Source: http://www.yourarticlelibrary.com/project-reports/csr/corporate-social-responsibility-csr-a-project-report/99453
Timestamp: 2019-04-22 15:09:39+00:00

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A project report on Corporate Social Responsibility (CSR). This report will help you to learn about:- 1. Introduction to Corporate Social Responsibility (CSR) 2. Concept of Corporate Social Responsibility 3. Levels 4. Implementation 5. Company Reports 6. Corporate Governance and CSR 7. Examples 8. Advantages.
Profit maximisation was viewed as the sole business objective; putting this view no more holds good. Business Managers have begun to realise that they owe responsibility to society as they owe to business enterprises.
i. Social responsibility is an organisation’s obligation to benefit society in ways that transcend the primary business objective of maximising profit.
ii. Social responsibility refers to obligation of an organisation to seek actions that protect and improve the welfare of society along with its owners.
iii. Social responsibility is implies, enforced or felt obligation of managers, acting in their official capacities to serve or protect the interest of groups other than themselves.
iv. Corporate Social Responsibility (CSR) is the continuing commitment by the 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.
v. CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the Government. CSR is about business giving back to society.
vi. Companies should make all efforts to promote CSR throughout the value-creation chain that they are a part of. They should take responsibility for the social, economic and ecological consequences of their actions and also engage in dialogues with all those who are involved in these dimensions.
vii. Developing and advocating socially responsible business practices, which benefit not only the Corporate social responsibility (SRO) and its employees, but also the greater community, the economy and the world environment. SRO seek to reshape the way business is done in both for profit and not for profit arena.
(1) The company should affirm the interdependence of its enterprise with the well-being and self-reliance of the community. This can be done by adopting an Article of Association on Corporate Social Responsibility (CSR) that advocates harmonizing of economic progress with social and environmental considerations.
(2) The company should have a specific written policy statement on CSR (Social and environmental) which is in the public domain.
(3) The company should have an explicit strategy on social and environmental issues that can be seen in the form of Annual Work Plan main streamed with its business process.
(4) The company should include CSR as part of its corporate communications including newsletters and there is reporting on CSR in the company Annual Report.
(5) The company should have a senior executive under the CEO (Chief Executive Officer) responsible for CSR and managerial level officers tasked specially with social and environmental work. The CEO reviews the CSR programmes twice a year.
(6) The company should ensure equal access to employment and promotion opportunities across gender and cultures, through policies and programmes.
(7) The company should allocate specific resources for CSR activities and have monitoring systems to track implementation process and impact.
(8) The company should demonstrate its CSR by providing an enabling environment for employees to volunteer that includes recognition and accounting for volunteer time.
(9) The company should be committed to document its learning experience in terms of human achievements, contribution to the community, the learning for all stakeholders, for sharing with local Governments and development agencies.
(10) The company is also known for the partnership it builds with various development players in the field, to synergise all available opportunities to bring about holistic development of the local community.
(11) The companies should expand the scope of learning from each other in their role of being good corporate citizens by way of exchanging data, views, implementation procedures and even exchange of expert personnel whenever necessary.
India’s industrialisation process started after independence and since first 5 year plan of 1951. Initially the pace was slow and there was lack of awareness regarding pollution up to 1970. The pace of industrialisation picked up well since 1970 more due to private firms, normal power plants, minerals processing, cement plants, refineries etc. This stage awakened the need to take care of pollution. By 1980 the world over there was awakening of environmental protection by careful planned action and by law.
Public complaints, expert committee opinions were causes to frame rule and regulations pertaining to environmental care by corporate. Most important things worrying the society were air pollution, water pollution, noise pollution and hazard waste disposal. Enforcement law was a must to make every one accountable.
The next concept is plough back of surplus profits for benefit of the society. This is a proactive function to assist the society for better living. In few instances it is a reactive function on the suggestion of employees, citizens or VIPs.
Either way the intention is to take up a social cause to serve the society. This act gives them good publicity and esteem satisfaction to promoters. CSR can be categorized in two main and four sub categories. The CSR categories are show flow diagram at Fig. 7.2 below. Further the concept can be better explained with examples given thereafter.
By legal functioning we mean the corporate is following all the rules, employee care, customer care and environmental care are well attended. The product and service also is of benefit to society.
(i) Such companies being socially responsible can be possible due to high level profits and social concern of promoters. Infosys takes up lot of social related reforms, facilities and services. This has helped to improve the living conditions of various people and school children. The voluntary service has earned goodwill to Infosys and esteem satisfaction to promoters. This category covers some of the best managed corporate.
(ii) Some companies remained socially irresponsible due to loss making or poor profit margins. Previous losses, penalty payments, lack of orders are demoralizing factors. This situation does not enable them to take initiative in voluntary social service. Example HMT Ltd., Widia India, L&T Komatsu, BEML, ITI etc.
There are companies who indulge in one or more illegal or unfair activities. Some of these are unsafe and bad work environment, ill-treatment to workers avoiding payment of P.F., Income Tax, Bonus, timely salaries etc. They may be producing non-ethical products like alcoholics, cigarettes, tobacco products etc., and many educational institutes also are in this category due to high capitation fees, unreasonable tuition fees and poor payment to teaching staff.
(i) Few companies becoming social responsible is possible due to religious inclinations and to create goodwill to amass more and more wealth. For example, WILLS, McDowell’s sponsor sports events for publicity on the guise of social service.
(ii) Such corporate becoming socially irresponsible in a case of double fault. Almost all private educational institutes of Bangalore come in this category. Negligence to workers safety causes ill-health, loss of limbs, and sometimes death. Hence this category is dangerous and needs to be seriously dealt by the various government authorities.
A hierarchy of the extent to which business units discharge social responsibility is developed by R. Joseph Monsen.
Managers feel they are discharging social responsibility by merely obeying the law.
Social responsibility goes beyond merely obeying the law. In addition to abiding by legal framework of the country, social responsibility also caters to public expectations from the business enterprises (for example, providing job opportunities, quality goods, controlling pollution etc.).
At the highest level of hierarchy, managers not only cater to public demands but also set standards of social responsibilities and want the society to be benefited by those standards.
In addition to profit making a company should earn goodwill, credibility and trust of society and customer. Both profits and credibility should go together will have scope for social and environmental care. In addition to salary health and happiness of employees is enduring and generate extra loyalty from employees. The health of a company depends upon service and satisfaction of the people. Growth of a company take place of the interests of employees, customers, environment and the society is taken care.
i. Full time suitable work to employees and job satisfaction.
ii. Fair compensation and fringe benefits.
iii. Job security of employees.
iv. Training, development and promotions avenues.
v. Good work environment in terms of safety and facilities.
i. Product as per specified quality and quantity.
ii. Fair price and taxation as per rules.
iii. Consumer protection from warranty and safety.
i. Payment of taxes and duties as per the prevailing rules.
ii. Pollution and environmental care.
iii. Participation and contribution to welfare of society.
iv. Fair opportunity for employment to locals.
i. Payment of dividend in proportion to shares.
ii. To run the business efficiently, ethically.
iii. Make use of local resources to achieve economy and satisfaction.
iv. Ensure sustenance and growth of the company.
In addition to above, company can contribute to natural calamity restoration process. It improves company’s prestige and morale.
What amount a business house or a corporate should spend? It is a question being debated in industrial world, law makers and opinion builders. The answer is not simple and implementation has many problems. Some argue that business is not for charity. If it is charity towards society, it cannot be made compulsory or mandatory by law.
Alternately it becomes one more tax; may be ‘CSR Tax’. If it is imposed as a tax then the government spending, time schedules, efficiency and proper utility questions arise. Any hasty step may prove counter production and companies may find ways to circumvent such payments.
Government of India is thinking on two percent of net profit of a corporate to be set aside towards CSR spend. There are different views on the matter.
Minister of Corporate Affairs (MOCA) Murli Deora says mandatory CSR for companies will ensure that economic growth is more inclusive. The proposal is that companies with net worth of more than Rs. 500 crore or turnover of more than Rs. 1,000 crore will have to set aside 2 per cent of their net profit towards this ritual every year.
i. Mandatory CSR a misplaced concept. It would lead to Groups (business) cooking up things and presenting them as CSR.
ii. MOCA is hardly the ministry to push for fixing amounts towards social spending. It should come from the Ministry of Finance. The Companies Act is hardly the act to have such provisions.
iii. Mandatory allocation “makes it a tax”. The government, if needed should levy this (tax) on companies and spend it on whichever areas it deems fit.
iv. Is it the duty of companies to step into an area that should be the domain of the government?
v. That it can be and will be challenged in the courts by companies. Government cannot legislate on social behavior. Responsibility of a company is first towards its shareholders.
vi. Undemocratic, it is no possible to generate CSR by putting statutory requirements. There is enough social consciousness among the larger companies to drive it on the basis of what they consider is responsibility.
vii. CSR is a question of conscience. There is no case for making it mandatory.
viii. There is no acceptable definition of CSR.
ix. There is no separate head for CSR in local accounting procedure, though there is a category called ‘Charities and Donations’.
x. Making CSR mandatory may even prove counterproductive – companies will see it as merely legal, “rather than creatively innovating integrated strategies that create enduring sources of livelihood and other societal value”. It would lead to an artificial spend, which would ultimately into CSR activities.
xi. It is much better as a recommendation.
xii. If MOCA has its way, India will be the first country to have a mandatory.
xiii. One needs to look for the reporting of CSR spends.
What’s at the heart of CSR? It is a belief that business cannot be just about business. The purpose of CSR is to deliver the benefit of economic progress to the backward. CSR, in the way it is now envisaged (compulsory social responsibility), does not resonate positively.
Internationally, the most accepted format for CSR is Global Reporting Initiative (GRI). It is now accepted by 1,500 organisations across 60 counties. Only 35 Indian companies follow it – among them are Tata Steel, Dr. Reddy’s, Jubilant Organosys, Reliance Industries and ITC.
CSR or sustainability information creation will become far more formalized and process driven with correspondingly greater depth and quality. As regulators move towards greater reporting requirements, it is reasonable to expect the existing regulatory reporting regimes to evolve to incorporate such content and metrics.
CSR is really about forging a more compassionate India. It will be a pity if it degenerates into moral policing CSR is really about forging a more compassionate India. It will be a pity if it degenerates into moral policing.
In the UK, most of the top 100 listed firms report their CSR performance to some extent.
Since last one decade the large Indian companies are including CSR reports as part of their annual reports. The reports are vague and full of jargons, no finance references of figures and good English. The items shown have little or no reference with CSR.
xv. Making charitable trusts and societies for CSR work.
Reveal an adhoc approach followed by many businesses, when it comes to social spends. Sponsoring a drawing competition, teaching a small group of children for a few hours on the weekend and other such ineffective initiatives that are more photo opportunities for reputation building than flowing from any genuine concern are common. Few have well conceptualized and articulated social responsibility policies in place. There is need for removing the cloud of secrecy over CSR spends, especially for listed companies.
Indian corporate has a long way to go on the road to responsibility. But some good work has been done and there are torch bearers who can lead the way and demonstrate the benefits of working for a more inclusive society.
And while a regulatory push might prove counter-productive, a gentle nudge on disclosures could go a long way in building peer pressure to unleash innovation for deriving shared value from social interventions.
i. Can’t share the financial data desired.
ii. Companies do not track such information for CSR.
iii. Companies are in the midst of streamlining our CSR processes.
iv. Companies are still awaiting management approval.
v. It is too detailed; Companies cannot arrange the data in time.
vii. Please excuse us this year, the company will join in next year.
i. Most groups don’t wish to reveal social spends.
iii. Many undertake initiatives on an ad-hoc basis.
iv. A large number do not have clearly defined CSR policies.
v. Many interventions are short-term, with little impact.
vii. Most fear that revealing data will impact their reputation.
Corporate is a single word used for multiple components and working together and providing direction is governance.
The CEO with corporate executive’s assistance has to make maximum efforts to satisfy all types of stakeholders.
Some companies are very tightly held by individuals or family members. Both small and big companies are in this category and managed under authoritative leadership. There will be many types of unfair practices pertaining to statutory payments, disparity in payments, hiring-firing and opportunism. There is heavy emphasis to business and profits and no emphasis to SCR related activities.
This category consists of state owned, central government owned public sector enterprises, some of the very old private companies running on the uses of Public Sector Enterprises. This is almost opposite type of private corporations. Lack of accountability more concern for employee welfare and lack of competitiveness in product and marketing. There will be many cases of bribery and unethical practices in various corporate related activities.
There are MNCs and other private and public limited companies where promoter’s and other directors are all professionally qualified and competent. They are competent in their industry, do-well, grow well and take care of the CSR to the maximum possible extent. The morale of employees is very high and job satisfaction is yet to achieve. Indian corporate are yet to achieve success in flextime working. This is due to the facts that Indians follow discipline under regulations of rules.
TISCO, Jamshedpur is the first biggest corporate to come up in India around 1916 and it is the first to voluntarily take up CSR. At a time when there were no rules and regulations for employee welfare, amenities, timing etc., TICSO the flagship company of Tata Group started giving employee welfare facilities. They started facilities like canteen, leave, medical assistance, recreation club, training and development. Other Indian companies started following these measures about 50 years after TISCO started voluntarily.
Now as per Factories Act 1948 and subsequent amendments many of the employees related welfare measures have become compulsory. Workers also claim facilities by right. During the period of 1960 to 1980 the Trade Union activity was very strong in India and almost all the corporate were forced to take care of employee related fair practices. In case of pollution control measures it has become necessary for government officials to chase the managements and the process will continue.
They have their own ‘Infosys Foundation’ which attends social causes like water supply and toilet facilities to schools, guest houses to cancer patients and their accompanying person, supply of computers to schools and colleges.
They sponsor important sports events like cricket, hockey and also have contributed funds to various national calamity victims.
Birla’s Trust spends money on educational institutes, temple and old age homes on a regular basis.
They invest in ‘foot-ball academy’, ‘hockey academy’ and sponsor sports tournament. Give scholarship to merited students at All India Level. There are many more corporate who contribute to various social causes and also during restoration process after calamities like earth quakes, Tsunami floods etc. Many of the Indians settled in Europe and USA and funding social causes in India.
This is a good sign to shown concern towards needs of the motherland. In few companies the top executives create their own “yes men group” by bending the rules and appointing their own group. A case-let of a project is detailed at box 7.1 below.
i. Supports economic rehabilitation of 25 villages in Bhachau.
ii. CII will set up market yards in the same villages to exhibit handicrafts and other artisans’ works in various exhibitions of CII in India and abroad.
iii. Plans setting up of market yards, craft and vocational training in conjunction with expert agencies including Abhiyan members.
iv. Also on the anvil-an industrial relocation in Kutch, port-based activities, tourism, e-governance and IT enabled infrastructure.
i. Distributed hand embroidery tool kits to more than 100 women artisans in 19 villages of Anjar, Bhachau and Rapar.
ii. To provide market support to the artisans through participation in national and international meets, and linkages with mainstream private sector buyers.
iii. Has insured 5,000 rural women for life, illness, loss of limbs, productive assets etc.
iv. Design and product development, technology dissemination and design dissemination for approximately 250 rural artisans is already in progress.
Scientific research, education, health and community services, education in social work, art and culture, medicine, energy research, rural development.
Technical education, agricultural research, medicine, aft and culture, scientific research education, temple building and renovation, archaeology.
Family Planning Centers, Well baby clinics, Godrej Ganga Ecology Panel.
Education, health and medicines, sports, environment and wildlife, conservation of nature, family planning, arts.
Institute of Gandhian Studies, Gandhi for Science and Human Values.
Community development, higher education, uplift of widows/orphans, scholarships, spiritual and cultural development, literacy.
Education, medicine and health, scientific research, self-employment schemes, community welfare measures.
There are many tangible and intangible benefits due to CSR activities of the companies. While saying this we must appreciate that only profit making companies can take up social services which are of voluntary nature.
i. It displays care and concern and fellow feeling towards the society we live in.
ii. The owners of the company earn huge profits from a particular state/region or nation. It becomes their duty to do something in return as gratitude.
iii. The executives who undertake CSR activities are held very high in public opinion and are honoured by the society and government.
iv. It is not possible for government alone to improve the standard of living of people. If corporate also collaborate the living conditions of the people improves.
v. The corporate image improves and it helps to sell their products more and more.
The trend of CSR is a motivator to youngsters to take up such activities when they grow up to become executives or entrepreneurs.
Components of Corporate Social Responsibility!
What is meant by corporate social responsibility (CSR)?

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