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INDEX
TOPIC

PAGE
NUMBER

WHAT IS CORPORATE SOCIAL

RESPONSIBILITY (CSR)?

IMPORTANCE OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) FOR THE SOCIETY

IMPORTANCE OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) FOR A BUSINESS
ENTERPRISE

TYPES OF CORPORATE SOCIAL

RESPONSIBILITY (CSR)

4-5
EVOLUTION OF CORPORATE SOCIAL
RESPONSIBILITY (CSR) IN INDIA

10

CURRENT STATE OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) IN INDIA
CORPORATE SOCIAL RESPONSIBILITY (CSR)
INITIATIVES OF PRIVATE SECTOR FIRMS
CASE STUDY 1-ITC LIMITED
CORPORATE SOCIAL RESPONSIBILITY (CSR)
INITIATIVES OF PRIVATE SECTOR FIRMS
CASE STUDY 2-TATA IRON AND STEEL
COMPANY LIMITED
CORPORATE SOCIAL RESPONSIBILITY (CSR)
INITIATIVES OF THE GOVERNMENT

8-9

10

WHAT IS CORPORATE SOCIAL RESPONSIBILITY

(CSR)?
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. As
said by Lord Holme and Richard Watts in its publication Making Good Business Sense.
European Commission states that CSR is A concept whereby companies decide voluntarily
to contribute to a better society and a cleaner environment. It is a concept whereby
companies integrate social and environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basis.

IMPORTANCE OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) FOR THE SOCIETY
Corporate social responsibility activities amongst various
corporations and its stakeholders could contribute to the
macroeconomic development of a developing country through
sustainable benefit to all. At the same time, optimum national
impact, cooperation, and communication would be encouraged
and socialized. The following are the various benefits of corporate
social responsibility to the society

Improved quality of life and Changed habits.

Capacity building creates wealth and employment.

Balanced ecosystems.
Waste management.

 Clean and Green environment.

IMPORTANCE OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) FOR A BUSINESS
ENTERPRISE
Social responsibility is important to a business because it demonstrates to both consumers
and the media that the company takes an interest in wider social issues that have no direct
impact on profit margins. These issues may be local, national or global, but a concern for the
health and wellness of others that does not involve sales can be seen as commendable if done
well.
For this reason, evidence of a healthy social responsibility policy can impact buying decisions
where customers seek to make an ethical purchase. This, in turn, can lead to greater profits
for a business. However, building a highly regarded and trustworthy reputation is more
valuable in this instance, and observers appreciate that social responsibility initiatives take
time to establish and manage.
Furthermore, being part of a scheme that helps disadvantaged people or those otherwise in
need can help boost morale for employees within the responsible company. Along with other
methods of morale boosting, this can lead to greater productivity among the workforce.
Knowledge that a product and service has a great influence on social causes can be a genuine
delight to employees, customers and business owners alike. Over time, the business
contribution to a charity, cause or community can be a significant amount of charitable funds,
product donations or other ventures.
When the importance of social responsibility is recognized as part of a business's foundation,
the impact of such endeavours can have life-changing consequences for recipients of aid and,
equally, instil a sense of pride in the people who support and work toward its growth. A
business can grow with or without social responsibility, but doing well for others allows a
business to reap rewards in many ways.

Goodwill and Community acceptance.

Profit, Growth, competitive edge and image.

Genuine dialog with stakeholders.

Spiritual and Pride values to their families and employees.

TYPES OF CORPORATE SOCIAL RESPONSIBILITY

(CSR)
These responsibilities can be arranged in a pyramid, with basic responsibilities closer to the
bottom. As a business meets lower-level responsibilities that obligate it to shareholders and
the law, it can move on to the higher level responsibilities that benefit society.
Economic Responsibilities

A company's first responsibility is its economic responsibility -- that is to say, a

company needs to be primarily concerned with turning a profit. This is for the
simple fact that if a company does not make money, it won't last, employees will
lose jobs and the company won't be able to think about taking care of its social
responsibilities. Before a company thinks about being a good corporate citizen, it
first needs to make sure that it can be profitable.

Legal Responsibilities

A company's legal responsibilities are the requirements that are placed on it by

the law. Next to ensuring that company is profitable, ensuring that it obeys all
laws is the most important responsibility, according to the theory of corporate
social responsibility. Legal responsibilities can range from securities regulations
to labour law, environmental law and even criminal law.

Ethical Responsibilities
Economic and legal responsibilities are the two big obligations of a company.
After a company has met these basic requirements, a company can concern itself
with ethical responsibilities. Ethical responsibilities are responsibilities that a
company puts on itself because its owners believe it's the right thing to do -- not
because they have an obligation to do so. Ethical responsibilities could include
being environmentally friendly, paying fair wages or refusing to do business with
oppressive countries, for example.

Philanthropic/Discretionary Responsibilities
If a company is able to meet all of its other responsibilities, it can begin meeting
philanthropic responsibilities. Philanthropic responsibilities are responsibilities that go above
and beyond what is simply required or what the company believes is right. They involve
making an effort to benefit society -- for example, by donating services to community
organizations, engaging in projects to aid the environment or donating money to charitable
causes.

EVOLUTION OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) IN INDIA
The evolution of corporate social responsibility in India refers to changes over time in
India of the cultural norms of corporations' engagement of corporate social
responsibility (CSR), with CSR referring to way that businesses are managed to bring about
an overall positive impact on the communities, cultures, societies and environments in which
they operate.[1] The fundamentals of CSR rest on the fact that not only public policy but even
corporates should be responsible enough to address social issues. Thus companies should deal
with the challenges and issues looked after to a certain extent by the states.

FOUR PHASES OF SOCIAL RESPONSIBILITY IN INDIA

The history of CSR in India has its four phases which run parallel to India's historical
development and has resulted in different approaches towards CSR. However the phases are
not static and the features of each phase may overlap other phases.

The First Phase

In the first phase charity and philanthropy were the main drivers of CSR. Culture, religion,
family values and tradition and industrialization had an influential effect on CSR. In the preindustrialization period, which lasted till 1850, wealthy merchants shared a part of their
wealth with the wider society by way of setting up temples for a religious cause. Moreover,
these merchants helped the society in getting over phases of famine and epidemics by
providing food from their godown and money and thus securing an integral position in the
society. With the arrival of colonial rule in India from the 1850s onwards, the approach
towards CSR changed. The industrial families of the 19th century such
as Tata, Godrej, Bajaj, Modi, Birla, Singhania were strongly inclined towards economic as
well as social considerations. However it has been observed that their efforts towards social

as well as industrial development were not only driven by selfless and religious motives but
also influenced by caste groups and political objectives Or studies

The Second Phase

In the second phase, during the independence movement, there was increased stress on Indian
Industrialists to demonstrate their dedication towards the progress of the society. This was
when Mahatma Gandhi introduced the notion of "trusteeship", according to which the
industry leaders had to manage their wealth so as to benefit the common man. Gandhi's
influence put pressure on various Industrialists to act towards building the nation and its
socio-economic development. According to Gandhi, Indian companies were supposed to be
the "temples of modern India". Under his influence businesses established trusts for schools
and colleges and also helped in setting up training and scientific institutions. The operations
of the trusts were largely in line with Gandhi's reforms which sought to abolish
untouchability, encourage empowerment of women and rural development.

The Third Phase

The third phase of CSR (196080) had its relation to the element of "mixed economy",
emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental
standards. During this period the private sector was forced to take a backseat. The public
sector was seen as the prime mover of development. Because of the stringent legal rules and
regulations surrounding the activities of the private sector, the period was described as an "era
of command and control". The policy of industrial licensing, high taxes and restrictions on
the private sector led to corporate malpractices. This led to enactment of legislation regarding
corporate governance, labour and environmental issues. PSUs were set up by the state to
ensure suitable distribution of resources (wealth, food etc.) to the needy. However the public
sector was effective only to a certain limited extent. This led to shift of expectation from the
public to the private sector and their active involvement in the socio-economic development
of the country became absolutely necessary. In 1965 Indian academicians, politicians and
businessmen set up a national workshop on CSR aimed at reconciliation. They emphasized
upon transparency, social accountability and regular stakeholder dialogues. In spite of such
attempts the CSR failed to catch steam.

The Fourth Phase

In the fourth phase (1980 - 2013) Indian companies started abandoning their traditional
engagement with CSR and integrated it into a sustainable business strategy. In the 1990s the
first initiation towards globalization and economic liberalization were undertaken. Controls
and licensing system were partly done away with which gave a boost to the economy the
signs of which are very evident today. Increased growth momentum of the economy helped
Indian companies grow rapidly and this made them more willing. Globalization has
transformed India into an important destination in terms of production and manufacturing

bases of TNCs are concerned. Western markets are becoming more and more concerned
about labour and environmental standards in the developing countries, Indian companies
which export and produce goods for the developed world need to pay a close attention to
compliance with the international standards.

CURRENT STATE OF CORPORATE SOCIAL

RESPONSIBILITY (CSR) IN INDIA
As discussed above, CSR is not a new concept in India. Ever since their inception, corporates
like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name a few, have
been involved in serving the community. Through donations and charity events, many other
organizations have been doing their part for the society. The basic objective of CSR in these
days is to maximize the company's overall impact on the society and stakeholders. CSR
policies, practices and programs are being comprehensively integrated by an increasing
number of companies throughout their business operations and processes. A growing number
of corporates feel that CSR is not just another form of indirect expense but is important for
protecting the goodwill and reputation, defending attacks and increasing business
competitiveness.
Companies have specialised CSR teams that formulate policies, strategies and goals for their
CSR programs and set aside budgets to fund them. These programs are often determined by
social philosophy which have clear objectives and are well defined and are aligned with the
mainstream business. The programs are put into practice by the employees who are crucial to
this process. CSR programs ranges from community development to development in
education, environment and healthcare etc.
For example, a more comprehensive method of development is adopted by some corporations
such as Bharat Petroleum Corporation Limited, Maruti Suzuki India Limited. Provision of
improved medical and sanitation facilities, building schools and houses, and empowering the
villagers and in process making them more self-reliant by providing vocational training and a

knowledge of business operations are the facilities that these corporations focus on. Many of
the companies are helping other peoples by providing them good standard of living.
Also, corporates increasingly join hands with non-governmental organizations (NGOs) and
use their expertise in devising programs which address wider social problems.
CSR has gone through many phases in India. The ability to make a significant difference in
the society and improve the overall quality of life has clearly been proven by the corporates.
Not one but all corporates should try and bring about a change in the current social situation
in India in order to have an effective and lasting solution to the social woes. Partnerships
between companies, NGOs and the government should be facilitated so that a combination of
their skills such as expertise, strategic thinking, manpower and money to initiate extensive
social change will put the socio-economic development of India on a fast track.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

INITIATIVES OF PRIVATE SECTOR FIRMS
CASE STUDY 1- ITC LIMITED
Environment
ITC has been Carbon Positive three years in a row (sequestering/storing twice the
amount of CO2 than the Company emits).

Water Positive six years in a row (creating three times more Rainwater Harvesting
potential than ITC's net consumption).

Close to 100% solid waste recycling.

All Environment, Health and Safety Management Systems in ITC conform to the best
international standards.

Social
ITC's businesses generate livelihoods for over 5 million people.

ITC's globally recognised e-Choupal initiative is the world's largest rural digital
infrastructure benefiting over 4 million farming families.

ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an
estimated 35 million person days of employment among the disadvantaged.

ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares
of dry lands and moisture-stressed areas.

ITC's Sustainable Community Development initiatives include women empowerment,

supplementary education, integrated animal husbandry programmes.

Preserving National Heritage

As a socially responsible corporate citizen, ITC endeavours to create value for the Indian
society in multiple ways, one of them being preservation of India's rich cultural heritage. ITC
has made significant contribution to the promotion of Indian classical music, theatre, art and
cuisine.
E-Choupal
ITCs Agri Business Division, one of Indias largest exporters of agricultural commodities,
has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its
customers around the world on a sustainable basis.
The e-Choupal model has been specifically designed to tackle the challenges posed by the
unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure
and the involvement of numerous intermediaries, among others

CASE STUDY 2-TATA IRON AND STEEL COMPANY LIMITED

(TISCO)
EDUCATION
Setting up and running midday meal kitchens
Training of teachers and headmasters
Improving quality of education in existing schools
Augmenting and supporting infrastructure in educational institutions
Offering scholarships and financial assistance to needy and meritorious students
Bridging dropout children and mainstreaming them to formal schools
Making adults functionally literate
Developing educational material and methodologies
Supporting and promoting co-curricular activities
Advocacy of best practices
HEALTH
Setting up and running clinics and hospitals
Running mobile medical vans and ambulances

Organizing health camps

Providing financial assistance and waivers for needy patients, on a case to case basis
Providing family planning services
Reducing infant and maternal mortality
Preventing and treating communicable diseases like malaria, tuberculosis and HIV / AIDS
Treating and rehabilitating persons with disabilities
Working on adolescent and reproductive sexual health issues
Promoting awareness about various health issues and generating demand for health services
Undertaking and supporting research on health related issues
Ensuring access to potable drinking water and hygienic sanitation

LIVELIHOOD
Setting up and running skill development centres, industrial training centres, diploma and
polytechnic institutes, community colleges, etc.
Sponsoring candidates for skill development and vocational training programmes offered at
identified institutions
Coaching candidates to appear for entrance examinations of different institutions
Creating, training and supporting entrepreneurs
Creating, training and supporting self-help groups, federations, cooperatives, societies and
similar institutions
Building capacities of farmers on improved methods of agriculture and other allied sectors
Developing water harvesting structures and irrigation facilities
Supporting farmers with quality inputs, technical know-how and timely information
Creating markets and marketing linkages for farm and forest based produce
Undertaking and supporting research on agriculture and other allied sectors

RURAL DEVELOPMENT
Rural development projects of building and maintaining community based rural
infrastructure like roads, bridges, culverts, drains, rural electrification, water infrastructure,
community centres, youth clubs, etc.

SPORTS

Constructing stadia and sports infrastructure

Setting up and running academies and sports training centres
Organizing sports tournaments and coaching camps for community
Supporting sportspersons to participate in state, national and international events
Offering scholarships and sports equipments to deserving sportspersons
Promoting adventure sports
Preserving and promoting indigenous sports
Organizing leadership and motivational camps Ethnicity

Preserving and promoting tribal languages, scripts and literature

Preserving and promoting fine arts and performing arts
Preserving and promoting various aspects of folk and tribal cultures
Organizing cultural events
Restoring and renovating memorials, monuments and heritage structures
Mainstreaming Particularly Vulnerable Tribal Groups (PVTGs)
Undertaking and supporting research on anthropological and ethnic issues

ENVIROMENT

Undertaking plantations and afforestation activity

Promoting renewable sources of energy
Recharging ground water levels
Conserving biodiversity and supporting research, awareness and advocacy on issues related
to biodiversity
Promoting awareness about environmental issues
Extending relief measures during times of natural disasters, anywhere in the country
Undertaking and supporting rehabilitation measures post-disasters

CORPORATE SOCIAL RESPONSIBILITY (CSR)

INITIATIVES OF THE GOVERNMENT
NATIONAL CULTURAL FUND (NCF)
Launching of the national cultural fund (NCF) on 29th march 1997 marked the first attempt to
institutionalize corporate partnership. The fund was set up as a trust under charitable

Endowments Act.1890 with a view to encourage participation of the corporate both private
and public, Governments as well as individuals. There is also a 100% exemption from
income tax in all these funds.

NATIONAL SPORTS DEVELOPENT FUND (NSDF)

Non availability of adequate resources has been stated as one of the major constraints in the
promotion of sports and games in the country, which are essential for the development of
human resources and team spirit. Performance of National teams in the international-sporting
events has also been a matter of national prestige and concern. The national sports
development fund was created in 1988 to mobilize resources from government and NGO for
promoting sports and games in the country. It allows taking fund from private sector and
NRIs. There is also a 100% exemption from income tax in all these funds.

NATIONAL POPULATION STABILIZATION FUND (NPSF)

The Government of India had set up a National Population Stabilization Fund (NPSF) in the
year 2004-05 with a one-time grant of Rs.100 crore in the form of a corpus fund. This is now
known as Jansankhya Sthirata Kosh (JSK). To empower the NPSF, Government of India has
set up Jansankhya Sthirata Kosh (JSK). This is an autonomous body registered under the
Societies Registration Act, 1860. JSK can take all the policy related decisions. It can raise
contributions from organisations and individuals that support population stabilisation.
JSK implements two schemes, namely, Santushti and Prerna. The fund is supposed to provide
a window for canalizing resources through voluntary contributions from individuals, industry,
trade organizations and other legal entities in furtherance of this national cause. There is also
a 100% exemption from income tax in all these funds.