International Journal of Research and Development - A Management Review (IJRDMR)

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Corporate Social Responsibility in Infosys Foundation

Sandhya Mishra
Dept of MBA, Gandhi Institute for Technology, Bubaneswar

Corporate Social Responsibility (CSR) is viewed as a
comprehensive set of policies and programmes that are
integrated into business operations, supply chains and
decision-making processes throughout the company. The
case deals with CSR initiatives of Indian IT major-Infosys
Technologies Ltd. The company is actively involved in the
areas of community involvement, human resource
development, environmental contribution, product
contribution and customer relations, rural development,
and shareholders relations. The paper also provides an
insight into the expected role of companies in CSR in the
times of recession.
Keywords: Corporate Social Responsibility, Community
Involvement, Human Resources, Environmental
Contribution, Product Contribution and Customer
Relations, Shareholders’ Relations, Rural Development
Introduction
During the year 2008-09, Infosys Technologies, the
Indian software giant won ‘Hitachi Data Systems’
Diamond Award for Best Virtualization Strategy and
‘Platinum Award’ for Best Green Strategy for a Data
Centre. The company also received NASSCOM
(National Association of Software and Service
Companies) Award for excellence in gender inclusivity
at the NASSCOM IT Women Leadership Summit 2008
in Bangalore (Annual Report ‘Infosys Technologies
Ltd.’, 2008-09).
Awareness of the impact of business on society and
environment has grown along with the increasing socio-
regulatory pressures. This evolution has gradually led
business to return the displaced social orientation. Many
firms are assuming increased Responsibility for both
social and environmental well- being. Corporate
response to environmental and social issues is
progressing through three stages of evolution: profit
maximization management, trusteeship management,
and quality of life management (Hay and Gray, 1977).
The business depends on society for its existence,
sustenance and encouragement. Being too much
dependent on society, business has definite
responsibility towards different segments of society
which is depicted in the figure 1.
Though profit making is one of the main objectives of
business but it has to satisfy its various stakeholders,
viz., employees, consumers, government, community,
and shareholders. Over the past few decades, a growing
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number of companies have recognized the business
benefits of Corporate Social Responsibility (CSR)
policies and practices. CSR is defined as “A concept
Source: Joshi and Kapoor (2004), p. 358 (Modified)
Figure 1: Business Responsibility towards Different
Sections of Society
whereby companies integrate social and environment
concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis,
as they are increasingly aware that responsible
behaviour leads to sustainable business success”
Commission of the European Communities (2002). A
growing body of empirical studies demonstrates that
CSR has a positive impact on business economic
performance. Companies going for CSR activities have
experienced a range of bottom line benefits, namely,
improved financial performance and reduced operating
costs (Centre for Corporate Research and Training,
2003; Agarwal, 2008), enhanced brand image and
reputation (Krishna, 1992; Rashid and Ibrahim, 2002;
Centre for Corporate Research and Training, 2003;
Agarwal, 2008), increased sales and customer loyalty
(Creyer and William, 1997), increased ability to recruit
and retain employees (Turban and Greening, 1996; Luce
et al., 2001; Centre for Corporate Research and Training,
2003), easier access to capital (Spicer, 1978; Centre for
Corporate Research and Training, 2003) etc.
In Indian context, CSR is not a new concept and can be
easily seen in the form of magnificent temples, high
mosques, large dharamshalas and great educational
institutions (Agarwal, 2008). In 1965, the Prime
Minister of India presided over a national meeting that
issued the following declaration on the social
responsibilities of business: “...business has
responsibility to itself, to its customers, workers,
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shareholders, and the community…every enterprise, no
matter how large or small, must, if it is to enjoy
confidence and respect, seek actively to discharge its
responsibilities in all directions... and not to one or two
groups, such as shareholders or workers, at the expense
of community and consumer. Business must be just and
humane as well as efficient and dynamic” (Brown,
2001). The increasing relevance of CSR in India has
stemmed from the fact that a business cannot succeed by
ignoring the human and social needs of our society. In
this age of widespread communication and growing
emphasis on transparency, customers of any product or
service are not likely to feel satisfied in buying from a
company that violates the expectations of ethical and
socially responsible behaviour. Therefore, the companies
that pay genuine attention to the principles of socially
responsible behaviour are favoured by the public and
preferred for their goods and services (Sarkar, 2005).
Company Profile
Infosys Technologies Ltd. provides consulting and IT
services to clients worldwide. Founded in 1981, by N.R.
Narayan Murthy and six of his colleagues. The corporate
headquarters are based in Bangalore, India. However,
Infosys offices span the globe. In 1987 Infosys got its
first foreign client, Data Basics Corporation from the
United States and opened its first office in the USA. In
1993, Infosys became a public limited company and
successfully completed IPO (Initial Public Offer) in
India. In the same year Infosys received ISO
9001/TickIT certification. Infosys set up its first office in
Europe in Milton Keynes, UK in 1996. In 1999,
Infosys crossed $100 Million in annual revenue and was
listed on NASDAQ. It was Indian company to be listed
on NASDAQ. In the same year Infosys opened offices in
Germany, Sweden, Belgium, and Australia. In 2000,
Infosys crossed $200 Million in annual revenue. In
2004, Infosys crossed US $1 Billion in annual revenue.
In 2006, Infosys completed 25 years of its existence and
its revenues crossed $ 2 billion. Today Infosys has more
than 50,000 employees and has presence in more than
20 countries across the world. Its corporate headquarters
is in Bangalore. The company vision is to be the best
globally, commercially and ethically. As such, Infosys
has developed a C-Life principle of core values that it
aims to honour in all aspects of its business conduct. C-
LIFE: The Core Values of Infosys are: Customer
Delight, Lead by Example, Integrity and Transparency,
Fairness, and Excellence (www.Infosys.com)
CSR at Infosys Technologies Ltd
Infosys Foundation, the philanthropic arm of Infosys
Technologies Ltd. came into existence on 4th December
1996 with the objective of fulfilling the social
responsibility of the company by supporting and
encouraging the underprivileged sections of society
(www.IndianNGOs.com). N. R. Narayana Murthy
(Chairman and Chief Mentor, Infosys) defines Infosys
Foundation as “For benefits of globalization and
technology to reach the poor, the private sector,
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philanthropic institutions and committed individuals
should co-operate and establish partnerships with the
government institutions. This would lift millions of our
people out of poverty, provide them with opportunities
and make them participate in the process and progress of
globalization.” Promoted by Infosys Technologies Ltd.,
the Foundation began its work in Karnataka, India,
gradually extending its activities to the states of Tamil
Nadu, Andhra Pradesh, Maharashtra, Orissa and Punjab.
The Foundation supports the programmes and
organizations devoted to the cause of the destitute, the
rural poor, the mentally challenged and the economically
disadvantaged sections of the society. The Foundation
also helps in preserving certain cultural forms and dying
arts of India. The foundation got the prestigious ET
Corporate Citizens Award (2000-2001)
(www.karnataka.com/ngos/infosys). The grants made by
Infosys to the Foundation for the last three years are
shown in the table 1.
Table 1: Grants to the Foundation
Year Grants (Rs. in Crores)
2008 20.00
2007 19.00
2006 13.25
Source: Annual Report ‘Infosys Technologies Ltd.’,
2007-08
Various CSR dimensions, viz., Community Involvement,
Human Resource Development, Environmental
Contribution, Product Contribution and Customers’
Relations, Rural Development, and Shareholders’
Relations have been considered in order to observe the
initiatives of Infosys Technologies Ltd. in CSR. These
dimensions have been considered in the various studies
conducted in past (e.g. Krishna, 1992; Brown, 2001;
Confederation of Indian Industry, 2002; Centre for
Corporate Research and Training, 2003) for examining
the CSR involvement of companies operating in India.
In addition to the above mentioned dimensions, Infosys’
adherence to UN Global Compact Programme has also
been observed.
The dimensions of CSR and Infosys’s initiatives (i.e.
details of CSR activities under different CSR
dimensions undertaken by the company) during 2006-07
to 2007-08 are shown in the table 2 and are explained as
follows:
Community Involvement Education
“Basic education links the children, whether of the cities
or villages, to all that is best and lasting in India”,
said Mahatma Gandhi (www.karmayog.org/
csr500companies). The following steps have been taken
by Infosys Foundation in this field:
• Constructed and donated to the school buildings
for poor and orphaned students in Orissa, Tamil Nadu,
Pondicherry, Kerala and Karnataka.
• Constructed class rooms at the Wayanad Girijan
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Seva Trust which works for Girijan students in Kerala.
• Donated books on the topics such as
engineering, medicine, mathematics, science, history,
economics, etc. to the book banks in Karnataka. These
‘book banks’ are tremendously useful for the poor
students who use these books for reference.
• Through company’s Computers@Classrooms
initiative launched in January 1999, the company
donated 2,567 computers to various institutions across
India.
• Sponsored ‘Vijanana Sammelana’ at Shimoga,
Karnataka to impart knowledge of science to students
and teachers.
• Donated computers and laptops to Gulbarga
University, Athani University, Mangalore University and
to the All India Vayu Sainik Camp in Bangalore.
• Launched OASIS, a training program for
students
in government schools.
• Collaborated with Ichalkaranji Seva Bharathi,
Mumbai; Vidya Prasarak Mandal, Lucknow;
Yogakshema, Hyderabad Karnataka Sikshana Samithi,
Kota Vidya Samste and Arunachal Pradesh Vidya
Kendra to provide education for underprivileged
children.
• Worked with the Karavir Nagar Vachan Mandir
in Kolhapur, Maharashtra to convert the library into an
e-library and then connected it to other libraries around
the world.
Healthcare
Making high-quality healthcare the norm is an ongoing
challenge (www.karmayog.org/csr500companies). The
Foundation has undertaken the following CSR actions in
this area.
Table 2: Dimensions of CSR and Infosys’s Initiatives
CSR Dimension Infosys’s Initiatives
Community This shows the responsibility of
Involvement business towards society in terms of
spending a part of its profits towards
civic and educational facilities (Joshi
and Kapoor, 2004).
Infosys is performing its responsibility
towards community by being engaged
in providing educational facilities,
healthcare facilities and contributing
towards art and culture.
Human The business enterprises are under
Resource moral threats to satisfy the needs and
Development aspirations of the workers engaged by
them and this is very important since
in the present era of socio-economic
set up, the employees cannot be
treated as the mere means to certain
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ends (Sarkar, 2005).
Infosys is engaged in its human
resource development by being
engaged in providing health and
safety measures for its employees,
providing retirement fund benefit
plans, spending for their welfare,
undertaking training programmes,
profit-sharing programmes for
employees etc.
Environmental Reducing the consumption of
Contribution resources or reducing polluting
emissions can reduce environmental
impact (European Communities,
2001) which is one of the major
responsibilities of an enterprise.
Infosys is contributing towards
environment in terms of using
recycled products, conservation of
energy, waste management etc.
Product Business must satisfy customers’ key
Contribution buying criteria-such as product price,
and Customers’quality, appearance, taste, availability,
Relations Safety and convenience (Centre for
Corporate Research & Training,
2003). Infosys is providing better
services to its customers by providing
and by investing in R&D for quality
services.
Shareholders’ Shareholders put their capital in
Relations business and therefore, the companies
should be managed in their interest. In
other words, the primacy of treatment
given to the shareholders is being
justified on the grounds of ownership
and shareholding (Centre for
Corporate Research & Training,
2003).
Infosys, having investor grievance
committee gives due consideration to
the interest/complaints of the
shareholders.
Rural Rural development implies both the
Development economic betterment of people as well
as greater social transformation of the
people living in rural areas
(www.rural.nic. in).
Infosys is contributing towards rural
development in terms of education to
the rural poor, helping the under-
privileged women, helping the self
help women groups and donating to
floods victims living in rural areas.
• Donated ‘Radiant Warmer with Electrical Slow
Suction and Apgar Timer’ to Sargur
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Hospital, H.D. Kote, where tribal patients are
treated free of cost.
• Supplied free medicines for diabetic children
through Jnanasanjeevini, Bangalore.
• Donated medical equipment, chairs, and an x-ray
unit to Northern Bihar Hospital, Bangalore
Hospital and Jammu Hospital, where poor
patients receive treatment free of cost.
• Donated medical equipments to Pavagada Eye
Hospital, Karnataka and Kakinada Eye Hospital,
Andhra Pradesh.
• Constructed an advanced Pediatric Block for
Wenlock Hospital, Mangalore.
• Paid Rs. 3 crore to buy ‘Linear Accelerator’ for
Chennai Cancer Insitute, Chennai.
• Donated Computed Tomography (CT) scan
machine to Government Hospital,
Bhubaneswar.
The firm is also helping poor patients through Little
Drops Public Charitable Trust, Chennai and
Ramakrishna Sarada Mission Matri Bhavan, Kolkata.
Arts and Culture
Traditional art and culture are fast disappearing due to
globalization and economic development. Preserving
India’s rich heritage and honoring its artisans are some
of the ways Infosys Foundation contributes to this space.
In specific, the following actions have been undertaken
by Infosys Foundation to promote Art and Culture of the
country:
• Sponsored Kala Darshan, a musical program in
rural areas, through Bhartiya Vidya Bhavan.
• Sponsored a folk fest in Bangalore to provide
direct market opportunities for rural artisan
communities and promote culture. Approximately
100 craftsmen from 20 states participated in the
fest.
• Sponsored more than 5,000 students, through
NGOs like Prerna and Vidya Poshak, for the
study and documentation of Karana Viniyoga, to
preserve and encourage the art. Karana is a dance
form defined and described in great detail by
sage Bharatha in his work Natyashastra.
• Supported the Bhandarkar Oriental Research
Institute in researching ancient Indian
manuscripts.
• Sponsored Uppina Kudru Kamath Memorial
Yakshagana Gombeyatta puppet shows in
Karnataka to preserve the art of puppetry.
Besides, the above mentioned activities, the firm
felicitates physically challenged musicians, artists and
Yakshagana artists from rural areas.
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Human Resource Development
Employees’ Health and Safety
A good and healthy human resource is the gateway of
success and the harbinger of progress of any
organization as cock is to the dawn (Sarkar, 2005).
The firm is also engaged in creating and implementing a
health and safety management system, and monitoring
the performance regularly. The Occupational Health and
Safety Assessment sequence 18001 (OHSAS 18001)
specifications ensure that all objectives and targets are
measured. During the year 2008, the company
introduced Health Assessment and Lifestyle Enrichment
(HALE) Plan which focuses on increasing the emotional
value- add of the employees, by optimizing their health,
quality of life and work environment. The goal is to
ensure healthy and happy employees who will be
more productive in the long term and will add to the
competitive edge in the business. The HALE Health
Week, comprising yearly master health check- ups and
focused health and stress campaigns, was conducted in
the campuses during March 2008. Over 6,000
employees underwent medical check-ups and specialists’
consultations. Approximately, 10,000 employees used
the online interventions related to the Health Week
which included an online health hunt, a health quiz and
specialist doctors’ discussions on Infy TV. Workshops
and discussion by experts on first aid and trauma
handling helped the employees in case of emergencies.
Over 12,000 employees were benefited by these
workshops (Annual Report ‘Infosys Technologies Ltd.’,
2007-08).
Welfare
In 1994, the company issued 7,50,000 warrants to
the Infosys Technologies Limited Employees Welfare
Trust (the Trust), for the benefit of the employees, by
creating a stock option plan, namely, the 1994
Employees Stock Offer Plan. The Trust has successfully
completed the administration of the 1994 Stock Offer
Plan, which expired in September 2004. As of date, the
Trust has in its ownership, 28,33,600 shares which are
unutilized. These shares have been irrevocably granted
to the Trust and are to be used for the benefit and
welfare of the employees (Annual Report ‘Infosys
Technologies Ltd.’, 2006-07). Staff welfare expenditure
was Rs. 52 crores in 2008 as compared to 44 crores in
2007.
Retirement benefits to employees
• Gratuity
Infosys provides for gratuity, a defined benefit
retirement plan the ‘Gratuity Plan’ covering eligible
employees. In accordance with the Payment of Gratuity
Act, 1972, the Gratuity Plan provides a lump sum
payment to vested employees at retirement, death,
incapacitation or termination of employment of an
amount based on the respective employee’s salary and
the tenure of employment.
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• Provident fund
Eligible employees receive benefits from a provident
fund, which is a defined contribution plan. Aggregate
contributions along with interest thereon are paid at
retirement, death, incapacitation or termination of
employment. Both the employee and the Company
make monthly contributions to the Infosys Technologies
Limited Employee’s Provident Fund Trust that is equal
to a specified percentage of the covered employee’s
salary. Infosys also contributes to a government
administered pension fund on the behalf of its
employees.
Training and awareness
The training needs of all employees are identified and
relevant training is provided accordingly. While
identifying the training needs, the role of the department
(e.g. production) and the impact of its activities on the
Health, Safety and Environment (HSE) system of the
campus are considered. E-module training is provided to
help reach out to the ever-growing employees located
across geographies. The e-learning module on
environment management system (EMS) has been
organized to include content on the standards and
specific initiatives at Infosys in managing the
environment. Modules relevant to occupational health
and safety are also included. The objective tests at the
end of each module are designed to capture the
knowledge gain of the learner. For the second
consecutive year in 2007, the company won the BEST
award from the American Society for Training and
Development (ASTD) (Annual Report ‘Infosys
Technologies Ltd.’, 2007-08).
Environmental Contribution
The development centers of Infosys were certified ISO
14001:1996 compliant in March 2004. Since then, each
location has been subject to surveillance audits every
year on a rotational basis.
Recycling
The company’s employees are encouraged to use best
practices like double side printing, smaller fonts etc. to
reduce utilization of paper as much as possible. Usage of
copier machines is normally discouraged. Most
development centers work with paper recyclers to
recycle waste paper. Notepads made from such recycled
paper are used for office stationery. The usage of plastic
and thermocol has been reduced by 90% in the
campuses. In order to be water positive, the company
has created sleeve wells and bunds to trap storm water
and charge the water table. The per capita consumption
of water at 2.9 KL per month reduced by 5% in 2008 as
compared to the previous year i.e. 2007. 100% of water
is recycled and reused. The company is planning to
introduce initiatives to reduce water consumption in the
near future. The consumption of paper has been reduced
by 8% and the company is planning to reduce it by 25%.
Rainwater harvesting is a vital part in the design of the
new campuses.
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Conservation of Energy
Though the company’s operations are not energy-
intensive, however, significant measures are taken to
reduce energy consumption by using energy-efficient
computers and by purchasing energy-efficient
equipment. Currently, the company uses Compact
Fluorescent Light (CFL) fixtures and electronic ballast
to reduce the power consumption in the illumination
system. A building automation system is in place to
control the working of air conditioners and to make
them more energy-efficient by installing ‘Variable
Frequency Drives.’ Centralized Air conditioners with
energy-efficient Centrifugal Variable Speed Drive
(VSD) System & Screw compressors are installed. In
addition, air-conditioning with Variable Refrigerant
Volume (VRV) system and split air conditioners with
scroll compressors are used for independent cooling. In
the company’s staff hotels, solar water heating system is
used for water heating.
Waste Management
There is a system for segregation of waste at source.
Every development center has a dedicated waste
segregation and processing yard. Solid waste
management at Infosys is based on the triple R (Reduce,
Reuse and Recycle) principle. Plastic is used judiciously.
Food vendors at Infosys are urged not to use disposable
plastic. Suppliers are encouraged to take back package
material. Of the inevitable waste that is generated,
innovative ways and means to reuse are explored. Wood
waste for instance is used in carpentry. Paper printed on
one side is stapled together and used as scribbling pads.
Paper, plastic, bottles and steel scrap is sent to the
approved recyclers. Hazardous waste is restricted to
used batteries and used oil. Used batteries are returned
to suppliers in accordance with ‘The Pollution Control
Board’ (PCB) norms. Used oil is also sent to the
approved oil recyclers. E-waste is handled as per the
norms laid out by the PCB. At present, the legislation
applicable to hazardous waste management applies to e-
waste as well. Disposal of waste is done as per these
norms. Biomedical waste generated from the medical
centers on campus are segregated at the center and then
sent to the approved agencies for incineration. Food
waste is sent to nearby piggeries and vermi-compost pits
(Annual Report ‘Infosys Technologies Ltd.’, 2006-07).
Product Contribution and Customers’ Relations
The company is investing in Research and development
of new services, designs, frameworks, processes and
methodologies. The Intellectual Property (IP) created
has led to enhanced quality, productivity and customer
satisfaction. The company has received the
certifications, namely, SEI-CMMI Level 5, CMM Level
5, PCMM Level 5, TL 9000 and ISO 9001-2000.
Rural Development
Rural Reach Programme
• The Rural Reach Program is a one-day program
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delivering basic knowledge of computers to the students
of classes 5, 6 and 7 in rural schools. In 2007, about
7,742 students from 56 schools across India benefited
from the program.
• Conducted relief work for the flood victims in
Kerala and Orissa.
• Donated teaching aids and an uninterrupted
power supply unit for the visually challenged in
Snehankit Association, Pune. Helped self help women
groups in Gujarat. Donated a vehicle to Akshaya Patra
Foundation that helps to supply food to various schools
in Bangalore and a vehicle to Sri Kottal Basweshware
Bharatiya Shikshana Samiti, which helps to travel to
rural areas.
• Sponsored the construction of a suspension foot
bridge in Mundaje in Mangalore, Karnataka.
The firm is presently working with Kalika India, a trust
in rural Bangalore that works with underprivileged
women and children, providing education and aiding
economic development. It is engaged in helping under-
privileged women, through RAPID, an organization in
rural Karnataka that works in the rehabilitation of such
groups, renovated Chitra Poor Home, an orphanage in
Thiruvananthapuram, donated sewing machines to
destitute women in Haliyala and Athani, and enabling
their financial security. Helping the children in Deena
Bandhu, an orphanage in Chamrajanagar with the mid-
day meal program.
Shareholders’ Relations
The company has set up investor grievance committee to
examine and redress shareholders’ and investors’
complaints. Investors’ grievances like non-receipt of
dividend warrants/ bonus shares are settled within a
period of 10 days.
Infosys and UN Global Compact Programme
On August 27, 2001, the company adopted UN Global
Compact Programme and became a partner with the UN
in this initiative. The company adheres to the principles
of the UN Global Compact Programme (Sustainability
Report ‘Infosys Technologies Ltd.’, 2007-08). These ten
principles under four categories are:
Human Rights
• Support and respect the protection
internationally proclaimed human rights.
• Make sure they are not complicit in human
rights abuses.
Labour
• Uphold the freedom of Association and the
effective recognition of the right tocollective bargaining.
• Ensure the elimination of all forms of force and
compulsory labour.
• Ensure the effective abolition of child labour.
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• Eliminate discrimination in respect of
employment and occupation.
Environment
• Support a precautionary approach to
environmental challenges.
• Undertake initiatives to promote greater
environmental responsibility.
• Encourage the development and diffusion of
environment-friendly technologies.
Anti-Corruption
• Business should work against all forms of
corruption including extortion and bribery (www.
unglobalcompact.org).
Global Compact Programmes undertaken by Infosys are
shown in the Table 3.
During the President’s (Smt. Pratibha Devisingh Patil)
visit in Infosys headquarters, she gave the statement,
“Infosys is a leader in its field. Its principles of ethics
and social responsibility contribute to the growth of the
country’s economy and society” (http://news.gol.
com/News).
CSR: Need of the Hour in Times of Recession
There is now widespread acceptance of the fact that
improper regulation (e.g. failure of international banking
system) along with widespread un-ethical
Table 3: Infosys’s Global Compact Programmes
Field Programme Undertaken
Human The company provides training to the
Rights employees, suppliers and vendors on
human rights.
Labour The company doesn’t employ child labour
or forced labour and have enforced this
policy on all the company’s
suppliers/vendor partners who operate out
of all company’s campuses. The company
has built a robust survey mechanism to
capture employee satisfaction feedback.
To encourage a healthy lifestyle, the
company has built facilities such as
gymnasium, swimming pools and sports
of complexes in the company’s development
centers. The company has set up
occupational health and safety committee
at each development center.
Environmen All the company’s development centers in
t India are ISO 14001:2004 certified. The
company’s existing environmental
initiatives are being streamlined into six
focus areas; energy, water, biodiversity,
waste management, paper and emissions.
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Anti The company operates across geographies
Corruption and encourages the employees to report
on corrupt practices or unethical
behaviour under the whistleblower policy.
The company has established control
systems for complying with local laws on
corruption in the geographies the
company operates.
behaviour (e.g. corporate misgovernance in Satyam
Computer Services Ltd.) in the corporate sector has been
the main reason of current deadlock. In present scenario
where deviant corporate behaviour is highlighted
immediately and information about it is spread through
the instant communication channels, the misbehaviour
by corporates cannot be excused (Pachauri, 2009). The
time has come for corporate organizations to realise the
importance of in-depth scrutiny of all their actions by
civil society and their own interest in implementing a
genuine programme of corporate social responsibility.
Though the current economic downturn will surely raise
concerns around the budget for CSR activities and the
extent to which companies will tend to invest in CSR
activities yet investment in CSR activities is for the own
benefit of the companies. Like the employees are
attracted to stay with socially responsible companies and
want to see commitment to corporate social initiatives
continue through tough times. Moreover, the consumers
are willing to pay price premiums for products and
services marketed by companies with proven and
sustained track record of doing good
(http://blogs.hbr.org). In other words, CSR involvement
enables the companies in gaining the trust of people in
long run. Therefore, the right approach is to come up
with more creative ways to implement cost-effective
CSR activities rather than pulling back. In this present
scenario of economic downturn, the companies
(irrespective of their size) recognize and are performing
their social responsibility. Like, Nokia Malaysia’s
‘Integrated Nokia Kiosk’ (INK) is first of its kind kiosk
which provides customer a really a simple way to
recycle their old mobile phones and accessories. As an
added incentive for recycling for each mobile phone
dropped off, the customer will have a tree planted in his
of her name via the Nokia New Trees Programme. For
this initiative, INK snagged the inaugural ‘Green Mobile
Award’ at the GSM Association’s (GSMA) Asia Mobile
Awards 2008 held. This award is the recognition of
Nokia’s ongoing commitment to the environment
(http://pressbulletinboard.nokia. com). Likewise, Exide
Industries as a part of its CSR programme, joined
hands with ‘United Nations International Children
Emergency Fund’ (UNICEF) to support them in their
‘Child Environment Programme’ that involves creating
better environmental conditions for underprivileged
children. The support to UNICEF from Exide is linked
to the number of used batteries that Exide return from its
existing customers. For every returned battery, a
particular sum of money would go to customers as well
as to UNICEF which provides incentive to the
company’s customers to return their used batteries to
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105
Exide Industries (www. exideindustries.com). Similarly,
Hindustan Lever Ltd. (HLL) through its Surf Excel
brand came out with campaign of education to poor
children (http://living. oneindia.in). Likewise, IDEA
Cellular Ltd. on 26th Nov. 2009 (on the first anniversary
of the first terror bullet which ruined calm in Mumbai on
26th Nov. 2008) initiated the movement titled the ‘Talk
for India Hour’. Approximately 5.5 crore Idea
subscribers were made aware, that for every call they
made between
8.36 p.m. and 9.36 p.m. that evening, the net revenue
generated would be handed over by Idea Cellular to the
cause of protective gear for police personnel. At its
result, approximately Rs. 1.25 crore was generated as
revenue from subscriber calls. Idea Cellular doubled the
amount, and contributed a total sum of Rs. 2.50 crores
for Prime Minister’s National Defence Fund
(www.indiaprline.com). Hence, even in times of
recession, smart companies are undertaking corporate
social activities in one form or another.
Conclusion
CSR, now a days has moved beyond indulgence in
pure philanthropy. CSR activities vary-ranging from
donation to charitable institutions, providing educational
and health facilities, contributing towards environment,
serving the customers in the best way, women
empowerment, rural development and many more.
Companies do such activities as internal projects or in
association with some government bodies or NGOs. A
number of companies in India are engaged in and are
demonstrating their CSR initiatives. In a survey
conducted by Centre for Social Markets in 2001, the
respondents mentioned the name of certain Indian and
International companies as their role models in CSR
sector. Birla Group of Companies, BSES, DSP Merril
Lynch, Hindustan Lever, Infosys, ITC, Larsen and
Toubro, Mahindra BT, Mitsui, Reliance as Indian role
models and IBM, EDS, Goodyear and Conagra Inc. in
U.S.A. as international role models (Brown, 2001). The
companies, by being engaged in CSR activities gain
immeasurable public image. On the other hand, there
have been in recent times many examples of well
established and successful organizations losing their
public trust and market strength on account of
carelessness of social norms. Nike has suffered huge
damages to its image by being associated with
oppressive labour practices. In contrast Avon gains
amazing and free publicity through its cancer awareness
activities (Ping, 2002). Through the analysis of CSR
initiatives of Infosys Technologies Ltd., the present
study reveals that the company is actively engaged in
different areas of social responsibility. Infosys
Technologies, through Infosys Foundation is
contributing towards the improvement of health,
education, rural development and art and culture. The
company is also performing its responsibility towards its
shareholders and customers. In addition to this, the
company is also adhering to the principles of UN Global
Compact Programme. The study makes it clear that in
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 International Journal of Research and Development - A Management Review (IJRDMR)
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the period of recession, most of the companies are still
going for corporate social initiatives as goodwill and
transparency are crucial for a company to keep
blooming especially in the times of economic downturn
(Datta, 2009). Therefore, the companies irrespective of
their size (large, medium or small enterprises) should try
to get advantage from CSR activities rather than
focusing on immediate cost cutting or forgoing their
responsibility towards the society at large.
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Reports and Web Links
1. Annual Report ‘Infosys Technologies Ltd.’,
2006-07 Annual Report ‘Infosys Technologies
Ltd.’, 2007-08 Annual Report ‘Infosys
Technologies Ltd.’, 2008-09
2. Sustainability Report ‘Infosys Technologies
Ltd.’, 2007-08
3. http://blogs.hbr.org http://living.oneindia.in
4. http://news.gol.com/News
http://pressbulletinboard.nokia.com
www.exideindustries.com
www.indiaprline.com www.IndianNGOs.com
www.infosys.com
www.karmayog.org/csr500companies
www.karnataka.com/ngos/infosys
www.rural.nic.in www.unglobalcompact.org