DISSERTATION On Impact of CSR Activities on Customers Perception about the Organization and sales of their Products/services - A case study

on HUL, ITC and P&G

Report Submitted in partial fulfillment of Post Graduate Diploma in Management Under Supervision of Prof. NIDHI SHARMA Faculty of GLBIMR Submitted by ANIL KUMAR TIWARY Roll No - GM012 Batch 2010-12 Submitted to

G.L.Bajaj Institute Of Management and Research Plot No. 2, Knowledge Park III, Greater Noida- 201306

Website: www.glbimr.org

CERTIFICATE
This is to Certify that the Project work done on Title Impact

of CSR Activities on

Customers Perception about the Organization and sales of their Products/services - A case study on HUL, ITC and P&G is a confide
work had been carried out by ANIL KUMAR TIWRY a 2nd year student of G.L.Bajaj Institute of Management and Research under my supervision towards partial fulfillment of Post Graduate Diploma in Management. I wish all the best for his future and Endeavour.

DATE PLACE Prof. NIDHI SHARMA

ACKNOWLEDGEMENT
I consider my proud privilege to express deep sense of gratitude to Prof. NIDHI SHARMA for her admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. I would also like to express my hearty gratitude to my other faculties of G. L. Bajaj Institute of Management and Research, Greater Noida, U.P. for their valuable guidance and sincere cooperation, which helped me in completing this final project. I sincerely thank all the members of my Department for their immense support and assistance extended during the course of this project and in making it a valuable experience.

ANIL KUMAR TIWARY

ROLL NO-GMO12

TABLE OF CONTENTS

S. No.

Page No.

1. EXECUTIVE SUMMARY1 2. INTRODUCTION..2 3. BACKGROUND.3 4. SIGNIFICANCE OF THE STUDY....6 5. LITERATURE REVIEW7 6. RESEARCH METHODOLOGY...16 7. SECONDARY DATA ANALYSIS..17 8. DATA ANALYSIS AND INTERPRETATION...29 9. FINDINGS AND CONCLUSION50 10. BIBLIOGRAPHY..51 11. ANNEXURE..52

EXECUTIVE SUMMARY
Indian FMCG companies are most actively engaged in responsible activities and rank on top in the latest Associated Chambers of Commerce and Industry of India (ASSOCHAM) report on CSR by Indian corporates. It has become important for every company to become socially responsible. With Indian consumers becoming more cause conscious, their preferences keep on changing. So CSR helps the companies to attach the consumers with them. Moreover social responsibility is equally important for the economic development of the country. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. The aim of this project is to study the CSR initiatives taken by HUL, ITC and P&G and to know the impact of these initiatives on customers perception towards the organization. It will provide an insight on the awareness level of consumers about these initiatives. This project has two parts explaining the Secondary Analysis on CSR initiatives by HUL, ITC and P&G and Research on Impact of CSR Activities on Customers Perception about the Organization and sales of their Products/services respectively. A Questionnaire will be used to collect primary information from customers/general public. This project will help the researcher to find out the reasons for change in perception of consumers due to CSR initiatives.

Objectives of the study

1. To study the CSR activities done by the FMCG companies 2. To study the favorable impact of CSR activities on the consumers perceptions. 3. To study the impact of CSR activities on the sales of products. 4. To analyze in what ways a company is benefited as a result of execution of CSR activities.

INTRODUCTION

A Statement of Intent generating wealth in a manner that is socially and environmentally sustainable must be the common goal of domestic and international business. In this age of open world economy, brand reputation, repositioning of government activities and privatization, it is increasingly important to do business ethically, morally and with concern for the society. Business today is realizing that the world is not made up of strangers. There is bondage- human bondage. There are customers, employees, shareholders and the neighbors. The business class should render their support to the general people. If they will be uplifted socially and economically, the productivity of the corporate is also bound to increase Social responsibility encompasses the sectors like health, education, employment, income and quality of life. It should be binding on the corporate sector to work on the above aspects, which are thought to be primary social indicators. They have enough money to serve the nation on the above segments of the society. They should not forget that if general health of the mass were good, they would have better buying capacity. CSR is a concept where the company indulges in sustainable or responsible activities, which point to its good intentions as a corporate citizen. This can be undertaken as a statutory obligation to its shareholders, employees or society in general as part of good corporate governance as defined in the Indian Companies Act or it can be used as a public relations tool to gain an image, which the company in question feels is better than it enjoys before it undertakes a major public relations exercise regarding corporate social responsibility. Therefore, CSR differs from company to company and depends on how it is wielded. In some organizations, corporate social responsibility practices talk about development at the grassroots level through various public and private alliances. But the CSR theory is yet to be comprehended by Indian stakeholders; the concept will take good time to come up in full swing in India. "India sets a realistic agenda of grassroots development through alliances and partnerships with sustainable development approaches. At the heart of the solution lies intrinsic coming together of all stakeholders in shaping up a distinct route for an equitable and just social order," said Indu Jain, chairperson, The Times of India Group. Although CSR is not a novel concept in India, but its essence is yet to be properly understood by the stakeholders. Companies like Tata Steel (previously Tisco), Tata Motors (previously Telco), the

C K Birla group of companies and others of their ilk have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. However, this activity was undertaken those days through non-governmental organizations (NGOs) and not directly through the company's balance sheet or profit and loss account. Later in many small family run businesses, this mode of money transfer became the norm for evading corporate taxes. "CSR in India is in a very nascent stage. It is the least understood initiative in the Indian development sector. Though SR Foils is yet to have a dedicated CSR wing, but we do involve ourselves in various CSR activities. We organize hygiene workshops with localities near our office. We try to promote cleanliness and hygiene; we gift free tissues and sanitizers to various schools," said Rakesh Gupta, managing director, SR Foils. Noticeably, either the companies have recently introduced the concept or some MNCs or private companies engage in CSR activities because the practice is followed by their mother branches in their respective foreign countries. Hence, it's quite obvious that the emphasis on CSR practices is due to the policy compulsions, and not because of an urge to serve the community. Transnational have traditionally encountered a lot of opposition to their novel products and new ways of doing business. They usually come under a lot of fire as they try to re-invent business activities, which impinge on the daily life of age-old family run businesses. Recently, Coca-Cola has been offering district football associations Rs 10,000 to conduct a fullfledged football tournament with boys and girls in that district in India. The company's objective clearly to gain brand mileage with cash starved football in India but all they are achieving is a sense of deprivation by football players who can barely manage a tournament with Rs 10,000 in the kitty. This would be a good example of misplaced corporate social responsibility. Some think tanks feel that the concept of corporate social responsibility was taken up by companies after the petroleum company Shell was forced to take up benign activities after the global public boycotted their products and outlets post Shell's mishandling the dismantling of the Brent Spar off shore oil storage tank.

BACKGROUND
The corporate and the government should try to build up a relationship between the business and the society. The concept of corporate social responsibility (CSR) has so far failed to take deep root in India because the nomenclature is not properly defined. The CSR is in a nascent stage. Much needs to be done to bring changes in attitude towards CSR and bring awareness among the corporate about their social responsibilities. The corporate should be made aware about the changing nature of business due to globalization, transformation of market environment and deepening of competition. The market economy has paved the way for enterprise-led development and a new cultural perspective is taking place in Indian business environment that has a strong bearing on social responsibilities. In 1970, Milton Friedman of New York Times rightly wrote: the social responsibility of business is to increase profits. This view is often held and propounded by those who do not see much merit in companies being engaged in issues of Social Responsibility other than the making of profit. However, increasingly, the profit case, evident indicators that are tangible and the altruistic/ philanthropic/ ethical case, evident in the intangibles are getting blurred. In this context the purpose is to highlight the need for a paradigm shift in the importance of greater investment in intangibles to enhance corporate value. Significance of CSR for India The ideal corporate citizenship has ethical and philosophical dimension, particularly in India here wide gap exists between people in terms of income and living standards as well as social status. A latest survey by the Tata Energy Research Institute (TERI) called Altered Images: the 2001 State of Corporate Responsibility in India Poll Traces Back The History Of CSR In India and suggests that there are four models of CSR.Ethical model The origin of the first ethical model of corporate responsibility lie in the pioneering efforts of 19 th century corporate philanthropists such as the Cadbury brothers in England and the Tata family in India. The pressure on Indian industrialists to demonstrate their commitment to social development increased during the independence movement, when Mahatma Gandhi developed the notion of trusteeship, whereby the owners of property would voluntarily manage their wealth on behalf of the people. Gandhis influence prompted various Indian companies to play active roles in nation building and promoting socio-economic development during the 20th century. The history of Indian corporate

philanthropy has encompassed cash or kind donations, community investment in trusts and provision of essential services such as schools, libraries, hospitals, etc. Many firms, particularly family-run businesses, continue to support such philanthropic initiatives. With Indian consumers becoming more 'cause' conscious, their brand preferences keep shifting to favor the brand that is socially more responsible. The phenomenon directly creates a connection between the sales and the CSR. The trend suggests, 'the better the CSR policy, the more the sales.' The trend affects most product categories that are bought on a daily basis, with consumers making a purchase decision almost every day. This could be one of the major reasons why Indian FMCG companies are most actively engaged in responsible activities and rank on top in the latest Associated Chambers of Commerce and Industry of India (ASSOCHAM) report on CSR by Indian corporates. The report says that of 175 Indian companies studied, 52 companies in the FMCG sector have taken the maximum of CSR initiatives. This was followed by the chemical sector and then the IT sector. Most of the initiatives taken by the companies primarily focus on welfare of the community. Community welfare' ranks on top in the priority list in the ASSOCHAM study. The second mostsought-out CSR initiative was providing education and enlightening the rural youth in the country. With stringent norms, lure of carbon credits and growing consciousness, environment-based CSR initiatives get the third place in the priority list of Indian corporates. Healthcare follows environment and becomes priority number four. Though there has been evidence of a paradigm shift from charity to a long-term strategy, the concept is still believed to be strongly linked to philanthropy. There is a need to bring about an attitudinal change in people about the concept by having more coherent and ethnically driven discourses on CSR,' wrote Swati Piramal, president, ASSOCHAM, in one of her articles related to the report. It has to be understood that CSR is about how companies balance their business ethics and behavior with business growth and commercial success along with a positive change in the stakeholder community.

SIGNIFICANCE OF THE STUDY

The era of corporate organizations paying lip service to social responsibility is fast coming to an end. The recent past has seen corporate social responsibility becoming a process from a concept and also organizations deriving value from this initiative. In the light of the above the current research will explore the CSR strategies and initiatives of various selected Indian companies. The study will be based on extant literature and will draw examples from the current Indian scenario. Some primary research is conducted for the Indian corporate houses through their web pages containing informations about their CSR initiatives. Based on this best practices will be delineated and recommendations for using corporate social responsibility as a part of business strategy by the organizations to leverage their perception among the stakeholders. The study will be relevant for the industry as well as academia as it will discuss corporate social responsibility as a strategic move that organizations can incorporate in their overall business strategy, thereby achieving better all-round performance.

LITERATURE REVIEW FMCG companies most active in CSR

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), recently released a report saying that Indian companies engaged in FMCG and chemical sectors were most active in CSR. Out of 175 Indian companies studied, 52 companies in the FMCG sector have taken the most amount of CSR initiatives. This was followed by the chemical sector and then the IT sector. Community welfare is the top CSR priority area for most Indian companies. The second most sought out CSR initiative was providing education and enlightening rural youth in the country. Environment based CSR initiatives placed third with big corporates placing importance on carbon auditing and working towards reducing their impact. Finally, the corporate sector is involved in health care by providing methods to eradicate diseases and educating rural people about hygiene and disease prevention. CSR forms an important tool in branding especially for FMCGs. The Indian FMCG sector is the fourth largest sector in the economy and is set to grow to US$ 33.4 billion by 2015. It is characterized by many MNCs operating out of India as well as good distribution networks. The FMCG sector is also the sector that contributes most towards a growing waste problem within the country and this is something that the sector must address. The food-processing industry alone is set to grow by billions of dollars and this will create its own waste streams. The potential for CSR in this sector is vast and hopefully companies galvanize on their growth will continue to invest in CSR as well.

CSR in India: Community welfare, education and enlightening youth are priorities

Corporate social responsibility (CSR) is not just charity. It is like an obligation and we owe it to the next generation,' said Union Minister of State for Corporate Affairs and Ministry of Minority Affairs Salman Khurshid while inaugurating a seminar 'Corporate sustainability: the driver of innovation' in Chennai. The minister stressed that sustainability meant 'justice between generations'. He said corporates should realize that they have a responsibility towards the next generation. He agreed that the sustainability concept is taking shape in the country. Earlier, he said, it was just a concern for environment, which is gradually expanding to other serious issues as well. Highlighting the government's efforts, Kurshid said that despite the economic recession and inflation, the government had not restricted the allocation for the social welfare sector. Addressing the media, Kurshid said that the performance in terms of CSR was easily measurable with regard to public sector units, as they had been directed to spend a specific portion of their profit towards CSR. He also confirmed that certain voluntary guidelines would be introduced with the launch of the new companies' bill. CauseBecause had reported last month that the ministry of corporate affairs was revising the guidelines on corporate social responsibility (CSR) issued last year and would be adding detailed norms on environmental sustainability. The new rules will primarily prevent wasteful use of natural resources and ensure scientific treatment of industrial waste. The present norms only urged companies to be environmentally conscious and left it for them to take steps in that direction. They failed to provide a clear framework for compliance, leading to companies not taking adequate measures. The participants at the event included Sudha Raghunathan, founder and chairperson of Samudaya Foundation and an eminent Carnatic musician. She highlighted the efforts of the organization towards sustainable development. MB Nirmal, founder-chairman, Exnora International, talked about environment-related worrying issues and also stressed on conservation of farmland. He insisted that as part of their CSR, corporates may grow paddy in place of landscaping as it can help in curbing the food problem. M Rafeeq Ahmed, chairman, FICCI, Tamil Nadu State Council, said any business should be 'societally and economically responsible,' emphasising that 'people, planet and profit' are the three pillars of corporate sustainability. (source : www.causebecause.com)

Corporate Social Responsibility and Inclusive Growth

Since the inception of the double bottom line after Shells PR nightmare with Greenpeace, and now the triple bottom line, corporate social responsibility has become the favorite all-encompassing term and budget for all corporate communication efforts to win over public opinion. Suddenly everything from sponsoring sporting events like Premier League games to building schools and cultural spaces falls within the scope of CSR. Viewed from another direction, CSR is really not much different from buying ad space on billboards except that even non-consumer corporations are doing it i.e., large industrials like steel manufacturers. In developing countries like India, CSR initiatives are even more amorphous, as many corporations assume roles and responsibilities that are normally handled by the public sector. When industries set up new manufacturing plants in a rural area, they inevitably also bring economic growth as well as infrastructural development. For example, Visa Steel in Orissa builds roads for the communities around its steel mills; Vedanta Aluminum and NALCO all have health clinic initiatives for the surrounding rural villages; and of course, there is Tata Steel, which outright adopts villages and takes over most municipal functions (my city, Jamshedpur being case in point). Its a strange niche that CSR fill in India that straddles the public and private sectors as corporations to contribute to the communitys growth and fill in gaps where the public sector fails. What strikes me, however, about these CSR initiatives is how unrelated the various community programs are to the core business of these industries. Each company sponsors a women skills development program, a cultural sports and dance event, a basic health clinic, etc. The cookiecutter similarity of these programs seems to me to be an indication of the lack of internalization of CSR as a core business activity, even though indirectly, they do contribute to the continued success of the corporation. I was at the Confederation of Indian Industries CSR conference last week, during which, each industrial panelist presented the exact same set of CSR initiatives. Of the ten panelists, there was only one representative from POSCO Steel who expounded on why CSR initiatives are crucial to the successful gaining the approval of the local community for green field projects. In my opinion, ALL CSR representatives should have demonstrated why and how their initiatives were contributing directly to the companys bottom line. Otherwise, CSR initiatives become an unsustainable fringe department of a corporation, subject to the fancies of the budget allocator.

The good news is that there do exist progressive CSR programs, which are moving towards an inclusive business model. At a subsequent International Business Leaders Forum last week, CSR representatives and NGOs discussed how to internalize the benefits and impact of social initiatives in the companys bottom line. Roads that are constructed in a rural village benefits the community, yes, but it also eases the transportation logistics for the industrial corporation. Even sponsored cultural dances and sporting events help a core business operate by raising the goodwill of the community and preventing bandhs (strikes). These inclusive business models are focused on measuring and quantifying the benefits of seemingly normal CSR activity to calculate it into the companys P&L statement. The result is a more sustainable form of social impact activity, which is unlikely to disappear when CSR goes out of fashion. The bottom line is that whether its called corporate social responsibility or inclusive business, all social initiatives taken up by a private corporation should have an impact that is measured and shown to contribute to the core business. Only then, will CSR stop being seen as a form of corporate philanthropy and be seen as a necessary part of doing business.

The challenge of corporate social responsibility in India

by John Quigley

The European Institute for Asian Studies (EIAS), on 29th November, held a lunch briefing with Dr C. S. Venkata Ratnam on the challenges of corporate social responsibility (CSR) in India. Dr Ratnam is the Director of the International Management Institute (IMI) in New Delhi and told the meeting that contrary to widespread perceptions, CSR benefits a company more than it costs. The meeting was chaired by Joern Keck, Administrative Board, EIAS. Dr Ratnam said the concept of CSR had different meanings depending on the stakeholder and that depending on the specific situation of the enterprises expectations can also vary. A CSR project can begin in response to a crisis or adverse publicity that a company may suffer. The motive for launching CSR can vary between philanthropy or notions of corporate citizenship. In India, over time, the expectations of the public has grown enormously with demands focussing on poverty alleviation, tackling unemployment, fighting inequality or forcing companies to take affirmative action. The historical driver of CSR has been philanthropy or a sense of ethics. After the Second World War, a variety of national and international regulations arose through bodies such as the International Labour Organisation (ILO) emphasising the need for an active social policy for transnational companies (TNCs). This additional driver, international institutions, has relevance for India through the work of the ILO, the OECD, Socially Responsible Investment (SRI), the SA8000 Social Accountability scheme and through the work of the UN Commission on Human Rights which tackled the human rights responsibilities of TNCs. In India, some public sector companies can spend up to 5% of their profits on CSR activities. Pressure groups have been quite successful in inducing companies to fund CSR schemes, even to the point of using kidnapping as a tactic! Forms of CSR differ according to the country or region. In Europe, for example, notions of CSR probably developed out of the Church and a sense of ethics. In India, CSR has evolved to encompass employees, customers, stakeholders and notions of sustainable development or corporate citizenship. In transnational companies, the approach to CSR typically emerges from one of three elements including a decentralised strategy (which might examine human rights), a centralised strategy (which would be company-wide) or a globally integrated strategy (which would include Coca Cola or oil companies - where local actions can impinge globally). Many large companies enter into CSR through acts of philanthropy including, for example, Bill Gates or Warren Buffet. Often, for such companies, the tax advantages are attractive or it may merely be a clever way to retain control of resources. India has been a major beneficiary from the

Gates Foundation, particularly in health care. One of the fall outs from the Enron scandal has been that in India individuals have been reluctant to accept directorships of companies. From the perspective of the employee, CSR has been hugely important in India. For example, after 1945, TATA implemented social welfare provisions for its employeeshat have since become the legislative norm. Equally, when companies announce they will reduce the number of employees, the workers can be fearful that they benefits they have accrued will be lost. While India has a large comparative demographic advantage with substantial numbers of graduate engineers, for example, probably only one third are actually employable. There is also concern from employees who wonder what would happen to the welfare ethos if an Indian company took control of a European firm. From the perspective of the customer, CSR initiatives can relate to issues of product quality. For example, Sony recently recalled, on a global basis, batteries it used in Dell computers. In Japan, allegations that a particular form of packaging promoted cancer equally led to huge product safety concerns. The last 15 years has witnessed substantial developments in the area of consumer rights. The Indian Supreme Court has declared that it would be better to lose 1000s of jobs in order to protect the health of millions through cleaner air and a better environment. From the perspective of stakeholders in the community, the bigger the company the greater the effort should be to protect the employees or the environment. There is some recognition that it would be hard for smaller companies to undertake CSR initiatives at that kind of level. Communities can pressure companies to provide and improve civic amenities. One scheme, the Provision of Urban Amenities in Rural Areas (PURA) aims to prevent unnecessary urbanisation and help tackle migration from rural areas. Larger companies might also be interested in providing arts and culture activities as a service to the community as a measure to protect local culture. Some companies have encouraged skilled employees to teach in a local community. One of the arguments against CSR has been that it lowers company profits but the IMI has shown that many companies say the benefits outweigh the costs. Another argument has come from some employees who have been hesitant to demand more CSR, seeing a trade-off between CSR spending and better employee welfare provision- although these would be in a minority. Bo Jonsson, Administrative Board, EIAS, acted as Discussant, noting the optimistic view of CSR in India that had been outlined but questioned what concept of CSR had been presented. There can be different concepts between countries or even within a specific business sector. Companies can

have a relationship to the local community without necessarily calling it CSR. EIAS, Mr Jonsson said, wants to broaden the research focus between the EU and India on CSR in order to help benefit business. Case studies examining current practice are important but CSR should also be part of management training. Shareholders will have to be convinced of the value of CSR when management is under pressure to deliver profits. To what extent would the Indian trade union movement be strong enough to protect workers against any aggressive action by companies seeking to divest themselves of their social responsibility to employees. Would unions in India be capable of providing nationwide action at the policy level as the implementation of legislation is severely lacking in India and the inspection regime system is an embarrassment. This failure also lowers public expectations of what can be achieved.

CSR-Discovering New Markets

What is the benefit of CSR or, alternatively,what is the cost of not engaging in CSR? If you ask the CEO of Hindustan Lever (HUL), he will tell you that without emphasising on CSR, HUL would not be able to secure its market share, including 400 million costumers living in villages with less than 5,000 inhabitants across India. Its proactive CSR policy allowed the company to consolidate their market position in South Asia. HUL embarked on its CSR programme, named Shakti, in 2001 when women Self Help Groups (SHG) emerged around the country. In anticipation, HUL reached out to SHG members offering to sell HUL brands in their respective villages. Soon, the so-called Shakti Ammas were selling salt, soap, detergent and cream in small sized packages fit for consumers at the Base of the Pyramid (BoP). BoP refers to a socioeconomic group of customers who live on less than one to three dollars per day and comprise nearly two-third of the world population. Without doubt, the BoP market in Nepal holds the largest group of customers and is untouched for the most part. For HUL, a single Shakti Amma covers approximately 500 BoP costumer and earns about IRs 18,000 a month. Besides securing their livelihoods, it brought women self esteem and a sense of empowerment. HUL created an extensive direct-sales-network, generating roughly USD 250 million annual sales in an unlikely market. This was an ideal winwin situation. So, taking it to the next stage, drawing on their capital of trust, HUL created interactive channels and started adult literacy programmes to gain a better understanding of customer demand, securing 50 per cent of their revenue in India. What can we learn from HULs Shakti case?

First, it shows that CSR is more than doing good. It can effectively promote long term business growth by doing well. Second, CSR opens the door to develop partnerships (like HULs and SHGs) that allows companies to enter markets that would be otherwise uneconomic to serve. Third, companies have to move fast into BoP markets to build brand affinity and loyalty, which are necessary to scale up and secure market share. Lastly, long term benefits of CSR focused on the BoP lies in the ability to interact with the consumers. So, what can your company do to make profit and end poverty?

CSR: Looking at the philanthropic side of HUL

It began its journey in India 75 years ago, today it is Indias number one fast moving consumer goods (FMCG) company. Its brand touches the lives of two out of three Indians every single day, its mission is to add vitality to life. It is Hindustan Unilever (HUL). Most of us begin our day with an HUL product or when we are taking a chai break or cooling off on a hot summer day. A portfolio of products that costs just 0.50 paise and go upto Rs 500, HULs brands touch 700 million consumers across India everyday. But this FMCG giant believes business must always have a purpose beyond making money. For HUL doing well is equal to doing good. For years now Indias largest FMCG giant has believed that philanthropy is not corporate-social responsibility, so for them it has clearly been a brand led strategy. They continue to focus on health nutrition, hygiene, the environment and livelihood enhancement. It might look like any other processing unit, but the machine has been designed to cut carbon emissions. This technology took four years to develop and today is being used at eight HUL factories to manufacture the soaps. Like it has at some of its other plants, HUL has adopted a community around its Silvassa plant. Uptill a decade ago, farmers here were able to grow just one crop during the monsoon months and then communities moved on mass to neighbouring cities seeking petty jobs. HUL under its project Samruddhi, in partnership with NGOs like Vanrai, has set up water shed management systems, check dams and the light to increase water availability in the area. Today, farmers like Firoz Ratan Gowadia are able to cultivate a second crop with their income rising from about Rs 36,000 to Rs 85,000. HUL and

Vanrai have also undertaken a forestation in the area bringing close to 40 hectares of land under mango plantations.

RESEARCH METHODOLOGY
Marketing Research is the systematic design, collection and analysis of the data and reporting of information and findings relevant to a specific marketing situation facing the company.

Research Technique
It is imperative to decide upon and document a research methodology well in advance to carry out the research in a most effective and systematic way. This section describes the research methodology adopted to serve the objectives of the study in an effective manner. Descriptive Research technique is being used for this project. The study would be initiated by the pilot study.

Approach of the Project

Based on the analysis inferences would be drawn about best CSR practices and recommendations would be made to develop CSR as a tool to leverage the perception of organization among the stakeholders The study will be relevant for the industry as well as academia as it will discuss corporate social responsibility as a strategic move that organizations can incorporate in their overall business strategy, thereby achieving better all-round performance.

Data Collection Tools

To study the CSR initiatives the methodology adopted is primary and secondary data analysis. In-depth interviews will be conducted to determine the consumers views on the social responsibility initiatives of the companies. CSR activities of fmcg companies will be studied from companys websites.

Sample size
A sample size of aprrox. 100 consumers would be surveyed to study the consumers perception about the company. This would give us the clear picture of change in sales of product of company due to CSR initiatives.

SECONDARY DATA ANALYSIS

CSR activities by HUL Greening Barriers:

Water Conservation and Harvesting (linked to product Pureit) : HUL's Water Conservation and Harvesting project has two major objectives: a. to reduce water consumption in its own operations and regenerate sub-soil water tables at its own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew; b. help adjacent villages to implement appropriate models of watershed development.

Successful water conservation pilot projects : Project Khamgaon Seven years ago, our team from the Khamgaon factory started a pilot watershed management project, on a five hectare plot, to prevent soil degradation and to conserve water. The selected area was located in a dry and arid region of Maharashtra. The efforts have resulted in the creation of a green belt, which is now a veritable forest with about 6,300 trees. Encouraged by the results, we extended the model to a neighbouring village, Parkhed, in association with The Energy and Resources Institute (TERI) and BAIF Development Research Foundation. The community at Parkhed constructed 47 percolation bunds, 1,600 trenches, 6,000 running metres of continuous contour trenching over 100 hectares and five permanent check dams. More than 350 families are reaping the second crop, which is made possible by the check dams. The total land under cultivation during the second crop season is approximately 470 acres. The annual income of the farmers in the vicinity of the five check dams has increased from an average of INR 36,000 to approximately INR 85,000, per farmer. This success has been attributed to the availability of well water during the Rabi season and an increase in the water level during the Kharif season. Hence, along with reaping a Rabi crop, the farmers have also been able to almost double the yield of the Kharif crop. This initiative received appreciation at the Johannesburg World Summit on Sustainable Development.

Project Silvassa

In April 2004, Vanarai and HUL started a project in Karchond and later in Dapada, Pati, Sindoni, and Silvassa. Till March 2010, the project has made an impact on water and soil conservation. The project has ensured sustainable development of water and land resources, locals have attained selfsufficiency in basic needs of food, water, fodder and fuel, and local employment opportunities have been generated through increased economic activity. The other highlights are: - More than 67 million litres of water have been harvested since 2004 - Additional income of INR 160 lakhs was accrued to villagers during project period - 325 families have benefited under various programmes, 130 families now have access to the public toilet facility - Soil conservation treatment has been carried out on 282 hectares of land - 12,000 mango seedlings have been planted - 22 bore wells and 20 open wells were recharged Project Puducherry In 2008-09, HUL's Puducherry unit partnered with DHAN Foundation, Madurai and identified eight village ponds for renovation to enhance the water availability. One of the unique aspects of the project was to form social capital by organizing villagers into pond association and empower them to execute the physical renovation work. The pilot project has improved water availability in eight village ponds by harvesting monsoon run-off. Rainwater harvesting storage of 22300 cu. meter has fulfilled the multiple domestic needs of 4519 households in eight hamlets and 346 acres are now irrigated due to the rejuvenation of ground water.

SHAKTI - Changing Lives in Rural India Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, and creating access to relevant information through the iShakti community portal.

In general, rural women in India are underprivileged and need a sustainable source of income. NGOs, governmental bodies and other institutions have been working to improve the status of rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised in Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation. Health & 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 seconds and one third of these deaths are in India. According to a study done by the London School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and water can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygiene practices leads to high mortality rates in rural India.

Economic Empowerment of Women The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of women across India. It aims to achieve this through providing information, resources, inputs and support in the areas of education, career and enterprise. It specifically targets women from lowincome groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic empowerment platform and the Foundation is an extension of this promise. The Foundation has

renowned Indian women, from various walks of life, as its advisors. Among them are educationists, NGO activists, physicians. The Foundation is implementing its activities in association with state governments.

Special Education & Rehabilitation Under the Happy Homes initiative, HUL supports special education and rehabilitation of children with challenges. Ankur: In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for special education of challenged children. The centre takes care of children with challenges, aged between 5 and 15 years. Ankur provides educational, vocational and recreational activities to over 35 children with a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral palsy and severe learning difficulties. Kappagam: Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special education of challenged children, was set up in 1998 on HUL Plantations in South India. It has 17 children. The focus of Kappagam is the same as that of Ankur. Anbagam: Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in the South India Plantations. It takes care of 11 children. Besides medical care and meals, they too are being taught skills such that they can become self-reliant and elementary studies.

Other Community initiatives:

Providing healthcare Sanjivani Mobile Medical Facility:We started Sanjivani, a mobile medical service in 2003, to offer effective medical care in villages surrounding our Doom Dooma factory in Assam. The objective

has been to meet the basic medical needs of people living in the remote villages in Assam through a free mobile medical facility. Apart from basic medical services, Sanjivani also spreads awareness about hygiene, child immunisation, family planning etc. The project covers a radius of 40 km around the factory with two mobile vans equipped with basic medical equipment and a specialised team comprising one male and one female doctor, two nurses, a medical attendant and drivers. On an average, 400 Sanjivini medical camps are conducted every year in remote villages surrounding our factory. The project is run in close co-ordination with the local administration and its progress is reviewed every quarter. Assisting women through education Fair & Lovely Foundation:Scholarships of up to INR 1 lakh have been awarded to those women who do not have the financial strength to realize their dreams, but have the aptitude, drive, and ambition to carve a place of pride for themselves in society. The scholarship which was awarded only to postgraduate studies has now been extended to graduate students as well. Since 2003, more than 790 scholarships have been awarded to women across India. Disaster relief and rehabilitation Floods, Bihar, 2008:We contributed 10,000 kits worth INR 60 lakh as the first installment of material for immediate relief of the flood affected families in Araria District in Bihar. The kit contained essential items such as utensils, clothes, blankets, and other useful material. In all, 12 truckloads of material were distributed to the affected families under the guidance of the Araria District Magistrate. A sum of INR 84 lakh was contributed by HUL and our employees to rehabilitate the underprivileged amongst the flood-affected families in the village of Jorgama, Madhepura district, Bihar. The project aims at theconstruction of 100 disaster proof houses for the purpose of rehabilitation. Tsunami, South India, 2006:We contributed over INR 10 crores towards the relief and rehabilitation of tsunami-affected families by way of providing relief material, land, and

construction of facilities. We distributed nutritional and personal hygiene products worth INR 5 crores for immediate relief to the needy soon after the tsunami hit the region. Later, pursuant to a request from the Government of Tamil Nadu about the urgent need for housing the affected families, we donated 5.27 acres of land (market value on a conservative basis is INR 4.5 crores) at Tondiarpet, Chennai, to the government. The complex has 960 permanent houses spread over 5.27 acres of land. Our employees also made a contribution of INR 50 lakhs which was used to construct the facilities in the complex. Caring for the vulnerable Asha Daan: In 1976, HUL provided a 72,500 sq. ft plot for setting up Asha Daan in the heart of Mumbai. This home is supported by the Missionaries of Charity and cares for abandoned and challenged children, victims of HIV, and the destitute. We bear the capital and revenue expenses for maintenance, upkeep, and security of the premises. The needs of the abandoned/challenged children are met by the Sisters of the Home. Special classes are arranged that teach the children basic skills, physiotherapy, etc. Whenever necessary, we also arrange for corrective surgery in city hospitals. In 1995, we were able to open a ward for female HIV positive patients, which was one of Mother Teresa's dearest desires.

CSR Initiatives by P&G

The entry of P&G into the field of corporate social responsibility with project PEACE an environmental education programme followed by FUTURE FOCUS first ever career guidance service. P&G experimented Cause Related Marketing with different projects like Project DRISHTI where Whisper helped to restore eyesight to 250 blind girls through corneal transplant operations in which P&G contributed Re 1 for every pack of whisper sold Project OPEN MINDS

to support and educate children across the Australia, ASEAN and the India (AAI) region. For every large size pack of Vicks VapoRub, Whisper, Ariel Power Compact, Head & Shoulders and Pantene purchased by consumers during November 1999 to January 2000, P&G on behalf of consumers contributed the cost of one days education of a working child to the OPEN MINDS fund. In India P&G raised Rs. 1.25 crore for OPEN MINDS which was donated to UNICEF in February 2000 Project POSHAN to combat malnutrition in India. P&G raised Rs. 50 lakhs by contributing Re. 1/- from sales of large size packs of Ariel, Whisper, Head & Shoulders and Pantene sold in the months of May, June and July 2000 and Project SHIKSHA a unique CRM initiative in association with Sony Entertainment Television. By purchasing packs of Vicks, Whisper, Ariel, Tide, Head & Shoulders and Pantene between 21st April 12th June 2003, this unique education promotion allowed a mother to win Rs. 2 lakhs towards Graduate Education Fee of one child (24 such Prizes), or Rs. 5,000 towards Next Years Tuition fee for one child (96 such Prizes), and a number of Consolation Prizes, all courtesy P&G. Pampers and UNICEF working together for healthy babies: Every year, 59,000 people die from maternal and neonatal tetanusa completely preventable disease. So for the fourth year running, Pampers is teaming up with UNICEF to deliver the vaccines that vulnerable women and their children need.The effort gets our consumers involved. With the purchase of one pack of Pampers, one dose of the vaccine is donated. Our campaign has created the highest awareness ever for maternal and neonatal tetanus, helping put the disease back on the agenda of health authorities.Since 2006, a total of 100 million women and their babies have been protected against maternal and neonatal tetanus. P&G and UNICEF have also teamed up to offer P&G employees in Western Europe the opportunity to take a three-month paid sabbatical and work with UNICEF. The program is aimed at employees who have always wanted to undertake humanitarian work but have not had the chance before.UNICEF benefits from the diverse backgrounds of P&G employees as they apply such skills as communications, promotion, leadership training, and supply chain management. Although resource requirements for UNICEF are ever-changing, three to four assignments are expected per year. P&G and Shiksha :

India has the worlds largest population of uneducated children, with nearly half of all children there not attending school. The Shiksha program (Shiksha - Hindu for "Education") is dedicated to fighting that trend, helping to provide access to education for more children. The program funds NGO efforts to address the underlying causes of poor access to education, such as poverty, health issues, and access to immunization. In cases where schools dont exist, the program also funds their construction. Each time a consumer bought a large pack of any P&G brand in India between April and June of 2010, part of the proceeds went toward leading children on the path to education. Shiksha also benefits from the direct involvement of P&G employees. Each year, employees participate in a Shiksha Walk-a-thon, joining their families and others in raising awareness for the cause.

P&G Childrens Safe Drinking Water Program Almost one billion people in the developing world do not have access to clean drinking water. As a result, thousands of children die every day. The P&G Childrens Safe Drinking Water (CSDW) Program reaches these people through PUR packets, a water purifying technology developed by P&G and the U.S. Centers for Disease Control and Prevention (CDC). One small PUR packet quickly turns 10 liters of dirty, potentially deadly water into clean, drinkable water. The packets can be used anywhere in the world, including areas affected by natural disaster. This Live, Learn and Thrive program provides PUR packets on a not-for-profit basis. Since the program began, more than 3 billion liters of purified drinking water in more than 60 countries have prevented an estimated 120 million days of diarrheal illness and helped save more than 16,000 lives. CSDW works with over 100 partners to provide PUR packets. The program responds to emergencies including cholera outbreaks, earthquakes, floods and other natural disasters. CSDW and its partners provide clean drinking water in schools, outreach to mothers in health clinics, and clean drinking water for malnourished children, and also help people living with AIDS to live positively.

Disaster Relief at P&G Our global disaster response approach allows us to respond quickly and effectively. Our first concern is for the safety and welfare of our employees. Within hours, we are also in contact with our humanitarian partners to understand the scope and impact of the crisis, and how best to respond. The most immediate way we often help is to provide PUR Purifier of Water packets. Natural disasters can leave places that typically have safe drinking water suddenly without it. These packets transform dirty, unsafe water into clean drinking water in 30 minutes, so they can be very useful in times of crisis. We have worked closely with several of our partners to strategically place depots of PUR packets around the world, making them more readily available when needed. In addition to cash donations, we often provide products. From our soap and personal hygiene products to our laundry, diaper and cleaning products, our brands can help restore a sense of normalcy to the disrupted lives of those caught in the aftermath of a disaster.

CSR Initiatives by ITC

E-Choupal rural digital-physical infrastructure ITC's globally awarded e-Choupal initiative is a powerful illustration of a unique business model that delivers large societal value by co-creating rural markets with local communities. The eChoupal digital infrastructure enables even small and marginalised farmers in rural India, who are de-linked from the formal market, to access relevant knowledge, market prices, weather

information and quality inputs to enhance farm productivity, quality and command better prices making them more competitive in the national and global markets. Customized agri-extension services and farmer training schools through a focused programme - "Choupal Pradarshan Khet" - enable farmers to access best practices in agriculture and improve productivity.

Social & Farm Forestry ITC procures wood pulp for its Paper and Paperboards business from renewable plantations cultivated by tribals and farmers on their private wastelands. ITC invested in extensive R&D to create clonal saplings which apart from being disease resistant, grow much faster and in harsher conditions. A large number of tribals and marginal farmers have benefited by growing these pulpwood saplings on their private wastelands. ITC's paperboards business is a willing buyer of their produce, whilst the growers are free to sell to the highest bidder in the open market. ITC could have taken the easier route by importing pulp, rather than a more difficult route of mobilising tribals and marginal farmers which involved long gestation and substantial investment exposure. However, the adoption of this more challenging route has not only created a source of sustainable livelihoods for a large number of disadvantaged sections of society, but has also brought a multiplicity of benefits by creating a large green cover that contributes significantly to groundwater recharge, soil conservation and carbon sequestration. Recently, ITC's social forestry project in Andhra Pradesh was registered under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change. The carbon credits earned will also be shared with the tribals and farmers, enabling them to participate in an international carbon market mechanism.

Integrated Watershed Development Recognising the vital role that irrigation and water play in the rural economy, ITC supports the creation of watershed projects in water-stressed areas, providing precious water resources for agriculture, rural communities and livestock. Based on a participatory approach that involves local communities, the programme facilitates building, reviving and maintaining water harvesting structures as well as management of water resources to reverse land degradation, provide critical irrigation and increase agricultural productivity. Providing Supplementary Education ITC's Supplementary Learning Centers offer additional coaching that backs up school learning, stemming drop-outs and enabling more children to complete school. ITC also supports outreach projects, including mobile libraries that foster the reading habit and a 'roaming laptop' programme that promotes computer skills and interactive learning.

Economic Empowerment of Women

ITC's initiatives provide sustainable economic opportunities to poor women in rural areas by assisting them to form microcredit self-help groups that enable them to build up small savings and finance self-employment and micro-enterprises. A large number of women earn income as selfemployed workers or as partners in micro-enterprises. The programme has demonstrated that extra income in the hands of women leads to significant and positive changes in human development since it is spent largely on children's education, health and nutrition, and is a catalyst for gendering development.

Livestock Development ITC's livestock development programme assists rural households to upgrade livestock quality through cross-breeding by artificial insemination to boost milk productivity by a factor of 6-9 times, leading to a threshold increase in household incomes and thereby an improvement in their poverty status. Currently, these initiatives reach out to nearly 2,600 villages in 5 states.

Renewable Energy at ITC ITC has adopted a conscious strategy to lower its carbon footprint, which has brought immense benefits: over 30% of the Company's total energy consumption is from renewable sources and carbon neutral fuels. In keeping with its commitment to utilise an increasing component of renewable energy, ITC has set up a 14 MW wind energy facility to provide power to the Company's packaging unit in Chennai. Additional investments in wind energy, totalling over 25 MW, are also being made to supplement the power requirements of the ITC Hotels in Mumbai and Chennai.

ITC Green Building Providing leadership in positive environmental action, the "ITC Green Centre" in Gurgaon, certified by the US Green Building Council for Leadership in Energy & Environmental Design (USGBC- LEED) is one of the first and one of the largest commercial "Platinum Rated" buildings in the world and continues to provide inspiration to the "greener buildings" movement in India. At ITC Green Centre, energy consumption has been reduced significantly through design integration. The building has been designed to maximise the use of natural light during the day, largely eliminating the need for artificial lighting. At the same time, glass used for the windows allows light in, but does not allow heat. This not only keeps the building cool from the inside during the day, but also decreases the load on air-conditioners. There is minimum use of exterior lighting to limit night sky pollution. Water consumption has been reduced by 40% and with a water recycling plant, the building is now a zero water discharge building

DATA ANALYSIS
1. Reliability Test (Applying Cronbachs Alpha) Scale: ALL VARIABLES
Case Processing Summary N Cases Valid Excludeda Total 100 0 100 % 100.0 .0 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's Alpha .704 N of Items 9

Interpretation : Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of items are as a group. Here the alpha coefficient for the nine items is .704, suggesting that the items have relatively high internal consistency

Frequencies and Mean

Statistics Age N Valid Missing Mean 100 0 2.19 Gender 100 0 1.43 Ed. Qulf 100 0 2.48 Occupation 100 0 1.98 Location 100 0 1.26

For Age: Values are : Below 20 = 1,

21-30 = 2,

31-40 = 3,

41-5 0= 4

Age Cumulative Frequency Valid 2 3 4 Total 82 17 1 100 Percent 82.0 17.0 1.0 100.0 Valid Percent 82.0 17.0 1.0 100.0 Percent 82.0 99.0 100.0

Interpretation : From the above table we can infer that in a sample size of 100 respondents, Maximum number of respondents were between the age group of 21-30 and least number of respondents of age group 41-50.

For Gender Values are : 1=Male, 2=Female

Gender Cumulative Frequency Valid 1 2 Total 57 43 100 Percent 57.0 43.0 100.0 Valid Percent 57.0 43.0 100.0 Percent 57.0 100.0

Interpretation : From the above frequency analysis we can infer that out of the total sample of 100 respondents, 57% of respondents were male and 43% of respondents were Female

For Education Qualification : Values are : 1 = Undergarduate, 2 = Graduate, 3 = Post Graduate

Ed. Qulf Cumulative Frequency Valid 1 2 3 Total 15 22 63 100 Percent 15.0 22.0 63.0 100.0 Valid Percent 15.0 22.0 63.0 100.0 Percent 15.0 37.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, Maximum of the respondents i.e. 63% of the respondents were post graduate. For Occupation

Values are : 1 = Service, 2 = Businessman, 3 = Housewife, 4 = Student, 5 = Unemployed

Occupation Cumulative Frequency Valid 1 2 3 4 5 Total 59 9 11 17 4 100 Percent 59.0 9.0 11.0 17.0 4.0 100.0 Valid Percent 59.0 9.0 11.0 17.0 4.0 100.0 Percent 59.0 68.0 79.0 96.0 100.0

Interpretation : From the above frequency analysis we can infer that out of the total sample of 100 respondents, around 60% of sample population is from service class.

For Location

Values are : 1 = Delhi, 2 = Gurgaon, 3 = Faridabad, 4 = Ghaziabad

Location Cumulative Frequency Valid 1 2 3 4 Total 85 8 3 4 100 Percent 85.0 8.0 3.0 4.0 100.0 Valid Percent 85.0 8.0 3.0 4.0 100.0 Percent 85.0 93.0 96.0 100.0

Interpretation : From the above frequency analysis we can infer that out of the total sample of 100 respondents, More than 80% of population were from delhi and rest from the NCR region.

Frequencies and mean

Statistics Pref to Product fmcg pref. N Valid Missing Mean 100 0 2.31 CSR must 100 0 2.04 on basis of CSR 100 0 2.32 CSR mkt tool 100 0 2.38 Prodct asso with social cause 100 0 2.67

Values for FMCG preference :

1 = HUL,

2 = ITC,

3 = P&G,

4 = DABUR,
fmcg pref.

5 = OTHERS
Cumulative

Frequency Valid 1 2 3 4 5 Total 31 33 16 14 6 100

Percent 31.0 33.0 16.0 14.0 6.0 100.0

Valid Percent 31.0 33.0 16.0 14.0 6.0 100.0

Percent 31.0 64.0 80.0 94.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 64% of sample population prefers the products of HUL and ITC. P&G and Dabur follows them.

CSR initiatives are must for every company? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
Cumulative Frequency Valid 1 2 3 4 Total 28 47 18 7 100 Percent 28.0 47.0 18.0 7.0 100.0 Valid Percent 28.0 47.0 18.0 7.0 100.0 Percent 28.0 75.0 93.0 100.0

CSR must

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 75% of sample population agrees that CSR is must for every company as it contributes to the society.

Preference to products on the basis of CSR Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

Pref to Product on basis of CSR Cumulative Frequency Valid 1 2 3 4 Total 16 46 28 10 100 Percent 16.0 46.0 28.0 10.0 100.0 Valid Percent 16.0 46.0 28.0 10.0 100.0 Percent 16.0 62.0 90.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 62% of sample population, while purchasing a product, gives preference to products on the basis of CSR initiatives taken by the parent company.

CSR is only a marketing tool?

Values are : 1 = Strongly Agree,

2 = Agree,

3 = Disagree, 4 = Strongly Disagree

CSR mkt tool Cumulative Frequency Valid 1 2 3 4 Total 24 26 38 12 100 Percent 24.0 26.0 38.0 12.0 100.0 Valid Percent 24.0 26.0 38.0 12.0 100.0 Percent 24.0 50.0 88.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 50% of sample population believes that FMCG companies use CSR as a marketing tool

Products that you buy must be associated with any social cause? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree
Cumulative Frequency Valid 1 2 3 4 Total 8 27 55 10 100 Percent 8.0 27.0 55.0 10.0 100.0 Valid Percent 8.0 27.0 55.0 10.0 100.0 Percent 8.0 35.0 90.0 100.0

Prodct asso with social cause

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, more than 55% of sample population believes that product which they buy need not to be associated with any social cause.

Frequencies

Statistics emotional attachment N Valid Missing Mean 100 0 2.22 Aware of csr in rural 100 0 2.73 Pref to company doing CSR 100 0 2.50 E-choupal 100 0 1.35 Shakti 100 0 1.72 Project khamgaon 100 0 1.85

CSR initiatives make an emotional attachment with the consumer? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

emotional attachment Cumulative Frequency Valid 1 2 3 4 Total 16 53 24 7 100 Percent 16.0 53.0 24.0 7.0 100.0 Valid Percent 16.0 53.0 24.0 7.0 100.0 Percent 16.0 69.0 93.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents around 70% of the sample population believes that CSR initiatives make an emotional attachment with the consumers.

Aware of CSR initiatives taken by FMCG companies n rural areas? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

Aware of csr in rural Cumulative Frequency Valid 1 2 3 4 Total 9 26 48 17 100 Percent 9.0 26.0 48.0 17.0 100.0 Valid Percent 9.0 26.0 48.0 17.0 100.0 Percent 9.0 35.0 83.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents around 2/3rd of the sample population is not aware about the various CSR initiatives taken by the FMCG companies. This is the main reason, why consumers perception about the organization doesn not changes despite of CSR initiatives taken by them.

Company that you dont prefer starts doing CSR initiatives, Will it change your preference? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

Pref to company doing CSR Cumulative Frequency Valid 1 2 3 4 Total 24 27 24 25 100 Percent 24.0 27.0 24.0 25.0 100.0 Valid Percent 24.0 27.0 24.0 25.0 100.0 Percent 24.0 51.0 75.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 1/2 of the sample population(50%) believes their preference towards the companies will not change even if a company which they dont prefer, starts doing CSR actitvities.

Awareness about the following initiatives E-Choupal Values are : 1 = Yes, 2 = No

E-choupal Cumulative Frequency Valid 1 2 Total 65 35 100 Percent 65.0 35.0 100.0 Valid Percent 65.0 35.0 100.0 Percent 65.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, nearly 2/3rd of sample population (65%) is aware about the famous initiative by ITC i.e. E-Choupal. But rest 1/3rd of the sample population is still not aware of the initiative. Shakti Values are :

1 = Yes,

2 = No
Shakti Cumulative Frequency Percent 28.0 72.0 100.0 Valid Percent 28.0 72.0 100.0 Percent 28.0 100.0

Valid

1 2 Total

28 72 100

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 28% of sample population is aware about the famous initiative of HUL. Project Khamgaon Values are : 1 = Yes,

2 = No

Project khamgaon Cumulative Frequency Valid 1 2 Total 15 85 100 Percent 15.0 85.0 100.0 Valid Percent 15.0 85.0 100.0 Percent 15.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only around 1/7 th of the sample population (15%) is aware about the famous initiative of the HUL.

Frequencies

Statistics aware of integrated aware of shiksha N Valid Missing Mean 100 0 1.48 watershed 100 0 1.69 aware of livestock development 100 0 1.81 aware of renewable energy 100 0 1.74 aware of silvassa 100 0 1.75

Shiksha by P&G Values are : 1 = Yes,

2 = No

aware of shiksha Frequency Valid 1 2 Total 52 48 100 Percent 52.0 48.0 100.0 Valid Percent 52.0 48.0 100.0 Cumulative Percent 52.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only around 1/2 of the sample population (52%) is aware about the Shiksha initiative by P&G

Integrated Watershed Development by ITC Values are : 1 = Yes, 2 = No

aware of integrated watershed Cumulative Frequency Valid 1 2 Total 31 69 100 Percent 31.0 69.0 100.0 Valid Percent 31.0 69.0 100.0 Percent 31.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 70% of the sample population is not aware of the initiative Integrated Watershed Development by ITC

Livestock Develpoment Values are : 1 = Yes,

2 = No

aware of livestock development Cumulative Frequency Valid 1 2 Total 19 81 100 Percent 19.0 81.0 100.0 Valid Percent 19.0 81.0 100.0 Percent 19.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 19% of the sample population is aware of the initiative Livestock Development by ITC. Major portion of the population is not aware of the initiatives.

Renewable Energy by ITC Values are : 1 = Yes, 2 = No

aware of renewable energy Cumulative Frequency Valid 1 2 Total 26 74 100 Percent 26.0 74.0 100.0 Valid Percent 26.0 74.0 100.0 Percent 26.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 26% of the sample population is aware of the initiative Renewable Energy by ITC. Major portion of the population is not aware of the initiatives.

Project Silvassa by HUL Values are : 1 = Yes,

2 = No

aware of silvassa Cumulative Frequency Valid 1 2 Total 25 75 100 Percent 25.0 75.0 100.0 Valid Percent 25.0 75.0 100.0 Percent 25.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 25% of the sample population is aware of the Project Silvassa by HUL. Major portion of the population is not aware of the initiatives.

CSR helps in economic develpment? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

CSR helps in ECo Develop. Cumulative Frequency Valid 1 2 3 4 Total 29 54 13 4 100 Percent 29.0 54.0 13.0 4.0 100.0 Valid Percent 29.0 54.0 13.0 4.0 100.0 Percent 29.0 83.0 96.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, more than 80% of sample population believes that CSR helps in economic development but they still are not aware of the various CSR initiatives taken by the companies CSR helps in building a brand? Values are : 1 = Strongly Agree,

2 = Agree,

3 = Disagree, 4 = Strongly Disagree

CSR builds a Brand Cumulative Frequency Valid 1 2 3 4 Total 36 34 12 18 100 Percent 36.0 34.0 12.0 18.0 100.0 Valid Percent 36.0 34.0 12.0 18.0 100.0 Percent 36.0 70.0 82.0 100.0

Interpretation : From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 70% of sample population believes that CSR is a good marketing tool and it helps in building a good brand value.

Hypothesis Testing
Hypothesis 1 CSR activities do not impact the sales of the product. .

Correlations Pref to Product Correlations Pref to Product on basis of CSR Pearson Correlation Sig. (2-tailed) on basis of CSR 1 Pref to company doing CSR 1001 .273** 100 .006 .572** 100 .000 100 100 Pref to company doing CSR .273** CSR mkt tool .006 .572** 100 .000 1 100 1 100

Pref to company doing CSR N Pearson Correlation Pref to company doing CSR Sig. (2-tailed) Pearson Correlation N Sig. (2-tailed) CSR mkt tool Pearson Correlation N

Sig. (2-tailed) **. Correlation is significant at the 0.01 level (2-tailed). N **. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: From the above correlation we found that CSR does not impact the purchasing behavior of the consumers as they do not give preference to any of the company or product while purchasing a product. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.

2nd case

Interpretation: From the above correlation we found that people consider CSR is only a marketing tool so many people do not give preference to any of the company or product while purchasing a product. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.

Hypothesis 2 CSR activities does not change the perception of consumers towards the organization

Correlations Pref to Product on basis of CSR Pref to Product on basis of CSR Pearson Correlation Sig. (2-tailed) N Aware of csr in rural Pearson Correlation Sig. (2-tailed) N *. Correlation is significant at the 0.05 level (2-tailed). 100 .229* .022 100 100 1 Aware of csr in rural .229* .022 100 1

Interpretation: From the above correlation we found that people in urban areas are not aware of the CSR initiatives taken by various FMCG companies, thus their perception about the company or organization does not changes because of CSR. The correlation is significant at 0.05 level. Therefore we accept the hypothesis.

Hypothesis 3 People does not have the prior knowledge of the various CSR initiatives taken by the FMCG companies.

CSR Initiatives E-Choupal Shakti Project Khamgaon Shiksha Integrated Watershed Development Livestock Development Renewable Energy Project Silvassa

YES
65% 28% 15% 52% 31% 19% 26% 25%

NO
35% 72% 85% 48% 69% 81% 74% 75%

TOTAL
100 100 100 100 100 100 100 100

Awareness Chart

Interpretation : From the above analysis, we can see that in all the cases except E-choupal, people are not aware of all the initiatives asked. This is the main reason of why there is no change in consumers perception towards the organization. People are not aware of the CSR initiatives taken by FMCG companies in the rural areas. Thus our hypothesis is right.

T-Test on Gender and change in perception of consumer due to CSR activities

One-Sample Statistics N Pref to company doing CSR Gender 100 100 Mean 2.50 1.43 Std. Deviation 1.115 .498 Std. Error Mean .111 .050

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t Pref to company doing CSR Gender 22.429 28.740 df 99 99 Sig. (2-tailed) .000 .000 Mean Difference 2.500 1.430 Lower 2.28 1.33 Upper 2.72 1.53

FINDINGS AND CONCLUSION

The study was conducted to find out the impact of CSR activities on customers perception about the organization and sales of the product as well as to study the various CSR initiatives of HUL, ITC and P&G. From the above report the finding comes to be that people are not aware of the various initiatives taken by the companies. Companies are spending lots of money for the welfare of the society but people of the society are not fully aware of it. This is the problem with most of the consumers in urban areas because most of the initiatives and projects are undertaken the companies in rural areas only. So the awareness level of people is very low in this case. Another finding is that CSR initiatives put a very less impact on the consumers perception towards the companies and sales of the products. The consumers are not able to recall any initiatives thus their buying behavior does not change and they buy the product which they want. On asking that will they buy a product of company which they dont prefer, if it start doing CSR, the response was the same. Although people do believe that CSR is good for economic development but on the other side they also consider it as a good Marketing tool. On asking about the famous CSR initiatives, people were unable to recall any except E-choupal, famous initiative by ITC which has also won many awards. Amongst the three chosen FMCG companies HUL, ITC and P&G, most of the sample population preferred the products of HUL and ITC. Meeting and interacting with the consumers and collecting data was a real good experience.

BIBLIOGRAPHY

1. Lara Balsara, www.orissadiary.com, Show Bussiness News, Monday, November 22, 2010 2. India ta glance, Trends, Corporate social responsibility, www.ibef.org, 06 June 2010 3. Times of India, Feb 18, 2010 4. www.justmeans.com 5. News, CSR, causebecause.com, CauseBecause Citizen Bureau, December 16, 2010 6. Semantics, Corporate Social Responsibility and Inclusive Growth www.jeannechen.com, May 28, 2010 7. www.eias.org, EurAsia Bulletin, Volume 10 No. 11&12, Nov-December 2006 8. Willem Grimminck, Responsible Business 9. News, Business, CSR, www.moneycontrol.com, Fri, Aug 06, 2010 10. Society, Sustainability, www.hul.co.in 11. Social Responsibility, Sustainability, www.Pg.com

ANNEXURE Questionnaire
To whom it may concern: This study is being conducted to analyze the on impact of CSR activities on Customer Perception. The responses provided by you would be purely used for research purposes only. Q1.Which of the following FMCG companys products do you prefer?

a. HUL

b. ITC

c. P&Gd. Dabur

e. Others

Q2. Do you think CSR initiatives are must for every company? Strongly Agree /Agree / Disagree/ Strongly Disagree Q3. Do you give preference to a particular company on the basis of its CSR initiatives while purchasing a product? Strongly Agree /Agree / Disagree/ Strongly Disagree Q4. Do you think CSR is only a marketing tool? Strongly Agree /Agree / Disagree/ Strongly Disagree Q5. Can you recall any of the CSR initiatives by any of the FMCG company?

Q6. Is it necessary for you that a product that you buy must be associated with any social cause? Strongly Agree /Agree / Disagree/ Strongly Disagree Q7. Do you believe that CSR initiatives make an emotional attachment with the consumer? Strongly Agree /Agree / Disagree/ Strongly Disagree

Q8. Are you aware of the various CSR initiatives that companies are undertaking in rural areas? Strongly Agree /Agree / Disagree/ Strongly Disagree Q9. If a company that you dont prefer starts doing CSR initiatives, Will it change your preference ? Strongly Agree /Agree / Disagree/ Strongly Disagree Q10. Are you aware of the following famous CSR initiatives? 1. E-Chaopal Yes_____/No _____ 2. Shakti Yes_____/No _____ 3. Project Khamgaon Yes_____/No _____ Q11. Are you aware of SHIKSHA, an initiative by P&G? Yes_____/No _____

Q12. Are you aware of the Integrated Watershed Development, an initiative by ITC? Yes_____/No _____ Q13. Are you aware of the Livestock development initiative by ITC? Yes_____/No _____ Q14. Are you aware of the Renewable Energy initiative by ITC? Yes_____/No _____ Q15. Are you aware of the Project Silvassa by HUL? Yes_____/No _____ Q16. Do you believe that CSR helps in Economic Development? Strongly Agree /Agree / Disagree/ Strongly Disagree Q17. Do you believe that CSR helps in building a Brand? Strongly Agree /Agree / Disagree/ Strongly Disagree Personal information: 1. Name: 2. Gender: Male_____ Female _____ 3. Age: 4. Highest Education: ________________________ 5. City of residence: ________________________ 6. Occupation: ________________________ 7. Approximate current annual household income (in Rs.): a. Under 2, 00,000 b. 2, 00,000-5, 00,000 c. 5, 00,000 and above Thank you for your time!