Project Report

(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of Calcutta) Corporate Social Responsibility-For Economic Growth

Submitted by Name of the Candidate: Isan Singh Registration No: 126-1121- 0814-11 Name of the College: Umeschandra College College Roll No.: 697

Supervised by Name of the Supervisor: Prof. A D N Ray Name of the College: Umeschandra College

Month & Year of Submission February 2014-02-

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Annexure- IA

Supervisor's Certificate This is to certify that Mr. Isan Singh a student of B.Com. Honours in Accounting & Finance of Umeschandra College under the University of Calcutta has worked under my supervision and guidance for his Project Work and prepared a Project Report with the title Corporate Social Responsibility which he is submitting, is his genuine and original work to the best of my knowledge.

Place: Kolkata Date:

Signature: Name: Prof. A D N Ray Designation: Asst Prof. of Commerce Name of the College: Umeschandra College

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Annexure- IB

Student's Declaration I hereby declare that the Project Work with the title Corporate Social Responsibility submitted by me for the partial fulfilment of the degree of B.Com. Honours in Accounting & Finance under the University of Calcutta original work and has not been submitted earlier is my

to any other

University/Institution for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work done by others or by me. However, extracts of any literature which has been used for this report has been duly acknowledged providing details of such literature in the references.

Place: Kolkata Date:

Signature: Name: Isan Singh Address: 5, Madhab Das Lane, Kolkata-700006 Registration No.:126-1121-0814-11 Roll No.:697

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Acknowledgement This project is done with the help of different journals, websites and magazines. My supervisor teacher Mr. A D N Ray has also helped me a lot in pointing out my mistakes and channelized me in a proper way. He directed me about how to proceed with the data. I am highly obliged to him for his kind support and instructions. I am also thankful to the companies whose secondary data has served my purpose. I hope my project will give an idea about CORPORATE SOCIAL RESPONSIBILITY and how it is followed along with its importance.

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Table Of Content

Topics
1. Introduction
1.1. 1.2. 1.3. 1.4. 1.5. 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. Objectives Methodology Limitations Background India as a host location for CSR policies Need for Corporate Social Responsibility Corporate Social Responsibility Policies Key Developments Corporate Social Responsibility Mechanism External Standards and Other Developments Benefits of Corporate Social Responsibility

Page no.
6
7 7 7 8 8

2. Conceptual Framework

9
10 12 13 15 18 21

3.Presentation of Data, Analysis and Findings

3.1. 3.2. 3.3. 3.4. 3.5. Infosys Hindustan Unilever ITC Tata ONGC

25
25 27 30 33 37

4. Conclusion and Recommendation 5. Bibliography

44 45

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1. INTRODUCTION
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...

According to me CORPORATE SOCIAL RESPONSIBILITY (CSR) is required in the firms to sustain in the long run of the business as business is just only a part of the society and it has to work with the society only. Corporate Social Responsibility is closely linked with the principles of sustainable development. It focuses on the idea that a business has social obligations above and beyond making profit. 1. Social responsibility becomes an integral part of the wealth creation process which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society. 2. When times get hard, there is the incentive to practice CSR more and better - if it is a philanthropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove. Business is all green only philosophy is grey -----Karl Max Corporate Social Responsibility (CSR) is a concept that organisations have an obligation to consider the interests of customers, employees, shareholders, communities and ecological considerations in all aspects of their operations. This obligation is seen to extend beyond their statutory obligation to comply with legislation. Enterprises should make decisions based not only on financial factors such as profits or dividends but also based on the immediate and long-term social and environmental consequences of their activities. It is an integrated combination of policies, programs, education and practices which extend
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throughout a corporations operations and into the communities in which they operate, about how companies voluntarily manage the business processes to produce an overall positive impact on the society. 1.1. Objectives The objectives of this project are1. To study the need for corporate social responsibility ,CSR mechanism and key developments which has been brought about by Corporate Social Responsibility. 2. To exhaustively study the contributions made by the Indian Companies towards the society as a part of Corporate Social Responsibility activities. 1.2. Methodology This project is done adopting the qualitative analysis method. It is based on secondary data as it is not possible to collect primary data within short period of time. I have accessed various websites, journals, books and magazines to collect different types of data. 1.3. Limitations The hindrances faced by me while doing the project1. Due to shortage of time primary data could not be collected. 2. Transparency and monitoring of stringent rules of Corporate Social Responsibility will prevent companies from polluting the society in the upcoming years. 3. Business sometimes prevent the auditor of the company to detect a fraud, which actually creates a bad image in the name of accountants. 4. Proper data regarding how much companies are polluting and as to what percentage of their profit they are spending for the society is not revealed.
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1.4. Background Before commencing the analysis of the CSR policies in India today, an introduction to theconcept of CSR is useful. Furthermore, this section will provide an understanding of theeconomic and social conditions of India, which are important aspects of its contemporaryinstitutional framework. In order to understand the future of corporate social responsibility in India we will take up few cases to get an overall overview of the economy.Several terms have been used interchangeably with CSR. They include -- business ethics, corporate citizenship, corporate accountability, sustainability and corporate responsibility 1.5. India as a host location for CSR policies India is an ideal location in which to study CSR policies of international companies. It is a country with substantial international presence and investments, which implies that there will be many companies who can, and are willing to, engage in CSR activities. Furthermore, India still face challenges of for example poverty alleviation and development, which implies that there are possibilities for CSR initiatives to contribute to positive effects for, and development of, the host community. A brief overview of the economic and social background of India will provide a more detailed introduction to the country context.

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2.Conceptual Framework
Innovation and sustainable development are major contemporary issues. Innovation represents an important tool for achieving corporate social responsibility while sustainable development is a challenge for business and emphasises the direction that innovation activities can take. The objective of this contribution is to specify innovation and social responsibility outlines and to propose a conceptual framework of their complementarity in a small and medium enterprise perspective. This approach enables us to reflect on the role of innovation in responsible entrepreneurship by illustrating a scheme which brings together these concepts in an integrated approach. In the contemporary debate on the modern corporation and its impact on the economy, society and nation, the focus has shifted from growth with only profitability to growth with sustainable development, which includes the stakeholders. While there is considerable debate on the corporations' obligations to civil society in the Western world, in the developing countries the debate is sporadic; the present publication is an effort to initiate a nationwide discourse on the concepts and practices of corporate social action in India. The book is divided in two sections; section one contains papers, which analyze the conceptual framework of Corporate Social Responsibility. The unique feature of this book is the case studies on different aspects of CSR presented in section Two. The cases focus on such segments as education, healthcare and environment, among others. It is for the first time that under the aegis of UNDP-CIIAICTE-MDI the business schools in the country participated in preparing cases from various industries focusing on the process and decision making content implicit in the introduction, implementation, and evaluation of various facets of Corporate Social Responsibility. The cases are illustrative and they will help in identifying further areas of research. The teaching notes have been developed by the individual authors, and will be available on request. In recent years the concept of corporate social responsibility (CSR) has gained unprecedented momentum in Europe. Even the skeptical
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Martin Wolff, Chief Economics Correspondent of the Financial Times commented that CSR is an idea whose time has come (Wolff, 2002: 62). CSR is a cluster concept which overlaps with such concepts as business ethics, corporate philanthropy, corporate citizenship, sustainability and environmental responsibility. It is a dynamic and contestable concept that is embedded in each social, political, economic and institutional context. Corporate social responsibility (CSR) and its action-oriented offspring Corporate Citizenship (CC) currently trigger an intensifying debate on ethics, role and behavior of companies within civil society. For companies, CSR raises the question of what may be the good reason(s) for acting responsible towards its members, customers or society. In order to answer this question, we face the debate on CSR and its strategic engagement drivers on the levels of corporate culture, social innovation, and civil society. In this article, we provide a conceptual framework based on the analytic distinction of legitimation and sense-making. It provides measures and instruments to make complex CSR processes more visible and manageable. To win loyalty in today's markets, companies have to focus on building and maintaining customer loyalty. CSR has become a useful tool, however, the relationship between CSR and customer loyalty is largely unexplored.

2.1. Need for Corporate Social ResponsibilityCSR is pursued by business to balance their economic, environmental and social objectivities while at the same time addressing stakeholder expectations and enhancing shareholder value. Over the past decade, CSR has risen in global prominent and importance. More companies than ever before are engaged in serious efforts to define an integrate CSR into all aspects of their business, with their experiences being strengthened by a growing body of evidence that csr has a positive impact on business economic performance.

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CORPORATE SOCIAL REPONSIBILTY

_________________________________________________________ Economic Responsibilities Discretionary Responsibilities

Legal

Ethical

Responsibilities Responsibilities New voluntary CSR standards and performance measurement tools continue to grow amidst the ongoing debate about whether and how to formalize legal CSR requirements for companies. Stakeholders including shareholders, analysts, regulators, activists, labour unions, employees, community organizations and the news media are asking companies to be accountable not only for their own performance but for the performance of their entire supply chain. This is taking place against the backdrop of a complex global economy with continuing economic, social and environmental imbalance. Corporate Governance scandals such as those at WorldCom, Enron, Daewoo, etc. profoundly affected major capital markets worldwide and placed issues such as ethics, accountability and transparency firmly on the business, regulation and policy agenda. Additionally issues such as peace, sustainable development, security, poverty alleviation, environmental quality and human rights are having a profound effect and the business environment. While CSR does not have a universal definition, many see it as a way f integrating the economic, social and environmental necessity of business activities.

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2.2. CSR policiesCorporate Social Responsibility (CSR) refers to operating a business in a manner that accounts for the social and environmental impact created by the business. CSR means a commitment to developing policies that integrate responsible practices into daily business operations and to reporting on progress made towards implementing these practices. Common CSR policies include: Adoption of internal controls reform in the wake of Enron and other accounting scandals; Commitment teams that view employees and barring discrimination; Management teams that view employees as assets rather than costs; High performance workplaces that integrate the views of line employees into decision-making processes; Adoption of operating policies that exceeds compliance with social and environmental laws; Advanced resource productivity, focused on the use of natural resources in a more productive, efficient and profitable fashion(such as recycled content and product recycling); and Taking responsibility for conditions under which goods are produced directly or by contract employees domestically or abroad.

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2.3. Key DevelopmentsSeveral factors have converged over the last decade to shape the direction of the SCSR domain; Increased Stakeholder Activism: Corporate accounting scandals have focused attention more than ever on companies commitment to ethical and socially responsible behavior. The public and various stakeholders are increasingly seeking assistance of the private sector to help with myriad complex and pressing social and economic issues. Companies are focusing on meaningfully engaging with their various stakeholders. Proliferation of Codes, Standards, Indicators and Guidelines: The recent accounting scandals, such as , Enron, Worldcom, Parmalat, AIR, LLP and Author Andersen have created another surge of reforms and voluntary CSR standards and performance measurement tools continue to proliferate. Accountability Throughout the Value Chain: Over the past several years, the CSR agenda has been characterized by the expansion of boundaries of corporate accountability. Stakeholders increasingly hold companies accountable for the practices of their business partners throughout the entire value chain with special focus on suppliers, environment, labour and human rights practices. Transparency and Reporting: Companies are facing increased demands for transparency and growing expectations that they measure, report and continuously improve their social, environmental and economic performance. Companies are expected to provide access to information on the impact of their operations, to engage stakeholders in meaningful dialogue about issues of concern that are relevant to either party and to be responsive to particular concerns not covered in standard reporting and communication practice. Increasingly, demands
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for greater transparency also encompass public policy. As part of this move towards greater disclosure , many companies are displaying detailed information about their social and environmental performance on their publicly accessible websites, even when it may be negative. Convergence of CSR and Governance Agenda: In the past several years there has been a growing convergence of corporate governance and CSR agenda. Most recently an increasing number of corporate governance advocates have begun to view companies management of a broad range of CSR issues as a fiduciary responsibility alongside traditional risk management. In addition more and more CSR activities have begun to stress the importance of board and management accountability, governance and decision-making structures as imperative to the effective institutionalization of CSR. Growing Investor Pressure and Market: Based incentives: CSR is now more and more part of the mainstream investment scene. The last few years have seen the launch of several highprofile socially and/or environmentally screened market instruments. This activity is a testament to the fact that mainstream investors increasingly view CSR as a strategic business issue. Many socially responsible investors are using the shareholder resolution process to pressure companies to change policies and increase disclosure on a wide range of CSR issues, including environmental responsibility, workplace policies, community involvement, human rights practices, ethical decision-making and corporate governance. Advances in Information Technology: The rapid growth of information technology has also served to sharpen the focus on the link between business and corporate social responsibility. Just as email, mobile phones and the internet speed the pace of change and facilitate the growth of business, they also speed the flow of information about a companys CSR record.

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Pressure to Quantify CSR Return on Investment: Ten years after companies began to think about CSR in its current form, companies, their employees and customers, NGOs and society. This is leading to questions about how meaningful present CSR practice is and the answers to those questions would determine both the breadth and depth of CSR practice for the next decade. Companies want to determine what their CSR initiatives have accomplished so that they can focus on scarce resources more effectively.

2.4. CSR MechanismSome companies have established committees that are specifically responsible for identifying and addressing social or environmental issues or have broadened the scope of more traditional standing committees to include responsibility for CSR while others have strategically appointed directors on the board based on the unique expertise and experience they bring on specific issues who then serve as advisors to others on the Board. Moreover companies are finding that a board that is diverse in terms of gender, ethnicity and professional experience is better equipped to grapple with emerging and complex challenges. Companies implement CSR by putting in place internal management systems that generally promote: Adherence to labour standards by them as well their business partners; Respect for human rights; Protection of the local and global environment; Reducing the negative impacts of operating in conflict zones; Avoiding bribery and corruption and; Consumer protection. Each company differs in how it implements CSR. The distinction depends on such factors as the companys size, sector, culture and the commitment of its leadership. Some companies focus on a single area-the environment, for example or community economic development while others aim to integrate a CSR vision
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into all aspects of their operations. Below are some key strategies companies can use when implementing CSR policies and practiceMission, Vision and Values Statements: If CSR is to be regarded as an integral part of business decision-making, it merits a prominent place in a companys core mission, vision and values documents. They also provide insight into a companys values, culture and strategies for achieving its aims. The mission or vision of a socially responsible business frequently refers to a purpose beyond Making a profit or Being the best and specifies that it will engage in ethical and responsible business practices, and seek to make decisions that balance that needs of key stakeholders, including shareholders/owners, employees, customers, suppliers communities and the natural environment. Cultural values: Many companies now understand that Corporate Social Responsibility cannot flourish in an environment where innovation and independent thinking are not welcome. There must also be a commitment to close the gap between what the company says it stands for, and the reality of its actual performance. Goals and aspirations should be ambitious, but care should be exercised so that the company says what it means and means what it says. Management Structures: The goal of a CSR management system is to integrate corporate responsibility concerns into a companys values, culture, operations and business decisions at all levels of the organization. Many companies have taken steps to create such a system by assigning responsibility to a committee of the board, and executive level committee or a single executive or group of executives who can identify key CSR issues and evaluate and develop a structure for long term integration for social values throughout the organization. It is vital to design a structure that aligns the companys mission, size, sector, culture, business structure, geographic locations, risk areas and level of CSR commitment. Strategic Planning: A number of companies are beginning to incorporate CSR into their long-term planning processes, identifying specific goals and measures of progress or requiring CSR impact statements for any major company proposals.

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General Accountability: In some companies, in addition to the efforts to establish corporate and divisional social responsibility goals, there are attempts to address these issues in the job description and performance objectives of employees. This helps everyone understand how each person can contribute to the companys overall efforts to be socially responsible. Employees Recognition and Rewards: Most companies understand that employees tend to engage in behavior that is recognized and rewarded and avoid behaviour that is penalized. The system of recruiting, hiring, promoting, compensating and publicly honouring employees can be designed to promote Corporate Social Responsibility. Communications, Education and Training: Many companies now recognize that employees cannot be held accountable for irresponsible behaviour if they are not aware of its importance and provided with the information and tools they need to act appropriately in carrying out their job requirements. These companies are emphasising the importance of Corporate Social Responsibility internally, have a code of conduct, provide managers and employees with adequate decision-making processes that help them achieve responsible outcomes. CSR Reporting: many companies have come to understand the value of assessing their social and environmental performance on a regular basis. Annual CSR reports can build trust among stakeholders and encourage internal efforts to comply with a companys CSR goals. The best reports demonstrate CEO and senior leadership support ; provide verified performance data for social, environmental and economic performance indicators; share good and bad news; set goals for improvement; include stakeholder feedback; and many times are verified by outside auditors.

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2.5. External Standards and Other DevelopmentsThe increased interest in CSR has been accompanied by substantial growth in the number of external standards for business by governmental, nongovernmental, advocacy and other types of organisations. These various standards are designed to support, measure, assists in implementation and enhance accountability for corporate performance on CSR issues. While many of the standards produced are based on a single issue, others like Social Accountability 8000 address a range of CSR issues. Various performance and reporting standards have been introduced. Some are explained belowThe Global Reporting Initiative: It is a reporting standard established in 1997 with the mission of designing globally applicable guidelines for preparing enterprise-level sustainability reports including both social and environmental indicators. The GRI is convened by CERES(Coalition for Environmentally Responsible Economies) incorporates the active participation of corporations, non-governmental organizations, international organizations United Nations agencies, consultants, accountancy organizations, business associations, universities and other stakeholders from around the world. The GRI first released its Sustainability Reporting Guidelines in 1999 and is now a permanent, independent, international body with a multi-stakeholder governance structure. An international network of thousands from business, civil society, labor and professional institutions create the content of the Reporting Framework in a consensus-seeking process. AA1000: Launched in 1999, AA1000 based on John Elkingtons triple bottom line (3BL) reporting is an accountability and performance by learning through stakeholder engagement. The AA1000 Stakeholder Engagement Standard (AA1000SES) is a generally applicable, open-source framework for improving the quality of the design, implementation, assessment, communication and assurance of stakeholder engagement. The AA1000 Assurance Standard was launched in 2003 as the worlds first sustainability assurance standard and applies to the principles of Materiality, Completeness and Responsiveness. Social Accountability 8000: Globalisation of business, whilst providing significant benefits to organisations, has brought new challenges and risks. As supply chains become more complex, it is increasingly difficult to ensure transparent management practices in practices in every market. Recently many
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high profile multi-nationals like Nike have been implicated in scandals involving the use of child labour, discriminatory work practices of enforced labour within their supply chains. Consumer pressure, NGO scrutiny and the media amongst others are all placing business under the microscope. SA 8000 is a comprehensive, global, verifiable performance standard for auditing and certifying compliance with corporate responsibility. SA8000 is an international standard for improving working conditions. This standard is based on the principles of the international human rights norms as described in International Labour Organisation conversations, the United Nations Convention on the Rights of the Child and the Universal Declaration of Human Rights. The requirements of this standard apply regardless of geographic location, industry sector or company size. United Nations Global Compact: The Global Compact is a voluntary international corporate citizenship network initiated to support the participation of both the private sector and other social actors to advance responsible corporate citizenship and universal social and environmental principles to meet the challenges of globalization. The UN Global Compact was formally launched in September 2000. UN Secretary-General Kofi Annan called on world business leaders to voluntarily embrace and enact a set of nine principles in their individual corporate practices. Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises: The guidelines were first published in 1976 and updated most recently in June 2004. The guidelines are recommendations addressed by governments to multinational enterprises and are voluntary principles and standards, not legally enforceable. Governments adhering to the Guidelines encourage the companies operating within the countries to observe the guidelines wherever they operate. Benchmarks for Measuring Business Performance: The Interfaith Centre on Corporate Responsibility (ICCR) has published Principles for Global Corporate Responsibility which is not a standard but a collective distillation of the issues of concern for institutional investors developed by groups in the U.S., Canada and the U.K. The ICCR is comprised of more than 275 religious institutions that use their investments to promote social change. The principles cover the entire spectrum of CSR issues, including workplace, community, the environment, human rights, ethics, suppliers and consumers. The principles are published as a reference tool that companies (and investors) can use to

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benchmark or monitor their own policies or those of the companies in which they invest. The Caux Round Table (CRT): It promotes principled business leadership and the belief that business has a crucial role in identifying and promoting sustainable and equitable solutions to key global issues affecting the physical, social and economic environments. The CRT has produced Principles for Business, a document which seeks to express a worldwide standard for ethical and responsible corporate behaviour for dialogue and express a worldwide standard for ethical and responsible corporate behaviour for dialogue and action by business and leaders worldwide. The principles include the social impact of company operations on the local community, a respect for rules and ethics, support for multilateral trade agreements that promote the judicious liberation of trade, respect for the environment and avoidance of illicit operation, including bribery, money laundering and other corrupt practices. The Global Sullivan Principles: Introduced in 1999, the Global Sullivan Principles expand upon the original Sullivan Principles, which were developed by the late Reverend Leon H. Sullivan in 1977 as a voluntary code of conduct for companies doing business in apartheid South Africa. According to Rev. Sullivan, The objectives of the Global Sullivan Principles are to support economic, social and political justice by companies where they do business; to support human rights and to encourage equal opportunity at all levels of employment including racial and gender diversity on decisionmaking committees and boards; to train and advance disadvantaged workers for technical, supervisory and management opportunities; thereby helping to improve the quality of life for communities, workers and children with dignity and equality. Asian-Pacific Economic Cooperation (APEC) Business Code of Conduct: APEC is known as the primary international organization for promoting open trade and economic cooperation among 21 member countries. The Code, issued as draft in 1999, is a standard that draws significantly on a variety of other internationally recognized codes and standards. The drafting of the Code was initiated by business leaders from companies operating in APEC countries and is designed to supplement and support companies existing codes of conduct. In addition to providing recommendations for specific company action on a range of issues, the Code addresses policy recommendations to APEC country governments.
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2.6.

Benefits of Corporate Social Responsibility-

Corporate Social Responsibility is the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda and society at large. Social responsibility becomes an integral part of the wealth creation process-which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation in the society. There is a growing body of data, quantitative and qualitative, that demonstrates many benefits of socially responsible corporate performance. The Iron Law of Responsibility: The institution of business exists only because it performs invaluable services for society. Society gives business its license to exist and this can be amended or revoked at any time if it fails to live up to societys expectations. Therefore, if a business intends to retain its existing social role and power, it must respond to societys needs constructively. This is known as the Iron Law of Responsibility. In the long-run those who do not use power in a manner that society considers responsible, will tend to lose it. Achievement of Long Term Objectives: Businesses have been delegated economic power and have access to productive resources of a community. They are obliged to use those resources for the common good of society which delegated these to them to generate more wealth for its betterment. Technical and creative resources of a business if applied to social problems can help in resolving them. A business organization, sensitive to community needs would, in its own self-interest, like to have a better community in which to conduct its business. To achieve that, it would implement special programmes for social welfare. The resulting benefits would be: Decrease in crime. Easier labour recruitment. Reduced employee turnover and absenteeism. Easier access to international capital, better conditions for loans on international money markets.

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 Dependable and preferred as supplier, exporter/importer, retailer of responsibly manufactured components and products. A better society would produce a better environment in which the business may gain long-term profit maximization. Enhanced Brand Image and Reputation: Customers are drawn to brands and companies with good reputations. A company considered socially responsible can benefit both from its enhanced reputation with the public as well as its reputation within the business community, increasing a companys ability to attract capital and trading partners. Proactive CSR practices would lead to a favourable public image resulting in various positive outcomes like consumer and retailer loyalty, easier acceptance of new products and services, niche market access and preferential allocation of investment funds. Checks Government Regulation/Controls: Regulation and control are costly to business, both in terms of energy and money and restrict its flexibility of decision-making as failure of businessmen to assume social responsibilities invites government to intervene and regulate or control their activities. Businessmen have learnt that once a government control is established, it is seldom removed even though the warranting conditions change. If these are the facts, then the prudent course for business is to understand the limit of its power and to use that power responsibly, giving government no opportunity to intervene. By their own socially responsible behaviour, they can prevent government intervention. Helps Minimize Ecological Damage: The effluents of many businesses damage the surrounding environment. By their own socially responsible behaviour, they can prevent government intervention if they are proactive in recognizing their ecological responsibility towards society. Companies recognize that a strategy for corporate responsibility can play a valuable role not only in meeting the challenges of globalization by mitigating risks domestically and internationally, but also in providing benefits beyond risk management. Improved Financial Performance: Business and investment communities have long debated whether there is real connection
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between socially responsible business practices and positive financial performance. In the last decade an increasing number of studies have been conducted to examine this link. A DePaul University study in 2002 showed that overall financial performance of the 2001 Business Ethics Best Citizen companies was significantly better than that of the remaining companies in the Standard and Poor (S&P) 500 Index, based on the 2001 Business Week ranking of total financial performance. The ranking was based on eight statistical criteria, including total return, sales growth and profit growth over the one-year and three-year periods, as well as net profit margins and return on equity. Reduced Operating Costs: Some CSR initiatives can reduce operating costs dramatically. For example, many initiatives aimed at improving environmental performance, such as reducing emissions of gases that contribute to global climate change or reducing use of agrochemicals also lower costs. Many recycling initiatives cut waste-disposal costs and generate income by selling recycled materials. In the human resources arena, flexible scheduling and other work-life programs that result in reduced absenteeism and increased retention of employees often save costs through increased productivity and reduction of hiring and training costs. Increased Sales and Customer Loyalty: A number of studies have suggested a large and growing market for the products and services of companies perceived to be socially responsible. While businesses must first satisfy customers key buying criteria, such as price, quality, availability, safety and convenience; studies also show a growing desire to buy (or not buy) because of other values-based criteria, such as sweatshop-free and child-labour-free clothing, lower environmental impact and absence of genetically-modified materials or ingredients. Increased Productivity and Quality of Work Life: Efforts to improve working conditions, lessen environmental impacts or increase employee involvement in decision-making often lead to increased productivity and reduced error rate in a company. For example, companies that improve working conditions and labour practices among their suppliers often experience a decrease in merchandise that is defective or cant be sold.
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Increased Ability to Attract and Retain Employees: Companies perceived to have strong CSR commitments often find it easier to recruit and retain employees, resulting in a reduction in turnover and associated recruitment and training costs. Even in difficult labour markets, potential employees evaluate a companys CSR performance to determine whether it is right fit.

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3. Presentation of Data, Analysis and Findings

3.1. Infosys

Corporate social responsibility is securely rooted, Infosys shares the organization CSR values with employees and promoting them to nature to attribute of working for the better society .Infosys is initiated special awards for employee rewards and recognition to individual contribution to social responsibility. Infosys CSR budget is based on the grants managed by a dedicated team at Infosys Foundation, 26 full time members are working at Infosys the details of granted amount. One percent of Infosys profit goes to the foundation, the company strengthened its commitment to social causes like aiding the destitute and the disadvantaged people.
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(Currency in US $ Billions)
SOCIAL PROGRAMS 2007-08 2006-07 2005-06 INFOSYS FOUNDATION OTHER CSR
INITIATIVES

5 3 8

4 4 8

3 2 5

TOTAL

The above data shows the amount of money spent by Infosys for its foundation and other CSR activities. It increased from 2005-06 to 2006-07, but remained constant in the next financial year, 2006-07 to 2007-08. About 15000 libraries established in schools across India since 2006, 3.72 million square feet of office space in TIER2 cities across India in the year 200708 and 830000 government school children benefitted by free mid-day meal initiative. In 1996, Infosys created the Infosys Foundation in the state of Karnataka, operating in the areas of health care, social rehabilitation and rural uplift, education, arts and culture. Since then, this foundation has spread to the Indian states of Tamil Nadu, Andhra Pradesh, Maharashtra, Kerala, Orissa and Punjab. The Infosys Foundation is healed by Mrs. Sudha Murthy, wife of chairman Narayana Murthy. Since 2004, Infosys has embarked on a series of initiatives to consolidate and formalize its academic relationships worldwide under the umbrella of a person called AcE- Academic Entente. Through case study writing, participation in academic conferences and university events, research collaborations, hosting study trips to Infosys Development Centres and running the Instep Global Internship Programs, the company communicates with important stakeholders in the academia.

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3.2. Hindustan Unilever ( HUL)

Consumer goods major Hindustan Unilever (HUL) today said it has tied up with the Tata group retail arm Star Bazar to promote education among the underprivileged children. HUL and Star Bazar had conducted the Indias Favourites campaign last September and had created awareness about various social causes, including education of the underprivileged children, welfare of the blind children and supporting orphans.

Project Shakthi The latest initiative by HUL reflects the low discretionary spending rates of its rural shoppers. With Project Shakthi which HUL launched in 2000, it aims to work with female entrepreneurs. The scheme is based on a network of self-help groups and empowers female entrepreneurs to distribute HUL products like soap and shampoo.

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Shiksha

P& G has aimed at education for its CSR initiative. Its effort called Shiksha, they are leveraging upon a tie-up0 with partners like Child Rights and YOU as well as Round Table India. Under this banner, a percentage of profits generated by brands like Tide, Ariel and Vicks are to be donated to secure better schooling for children. According to P & G(Procter and Gamble Company) Indias marketing manager, Shiksha is not just an initiative, but a passion that we as an organization strongly believe in. According to him, they are helping to build the future of India through education. They aim to build 20 schools this year and another 20 in the coming year. In order to stimulate awareness and interest in the most recent campaign has a strong marketing angle.

Water Conservation and Harvesting HULs water conservation and harvesting project has two major objectives:

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a) To reduce water conservation in its own operations and regenerate sub-soil water tables at its own sites through the principle of 5RReduce, Reuse , Recycle, Recover and Renew. b)Helps adjacent villages to implement appropriate models of watershed development. Health and Hygiene Education Lifebuoy Swastya Chetna(LBSC) is a rural health and hygiene initiative which was started in 2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra, Orissa) with the objective of spreading awareness about the importance of washing hands with soap. The need for a program of this nature arose from the fact that diarrhoeal diseases are a major cause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10 secondsand one-third of these deaths are in India. According to a study done by the London School of Hygiene and Trpical Medicine, the simple practice of washing hands with soap and water can reduce diarrhoea by as much 47 percent. However, ignorance of such basic hygiene practices leads to high mortality rates in rural India.

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3.3. ITC

ITC's Agri Business Division, one of India's largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. e-Choupal The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. 'e-Choupal' also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources. Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk management, larger investments and higher quality and productivity. Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy.
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This will create another virtuous cycle propelling the economy into a higher growth trajectory. The network currently comprises 6500 e-choupals reaching out to more than 4 million farmers in 40000villages in the states of Madhya Pradesh, Uttar Pradesh , Haryana, Uttaranchal, Rajasthan, Maharashtra,Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. Wasteland Development: Social Forestry During 2008-09, 2392 hectares were brought under Social Forestry Plantations, expanding the cumulative total to 14360 hectares. The social forestry project today covers 34 mandals, 454 villages and 16061 poor households. ITCs social and farm forestry programmes have greened over 90000 hectares of land. Integrated Agriculture Development These interventions aim to improve farm productivity, contributing to higher incomes, by promoting a package of efficient farm practices and technologies. During 2008-09, 65 group irrigation projects and sprinkler sets were installed, 550 composting units were constructed and 898 demonstration plots were promoted covering 1750 farmers. Economic Empowerment of Women These programmes aim to create sustainable income opportunities for women. Till 2008-09, 1296 active self-help groups (SHG) with 18032 members had mobilized small savings of rupees one thirty five lacs. During the year, 6610 women have been gainfully employed either through micro-enterprises (931) or as self-employed (5679) through income generation loans. Carbon Positive-4th Year in a Row ITC continued to enlarge its positive carbon footprint through significant efforts in energy conservation, enhanced use of renewable energy resources and large scale sequestration through farm and social forestry initiatives. Through a rigorous process supported by benchmarking and stringent audits, specific energy consumption reduced by 9.2 percent in the Bengaluru cigarette factory, 14.2 percent in Surya Nepals Simra factory, 2.9 percent in Tribeni Speciality Paper unit, 7.6 percent in the Munger Packaging Unit, 6.3 percent in ITC Hotel Maurya, 4.1 percent in Windsor and by 6.1 percent in Sherrton Chola. ITC Water Positive-7th Year in a Row ITC units drew 32.7 million kilolitres of fresh water in 2008-09 (27.5 MKL in 2007-08). Various units that achieve reduction in specific water consumption
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were: Munger Packaging and Printing Unit-22.4 percet; Chirala Leaf Threshing plant-9.6 percent; Cigarette Units at Bengaluru-14.3 percent; Kidderpore-16.6 percent and Saharanpur-23.4 percent; ITC Windsor-12.7 percent,Sheraton-16.8 percent and New Delhi-10.6 percent. ITC continued to invest in rainwater harvesting potential in socially relevant areas as well as at Company Premises. Total rainwater harvesting potential so far created by the company is more than twice hew total water consumed by its operations.

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3.4. TATA

There Tata group has long accepted the idea that CSR makes business sense. This was realized by JN Tata way back in 1895, when he stated, "We do not claim to be more unselfish, more generous or more philanthropic than others, but we think we started on sound and straightforward business principles considering the interests of the shareholders, our own and the health and welfare of our employees... the sure foundation of prosperity." Since inception, the Tata group has placed equal importance on maximizing financial returns as on fulfilling its social and environmental responsibilities - popularly known as the triple bottom line. After decades of corporate philanthropy, the efforts of the group in recent years have been directed towards synchronization of the Triple Bottom Line (TBL). Through its TBL initiative, the Tata group aimed at harmonizing environmental factors by reducing the negative impact of its commercial activities and initiating drives encouraging environment-friendly practices. In order to build social capital in the community, the group has got its senior management involved in social programs, and has encouraged employees to share their skills with others and work with community-based organization. Tata Group is an Indian multinational conglomerate company headquartered. It encompasses seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over 100 operating companies with each of them operating independently. Out of them 32 are publicly listed. The combined market capitalisation of all the 32 listed Tata companies was INR 6 Trillion ($96.87 billion) as of Sep 2013. Tata receives more than 58% of its revenue from outside India Tata Group remains a family-owned business, as the descendants of the founder (from the Tata family) own a majority stake in the company. The current chairman of the Tata group is Cyrus Pallonji Mistry, who took over from Ratan
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Tata in 2012. Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. About 66% of the equity of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The Tata Group and its companies & enterprises is perceived to be India's bestknown global brand within and outside the country as per anASSOCHAM survey. The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world. The Tata Group has helped establish and finance numerous quality research, educational and cultural institutes in India. The Tata Group was awarded the Carnegie Medal of Philanthropy in 2007 in recognition of the group's long history of philanthropic activities. Some of the institutes established by the Tata Group are:

Tata Institute of Fundamental Research Tata Institute of Social Sciences Indian Institute of Science National Centre for Performing Arts Tata Management Training Centre Tata Memorial Hospital Tata Football Academy Tata Cricket Academy Tata Trusts, a group of philanthropic organisations run by the head of the business conglomerate Tata Sons The JRD Tata Ecotechnology Centre The Energy and Resources Institute (earlier known as Tata Energy and Research Institute) a non-governmental research institute. Tata Medical Center, was inaugurated on 16 May 2011, by Ratan Tata

The Tata Group has donated a 2.20 billion ($50 million) to the prestigious Harvard Business School (HBS) to build an academic and a residential building on the institute's campus in Boston, Massachusetts. The new building will be called the Tata Hall and used for the institute's executive education programmes. The amount is the largest from an international donor in the business school's 102-year-old existence. One Tata project that brought together Tata Group companies (TCS, Titan Industries and Tata Chemicals) was developing a compact, in-home waterpurification device. It was called Tata swach which means "clean" in Hindi and
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would cost less than 1000 rupees (US$21). The idea of Tata swach was thought of from the 2004 tsunami in the Indian Ocean, which left thousands of people without clean drinking water. This device has filters that last about a year long for a family of five. It is a low-cost product available for people who have no access to safe drinking water in their homes. The advantage of this device is that it does not require the use of electricity. TCS also designed and donated an innovative software package that teaches illiterate adults how to read in 40 hours. "The children of the people who have been through our literacy program are all in school", says Pankaj Baliga, global head of corporate social responsibility for TCS. In 1912, Tata Group expanded their CEO's concept of community philanthropy to be included in the workplace. They instituted an eight-hour workday, before nearly any other company in the world. In 1917, they recommended a medicalservices policy for Tata employees. The company would be among the first worldwide to organise modern pension systems, workers' compensation, maternity benefits, and profit-sharing plans. Trusts created by Tata Group control 65.8% of company shares, so it can be said that about 66% of the profits of Tata Group go to charity. The charitable trusts of Tata Group fund a variety of projects, for example the Tata Swach and the TCS project. They founded and still support such cherished institutions as the Indian Institute of Science, Tata Institute of Fundamental Research, the National Centre for the Performing Arts and the Tata Memorial Hospital. Each Tata Group company channels more than 4 percent of its operating income to the trusts and every generation of Tata family members has left a larger portion of its profit to them. In 2013, the Tata group, through the Tata Relief Committee and the Himmotthan Society, an associate organisation of the Sir Ratan Tata Trust, has been working in close collaboration with the Uttarakhand government to provide relief to the impacted local communities in three districts of the state. The relief activities, which include provision of food and household material, have so far covered over 65 villages and 3,000 families. In the first phase of relief, the group expects to reach over 100 villages. The Tata group also plans to implement long-term measures for the economic, ecological and resource sustainability of the affected communities and areas. The plan, currently under development, will be based on a baseline survey of impacted villages which is being carried out by teams from the Centre for Disaster Management at the Tata Institute of Social Sciences (TISS), Mumbai, in collaboration with local organisations and communities The greatest contribution of TATA Group was done by Ratan Tata to the 26/11 Mumbai terrorists attacked victims. He is the chairman of Indian Hotels who own the Taj Mahal Hotel Mumbai.
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1. All category of employees including those who had completed even one day as casuals were treated on duty during the time the hotel was closed. 2. The relief and assistance was extended to all those who died at the railway station, surroundings including the Pav-Bhaji vendor and the oan shop owners. 3. During the time the hotel was closed, the salaries were sent by money order. 4. A psychiatric cell was established in collaboration with Tata institute of Social Sciences to counsel those who needed such help. 5. Employee outstretch centres were opened where all help, food, water, sanitation, first aid and counselling was provided. 1600 employees were covered by this facility. 6. Ratan Tata personally visited the families of all the 80 employees who in some manner either through injury or getting killed were affected. 7. Even the other people, the railway employees, the police staff, the pedestrians who had nothing to do with Tatas were covered by compensation. Each one of them was provided subsistence allowance of rupees ten thousand for all these people for 6months. 8. Tata will take responsibility of life education of 46 children of the victims of the terror. This was the most trying period in the life of the organisation. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible. Known for its philanthropic activities, one of the countrys most respected business houses-the TATA Group spends rupees 800-1000 crore a year on Corporate Social Responsibility.

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3.5. ONGC

The above bar graph shows the amount ONGC has been spending for its CSR activities. It was around rupees hundred lacs in 2006-07 which increased to rupees one hundred and fifty lacs and rupees one hundred and seventy lacs in 2007-08 and 2008-09 respectively.

The above pie-chart shows the amount total expenditure spent in different fields like 10 percent for healthcare, 8 percent for education, 6 percent for community development and likewise.

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The above graph highlights the decrease in consumption of water over years which is highly beneficial for the society.

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4.Conclusion and Recommendation

While successfully completing this project, I have identified that Corporate Social Responsibility drives for boosting up economic growth of any country. In India, INFOSYS, HUL, ITC, TATA and ONGC are playing an anchor role to contribute a part of their substantial profit to the stakeholders. No company in this world contributes towards the society without keeping in mind the objective of Profit Maximization. When a company contributes a part of their profit towards the society, they also create a brand value of their own name. In India, Tata Sons (JRD Tata) in the mid 1800s started the initiative to boost up financial inclusion. At the end it can be said that if MNCs start doing these contributions then governments 12th five year plan, that is, Inclusive Growth, the fund raised will be put to use to fulfill the objectives of the government. Besides various recommendations has come to my mind while doing this project, In the recent Companies Bill 2011, mandatory disclosure of companies whose profit exceeding rupees thousand crore or net worth rupees five hundred crore will have to contribute 2 percent of their profit towards the society. The above proactive initiative if implemented properly, Government can expect a fund of rupees thousand crore. In order to do the business successfully, corporate organization should also take fair steps so that the hazardous carbon emissions does not cross the limit and harm the society. Adequate monitoring of recent implementations and their disclosure in financial statements will help in maintaining a transoerancy of the company.

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5.Bibliography
This project has been done with the help of different books, magazines, journals and websites. My supervisor sir has also suggested some suggestions. Summerising them the concept of Corporate Social Responsibility has been highlighted.

Bansal, P.; Roth, R. (2000). "Why Companies Go Green: A model of Ecological Responsiveness".The Academy of Management Journal Bhattacharya, CB, Sankar Sen and Daniel Korschun (2011) Leveraging Corporate Social Responsibility: The Stakeholder Route to Business and Social Value, Cambridge University Press, Cambridge: UK. Bulkeley, H. (2001). "Governing Climate Change: The Politics and Risk Society". Transactions of the Institute of British Geographers, New Series, Vol.26, No.4, pp. 430447. Brand Strategy (2007). "10 key things to know about CSR". London. pg.47. Catalyst Consortium (2002). "What is Corporate Social Responsibility? ITC's 100 glorious years". rediff.com. 24 August 2010. Retrieved 15 September 2013. ITC: Leading Multi-business conglomerate turns 100". The Economic Times. 2010-08-24.
Tata Group Financial Statements. Tata Group "About us." Tata Group. Retrieved on 20 January 2011. "Contact Bombay House 24, Homi Mody Street Fort, Mumbai 400 001 India." "9 Indian brands amongst world's 500 best - Rediff.com Business". Rediff.com. Retrieved 8 July 2013. "Corporate Sustainability Report 2011-12". ONGC. Retrieved 10 November 2013. "Maharatna status for IOC, ONGC and NTPC". The Hindu. 16 November 2010. Retrieved 10 November 2013.
Chahoud, Dr. Tatjana; Johannes Emmerling, Dorothea Kolb, Iris Kubina, Gordon Repinski, Catarina Schlger (2007). Corporate Social and Environmental Responsibility in India Assessing the UN Global Compact's Role.

Khanna, Parul; Gitika Gupta (January 2011). PARUL KHANNA Paper- Corporate Social Responsibility Status of Corporate Social Responsibility:In Indian Context] 2 (1). Sathish, Ramya. "Corporate Social Responsibility in India - Putting Social-Economic Development on a Fast Track

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