MBA- Business and Sustainability, 2nd Semester .

Paper: Corporate Social Responsibility (CSR)

Time : 2 hours Total marks: 50
• There are five questions. Each question carries 10 marks. Be specific to
answers and provide diagrams wherever possible. For each answer, 2 pages
have been provided. If needed, extra page can be utilized. All questions are
mandatory.
All the best.

Q1: Explain the concept “Plan- Do- Check and Improve” (PDCI) implementation
model in context to CSR implementation. Elaborate the concept by citing example of
a company.

ANS.

PDCA / PDCI is an iterative, four-stage approach for continually improving processes, products or
services, and for resolving problems. It involves systematically testing possible solutions, assessing
the results, and implementing the ones that are shown to work.
We would take HCL foundation’s project The Gurukul Project (by HCL Samuday) as ana example to
explain how the project was implemented in the four phases of the PDCI model-

1. PLAN

This is the stage where-in you identify the problem area that your project is focusing on and
lay out all the necessary information involved in the project such as the location of the
project, budget allocation, people who would be working directly and indirectly on this
project. One of the most important aspects of this stage is setting up of a timeline and
formulating the strategies that would help in completion of the project within the stipulated
time period.

The Gurukul Project:

The first step is to kick start the project is to actually find problem areas. Lack of proper
infrastructure at these rural schools is a big concern. Most of the schools don’t have proper
classrooms, teaching equipment, playgrounds and even basic facilities like clean toilets. Thus,
the poor condition of schools is a big reason to drive away students resulting in low attendance of

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 students and high dropout rates. It is important that education become a source of holistic
development for the child. This is possible with the help of good quality teachers and a good
curriculum which is often seen to be lacking in rural areas. To understand the problems and
context of the situation, a survey in the form of an interview should be conducted with all the
stakeholders (school staff, parents, gram panchayat, students). A timeline for the activities
would be formulated with reference to the baseline and need assessment report that was
submitted by the John Hopkins University. Gantt Chart can be used to make a detailed and
clear plan. The first 3-4 months goes into understanding the situation, collaborating with the
state and central government. It is in the month of April 2015, when the project was finally
kicked off. Over the next three years of the project, it would cater to 387 schools located in
Hardoi, Uttar Pradesh. A detailed budget was laid down. It is important that the project is in
alignment with the goals of the organization. Understand the outcomes expected out of the
project. Set realistic targets that need to be achieved. A strong and realistic strategy can take the
project a long way. In a survey by Economist Intelligent Unit, 88% executives said that executing
strategic initiatives successful would be essential to the organizations competitiveness.

2. DO

This is the implementation stage. This step requires the execution of the plan that was
formulated over the last few months. The operations team is crucial to this stage in order to
facilitate a smooth functioning of the project.

The Gurukul Project:

HCL Samuday was successful in tapping into all the 387 schools. The project over time extended to
cater to another 400 schools in rural areas. With the help of this project, HCL has been able to
provide good infrastructure to the schools, promoted sports, provided for scholarship programmes
and organised competitions. This is very crucial for the project because this is where your vision and
your goal are coming into action. HCL’s goal to bring out a healthier education system for rural kids
becomes a reality in this phase.

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 3. CHECK

Once you have completed your action period, it’s time to review and analyse the results. This
stage is important because it allows you to evaluate your solution and revise your plans as
necessary. Did the plan actually work? If so, were there any hiccups in the process? What
steps could be improved or need to be eliminated from future iterations? Your evaluation at
this stage will guide your decisions in the next step, so it is important to consider your
results carefully.

The Gurukul Project:

•List down the following Key Performance Indicators in order to keep a track on the progress of your
activities
I. Quality deliverables (to see if tasks are being completed to the right level of quality)
II. Effort and cost tracking (to see if the project stays on the expected deadline and budget)
III. Project performance (tracking how many problems have occurred and how quickly they are
dealt with)
• This process requires a you to do a comparative study of your goals and objectives with your
current success and failures in order to rectify them.
• The project manager monitors the activities that are done on the ground. This could be through
continuous evaluations of the students and teachers.

4. IMRPOVE

At this stage, you try to understand the flaws in your project. Using a SWOT analysis will
help you highlight the key areas that you now need to look at. A SWOT analysis really helps
one to understand the projects current standing and throws light on the areas of
improvement.

5. COMMUNICATION

• The traditional PDCA model doesn’t talk about communication. But communication is one of
the main components that would lead to the success of a project.
• There must be status updates and a quick response to issues and risks as they arise in the
project. The use of project management tools will help with this. One can set up reminders,

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 triggers, automations, workflow, alerts and all manner of automated tools to help keep on top
of the project and not lag behind, which will take you off-track.
• A proper feedback mechanism should be available. A two way communication system needs
to be established. PMI suggests that a manager should spend 90% of their time in
communicating.
• Facilitating a student, teacher and parent feedback mechanism is a must.

Feedback: The answer has covered all the required areas.

Marks: 9/10

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Q2. What is the need of CSR policy for a company post Companies Act 2013? How
does CSR policy help to achieve CSR goals? Explain by providing example of HCL/
GAIL/CIL case example. Take any one company to elaborate the answer.

ANS.

The CSR policy document becomes a very important document as it helps the company to align its
CSR objectives with its vision and mission and lays down the basic principle of its CSR activities. It
helps the company to stay on track with the company’s ideology in the coming years.

This Policy shall be read in line with Section 135 of the Companies Act 2013, Companies (Corporate
Social Responsibility Policy) Rules, 2014 and such other rules, regulations, circulars, and
notifications (collectively referred hereinafter as ̳Regulations‘) as may be applicable and as amended
from time to time and will, inter-alia, provide for the following:
• Establishing a guideline for compliance with the provisions of Regulations to dedicate a percentage
of Company‘s profits for social projects.
• Ensuring the implementation of CSR initiatives in letter and spirit through appropriate
procedures and reporting
• Creating opportunities for employees to participate in socially responsible initiatives.

The Board of Directors on its own and/or on the recommendation of CSR committee can amend its
policy as and when required deemed fit. Any or all provisions of CSR Policy would be subjected to
revision/amendment in accordance with the regulations on the subject as may be issued from
relevant statutory authorities, from time to time.

HCL FOUNDATION:
The objective of the Corporate Social Responsibility (CSR) policy (“Policy”) of HCL Technologies
Limited (“HCLT” or “Company”) is to lay down guidelines for proper execution of CSR activities of
the Company so as to support the sustainable development of the society.

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The Policy document also talks about the focus areas of the CSR Activities and the expenditure in
totality.
HCL also mentions how any surplus that may arise out of the approved CSR activities, projects and
programmes that are carried out shall not form part of the business profits of the Company and such
surplus shall be dealt with in the manner deemed appropriate by the CSR Committee.
The document also lays down the options available for HCL companies to implement their CSR
activities such as-
a) By the Company directly;
b) Through HCL Technologies Foundation, a Trust that has been established by the Company;
and/or
c) Through any other registered trust / any registered society / any other company that is qualified to
undertake CSR activities in terms of the provisions of the Companies Act, 2013.

Feedback: Answer has covered all the points though the HCL Foundation example
could have been substantiated.
Marks: 9/10

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Q3. Elaborate through the Tata case study, how it has been able to address the
Triple P’’s (People, Planet and Profit) in its CSR actions.

ANS.

Tata’s believe that “In a free enterprise, the community is not just another stakeholder in business
but is in fact the very purpose of its existence." Corporate Social Responsibility has always been
taken care of by the Tata group. The founder Mr. Jamshedji Tata used to grant scholarships for
further studies abroad in 1892 . He also supported Gandhiji‘s campaign for racial equality in South
Africa . Tata group has given country its first science center and atomic research center . "The
wealth gathered by Jamsetji Tata and his sons in half a century of industrial pioneering formed but
a minute fraction of the amount by which they enriched the nation.

1. Developing the rural and backward section of India (PEOPLE):

When TATA takes up initiatives to develop the rural India, it not only helps bring prosperity
and development to such areas, but in the long run creates societies that are well educated
and employed. This helps creating a better youth for the nation and thus a much prosper
future.

• Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural
Development (TCSRD) in 1980 to promote its social objectives for the communities in
and around Mithapur, where its facility is located. This service was further extended
to the communities in and around its Babrala and Haldia facilities.
• Over 500 self-help groups are currently operating under various poverty alleviation
programs; out of which over 200 are engaged in activities of income generation
thorough micro enterprises. Women empowerment programs through Self-Help
Groups have been extended to 700 villages. From the year 2003 to 2006, the
maternal and infant survival project had a coverage area of 42 villages in Gamharia
block in Seraikela Kharsawa and a replication project was taken up in Rajnagar
block. For providing portable water to rural communities 2,600 tube wells have been
installed for the benefit of over four Lakh people.

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 • Tata motors has introduced many scholarship programs for the higher education of
the children. Through a scholarship program Vidyadhanam, the company supports
211 students. Out of these students 132 students are from the marginalized sections
of the society. These students get books, copies and other study materials. They also
undergo different kinds of workshops, creative & outdoor sessions and residential
camps as well.

2. Looking after the environment (PLANT):

When TATA takes up initiatives to better the environment, it is also helping out in creating
a longer span of life, not only for the society but for itself to exist in. The repercussion of
climate change and loss of environment not only affects indiviuals but also affects the way
businesses function.

• Tata Motors is the first Indian Company to introduce vehicles with Euro norms. Tata Motors'
joint venture with Cummins Engine Company, USA, in 1992, was a major effort to introduce
emission control technology in India. To make environment friendly engines it has taken the
help of world-renowned engine consultants like Ricardo and AVL. It has manufactured CNG
version of buses and also launched a CNG version of its passenger car, the Indica. Over the
years, Tata Motors has also made investments in the establishment of an advanced emission-
testing laboratory.
• Tata Motors has planted 80,000 trees in the works and the township and more than 2.4
million trees have been planted in Jamshedpur region. Over half a million trees have been
planted in the Poona region. The company has directed all its suppliers to package their
products in alternate material instead of wood. In Pune, the treated water is conserved in
lakes attracting various species of birds from around the world.

3. Achieving Profits (POFIT)

TATAs have built themselves a reputation to be the pioneers of philanthrops in India. Year
on year, they have known to be generous and contributed to the development of the nation.
This has created a very positive brand image for TATA, and thus people don’t have to think
twice before dealing with TATA or purchasing their products or services. This brand image
has helped in bringing in more and more business for the company.

Approximately two third of the equity of the parent firm, Tata Sons Ltd., is held by
philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata,

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 the founder of todays Tata empire in the 1860s. Through these trusts, Tata Sons Ltd.
utilizes on average between 8 to 14 percent of its net profit every year for various social
causes. Even when economic conditions were adverse, as in the late 1990s, the financial
commitment of the group towards social activities kept on increasing, from Rs 670 million in
1997-98 to Rs 1.36 billion in 1999-2000. In the fiscal year 2004 Tata Steel alone spent Rs 45
crore on social services.

Feedback: Answer has covered the required points

Marks : 9/10

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Q4. Briefly highlight 3 CSR models addressing social development. How the Carol
model is relevant to present CSR as part of Companies Act 2013.

ANS.

3 models addressing social development:

1. Carroll’s Model
2. Halal’s model
3. Ackerman’s model

CAROLS MODEL:

Carroll’s four part definition of CSR was originally stated as follows: “Corporate social responsibility
encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society
has of organizations at a given point in time.” This set of four responsibilities creates a foundation or
infrastructure that helps to delineate in some detail and to frame or characterize the nature of
businesses’ responsibilities to the society of which it is a part.

The key features of Carroll's CSR Pyramid are that:

• CSR is built on the foundation of profit – profit must come first
• Then comes the need for a business to ensure it complies with all laws & regulations
• Before a business considers its philanthropic options, it also needs to meet its ethical duties

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 1. ECONOMIC: Carroll’s model talks about how a business can only be philanthropic if it
achieves profits. Thus the act has mandated a total of 2 percent of the company’s profit to go
into this cause. As per the Companies Act, 2013 and the clause for companies meeting the criteria of
net worth of `500 crore or more, or net turnover of `1000 crore or more, or net profit of `5 crore or
more in any financial year shall have to constitute a corporate social responsibility committee having
3 or more directors, with at least 1 being an independent director.
2. LEGAL: As the Companys Act of 2013 has mandated all companies with net worth of 500
crore or more to take up CSR activities, as per the Carroll’s model companies need to adhere
to such laws.
3. PHILANTROPHY : The Companies Act on CSR believes that all CSR activities should be
undertaken in such a way that it does not lead to create direct profits for the business and
thus highlighting the philanthropy part of the Carroll’s model.

Feedback: Answer has covered the points but the detailing of models could have
been done.

Marks: 8/10

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Q5.What are the various CSR impact methodologies and how it is designed. Is CSR
related to Sustainable Development? Explain through examples.

ANS.

PHASE 1: The CSR strategy is formed. The vision and mission of the company is taken in to picture
to formulate the CSR policies. You would talk about the objectives that you would like to achieve and
how would you go about it. This also talks about the scope of the project and how far along can this
project be taken to. Various strategies would be looked at, and a combination of strategies may be
used for implementation.
PHASE 2: This is the implementation phase. Consistent communication is required back and forth to
implement the strategies.
PHASE 3: This is where in you revaluate the impact created by the project. The final output can be
mapped with the expectations of the project to understand how well the project has performed.
Impact assessment can be seen through understanding the impact created on social economic and
environmental aspects. Using Key Performance Indicators would help in understanding of the same.

CSR and sustainable development go hand in hand. Sustainable development talks about holistic
development of the people and the planet. CSR activities can help in making this development
possible. CSR plays a vital role in attaining sustainable development .The Company has a social and
moral responsibility towards protecting the environment. Recently this social and moral
responsibility is been backed by rules and regulations. Many companies is focusing on environmental

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issues for their CSR activities .Sony, Panasonic and orchard hotels are focusing on issues related to
environment such as toxic gases, waste production and water contamination etc.

Activities which a company needs to include in its corporate social responsibility policies as specified
in Clause 135 are given in Schedule VII of the Act as follows:
1. Eradicating extreme hunger and poverty
2. Promotion of education
3. Promoting gender equality and empowering women
4. Ensuring environmental sustainability
5. Protection of national heritage, art, and culture
6. Measures for the benefit of armed forces veterans, war widows, and their dependents
7. Training to promote rural sports, nationally recognized sports, olympic sports
8. Rural development projects
9. Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the
central government or state governments for socio- economic development and relief and funds for
the welfare of the scheduled castes, scheduled tribes, other backward classes, minorities, and women
10. Contributions or funds provided to technology incubators located within academic
institutions which are approved by the central government
11. Urban slum development
12. Contribution to Swacch Bharat Abhiyan

The above activities would help in achieving the SDG Goals as these would help in bettering the
planet and give equal opportunities to all.

1. HCLS SUMDAYAS project of gurukul provides access to better infrastructure and better
education. This helps in achieving the SDG 4 – Quality education.

2. Tata Steel has hosted 12 Lifeline Expresses in association with the Ministry of Railways,
Impact India Foundation and the Government of Jharkhand. It has served over 50,000
people. Five thousand people have got surgical facilities and over 1,000 people received aids
and appliances. Over seven lac rural and another seven Lac urban population have been
benefited by the CSR activities of Tata Steel. This helps in achieving the SDG 3 – Good
health and wellbeing.

3. Tata Tea has been working hard since the 1980s to fulfill the needs of specially-abled people.
It has set up the Srishti Welfare Centre at Munnar, Kerala; its various programs provide

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 education, training and rehabilitation of children and young adults with special needs. This
helps in achieving the SDG 10 – Reduced Inequalities and SDG 3 – Good health and
wellbeing.

4. Tata Chemicals Limited (TCL) set up the Tata Chemicals Society for Rural Development
(TCSRD) in 1980 to promote its social objectives for the communities in and around
Mithapur, where its facility is located. This service was further extended to the communities
in and around its Babrala and Haldia facilities. This helps in achieving the SDG 11 –
sustainable cities and communities.

Feedback: Impact methodologies have not been properly provided and SDG linkage
with CSR is missing.

Marks: 7/10

Total : 42/50

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