Corporate Social Responsibility.docx

THE NATIONAL DEGREE COLLEGE, B'GUDI Page 51

A study of Corporate Social Responsibility (CSR)



THE NATIONAL DEGREE COLLEGE
(AUTONOMOUS)
BASAVANAGUDI, BANGLORE-560004

SEMINAR REPORT ON
CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL REPONSIBILTY
CORPORATE SOCIAL REPONSIBILTY






SUBMITED BY: 5TH Semester B.COM
MANU 13NCBM1080
MURALI .V 13NCBM1081
MURALI.L 13NCBM1083
NAVEENA.M.V 13NCBM1084
NIHAL.S.A 13NCBM1086

Guided By
Mr .NAGESH N.VENKAT
MBA, MCOM, NET, JRF-UGC (PH.D in Fin)
LECTURER & M.COM COORDINATOR -DEPT. OF COMMERCE

THE NATIONAL DEGREE COLLEGE
(AUTONOMOUS)
BASAVANAGUDI, BANGLORE-560004

CERTIFICATE
This is certified that the seminar on "CORPORATE SOCIAL RESPONSIBILITY" is carried out by team members Manu, Murali.V, Murali.L, Naveena.M.V, and Nihal.S.A students of "The National Degree College (Autonomous) Bangalore in partial fulfilment for award of Degree of Bachelor of Commerce in B.COM course in the college during the year 2015-2016. The seminar report has been approved as it satisfies the academic requirement in respect of project work prescribed for the said Degree.


------------------------------ ----------------------------
Signature of Guide SIGNATURE OF HOD
Mr .NAGESH N.VENKAT DEPT. OF COMMERCE
MBA, MCOM, NET, JRF-UGC (PH.D in Fin) THE NATIONAL DEGREE COLLEGE






-----------------------
SIGNATURE OF PRINCIPAL
THE NATIONAL DEGREE COLLEGE, BASAVANAGUDUI



ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task would be
Incomplete without the mention of people who made it possible, whose contact guidance and
Encourage crowned our efforts with success.
The "CORPORATE SOCIAL RESPONSIBILITY" seminar report was developed using "Microsoft word". Our tribute goes to all who helped us, with their precious comments, feedback, edits and suggestions.
Firstly, we thank The National Degree College, Basavanagudi for giving us an opportunity to carry on this seminar work in this great institution and also for his encouragement throughout tenure of this report work.
Secondly, The HOD of Department of commerce, who served us a technical editor for this seminar report, Lecture's toughness, timely assistance and advice were very helpful.
Third, we greatly convey our thanks to our Guide Mr.Nagesh N.Venkat, lecture of commerce for guiding us throughout this study and also interacting with him had a great influence on the understanding of this topic and also the final form of report.
Finally, we would like thank other faculty members, friends who has been directly or indirectly involved in our seminar.

Group Members Signatures
MANU
MURALI .V
MURALI.L
NAVEENA.M.V
NIHAL.S.A



INDEX


SL NO

CONTENT

PAGE NO

1.1
HISTORY
MEANING

5 - 7

1.2

COMPONENTS OF CSR


8 - 9

1.3


LAW AS PRE SEC 135


9 -11


1.4

INTERNATIONAL INITIATIVES FOR CSR

11


1.5

REASONS OF SUSTTAINABLITY FOR INDUSTRY ASSOCIATION IN CSR


11 - 12

1.6

THE PHASES CSR DEVELOPMENT IN INDIA

12 - 14

1.7

CURRENT STATES CSR IN INDIA

14 - 16

1.8

CASE STUDY OF CSR
INFOSYS
TATA
RELIANCE
WIPRO
STRBUCKS
DISNEY
NU SKIN
MICROSOFT
TOMS





16 - 42

1.9

CONCLUSION

43


1.1 History:

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. The fundamentals of CSR rest on the fact that not only public policy but even corporate 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.

Among other countries India has one of the oldest traditions of CSR. But CSR practices are regularly not practiced or done only in namesake especially by MNCs with no cultural and emotional attachments to India. Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of corporates has to be in line with their attitudes towards mainstream business- companies setting clear objectives, undertaking potential investments, measuring and reporting performance publicly.


Meaning:

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and national or international norms. With some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law. CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.

The term "corporate social responsibility" became popular in the 1960s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed.

Proponents argue that corporations increase long term profits by operating with a CSR perspective, while critics argue that CSR distracts from business' economic role. A 2000 study compared existing econometric studies of the relationship between social and financial performance, concluding that the contradictory results of previous studies reporting positive, negative, and neutral financial impact, were due to flawed empirical analysis and claimed when the study is properly specified, CSR has a neutral impact on financial outcomes.

Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR. Or that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.

Political sociologists became interested in CSR in the context of theories of globalization, neoliberals and late capitalism. Some sociologists viewed CSR as a form of capitalist legitimacy and in particular point out that what began as a social movement against uninhibited corporate power was transformed by corporations into a 'business model' and a 'risk management' device, often with questionable results.

The emerging concept of Corporate Social Responsibility (CSR) goes beyond charity and requires the company to act beyond its legal obligations and to integrated social, environmental and ethical concerns into company's business process.

Business has today, emerged as one of the most powerful institutions on the earth. Some of the biggest companies in the world are in fact, bigger in size than some of the developing countries of the world. Globalization makes the world smaller, and business, worldwide, is expanding like never before. Companies are expanding their operations and crossing geographical boundaries.

Indian companies too have made their way into the business boom and are today globally acknowledged as major players. India is currently amongst the fastest growing countries in the world. The globalization and liberalization of the Indian economy has helped in stepping up growth rates. Integration of the Indian with the global economy has also resulted in Indian businesses opening up to international competition and thereby increasing their operations.

In the current scheme of things, business enterprises are no longer expected to play their traditional role of mere profit making enterprises. The ever-increasing role of civil society has started to put pressure on companies to act in an economically, socially and environmentally sustainable way.

The companies are facing increased pressure for transparency and accountability, being placed on them by their employees, customers, shareholders, media and civil society. Business does not operate in isolation and there is today, an increased realization that not only can companies affect society at large, but they are also in a unique position to influence society and make positive impact.

Milton Friedman, Nobel Laureate in Economics and author of several books wrote in 1970 in the New York Times Magazine that "the social responsibility of business is to increase its profits" and "the business of business is business". This represented an extreme view that the only social responsibility a law-abiding business has is to maximize profits for the shareholders, which were considered the only stakeholders for the company. However, time has given the term 'stakeholder' wider connotations.

Edward Freeman defines, 'a stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organization's objectives.' Thus, the term stakeholder includes (apart from shareholders), but not limited to, customers, employees, suppliers, community, environment and society at large.

These and a host of other such ideas have given rise to the concept of Corporate Social Responsibility (CSR). The concept of CSR goes beyond charity or philanthropy and requires the company to act beyond its legal obligations and to integrate social, environmental and ethical concerns into its business process. Business for Social
Responsibility defines CSR as "achieving commercial success in ways that honour ethical values and respect people, communities, and the environment.

It means addressing the legal, ethical, commercial and other expectations that society has for business and making decisions that fairly balance the claims of all key stakeholders. In its simplest terms it is: "what you do, how you do it, and when and what you say." A widely quoted definition by the World Business Council for Sustainable Development states that "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".

Though, there is no universal definition of CSR but the common understanding amongst most of these definitions concern with how the profits are made and how they are used, keeping in mind the interests of all stakeholders. The concept of Corporate Social Responsibility is constantly evolving.

The emerging concept of CSR goes beyond charity and requires the company to act beyond its legal obligations and to integrate social, environmental and ethical concerns into company's business process. What is generally understood by CSR is that the business has a responsibility – towards its stakeholders and society at large – that extends beyond its legal and enforceable obligations.

The triple bottom line approach to CSR emphasizes a company's commitment to operating in an economically, socially and environmentally sustainable manner. The emerging concept of CSR advocates moving away from a 'shareholder alone' focus to a 'multi-stakeholder' focus. This would include investors, employees, business partners, customers, regulators, supply chain, local communities, the environment and society at large.


1.2 The key components of CSR would therefore include the following:

Corporate Governance: Within the ambit of corporate governance, major issues are the accountability, transparency and conduct in conformity with the laws. Good corporate governance policy would enable the company to realize its corporate objectives, protect shareholder rights, meet legal requirements and create transparency for all stakeholders.

Business Ethics: Relates to value-based and ethical business practices. 'Business ethics defines how a company integrates core values – such as honesty, trust, respect, and fairness – into its policies, practices, and decision making. Business ethics also involves a company's compliance with legal standards and adherence to internal rules and regulations.

Workplace and labour relations: Human resources are most important and critical to a company. Good CSR practices relating to workplace and labour relations can help in improving the workplace in terms of health and safety, employee relations as well as result in a healthy balance between work and non-work aspects of employees' life. It can also make it easier to recruit employees and make them stay longer, thereby reducing the costs and disruption of recruitment and retraining

Affirmative action/good practices: Equal opportunity employer, diversity of workforce that includes people with disability, people from the local community etc., gender policy, code of conduct/guidelines on prevention of sexual harassment at workplace, prevention of HIV/AIDS at workplace, employee volunteering etc. are some of the good practices which reflect CSR practices of the company.

Supply Chain: The business process of the company is not just limited to the operations internal to the company but to the entire supply chain involved in goods and services. If anyone from the supply chain neglects social, environmental, human rights or other aspects, it may reflect badly on the company and may ultimately affect business heavily. Thus, company should use its strategic position to influence the entire supply chain to positively impact the stakeholders.

Customers: The products and services of a company are ultimately aimed at the customers. The cost and quality of products may be of greatest concern to the customers but these are not the only aspects that the customers are concerned with. With increased awareness and means of communication, customer satisfaction and loyalty would depend on how the company has produced the goods and services, considering the social, environmental, supply-chain and other such aspects.

Environment: Merely meeting legal requirements in itself does not comprise CSR but it requires company to engage in such a way that goes beyond mandatory requirements and delivers environmental benefits. It would include, but not limited to, finding sustainable solutions for natural resources, reducing adverse impacts on environment, reducing environment-risky pollutants/emissions as well as producing environment-friendly goods.

Community: A major stakeholder to the business is the community in which the company operates. The involvement of a company with the community would depend upon its direct interaction with the community and assessment of issues/risks faced by those living in the company surrounding areas. This helps in delivering a community-focused CSR strategy – making positive changes to the lives of the people and improving the brand-image of the company. Involvement with the community could be both direct & indirect – through funding and other support for community projects implemented by local agencies.


1.3 Law:

Section135. Corporate Social Responsibility

(1) Every company having net worth of rupees five hundred corer or more, or
turnover of rupees one thousand corer or more or a net profit of rupees five corer or more
during any financial year shall constitute a Corporate Social Responsibility Committee of the
Board consisting of three or more directors, out of which at least one director shall be an
Independent director.

(2) The Board's report under sub-section (3) of section 134 shall disclose the
Composition of the Corporate Social Responsibility Committee.

(3) The Corporate Social Responsibility Committee shall,—

(a) Formulate and recommend to the Board, a Corporate Social Responsibility
Policy which shall indicate the activities to be undertaken by the company as
Specified in Schedule VII;
(b) Recommend the amount of expenditure to be incurred on the activities referred
to in clause (a); and
(c) Monitor the Corporate Social Responsibility Policy of the company from time
to time.

(4) The Board of every company referred to in sub-section (1) shall,—

(a) After taking into account the recommendations made by the Corporate Social
Responsibility Committee, approve the Corporate Social Responsibility Policy for the
Company and disclose contents of such Policy in its report and also place it on the
Company's website, if any, in such manner as may be prescribed; and

(b) Ensure that the activities as are included in Corporate Social Responsibility
Policy of the company is undertaken by the company.

(5) The Board of every company referred to in sub-section (1), shall ensure that the
Company spends, in every financial year, at least two per cent. of the average net profits of
the company made during the three immediately preceding financial years, in pursuance of
its Corporate Social Responsibility Policy:

Provided that the company shall give preference to the local area and areas around it
where it operates, for spending the amount earmarked for Corporate Social Responsibility
activities:

Provided further that if the company fails to spend such amount, the Board shall, in its
report made under clause (o) of sub-section (3) of section 134, specify the reasons for not
spending the amount.

Explanation.—for the purposes of this section "average net profit" shall be calculated
in accordance with the provisions of section 198.




SrNo
Income Tax Section
Tax treatment of expenditure & Quantum of deduction
1
Sec 80G
Donation directly or to registered NGO or to PM national relief fund, or for promoting family planning etc. 100% (50% in some cases) of such deduction allowed . Donation in kind is not allowed.
2
Sec 35AC
Expenditure incurred on project or scheme for promoting the social and economic welfare or upliftment of the public as approve by the national committee set up for this purpose, 100% of such expenditure is admissible. But the activity of association whom the donation made should be stated under Schedule VII of comp Act.
3
Sec 35 CCD
Expenditure on skill development project as notified by the board is eligible with weighted deduction of 1.5 times of such expenses.


Following are summary of Income Tax section as per finance act 2014:

Where a companies can claim the expenditure deduction which relate to CSR activity which mentioned under schedule VII of company act 2013.

1.4 International Initiatives for Corporate Social Responsibility


Their task is to make sure that the process of global and economic and social change is managed properly and fairly. Several guidelines or standards have been developed to serve as frameworks for CSR:

The OECD Guidelines for multinational Enterprises and the ILO - International Labour Standards form the principles for the societal responsibility of companies and will help to implement CSR on the international level.
CSR-Coverage
There is no unitary or binding international norm for CSR Coverage for companies. The Organization Ceres. Investors and Environmentalists for Sustainable Prosperity hopes for a greater engagement - as well as more transparency in reference to CSR. A Uniform reporting would besides reduce the possibility of "Green washing" – The Dark Side of Corporate Social Responsibility (CSR)


1.5 Seven reasons why sustainability programs are good for industry associations:

Help attract and retain members: Sustainability and CSR programming increases the value and relevance of the association to current and prospective members. It reduces the risk that members will have their CSR and sustainability needs met by other organizations or initiatives.
Enhance innovation in the sector: Cost-effective pre-competitive CSR and sustainability collaborations can result in industry innovation, enabling the industry to improve its collective CSR impacts while driving business and operational benefits.
Build positive government and NGO relations: Associations that increase their CSR or sustainability expertise are better positioned to contribute positively to regulatory initiatives by government and other agencies and to engage constructively with NGOs and other stakeholders. Associations with voluntary industry CSR and sustainability standards that exceed compliance requirements are able to forestall government regulation.
Help identify industry priorities: Many generic global CSR and sustainability initiatives and standards are now available, and this in turn can make priority-setting for members difficult. An industry approach can assist member companies to develop an industry-relevant model tailored to the sector's most material risks and opportunities.
Fulfil association goals: Typically association goals include assisting members to be competitive and profitable. CSR and sustainability is one tool to enhance member profitability and competitiveness.
Build industry reputation and brand: An association's CSR and sustainability program demonstrates the sector's commitment to sustainable practices and leadership. It can build positive stakeholder relationships with customers, communities, NGOs, suppliers and others. In doing so, it enhances the sector's social licence to operate and grow.
Enhance employee recruitment and retention: Associations with CSR programs are able to attract and retain the best and brightest employees who prefer to work for organizations aligned with their values.


1.6 The Four Phases of CSR Development 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 pre-industrialization 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.[citation needed]Moreover, these merchants helped the society in getting over phases of famine and epidemics by providing food from their godowns and money and thus securing an integral position in the society.[citation needed] 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.

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. "I desire to end capitalism almost, if not quite, as much as the most advanced socialist. But our methods differ. My theory of trusteeship is no make-shift, certainly no camouflage. I am confident that it will survive all other theories." This was Gandhi's words which highlights his argument towards his concept of "trusteeship". 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 (1960–80) 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. 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 were 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 until the present) 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 {Gajare, R.S. (2014). A conceptual study of CSR development in India. In D.B. Patil & D.D. Bhakkad, Redefining Management Practices and Marketing in Modern Age Dhule, India: Atharva Publications (p. 152-154).} And able to contribute towards social cause. Globalization has transformed India into an important destination in terms of production and manufacturing bases of TNCs are concerned. As 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.

1.7 Current State of 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.
In today's reputation economy, what you stand for as a corporation often matters more than what you produce or sell.
This was confirmed in June when Reputation Institute, a private global consulting firm based in New York, invited about 47,000 consumers across 15 markets to participate in a study that ranked the world's 100 most reputable companies–all multinational businesses with a global presence.
In addition to finding the companies with the best reputations, the study discovered that people's willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company, and only 40% by their perceptions of the products, says Kasper Ulf Nielsen, Reputation Institute's executive partner.
Each company earned a "RepTrak Pulse" score representing an average measure of people's feelings for it. The scores were statistically derived from four emotional indicators: trust, esteem, admiration, and good feeling. Reputation Institute then analyzed what it calls the seven dimensions of corporate reputation, including workplace, governance, citizenship, financial performance, leadership, products and services, and innovation.
Three of the seven dimensions that drive reputation (citizenship, governance, and workplace) fall into the CSR category—and analysis shows that 42% of how people feel about a company is based on their perceptions of the firm's corporate social responsibility practices.
"CSR speaks to who the company is, what it believes in and how it is doing business," Nielsen says. "Companies that are able to get recognition for the softer sides of their business are on the right path to building a sustainable business for the future."
That's why Reputation Institute decided to separately rank and honour the corporations with the best CSR.
Through an online questionnaire, consumers were asked to evaluate to what extent they agree with the following three statements: 'Company' is a good corporate citizen — it supports good causes and protects the environment; 'Company' is a responsibly-run company — it behaves ethically and is open and transparent in its business dealings; and 'Company' is an appealing place to work — it treats its employees well.
It turns out the corporation with the very best CSR is Microsoft, the Washington-based software giant.
"It's a tremendous honour and one that we're very proud to receive," says Dan Bross, Microsoft's Senior Director of Citizenship and Public Affairs. "Being ranked the No. 1 company for CSR in this report is especially meaningful, since the data comes directly from surveys of the general public. Our citizenship mission is to serve the needs of communities around the world and to fulfil our responsibilities to the public. This has been part of our DNA for the past 30-plus years. Being recognized by the Reputation Institute really shows that our efforts are making a positive impact on people in our own backyard and around the world."
Bross says being a responsible global corporate citizen is a commitment made at all levels of the company. "It's not just a top-down effort and it's not just a grassroots effort – it's important to all of us."

"I think this is really a testament to our employees worldwide and the difference they make in their local communities," Bross says. "While we have a small Citizenship team here at the corporate level, we have Citizenship Leads across the globe and they work daily in collaboration with a wide range of stakeholders on a range of issues important to local communities."

1.9 Case study:
Infosys
Infosys to contribute Rs 240 crore towards corporate social responsibility activities
"It will work out to around Rs 240 crore. As of now, we have contributed Rs 48 crore in the first quarter," Infosys CFO Rajiv Bansal told reporters here. Infosys is one of the first Indian companies to contribute to CSR activities as per the New Companies Act. Under the New Companies Act, large companies need to spend at least 2 per cent of their average net profit for immediately preceding three financial years on CSR activities.
"We are happy to be fulfilling the social responsibility of Infosys. The Infosys Foundation creates opportunities and strives towards a more equitable society," Infosys CEO and MD S D Shibulal said.
Established in 1996, Infosys Foundation works in the areas of healthcare, education, culture, destitute care and rural development.
The Foundation had taken up relief work at various calamity-affected areas of Tamil Nadu, Andaman Islands, Kutch, Orissa and Andhra Pradesh. It has also set up more than 50,000 school libraries across Karnataka.

Infosys Public Services extends support to Boy Scouts of America

Infosys Public Services sponsored and participated in the Northern New Jersey Council Boy Scouts of America Twenty-Second Annual Distinguished Health Care Service Awards Dinner, on June 3, 2014, at Mayfair Farms, West Orange, NJ.

The Boy Scouts of America, Northern New Jersey Council, supports more than 13,000 young men and women scouts in four counties. The annual healthcare dinner, a premier event, recognizes individuals from the field of healthcare. It is conducted by the Northern New Jersey Council, Boy Scouts of America and is co-sponsored by medical societies, hospitals, and other health-related organizations in the four counties of north-eastern New Jersey. The healthcare dinner has helped raise more funds for the scouts than any other dinner in the Council's history.

Infosys Public Services supports Boy Scouts of America
Infosys Public Services sponsored and participated in the Twenty-First Annual Northern New Jersey Health Care Awards Dinner, on June 5, 2013, in New Jersey.
The Boy Scouts of America, Northern New Jersey Council, supports more than 13,000 young men and women who are in scouting in four counties. The annual healthcare dinner – one of the premier events – recognizes individuals from the field of healthcare. The healthcare dinner in the past has helped raise more funds for the scouts than any other dinner in the Council's history.

Infosys Public Services supports Boys & Girls Clubs of Greater Washington
Infosys Public Services sponsored and participated in the Twenty-Eighth Annual Tim Russert Congressional Dinner on May 22, 2013, in Washington, DC.
The Boys & Girls Clubs of Greater Washington (BGCGW) is one of the largest affiliates of Boys & Girls Clubs of America (BGCA) – serving 16,000 youth annually at 18 sites throughout Washington, DC; Maryland and Virginia.

Infosys Public Services supports The Children's Inn at National Institute of Health
Infosys Public Services contributed and participated in the signature fundraiser – the 15th annual Children's Inn Gala held in Washington, DC on March 23, 2013.

Infosys Public Services supports the Leukaemia & Lymphoma Society
Infosys Public Services supported Leukaemia & Lymphoma society in their mission to cure blood cancer and build healthier lives by contributing and participating in the signature fundraiser – the 26th Annual Leukaemia Ball, 2013 held in Washington, DC on March 23, 2013.

Infosys Public Services supports American Heart Association's 'Go Red for Women' movement
Infosys Public Services sponsored and participated in the American Heart Association (AHA) 'Go Red for Women Luncheon' on February 21, 2013, in Columbus, Ohio.
The Columbus 'Go Red for Women Luncheon and Conference' focuses on three areas to support the fight against heart disease in women: heightening awareness about the issue, creating a passionate call-to-action and generating funds to support education and research.

Infosys Public Services supports the American Heart Association
Infosys Public Services demonstrated its commitment to society by supporting and participating in the American Health Association's Heart Walk on October 20, 2012.

Infosys Public Services supports the Boy Scouts of America
Infosys Public Services supported the Boy Scouts of America by contributing US$10,000 as dinner sponsor at the 20th Annual Northern New Jersey Healthcare Awards Dinner on May 16, 2012. The company's contribution and participation supports the Northern New Jersey Council's Learning for Life / Exploring program. Infosys Public Services was also the sole sponsor of a US$1000 college scholarship.

Infosys Public Services supports Leukaemia & Lymphoma Society
Infosys Public Services (IPS) supported the Leukaemia & Lymphoma Society (LLS), by contributing US$10,000 as a Gold Sponsor at the Leukaemia Ball 2012 in Washington, DC on March 31, 2012. IPS' contribution supports LLS in accelerating the cutting-edge research and innovative treatments that make total cure a possibility for more than one million Americans living with blood cancer.

Infosys Public Services supports American Conference on Diversity
Infosys Public Services supported the American Conference on Diversity by contributing US$10,000 at the 2012 Humanitarian Dinner in New Jersey on March 28, 2012. This contribution supports the Community Underwriters and their mission to value diversity, educate leaders, and promote respect within the communities.

Infosys brings world-renowned software career training to Wayne County Community College District in Detroit
Infosys, a global leader in consulting and technology, and Wayne County Community College District (WCCCD) today marked the first classes of a new 18-week program to provide Infosys world-renowned software development training program to grow Detroit's technology talent pool.

Infosys USA Foundation's support to NYC STEM initiative benefits over 2,100 underserved students
Infosys USA Foundation's grant of USD 380,000, for NYAS' Afterschool STEM Mentoring Program, has helped the academy to successfully place more than 120 mentors in 84 afterschool and summer programs, and benefitted over 2100 elementary and middle school children.

Infosys Public Services 'Goes Red for Women'
Infosys Public Services (IPS) sponsored the 2012 Columbus Go Red for Women Luncheon in Ohio, and extended its support to the cause by donating US$10,000. By sponsoring and supporting this campaign of American Heart Association - Go Red for Women, IPS strives to inspire women to take care of their heart and live healthy.

Infosys USA Foundation helps Joplin Tornado Victims
In response to the devastation caused by the tornadoes that struck Joplin, Missouri in 2011, the Infosys USA Foundation announced that it has donated US$50,000 to the Leggett & Platt Benevolence Fund to support relief efforts, established by Leggett & Platt and facilitated by the Community Foundation of the Ozarks.

Infosys USA Foundation supports NYC Science Education Initiative
The Infosys USA Foundation has provided a grant of US$380,000 for the New York City (NYC) Science Education Initiative of the New York Academy of Sciences (NYAS). The program is developed in association with the New York City Department of Youth and Community Development (DYCD) to train and mentor students of underserved communities of New York and Citizen Schools of New Jersey in science, technology, engineering, and math (STEM).

Dr. Eric Brewer wins ACM-Infosys Foundation Award
Dr. Eric A. Brewer, professor of electrical engineering and computer sciences at the University of California, Berkeley, has been honored with the 2009 Association for Computing Machinery (ACM)-Infosys Foundation Award in the Computing Sciences. The award recognizes his achievements in developing highly scalable web technologies that underpin all major Internet services.

Press Releases

Infosys expands its CSR activities with Infosys Foundation USA
Focus on enabling computer literacy
Bangalore - December 30, 2014: Infosys today announced that it would expand its Corporate Social Responsibility (CSR) activities in the Americas through its philanthropic arm, the Infosys Foundation USA. It would focus on making quality computer science education widely and easily accessible across communities in the Americas. The company also announced the appointment of Mrs. Sudha Murty, Mrs. Vandana Sikka and Mr. Sandeep Dadlani as the trustees of Infosys Foundation USA. The initial outlay for Infosys Foundation USA, would be USD 5 Million per annum.
Commenting on the expansion of CSR activities in the Americas, Mrs. Sudha Murty, Chairperson of Infosys Foundation, said, "I am delighted at the expansion of our CSR initiatives in the Americas. Infosys Foundation has always supported the cause of promoting quality education and empowering individuals. I am confident that we will leverage Infosys Foundation's experience in India of imparting technical education to enhance employability."
Mrs. Vandana Sikka, Chairperson of Infosys Foundation USA, said, "Every day we see how computing technology is reshaping the world around us. Computing literacy is becoming increasingly important for an average person to be more productive and valuable to the economy, while purposefully contributing to our future. Through Infosys Foundation USA, we want to ensure that lack of resources, prior skills and STEM proficiency are no longer barriers for individuals, in the Americas, seeking to advance their computing skills. From enabling computer education in K-12, to supporting research in computer science and empowering adults with IT training that enhances their employability, we will help bring computing literacy to people of all ages, backgrounds and abilities."
In India, Infosys Foundation supports several programs aimed at alleviating hunger, promoting education, improving health, assisting rural development, supporting arts and helping the destitute. For the fiscal year 2015, Infosys Foundation plans to deploy approximately USD 40 Million towards these initiatives in India.

About Infosys
Infosys is a global leader in consulting, technology, outsourcing and next-generation services. We enable clients, in more than 50 countries, to stay a step ahead of emerging business trends and outperform the competition. We help them transform and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence.
Visit www.infosys.com to see how Infosys (NYSE: INFY), with US$8.25 B in annual revenues and 165,000+ employees, is helping enterprises renew themselves while also creating new avenues to generate value.

Tata

MUMBAI: In what could be the highest CSR spend by an Indian, the Tata Group spent Rs 1,000 crore oncorporate social responsibility (CSR) in 2013-14. If one were to exclude the salt-to-software enterprise's philanthropic trusts, the Tata Group companies spent Rs 660 crore on CSR in the just ended fiscal. The diversified Indian multinational's CSR spend was well above 2% of its net profit, a minimum requirement for an Indian company under the Companies Act. 

A significant amount of the total CSR spend by the Tata Group has gone into skill development, health and education, with Tata Steel emerging as the biggest spender within the group. Among other Indian conglomerates, the $40-billion Aditya Birla Group spent Rs 200 crore on CSR in fiscal 2014, which is a little over 2% of the net profit from India. 

Under the new law, all companies with at least Rs 5-crore net profit or Rs 1,000-crore turnover will have to spend 2% of their annual net profit on CSR activities — which include slum redevelopment, road safety awareness and consumer protection services — with effect from April 1, 2015. 









The Land Rover 'Go Beyond' Bursary, run by the
Royal Geographical Society on behalf of Land Rover,
offers funding and the use of a 110 Defender vehicle.
The award is aimed at those who want to take a
journey beyond their limits and boundaries, that o
ffers challenges for the team and for which a Land
Rover Defender 110 is an integral part of the expedition.



Impact of CSR Measures
Curative and preventive health services were
rendered to 295,075 community members;
Scholarships for higher studies were awarded to 891 students;
School infrastructure was developed for 100 schools;
Vocational training was imparted to 1048 youth;
Technical training was provided to 1542 youth;
Green cover was increased by planting 290,850 trees;
Potable water solutions with support from the
Sumant Moolgaonkar Development Foundation (SMDF)
provided to 100 villages
Donations (including donation of vehicles) to help 52
NGOs for various social programmes: 2,90,60,27










A signatory to the United Nations Global Compact, Tata Motors is committed to Corporate Social Responsibility. Our community initiatives span key areas of education, healthcare, environment conservation and employability. Sustainability of the organization focuses on creating value in the long term, monitoring economic, social, environmental and intangible performances and paying attention to stakeholder satisfaction.
Tata Motors, governed by the Tata Code of Conduct (TCoC), has a commitment towards conducting business in a responsible manner. We have been regularly disclosing our non-financial performance in the public domain in the form of a Sustainability Report. Available on our website, the Sustainability Report provides comprehensive information on our sustainability agenda and performance. The report on Global Reporting Initiatives' G3.1 Guidelines was externally assured. It received the highest rating of A+ and also serves as our Communication on Progress on the United Nations Global Compact principles.
Education
Education initiatives implemented include scholarships, infrastructure and facility improvement to allow greater access to quality education, implementing extra-curricular activities for overall development of students and teacher training programs.
A joint team of journalists and employees of Tata Motors Thailand donated items such as sun-filter shades to help block sunshine on the school playgrounds, life-vests for children in the Baan Phukhem school, Amphur Kaengkrachan and Phetchburi. Since most of them travel to school via boat, towels, blankets, rice, slippers and various other essentials in addition to a financial donation for the construction of the sun-filter shades.
Monetary donations of KRW 35 million were made by Tata Daewoo for delivery of coal briquette, scholarships for school-going children in South Korea. Training program for teachers in Jeonbuk, South Korea, and an alliance with Gunsan Yongkwang Girls' Middle School was formed under the 'Company School Alliance Program.'
Employability and Skill Advancement
To promote skill-based employment for youth Tata Motors collaborates with 112 Industrial Training Institutes (ITI) across 19 states under the Institute Management Committee (IMC) Model. At the plant level, training is provided to women through Self Help Groups to empower them. The empowerment paves the way for economic self-reliance. Tata Motors Grihini Social Welfare Society, which employs more than 1000 women, achieved a significant milestone by crossing a turnover of 13 crores.To align community initiatives with core business processes, we initiated a 'Driver Training Programme' with a target of training 3.4 million youth over a period of ten years.
To boost skill advancement of UK's workforce, Jaguar Land Rover implements initiatives such as the ASAS, an Interactive Learning Programmes and a partnership with the Institution of Mechanical Engineers (IMechE).
The ASAS scheme bridges the gap between existing skill sets and expected demand of skills in the future. The scheme, based on a programme developed by Jaguar Land Rover in partnership with leading English Universities, offers engineers the chance to develop the green and future engineering skills which will be needed to create world-leading new products and technologies over the next decades.
Jaguar Land Rover with Birmingham Metropolitan College forged a partnership to deliver Interactive Learning Programmes for schools and colleges at the Jaguar Land Rover Education Business Partnership Centres in Solihull and Castle Bromwich, Birmingham. The Centres will be the hubs for showcasing engineering careers to pupils from across the region so they consider engineering when they start to think about their career options. Further, a partnership with the Institution of Mechanical Engineers (IMechE) builds on a long standing relationship with IMechE and reflects the need for the UK to maintain its engineering pedigree.
Pursuing the objectives of fostering close relations with the local community and of providing relevant industrial experience to the engineering students, Tata Motors South Africa forged an alliance with the Engineering Faculty at the University of Pretoria. The Company has provided on-the-job industrial training on various functions like production, quality, purchase, logistics etc., to students from the University of Pretoria.
Environmental conservation
Tata Motors' focus on environmental management helps preserve the long-term health of people and ecosystems and build strong relationships with local communities. Various initiatives have been undertaken within the broad frame of Environment and Climate Change to address the conservation of natural resources and energy, minimize waste generation, enhance recovery and recycling of material and develop eco-friendly process and systems. We have been continuously working towards reducing our various environmental footprints, which is evidenced by our decrease in specific consumption levels. We recycle close to 69% of wood packaging, eliminating the use of fresh wood. A 200 litre engine oil barrel can now be used to test 170 engines instead of 85 engines.
At Jamshedpur and Lucknow, the wet garbage from our canteens is converted to usable organic manure to sustain greenery in the plants. We achieved annualized energy savings of 230,959 GJ through conservation initiatives across our operations. Similarly, in last three years, we have reduced Green House Gas emissions by 22,581.62 tonnes of CO2 while total energy consumed per vehicle produced has also decreased.
In order to make Tata Daewoo as a self-regulating company for environment standards, Liquefied Natural Gas (LNG) was used instead of oil to promote use of eco-friendly energy fuel. The energy saving initiative resulted in 10% reduction in winter electric consumption. Tata Daewoo also extended technical assistance on environment for small and medium sized companies in Jeonbuk. These initiatives led to the declaration of Toxic Free Tata Daewoo in Korea.
Healthcare
Tata Motors actively promotes healthcare both at the national and plant levels. A partnership with Smile Train empowers surgeons to provide free corrective surgery for children with cleft lip and palette deformities. Further, AIDS awareness campaigns were conducted for truck drivers. Preventive and curative healthcare facilities are provided through small Mobile Health Clinics, awareness camps, hospitals and clinics. Besides, rural health workers are trained to act as foot doctors to cure minor ailments in their allocated areas.
The collaboration between Land Rover UK and the British Red Cross is part of the major global partnership between Land Rover and the International Federation of Red Cross and Red Crescent Societies (IFRC). It involves Land Rover supporting national Red Cross societies in 15 countries, with each country adopting a priority programme. To celebrate the production of the one millionth Discovery, Land Rover began a charitable 50-day journey from Birmingham to Beijing, aiming to raise £1,000,000 for the IFRC. This effort is Land Rover's most ambitious fundraising project to date and supports a much-needed water and sanitation project in Uganda.

Tata Motors Thailand also extended vehicular support to raise funds for helping the Tsunami and Earthquake victims of Japan. Tata Motors Thailand provided its Nano, Super Ace City Giant and Xenon vehicles to carry supplies for runners in the "Emporium & Punky Runners: Run for Japan" charity activity to raise funds to help people stricken by the recent earthquake and tsunami in Japan.
Employee volunteers of Tata Daewoo have extended their support to children shelters. Volunteers are mainly engaged in free inspection of computers in children shelters, helped in soup kitchens, restored work in flooded areas, and organised blood donation camps.


Achievements
'Golden Peacock Award for Corporate Social Responsibility' for 2011.
Lucknow plant was conferred the 'Greentech Environment Silver Award' for Outstanding achievement in Environment Management' in the automobile sector for 2011.
'CII Award' for Corporate Sustainability Reporting.
'Hellen Keller Award' for CSR.
'Bombay Natural History Award' for Green Governance.
'Gold Award for Corporate Social Responsibility' at 51st Annual Awards Nite of the Association of Business Communicators of India (ABCI).
Pantnagar Plant won 'CII - Environmental Best Practices Award 2012'.
'Certificate of Commendation for Significant Achievement' at the
CII-ITC.

Sustainability Awards 2011

Sanand Plant won 1st Prize at Lakhsya CSR Sparsha Award 2011, for 2 papers: Community-based Safe Drinking Water Programme and for Community-based Innovative Sanitation Programme.
Pantnagar plant bagged the second position in the Environment, Health & Safety Competition 2011, organised by Confederation of Indian Industry (CII), Northern Region.
Sanand plant won 'Golden Peacock Eco-Innovation Award 2011'.
'Lucknow Plant won the second prize, at 'National Energy Conservation Award 2011', in the automobile manufacturing category.
'Pantnagar plant bagged the 2nd prize under 'Uttarakhand Energy Conservation Award 2011'.
Jaguar Land Rover received the Platinum Rating in the Corporate Responsibility (CR) Index Society of Motor Manufacturers and Traders 2011 Award for Automotive Innovation.







Corporate Social Responsibility (CSR) – the societal responsibility of companies

Bild: Falvio Takemoto/freepik
The voluntary compliance of social and ecological responsibility of companies is called Corporate Social Responsibility (CSR).
Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Corporate social responsibility is represented by the contributions undertaken by companies to society through its business activities and its social investment. This is also to connect the Concept of sustainable development to the company's level.
Over the last years an increasing number of companies worldwide started promoting their Corporate Social Responsibility strategies because the customers, the public and the investors expect them to act sustainable as well as responsible. In most cases CSR is a result of a variety of social, environmental and economic pressures.

The Term Corporate Social Responsibility is imprecise and its application differs. CSR can not only refer to the compliance of human right standards, labor and social security arrangements, but also to the fight against climate change, sustainable management of natural resources and consumer protection.
The concept of Corporate Social Responsibility was first mentioned 1953 in the publication 'Social Responsibilities of the Businessman' by William J. Bowen. However, the term CSR became only popular in the 1990s, when the German Betapharm, a generic pharmaceutical company decided to implement CSR. The generic market is characterized by an interchangeability of products. In 1997 a halt in sales growth led the company to the realization that in the generic drugs market companies could not differentiate on price or quality. This was the prelude for the company to adopt CSR as an expression of the company's values and as a part of its corporate strategies. By using strategic and social commitment for families with chronically ill children children, Betapharm took a strategic advantage.
In July 2001, the European Commission decided to launch a consultative paper on Corporate Social Responsibility with the title Promoting a European Framework for Corporate Social Responsibility". This paper aimed to launch a debate on how the European Union could promote Corporate Social Responsibility at both the European and international level.
The paper further aimed to promote CSR practices, to ensure the credibility of CSR claims as well as to provide coherence in public policy on CSR.

Responsible Companies in the age of globalization
How a company perceives its societal responsibility depends on various factors such as the markets in which it operates, its business line and its size.

In recent years CSR has become a fundamental business practice and has gained much attention from the management of large international companies. They understand that a strong CSR program is an essential element in achieving good business practices and effective leadership. Companies have explored that their impact on the economic, social and environmental sector directly affects their relationships with investors, employees and customers.

Whilst so far Corporate Social Responsibility was mainly promoted by a number of large or multinational companies, it is now also becoming important to small national companies.
»Teflon Companies«. Shell was one of first companies which made the experience, that early responsible acting is better than later crisis management. Shell was taken by complete surprise when the Greenpeace campaign against sinking the former drill platform Brent Spar achieved its goals. There was a widespread boycott of Shell service stations. The Brent Spar affair has brought quite some change of attitude to Shell.

As companies face themselves in the context of globalization, they are increasingly aware that Corporate Social Responsibility can be of direct economic value. Although the prime goal of a company is to generate profits, companies can at the same time contribute to social and environmental objectives by integrating corporate social responsibility as a strategic investment into their business strategy.

A number of companies with good social and environmental records indicate that CSR activities can result in a better performance and can generate more profits and growth.
Research hast shown that company CSR programs influence to an extensive degree consumer purchasing decisions, with many investors and employees also being swayed in their choice of companies.

A major challenge for companies today is attracting and retaining skilled workers. There is not only an image gain for the companies using CSR, but it is also important for the employees. Within the company, socially responsible practices primarily involve employees and relate to issues such as investing in human capital, health and safety and managing change.

In India there are an existent but small number of companies which practice CSR. This engagement of the Indian economy concentrates mainly on a few old family owned companies, and corporate giants such as the Tata and Birla group companies which have led the way in making corporate social responsibility an intrinsic part of their business plans. These companies have been deeply involved with social development initiatives in the communities surrounding their facilities. Jamshedpur, one of the prominent cities in the northeastern state of Bihar in India, is also known as Tata Nagar and stands out at a beacon for other companies to follow. Jamshedpur was carved out from the jungle a century ago. TATA's CSR activities in Jamshedpur include the provision of full health and education expenses for all employees and the management of schools and hospitals.
In spite of having such life size successful examples, CSR in India is in a very nascent stage.
In the informal sector of the Indian economy, which contributes to almost the half of the GNP and where approximately 93% of the Indian workforce is employed, the application of CSR is rare. On the contrary, the fight against poverty, the development of education, as well as the conservation of the environment are not existent in most of the Indian enterprises.
India has an advantage as far as labor is concerned. To some extent, business and capital go to those places where costs are less or standards are lower like the ones in India. But also in India, the demand for responsible and ethical goods is constantly increasing.

To guarantee the supply of responsible and ethical goods, it is especially important to implement a nationwide system of CSR standards.
How "social responsible" are Companies in reality?
Due to the lack of international CSR guidelines, the practical application of CSR differs and CSR Strategies within most companies still show major deficiencies. There are still complaints about multinational companies wasting the environment and NGOs still denouncing human rights abuses in companies.
 
Some critics believe that CSR programs are undertaken by especially multinational companies to distract the public from ethical questions posed by their core operations. That meanwhile even multinational companies such as Microsoft or Pepsi confess to their social responsibility, is discussed quite controversial. While companies increasingly recognize their social responsibility, many of them have yet to adopt management practices that reflect it: company employees and managers need training in order to acquire the necessary skills and competence.
 
Pioneering companies can help to implement socially responsible practices by guiding the processes. The Copenhagen Centre and CSR Europe have recently launched a program to bring the business and academic community together with the aim to identify and address the training needs of the business sector on Corporate Social Responsibility. While corporate social responsibility can only be taken on by the companies themselves, employees, consumers and investors can also play a decisive role in areas such as working conditions, environment or human rights, in the purchasing of products from companies which already adopted CSR or in prompting companies to adopt socially responsible practices.
 
Critics suggest that better governmental and international regulation and enforcement, rather than voluntary measures are necessary to ensure that companies behave in a socially responsible manner. Corporate social responsibility should therefore not be seen as a substitute to regulation concerning social rights or environmental standards. In countries where such regulations do not exist, efforts should focus on putting the proper regulatory framework in place on the basis of which socially responsible practices can be developed.
Wipro
Two per cent of profits on CSR activities is a lot, says Azim Premji


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Wipro Chairman Azim Premji attends the 40th National Management Convention organised by All India Management Association in New Delhi on September 26, 2013. PHOTO: REUTERS
Wipro Chairman Azim Premji may have personally contributed enormous sums to community development, but he opposes the mandated spending of 2 per cent of a company's profits on corporate social responsibility (CSR) related activities, as envisaged in the new Companies Bill.

Speaking at the All-India Management Association's (AIMA) 40th Management Convention in New Delhi on Thursday, he said: "My worry is the stipulation should not become a tax at a later stage ... Spending two per cent on CSR is a lot, especially for companies that are trying to scale up in these difficult times. It must not be imposed."

Premji also felt that a distinction should be made between personal philanthropy and CSR, which is a company activity.

However, he added that companies should wholeheartedly participate in CSR activities. They must also take care in choosing their focus areas. He believed that social good was not merely the government's responsibility and companies needed to step forward to become co-sharers of that goal. 

Premji received the Managing India Award for Corporate Citizen of the Year at the convention.

The Wipro chairman himself has donated 8.7 per cent from his personal stock holding in Wipro as endowment for the Azim Premji Foundation and has gone on to pledge more.

Reliance
Reliance Industries Ltd spends over Rs 700 crore on CSR in FY'14
PTI May 20, 2014, 09.43PM IST

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MUMBAI: India's largest private sector enterprise Reliance Industries has spent over Rs 700 crore of
its net profit on corporate social responsibility last fiscal and significant sums went into healthcare and rural development initiatives.
According to the FY14 annual report, Reliance's CSR spend carried out through Reliance Foundation -- stood at 3.24 per cent of its net profit, which is amongst the highest in the country.
While 59 per cent of the Rs 712-crore sum was spent on healthcare of the beneficiary population, 23 per cent were utilised for rural development, 11 per cent on education under which it sponsors poor children for higher education, and 7 per cent on other activities.
The new Companies Act, enacted last fiscal, mandates every company with a net worth of Rs 100 crore to set aside minimum 2 per cent of their three-year average annual net profit for CSR activities.
RIL is the first private enterprise to cross the Rs 4-lakh crore sales mark last fiscal at Rs 4,01,302 crore. It has a credit rating that is two notches above the sovereign from S&P, making it the only Asian energy firm to have such a rating. It is also one of the most profitable companies in the country.
It contributed 14.7 per cent of the country's exports of a little over $ 312 billion in the fiscal at $ 46 billion. Exports formed 69 per cent of its sales.
RIL carries out its CSR activities through Reliance Foundation, headed by chairman Mukesh Ambani's wife Nita, while executive director Nikhil Meswani and three independent directors-Dharam Vir Kapur, Yogendra Tridevi and RA Mashelkar-also oversee the work.
The company said during the reporting year, its CSR activities benefitted over 1 million lives, spanning over 5,500 villages and urban locations. It also benefitted over 407,000 farming households under which it has formed over 460 village farmer associations





Starbucks



Starbucks has been around for more than four decades, and from the very beginning it has worked hard to operate in an ethical manner. Starbucks ranked as Fortune Magazine's fifth most socially responsible company in 2012. There are a number of good reasons for the high ranking. The company looks for better ways to develop sustainable production of its coffee. It has set in place some guidelines it calls C.A.F.E Practices, ensuring environmental leadership, economic accountability, and product quality. Starbucks also supports Ethos Water, which provides clean water to more than a billion people.



Disney



Disney is a name known around the world, and though the company has been around for a long time, its reputation is still a glowing one. The Walt Disney Company largely focuses on a few areas of social responsibility, namely community, the environment, and volunteerism. Disney has been a major provider of aid after natural disasters, such as the 2010 earthquake in Haiti. The company also takes an interest in protecting the environment, giving proceeds from nature films to plant trees in the rain forest and protect thousands of acres of coral reef.



Nu Skin



NuSkin is a personal care company with a big focus on helping communities around the world. One of the company's major initiatives is called Nourish the Children. The program was started in 2002 and allows company sales leaders, employees, and customers to donate nutrient-rich meals to needy children. In March 2014, NuSkin announced that it had surpassed 350 million donated meals. The company also operates the Force For Good Foundation, which works to offer children relief from illiteracy, disease, and poverty.


Microsoft


Microsoft is another major company that takes great effort in giving back. The company was even named the best at Corporate Social Responsibility by the Reputation Institute. One way Microsoft is helping out is through its annual Employee Giving Campaign, where employees attend fundraising events for nonprofit organizations. The campaign has been held every year since 1983 and has raised more than $1 billion in contributions to more than 31,000 organizations.
Recommended for YouWebcast: 4 Steps to Creating a Marketing Content Plan




TOMS Shoes


TOMS Shoes might not be as well known as some of the other companies on this list, but its charity work is still impressive. The entire company was founded on the idea of giving back. For every pair of shoes sold, another pair is donated to a child in need. More than 10 million pairs of shoes have been donated, and that charitable effort has now extended to vision care for kids.
For these companies and many others, business isn't all about the bottom line. They make strides to be a caring part of the community and help out those who live in less fortunate circumstances. They're companies that know how important Corporate Social Responsibility can be to others.


Findings:
We could understand that a concept called "Live and let Live".
We could understand the importance given to CSR in practical world and also its effectiveness.
We could abstract the support given to CSR concept by government like tax exemptions, deductions and support given.
We grasp the current affairs going on in this world.
We could also understand importance given by the government to such a concept through corporate law.
1.9 Conclusion:
As we discussed in the above pages we can come to a conclusion that CSR is a thought rather than a concept CSR can be of any type from helping a needy to prevision of the expected dangers. It exist in physically helping people to educating them to strengthen their thoughts.
CSR could be mainly classified as two types:
Due to personal satisfaction
Due to commercial benefits.
First due to personal satisfaction:
Many Eunrtrepunors especially Narayan Murthy of Infosys as a small thought in them that they stay in a society which is helping them, and allowing them to have a better life for themselves so they think that they have to do something to the society. And that is the reason why Infosys has started Prerana trust to aid the society.
Second due to commercial benefits:
Even governments also wants to support the CSR so it as allowed various tax benefits and also other infrastructural facilities to aid them in both Direct and Indirect way conduct their activities in a better way like allowing them cheap or free land, also providing them earlier approvals for such activities.
Hence we can conclude that CSR is a concept where it aims to highlight the concept of "Live and Let Live."

Bibliography :
Google search engine
Corporate law material of 2013
Income tax website and related books

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