CSR INITIATIVES

Coca-Cola Multinational

Coca-Cola aims at both profit and social benefit maximization. It continuously makes efforts to create a
difference through its CSR efforts. It aims to contribute at least 1% of its annual income to the charitable causes.
It also states clearly in its policies, the necessity to adopt ethical values and practices.
Ambuja Cements
Committed to providing quality lives to the unprivileged, Ambuja Cement emphasizes on utilizing the hidden
talent of people. It also focuses on generating goodwill amongst its stakeholders through their community
initiatives.

Infosys Limited

“CSR can’t be merely a job, it’s a passion,” says Sudha Murthy, Chairperson, Infosys Foundation, the CSR arm
of IT services conglomerate Infosys. The company spent nearly Rs. 360 crore towards various CSR schemes this
year. COVID-19 relief work dominated the activities, with education and health-related programmes following
after.
 Karnataka Bank Ltd.

Project Title: Green Initiatives For environmental sustainability, Karnataka bank Spent 0.54
Cr on green initiative and animal welfare. The key purpose of Green initiative to maintain
ecological balance in Karnataka and Delhi respectively.

Project Implementation by: Karnataka Bank Ltd. (Directly)

Amount spent: INR 0.58 Cr

Location: Delhi, Karnataka

Estimated Impact:
Karnataka bank tried to achieve environmental sustainability and ecological balance with help of
Afforestation.
 Century Plyboards India Ltd.

Project Title: Animal welfare Under the in animal welfare section, Century plyboards tried to serve
helpless, shelter less, ill as well as handicapped cow in nearby areas. Company also wanted to bring
awareness on cow based agriculture, health and environment. Company established cow hostel in Kolkata
and nearby area.

Project Implementation by: Calcutta Pinjrapole Society; Gow Seva Sameetee Ghatwa; Friends of
Vrindavan; Central Kolkata Prerna Foundation

Amount spent: INR 0.39Cr

Location: Kolkata and Vrindavan

 Bharat Heavy Electricals Ltd.
Project Title: Forest Based Sustainable Livelihood Projects
With respect to concern of biodiversity, BHEL has been carried out Afforestation activities such as
mass tree plantation and development of green belts. Cumulatively, it has resulted in development of
million Square meter of green coverage and plantation of millions trees till date.
Company also supported another CSR Initiative i.e. Manufactured biodegradable leaf cups & plates
at Sundergarh District, Odisha. The aim of this project is protect environment sustainability.
Project Implementation by: Society for education and environmental training
Amount spent: INR 0.13 Cr
Location: Sundergarh, Odisha
Estimated Impact: Plantation of thousands of saplings of trees and shrubs was carried out across
BHEL's establishments.
 CORPORATE SOCIAL RESPONSIBILITY

• The term ‘corporate social responsibility’ is based on the idea that business has
social obligations beyond earnings profits.
• A corporation is responsible not only to its shareholders but to all stakeholders –
customers, employees, suppliers, competitors, government and social
community.
• According to Carrol:
“corporate social responsibility encompasses the economic, legal, ethical and
discretionary expectations that the society has to organizations at a given point of
time.”
 Features of CSR
• OLD IDEA – CSR is an old idea though the perspectives on it have been
changing over time. It focuses on the idea that business has social obligations
above and beyond making a profit. It is companies responsibility to produce an
overall positive impact on the society.
• WORK BEYOND EARNING PROFIT – the concept of CSR is based on the
premise that a business firm is more than an economic instructions. It is an
organ of society and its activities exercise significant influence on the public.
Therefore, business should work beyond the narrow goal of profit-making.
• LONG RUN MOTIVE – in the long run, social responsibility is consistent with
profit motive. A business cannot survive and grow without serving the society.
By fulfilling its social obligations, business creates an environment which is
conductive to its success. What is good for the society is ultimately good for the
business.
• PERSONAL OBLIGATION- social responsibility is a personal obligation. A
business firm can discharge its social responsibility only through the persons
who manage and control it.
• FIRM SIZE- social responsibility of business is commensurate with its social
power. For example, a small firm has less responsibility towards society than a
multinational firm.
• CONTINUOUS – Social responsibility is a continuing obligation. A business firm
remains responsible to the society throughout its life.
 CSR and Corporate Responsibility

• Corporate Responsibility (CR) is a wider concept than corporate social

responsibility.
• In addition to CSR, CR comprises the broader issues such as corporate
governance, ethics, and environment. In corporate social responsibility the
focus is mainly on the social aspects of business or on giving back to the
society.
• Therefore, experts suggest that companies should adopt a wider and long
term perspective by moving from CSR to CR.
• According to the World Business Council for Sustainable Development
(WBCSD) CR consists of :
➢ Corporate Social responsibility
➢Corporate Financial responsibility
➢Corporate environment responsibility

• Thus, CSR is an integral part of CR. In other words, CSR is one of the means of
discharging CR. CSR is doing good to the society whereas CR is doing good to
everybody.
 MODELS OF CSR

• THE ETHICAL MODEL – the charisma of Gandhiji promoted big business

houses in India to play an active role in socio-economic development and
nation building. Their commitment towards society’s welfare is reflected in
investment in schools, colleges, hospitals and other public sources.
• THE STATIST MODEL – this was developed in India after independence.
State ownership of basic and heavy and the legal framework of India reflects
CSR. Thus, the statist model suggests state control over business to ensure
that it is responsible to society.
• THE LIBERAL MODEL – according to this model, a company is mainly
responsible to its shareholders. A company discharges its CSR if it obeys the law
and generates wealth for its shareholders. This model is based on the viewpoint
of Milton Friedman who argues that the only social responsibility of business is
to maximize profits.
• THE STAKEHOLDER MODEL – this model suggests that a company is
responsible to all those groups who have direct or indirect stake in it. These
groups are known as stakeholders. They include shareholders, customers,
employees suppliers, distributors, Government, media and the community.
 CORPORATE GOVERNANCE

• The term ‘Governance’ is derived from the latin word ‘Gubernare’ which
means ‘to steer’.
• Corporate governance is the system of rules, practices, and processes by
which a firm is directed and controlled. Corporate governance essentially
involves balancing the interests of a company's many stakeholders, such as
shareholders, senior management executives, customers, suppliers,
financiers, the government, and the community.
 Governance vs. Good Corporate Governance

• Governance by itself is a neutral concept. It can be either good or bad. When

there is any deficiency in the direction and control of a company, it is called
bad governance.
• If the company’s system of direction and control is such that the interests of
all the stakeholders is taken care, there is good governance.
• Good corporate governance is the wider view of corporate governance. Its
focus is on relationship between a company and its stakeholders.
• Good corporate governance is characterized by:
1. Commitment to moral values
2. Ethical conduct of business
3. Exercising powers in a responsible manner

• According to the World Bank, the main characteristics of effective

corporate governance are transparency, protection of the rights of all
stakeholders, independence in decision making, integrity and objective
monitoring of management’s performance.
• Corporate Governance is essential to develop added value to the stakeholders.
• Corporate Governance ensures transparency which ensures strong and balanced economic
development. This also ensures that the interests of all shareholders (majority as well as minority
shareholders) are safeguarded. It ensures that all shareholders fully exercise their rights and that
the organization fully recognizes their rights.
• Corporate Governance clearly distinguishes between the owners and the managers. The managers
are the deciding authority. In modern corporations, the functions/ tasks of owners and managers
should be clearly defined, rather, harmonizing.
• It is the technique by which companies are directed and managed. It means carrying the business
as per the stakeholders’ desires. It is actually conducted by the board of Directors and the
concerned committees for the company’s stakeholder’s benefit.
• It is all about balancing individual and societal goals, as well as, economic and social goals.
 DRIVERS OF CSR

• Globalization
• Pressure from Investors
• Good employees relations
• Increase in Market share
• Legal requirements
• Risk cover
• Cost saving
 BENEFITS OF CSR
COMPANY BENEFITS:
1. Improved financial performance;
2. Lower operating costs;
3. Enhanced brand image and reputation;
4. Increased sales and customer loyalty;
5. More ability to attract and retain employees;
6. Reduced regulatory oversight;
7. Access to capital;
8. Product safety and decreased liability.
 Benefits to the community and the general public

1. Charitable contributions;

2. Employee volunteer programmes;

3. Corporate involvement in community education, employment and homelessness

programmes;

4. Product safety and quality.

 ENVIRONMENTAL BENEFITS
1. Greater material recyclability;

2. Better product durability and functionality;

3. Greater use of renewable resources;

4. Integration of environmental management tools into business plans, including

life-cycle assessment and costing, environmental management standards, and
eco-labelling.
 BENEFITS OF CORPORATE GOVERNANCE
1. Good corporate governance ensures corporate success and economic growth.

2. Strong corporate governance maintains investors’ confidence, as a result of which, company can raise capital
efficiently and effectively.

3. It lowers the capital cost.

4. There is a positive impact on the share price.

5. It provides proper inducement to the owners as well as managers to achieve objectives that are in interests of
the shareholders and the organization.

6. Good corporate governance also minimizes wastages, corruption, risks and mismanagement.

7. It helps in brand formation and development.

8. It ensures organization in managed in a manner that fits the best interests of all.
 MANAGERIAL VALUES AND ETHOS
Ethos refers to the habitual character and values of individuals, groups, races, etc.
Managerial ethos is concerned with the character and values of managers as a
professional group. Contemporary managers hold some specific values which affect
work and some of these are autonomy, equity, security, and opportunity.
1.Autonomy: These managers tend to allow enough latitude to individual employees
as long as the use of this freedom does not violate the basic norms of the
organization. In the last two decades, some management practices have been
innovated which are in keeping with this value of autonomy.
2.Equity: Equity refers to justice in rewarding performance. Modern managers
strongly feel that a person must get a reward proportionate to his input.
3.Security(providing security both economically and emotionally): Keeping a person
on his toes by making him feel insecure is slowly but steadily getting discredited as a
management philosophy. Even the societies which have practiced “hire and fire”
policy are unmistakably shifting towards providing security of the job.
4.Opportunity: Providing enough career advancement opportunities to employees is
yet another contemporary managerial value.
 MANAGERIAL ETHOS: ITS CHARACTERISTICS
• Action goal orientation: Persons with a high sense of adequacy have clear goals about their
future and are directed by these goals. They are action oriented to reach their clear goals
• Pro-action/Pro-active: Proactive people do things on their own without having to be told by
anyone. Such an initiative taking behavior leads to a high level of activity and
experimentation.
• Internal resources: Managers with a high sense of adequacy are aware of their internal
strengths and are guided by these strengths. They are aware of their weaknesses but this
awareness does not deter them from acting positively or to look for opportunities for
continuous self-improvement. They are open to feedback and ready to learn from
experience.
• Problem-solving attitude: A superior ethos requires that managers view themselves as
problem solvers, rather than problem-avoiders. These managers have a positive orientation
to problem situations and do not want to run away from problems. They tend to approach
problem situations with optimism because they have an internal locus of control, i.e., a
strong belief that they can change the environment through their own efforts.
 HOW CULTURE AND ETHOS ARE MAINTAINED

• Socialization is a process of adaptation by which `new’ members come to

understand the basic values, norms, and customs for becoming `accepted’
members of an organization. Though the most intense period of
socialization is at the “fresher” stage of entry into an organization, the
process continues throughout one’s entire career in the organization. The
people who do not learn to adjust to the culture of the organization
become the targets of attack and are often rejected by the organization.
 Socialization process has three stages

1.Pre-arrival
2.Encounter
3.Metamorphosis
Pre-arrival: This stage tries to ensure that prospective members arrive at an
organization with a certain set of values, attitudes, and expectations. This is
usually taken care of at the selection stage itself. Selectors try to choose the
“right type” of people, who they feel, will be able to “fit” the requirements of
an organization. Thus an organization, even before allowing an outsider to
“join”, makes an attempt to ensure a proper match that contributes toward the
creation of a uniform culture within the organization.
Encounter: After gaining entry into the organization a new member faces an
encounter stage. There is always a possibility of a difference between his expectations
of an organization and the Organizational Climate. If the expected image and
Organizational Climate matches, then the encounter stage passes off smoothly leading
to confirmation of the image. If the imbalance between the two is acute, the person
has usually two choices open.
Metamorphosis: People who had discovered an anomaly between their expectations
and Organizational Climate, but decided not to drop out, enter into the
metamorphosis stage. They must sort out their problems and go through changes-
hence this is called metamorphosis. When this metamorphosis is complete, the
members feel `comfortable’ with the organization and job. Successful metamorphosis
results in the lowered propensity to leave the organization.
For a very few persons, the metamorphosis stage may remain incomplete or
unsuccessful. These people, as yet, have not been able to “accept” the Organizational
Climate and thereby remain nonconformist. Sometimes they continue to `fight’ the
system, at least for some more time, with zeal and enthusiasm.