take advantage of supportive implementation instruments
Calculate buffer time for unexpected incidents

This checklist is used for strategic implementation in general. To make it more useful for us
we have chosen to use the points we argue are the most appropriate for our field of study,
(CSR-implementation). The points we have chosen are; Commitment of top management,
Involve middle managers valuable knowledge, Communication is what implementation is all
about, Integrate point of view, Clear assignment of responsibility, Emphasise team-work
activities, Respect the individuals different characteristics. Each chosen point is explained in
the following text.

- Commitment of top management

The importance of having top-managers working hard to achieve the purpose of the strategy
is crucial for the implementation to succeed. Top-managers must influence middle managers
in order to get their true message forward; they cannot relay on and believe that the middle-
managers perception of the implementation is the same as theirs.

CSR opportunities exists in all levels within companies, therefore senior management needs
to be guiding, championing, and supporting if they want these opportunities to become a part
of the companys operations. To implement a CSR strategy into a companys culture and
make the people understand the benefits of truly strategic CSR initiatives requires senior
managers to be unambiguously and consistently express their commitment to whatever
strategic initiatives the organization chooses to adopt.

- Involve middle managers valuable knowledge

The second most important issue is to understand that the implementation process is not a
top-down-approach. The involvement and engagement of middle managers combined with
their knowledge (which is often underestimated), is a major factor for a successful
implementation.

To make use of the knowledge that middle managers possess and make sure they are
involved increases their motivation and make them feel like they are a part of the process.
This motivation boost is important for everyones everyday day work since the middle
managers engagement increases the awareness of the implementation throughout the
organization.

- Communication is what implementation is all about

Even if it sounds obvious that the communication aspect should be emphasized in the
implementation process, there are problems, especially communication issues with
employees regarding the implementations, which are frequently delayed.

To solve the communication problem Alexander (1985) argues that in this context, it is
recommendable an organization institute a two-way-communication program that permits
and solicits questions from employees about issues regarding the formulated strategy. In
addition to soliciting questions and feedback, the communications should tell employees
about the new requirements, tasks and activities to be performed by the affected employees,
and, furthermore, cover the reason (the why) behind changed circumstances.
To deal with the communications problem an integrated communications plan can be
developed. Raps, (2005) illustrates in his communication-model how it is possible to provide
appropriate information regarding implementation throughout the organization.

Communication-model

Integrate point of view

It is important to see the implementation as a method used integrated within all aspects of the
company. Traditionally implementation often overemphasizes the structural aspects (e.g.
organizational structure) and ignores other existing components such as cultural aspects and
human resources perspective. All of these aspects need to be taken into consideration to
create an integrated scoop for implementing activities.

- Clear assignment of responsibilities To avoid power struggles between departments and

within hierarchies, there should be a plan with clear assignments of responsibilities regarding
detailed implementation activities. This is a preventive way of proceeding. Responsibilities
are clear and potential problems are therefore avoided.

- Preventive measures against change barriers Change is a common phenomenon for

companies today and the companies that are capable of handling change has a great
advantage. The ability to manage change has become a core competency. A great challenge
within strategy implementation is to deal with potential change barriers.

Human barriers occurred by change are often downplayed when discussing implementation
issues, however it is more and more obvious that implementation consists of psychological
aspects. Therefore, it is important to prevent these barriers and by changing the way they
view and practice strategy implementation, senior executives can effectively transform
change barriers into gateways for a successful execution.

- Emphasize teamwork activities

Teamwork is an important part when implementing a strategy. It is however often forgotten

when it comes down to implementation process activities
- Respect the individuals different characteristics

Human resources are valuable and intangible assets within a company. Latest studies indicate
that HR is the key factor for successful implementation.

The remaining points of checklist; preventive measures against barriers, take advantage of
supportive implementation instruments, calculate buffer time for unexpected incidents are not
according to us as relevant to the CSR implementation process and therefore not included in
our theoretical framework.

CSR IMPLEMENTATION

In order to get a deeper understanding about precise CSR implementation processes and
which steps that are integrated in this process, we also examined specific CSR
implementation theories.

The following points and the points made in are according to the authors important for
successful CSR-implementation and a summary of the most important points will be made in
our own created CSR implementation model.

-Engage employees

That employees play a central role in the implementation process and in order to motivate
and engage them it is crucial that they know as much as possible about the companys way of
handling the implementation. They should know about the approach to CSR, background of
why adapting it, its relevance to the 28 organization, progresses and other implications. There
are different ways to increase employees commitment to the implementation process:

Incorporating CSR performance elements into job descriptions and performance

evaluations;
Providing regular updates on progress (in meetings or the company newsletter)
Developing incentives (such as monetary and other rewards for best suggestions)
Removing or reducing disincentives (e.g., competing interests such as premature
deadlines that encourage employees to choose non-CSR options)
Offering incentives and recognition for good ideas.

- Appropriate metrics
What gets measured in companies is what gets done. Among the first steps to strategic CSR
is by making fundamental shifts in measurement systems. Quality metrics tend to be
providing both financial and non-financial indicators in the process towards the CSR goals.

- Reward systems Commitment and initiatives taken to improve the CSR implementation
process, needs to be recognized and rewarded. Rewarding such initiatives will improve
employees willingness to engage in ways that will help the organization attaining strategic
CSR objectives.

CSR implementation framework

For CSR implementation it does not exit a one-size-fits-all method, every firm has its
exclusive attributes and circumstances that affects the company. Despite this there is a
significant value in implementing CSR in a systematic way, in agreement with the firms
core values, business culture, environment and main business activities.

Describes a well-designed CSR implementation framework by dividing the process into four
parts: Plan, Do, Check and Improve. The first part, Plan, includes the 29 process of
developing an exclusive CSR strategy within the organization. Here it is important to
communicate within the organization on all levels and to get the support from CEO, senior
management and the employees. In the second part of the implementation process, Do, CSR
commitments should primarily be developed and later implemented. In this part it is
essential that the employees get actively involved in the process, this is partially done by
preparing and implementing the CSR business plan with the participation of employees and
through continuously CSR training. After this part follows the third part which is Check. In
this part it is important to assure, report and measure the progress of implemented CSR
strategy, within the organization and to engage key stakeholders. The last part of the CSR
implementation process, Improve, emphasizes the importance of evaluation and to identify
opportunities for improvement.

CSR implementation model

CRS implementation framework as base we have made an attempt to reconstruct it and with
the support from other theoretical review make it broader in parts we argue are important.
Much like Hohnens (2007) framework our also exists of four parts: plan, do, check and
improve. The different factors within each part can be found in our model and they are also
explained below.
Plan is the first part and in this phase it is important to decide the organizational working
process. Since CSR should be integrated into all aspects of the company a decentralized
working system is to prefer. Clearly define instructions, instruments and approach is crucial
in the preparation phase, since this is the starting point and the organization should ask
themselves were they are going and not were they are right now. This is done by having a
clear vision and the right instructions and instruments to reach there.

Do is the next step of the process where a numerous of actions needs to be taken. Initially, it
is important to conduct a CSR business plan that can either be integrated with the
organizations overall goals and vision or it can be separately executed, depending on the
preferences of the organization. The CSR business plan should CSR implementation
strategy, commitments and decision making structures. A CSR commitment draft should
also be prepared and it should include the different CSR commitments the company decides
to undertake, Furthermore, a CSR working group with members who are enthusiastic about
the project should be out together. According to Raps (2005), this will affect others and
engage them to take actions in the right directions. Consulting and engaging senior
managers is important in order to get the CSR implementation towards the chosen vision.
The senior management has a great responsibility and needs to be consulted and engaged.
The middle managers engagement is another factor that is important since they often posses
an underestimated amount of knowledge about how things are connected within the
organization, conclude that in order to minimize struggles between departments and
hierarchies it is crucial to set clear responsibilities and assignments. Taking care of existing
HR is an effective way of broaden and sharpen the companies already existing ability which
can be very helpful when implementing CSR. By setting measurable targets and identify
performance the implementation process will be more effective and correct. Measurable
targets could for example be to lower waste by x number of kg in one year or to set a
maximum usage of oil per unit produced. To get the employees to work harder for reaching
these goals their actions taken in right directions should be identified. In this case the
employees feel appreciated and they will be more positive in their work with the
implementation. As the implementation goes on it is important to keep the employees up to
date and give them continuously CSR training. In order to get all of these factors into action
it is necessary to have a communications plan, (Raps, 2005). By having two-way
communications were the employees are allowed to express their opinions and their
opinions also are heard is crucial if the implementation will be integrated into every part of
the organization. It is also important to have discussions with the employees during the
entire process to keep them on track.

Check is the third part of the implementation model and in this part the focus is to measure
the targets and recognize performance that has been set up earlier. Progresses made should
be rewarded in order to increase working morale. It is also in this part important to report
progress and to get feedback of initiatives. The employees need to know what their actions
are leading to.

Improve is the final step in our model and in this part is the implementation evaluated. By
using the SWOT analysis the organization can break down the process and be aware of
strengths, weaknesses, opportunities and threats. This evaluation makes it easier for the
organization to improve their implementation process.

Communication is important in every phase of the implementation. To really emphasize the

importance of communication it is shown as an arrow in the model through the entire
process.

Propositions

Now the propositions created, with the theoretical review as a framework, is presented. The
propositions are divided into the four categorizes of the CSR implementation process, Plan,
Do, Check and Improve, in order to get a deeper understanding on each level of the CSR
implementation. Each proposition will subsequently be explained and illustrated, followed
by the created CSR implementation model.

Phase 1 in the CSR implementation process: Plan

P1. Clear goals, instruments and guidelines are important in the planning part of the
CSR implementation.

In order to create a CSR integrated vision within the organisation it is important to set up
clear goals, instruments and guidelines in beginning of the implementation process.

Furthermore, the guidelines should include responsibilities and obligations, which should be
assigned to the different departments within the organization. This will make it clearer for
the departments and it will also prevent power struggles between them.

P2. In the CSR implementation process a decentralized system is a better choice.

There could be a difference in the implementation process depending on the hierarchic
situation. Commitment from top managers and taking care of middle managers valuable
knowledge are important. This means that these two levels of management should be
involved, but the decision making process can be performed on just the top management
level or through the entire organization.

Phase 2 in the CSR implementation process: Do

P3. Consulting and engaging top-managers and middle managers are especially
important in the second phase of CSR implementation, Do.

The understanding of how top-managers have worked (motivated, informed, trained) the
employees is according to our theoretical review crucial for the implementation to succeed.
It is important to engage and involv topmanagers in order to get the CSR implementation
towards the selected vision.

The middle managers involvement is an additional feature that is vital in this part of CSR
implementation seeing as the middle managers often posses an underestimated amount of
information and especially knowledge about the organization and how things work around
the company.

P4. In order to emphasize teamwork activities in the CSR implementation process,

creating CSR working groups can be of great importance.

Teamwork is an important component when implementing a new strategy such as CSR

within an organization . An example of teamwork activities is to create special CSR working
groups within the organizations were the group members are able to discuss CSR and learn
from the companys point of view on CSR and also educate each other and come up with
new ideas regarding the CSR work.

P5. CSR topics change constantly, therefore, continuous CSR training and education is
needed.

Since CSR issues evolves all the time in order to be up to date with their CSR work and
implementation of new topics, organizations need to educate and train their managers and
employees on regular basis. States that employees has an essential function in the CSR
implementation process and in order to involve and inspire them it is important that they
know as much as possible about the companys way of handling the implementation and that
they are updated on CSR.

P6. Since communication is the keystone of CSR, setting up communication plans is

important in the second Do-phase of the CSR implementation process.

The communication is of vital importance when implementing CSR within a company.

Setting up communication plans is one tool that could be used in an organizations
communication process. To solve communication problems Alexander (1985) argues that in
this perspective, it is suggested for a company to establish a two-way communication
program that allows and requests concerns from employees about issues regarding the CSR
implementation.

Phase 3 in the CSR implementation process: Check

P7. It is important to report progresses in order to improve the outcome of the CSR
implementation process.

In the third part of the implementation process, Check, the focus is on measuring the targets
and recognize performance that has been set up earlier.

P8. The usage of reward systems is important to keep employees motivated in the CSR
implementation process.

Organizations have to make their employees really put effort into the implementation and
try to make them understand the meaning of CSR. In order to keep them motivated 34 to do
this Haslin and Ochoa (2008) argue that initiatives taken to improve the CSR situation
should be rewarded which will improve employees willingness to engage in ways that will
help the organization attaining strategic CSR objectives.

Phase 3 in the CSR implementation process: Improve

P9. Evaluation is important in order to improve the CSR implementation process that in
order to improve the CSR implementation process an evaluation must be performed. The
evaluation will then be used if new approaches of CSR are decided to be undertaken and
implemented, and also to identify in which areas improvements are necessary and how the
changes should be executed.
COMMUNICATION :

CSR implementation model

Summary of implementation theories Implementation is all about communication and

communication is important all along the implementation process, not only initially but also
along the way in order to better evaluate the process and measure the progress of the

1. Plan Development of CSR Strategy/Plan

- Decentralized working methods
- Clearly define Direction, Instruments and Approach
2. Do CSR commitment development
- Conduct a CSR business plan
- Prepare a CSR commitment draft
- Create a CSR working group
- Consult and engage Senior managers
- Middle manager engagement
- State and assign responsibilities
- Take care of existing HR
- Set measurable targets and identify performance measures
- Financial
- Non financial
- Continuously CSR-training
- Set up communication plans
- Two-way communication
- Discussion with employees
3. Check Measure targets and performance
- Reward system, Report progress
- Feedback
4. Improve Evaluation
- To identify:
- Strengths
- Weaknesses
- Opportunities
- Threats
- In order to improve the implementation process 36 implementation.

It is very important that everyone involved in the implementation process is aware of why
they are doing things and that they understand the purpose and goal with the process and
that the discussion around the CSR implementation is ongoing and open.

The theories considering specific CSR implementation provided us with a good basic
knowledge of how organizations in general might choose to implement CSR within their
company. Although the theories on CSR implementation provided us with good knowledge
of how the different steps in the implementation process might look like, it also points out
that one-size-does-not-fit-all, CSR implementation is a process that is divided into four
parts: Plan, Do, Check and Improve. We will mainly focus on the second part, Do, which is
where the actual CSR program is put into practice. It is a broad model that is founded on
our theoretical research and should be seen as a helpful tool for companies who wish to
implement CSR. The model is divided into four parts; plan, do, check and improve. Each
part contains important issues that should be taken into account, some companies are of
course already good in some areas and these areas could be used as starting points to spread
and become better in other areas.
HOW CSR CAN BE USED AS A STRATEGIE FOR THE UPLIFTMENT
OF A COMAPNY

1. Differentiate through innovative CSR products and processes.

Firms can differentiate their products by endowing them with CSR attributes (product
innovation) or developing the product through CSR processes (process innovation). In both
cases, the company creates a new market for such products with consumers who are willing to
pay a price premium for products with CSR features.

Patagonia, the California-based outdoor and sportswear manufacturer, has created a new market
for its CSR products. Patagonias marketing focuses on the environmentally friendly aspects of
its products and how their innovative improvements protect the environment. The companys
products sell at about 50 percent more than competitors such as LL Bean and Eddie Bauer

.2. Build awareness of responsible products.

Visible CSR activities enhance the firms reputation attracting superior workers, providing
leverage for managing stakeholders, and creating a significant competitive advantage in markets
where product differentiation is difficult. For example, Telefnica, the Spanish telephone
multinational, incorporated CSR directly in value creation as part of its widely publicized
reputation strategy. It established a fully staffed Reputation Department, charged with actively
seeking publicity for CSR activities.

Telefnicas reputation has flourished as a result, educating and motivating consumers to pay a
premium for its products. Additional benefits for Telefnica include consolidation of the
companys position with regulators, the investment community, and other non-market
stakeholders.

3. Innovate your way through constraints.

Husted and Allen found that firms reap greater value from CSR activities when they are
perceived to arise as the result of industry, fiscal, and regulatory constraints. When managers are

ANALYSIS AND EXPECTED OUTCOME PLAN OF RESPONSES OF

CONSUMERS
1. Do you know about CSR?

2. Do you think there is a relationship between CSR and profitability?

3. Have you seen any company involved in CSR activities?

4. How important do you think that companies should adapt CSR?

1=Very unimportant 2= Unimportant
3= Uncertain 4= Important, 5= Very Important
5. Do you enquire about the CSR policies of a company before purchasing a
product?

6. Would you pay a higher price for a product/service of a company which practice
CSR?
7. Will you recommend a product or service to friends and family because the
company offering it is socially responsible?

8. Do you think that companies should advertise their CSR initiatives?

9. Child Labour [Scale your preferences for different code of conducts]

10. Harassment and Abuse [Scale your preferences for different code of conducts]

11. Wages [Scale your preferences for different code of conducts]

12. Working Hours [Scale your preferences for different code of conducts]

13. Environment [Scale your preferences for different code of conducts]

 14. Womens right [Scale your preferences for different code of conducts]

PERSONAL INFORMATION
1. Age

2. Gender
3. Annual Income
ANALYSIS AND EXPECTED OUTCOME PLAN OF RESPONSES OF
MANUFACTURER

1. Name of the Organisation

a. S.J design
b. Aditya Birla Group
c. Zeeva Electronics Pvt Ltd
d. Kedl
e. Gionee
f. Omniglobe info tech pvt ltd

2. Are you aware of CSR?

3. How clear is its concept to you?

4. Is your company actively engaged in CSR activities?

5. Does your company have any CSR policy

6. Please tick (whichever applicable) the strategy you have for CSR implementation in
your organisation/company

7. Does your company/organization have separate allocation of funds for CSR

Implementation?
8. If yes, what is the percentage of the net profits do you invest in CSR activities?
9. In which of the following areas is your company doing its CSR activity?
( Environment, Environment Pollution control Solid waste Management,
Development of Green belt, Energy Saving, Rain water harvesting, Education Support
to Primary / Secondary Education Scholarships to students. Infrastructure to
Schools/Colleges. Furniture, Play equipment etc. to schools / Colleges, Trainings to
students, Provide Hostel Buildings to students, School buildings to Physically
Challenged People Health, Health check up camps, Treated water supply, Provide
Hospital buildings

Total
3.5

2.5

1.5

0.5

0
No Yes (blank) (blank) (blank)
No Yes Yes (blank) (blank)
Yes Yes Yes Yes (blank)
Total
No Yes (blank) (blank) (blank)
No Yes (blank) (blank) (blank)
No Yes Yes (blank) (blank)
No Yes Yes (blank) (blank)
No Yes Yes (blank) (blank)
No Yes Yes (blank) (blank)
No Yes Yes (blank) (blank)
No Yes Yes (blank) (blank)
Yes Yes Yes (blank)
Yes Yes (blank)
Yes (blank) (blank)
Yes (blank) (blank)
Yes (blank)
10.Does your Enterprise actively offer a good work life balance for its
employees, for example, by considering flexible working hours or
allowing employees to work from home?

11. Does your company organize any training session for your employees to increase their
understanding of CSR?

12. Please state the tools through which your CSR activities are popularized?

13. Has your Company/Organisation ever been awarded for

CSR activities?
Finding

Finding of the Study are presented along with summary, suggestion and conclusion of the
study. The aim of the study was to find out the awareness, practice, strategy, benefits of
Corporate Social Responsibility practice and to suggest suitable measures for effective
implementation of Corporate Social Responsibility practiced by the selecting services and
enterprises, both government and non-government organisations.

The study being empirical in character, was based on survey method and information
collected personally through a structured questionnaire.

The data collected from executives of the selected services and organization were analysed
and the result drawn on some major findings are presented are below.

1. Most of the executives who had skills like Education, Health, Telecom and Financial
sector, are more aware of Corporate Social Responsibility (CSR) while those in
sectors where less knowledge/skills are required, are lesser aware of Corporate Social
Responsibility (CSR).
2. Awareness of CSR and clarity of its meaning are both important for Consumers as
well as manufactures. Majority of the consumers have the idea of what CSR is,
however only a few are fully aware and clear about CSR.
3. Profit is important for a business to survive, but profit should not be the sole aim of an
enterprise. The present analysis aims to find out the understanding of the consumers
and manufactures relationship between Corporate Social Responsibility and
profitability. It is found that profitability and practice of CSR are positively related.
4. Enterprises and service institutions use different strategies for implementation of
CSR. Most of the Private Enterprises perform CSR through NGOs, as they do not
have large resources whereas big services/enterprises with large resources set up
Foundation Trust for CSR implementation. It came to light that big
enterprises/services have set up separate departments for CSR implementation.

Suggestions

The finding suggest various suggestions to manufacturers and consumers, and governmental
and non-government organizations to promote better relationship between these
services/enterprises and society in general and the various stakeholder in particular.
Corporate Social Responsibility can be classified as those policies, activities, or behaviour
undertaken by an organization that goes beyond the traditional economic and legal
obligations that the firm has with its target internal and external stakeholders. Corporate
social responsibility is more than a business policy or a response to issue raised by society. It
is a governing business philosophy. Responding to the ethical obligations must be voluntary
in nature and if undertaken effectively should eventually benefit and improve the overall
welfare of the community in which the firm operates.

The following are the suggestions:

1.) Identification of reasons and benefits of practicing Corporate Social Responsibility in

different sectors of business, along with development of company ethics programme,
integration of business ethics and ethics training to the staff.
2.) A study involving other independent variables such as Corporate Reputation,
Organizational Climate, and Sustainability can be undertaken to find out its effect on
Corporate Social Responsibility.
3.) Further study may focus on identifying and comparing the perception of line
managers, staff managers, and employees on Corporate Social Responsibility
practices of the company.
4.) Future study can look into Corporate Social Responsibility practices and Business
performance of product oriented or services oriented companies.
5.) Identification of programs and policies to enhance Corporate Social Responsibility
practices is also a relevant area of research.
6.) Companies and organisation should integrate social entrepreneurship into their core
culture by actively channelizing their research and development capabilities in the
direction of socially innovative products and services.

Conclusion

Until late in India, the mission of business firms was exclusively economic, but with business
environment being characterized by various developments including the shift of power from
capital to knowledge, increased levels of literacy, and the shrinking of geographical
boundaries due to faster means of travel and communication people are, by and large, become
conscious of their rights, which has led a rise in the expectations.

An organization receives inputs from society in the form of skilled/unskilled labour, raw
material and natural resources like air, water and space for its operation and, in turn offers
goods and services to society. Thus, businesses depends on society for further existence and it
is, in their interest to take care of society. It cannot operate either in isolation or in vacuum.
Like individuals, businesses also need to live in the real world, i.e., in society therefore, to be
successful in business, companies also need to look after the basic needs of the society,
minimise harmful effects to environment, contribute in nation-building and comply with the
law of the land.

The study and overall analysis reveals that concept of corporate social Responsibility is
gaining prominence. Organizations must realize that government alone will not be able to get
success in its endeavour to uplift the downtrodden of society. Many of the leading
corporations across the world had realized the importance of being associated with socially
relevant causes as a means of promoting their brands. It stems from the desire to do well and
get self-satisfaction

in return as well as societal obligation of business. Corporate Social Responsibility practice

can have a financial impact on the service/enterprise and it is necessary for the
managers/executives to understand the implications of CSR. It would be better to educate the
managers/executives about the implications, in turn; they can give the awareness to its staff
and employees. In the era of information, everyone knows who is doing what, and what
implication it is giving to the society due to the operation of a certain business. Likewise, all
will support enterprises who are contributing towards the betterment of the society and its
interest will be served whereas those enterprises will be isolated in the long run that is
harming the interest of the society.

In addition to people-focused activities, current CSR activities in India, tend to focus on

improving society and protecting the environment. Society-related CSR activities largely
focus on giving back to others in some way, such as helping the underprivileged by providing
them food, water, shelter and medical care. An organization has a responsibility towards the
society and towards its people. They should work towards uplifting the people in society by
giving them basic amenities. Environmental-related CSR activities include treating factory
waste properly to avoid harming the natural environment. It is also found that the
environment impacts a large number of people, therefore CSR activities should focus on
environmental welfare. In India, treating factory waste is a major problem. Unlike developed
countries, Indias legal system does not monitor whether or not factories are treating their
waste properly. Therefore, even those activities which are required by governments in
developed countries are considered a form of social responsibility in a developing country
like India. CSR activities are primarily inspired by Gandhis concept of social trusteeship and
thus focus on the well-being of employees and the common man. This focus is likely also due
to the nature of the industry and the fact that India is a developing nation. Manufacturers who
can focus on social responsibility do so to take care of employees. Moreover, India is still
struggling to provide basic amenities to all of its people. Also, Indian factories particularly
lack the resources needed just to treat their employees well; then carrying out CSR along is a
difficult task for them.

Indeed, it is evident from the study that western concepts of CSR do not necessarily translate
to a developing country like India, which is currently struggling simply to meet economic,
legal and ethical responsibilities. Thus, it is not surprising that in India, CSR equates to the
basic needs of taking care of people, society and the environment, rather than philanthropic
responsibilities. Perhaps, when India becomes a fully developed nation, companies may have
the luxury of engaging in the philanthropic responsibilities.

As mentioned, many authors have defined CSR, but there is little agreement as to exactly
what CSR is. Moreover, most of the CSR definitions in literature are based on practices of
companies in developed countries. To date, there is no definition of CSR as it is practiced by
firms in developing countries. This study, addressed this gap, in the literature by seeking to
understand what CSR means in the context of a developing country.

CSR must not be engaged in solely for profits. However, in order for firms in the state to
accept the idea of CSR, it should be economically sustainable and result is either direct or
indirect financial gains.

Thus, from the above analysis and from the respective tables in the chapters, reflect and,

leads explorations to the exact ends- Corporate Social Responsibility.