Corporate social responsibility is a form of corporate self-regulation integrated into a business model.

CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures
its active compliance with the spirit of the law, ethical standards, and international norms. 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. A more common
approach to CSR is corporate philanthropy. This includes monetary donations and aid given to local and
non-local nonprofit organizations and communities, including donations in areas such as the arts,
education, housing, health, social welfare, and the environment, among others, but excluding political
contributions and commercial sponsorship of events(wikipedia2010). Companies invest in CSR to
manage their risk, recruit employees, bolster their brand in the eyes of investors and consumers, ease their
supply chains, save money, increase access to capital, differentiate themselves from competitors and
--sometimes -- because it's just the right thing to do. The second most popular reasons for investing in
CSR was that it "directly affects brand image for [their] products and services" and that CSR is a "matter
of good corporate citizenship (Wharton,2013).
A properly implemented CSR concept can bring along a variety of competitive advantages, such as
enhanced access to capital and markets, increased sales and profits, operational cost savings, improved
productivity and quality, efficient human resource base, improved brand image and reputation, enhanced
customer loyalty, better decision making and risk management processes. Given that corporations are
increasingly engaging in CSR activities, it makes sense to communicate those achievements to
stakeholders. Messages about corporate ethical and socially responsible initiatives are likely to evoke
strong and often positive reactions among stakeholders. Research has even pointed to the potential
business benets of the internal and external communication of corporate social responsibility(CSR)
efforts (Maignan et al. 1999). Moreover it is a challenge for the organizations to manage these CSR
activities for the good of society and for their good as well.

IMPORTANCE AND BENEFITS OF CSR TO VARIOUS STAKEHOLDERS

The Business Benefits of CSR:
CSR should not be viewed as a drain on resources, because carefully implemented CSR policies can help
your organisation:

Win new business

Increase customer retention

Develop and enhance relationships with customers, suppliers and networks

Attract, retain and maintain a happy workforce and be an Employer of Choice

Save money on energy and operating costs and manage risk

Differentiate yourself from your competitors

Generate innovation and learning and enhance your influence

Improve your business reputation and standing

Provide access to investment and funding opportunities

Generate positive publicity and media opportunities due to media interest in ethical business

Companies engage in CSR activities to influence and improve stakeholders' perception of the company's
image. Company or brand image is important because it ultimately provides the company a competitive
advantage for their business (Barone et al,2007, p. 444). CSR is being monitored more closely now than
ever before because consumers are very concerned with responsible business practices (Morsing &
Schultz,2006). This is evident by the increase in the number of yearly company CSR rankings, such as
Forbes Magazine's 100 Best Corporate Citizens, Ethisphere's World's Most Ethical Companies, the Global
ESG 100 by RiskMetrics Group, and the disclosure of activities in the annual report (Morsing & Schultz,
2006). Companies have increasingly adopted socially responsible practices because the public,

employees, and shareholders have high expectations for the values and conduct of business (Carroll,
1999). These stakeholder groups can have tremendous influence on profitability, so it is in the best
interest of the companys bottom line to meet the expectations of these groups.
Human resources
A CSR program can be an aid to recruitment and retention, particularly within the competitive graduate
student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a
comprehensive policy can give an advantage. CSR can also help improve the perception of a company
among its staff, particularly when staff can become involved through payroll giving, fundraising activities
or community volunteering. CSR has been found to encourage customer orientation among frontline
employees.
Risk management
Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can
be ruined in hours through incidents such as corruption scandals or environmental accidents. These can
also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture
of 'doing the right thing' within a corporation can offset these risks. [17]
Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition that can separate them from
the competition in the minds of consumers. CSR can play a role in building customer loyalty based on
distinctive ethical values. Several major brands, such as The Co-operative Group, The Body Shop and
American Apparel are built on ethical values. Business service organizations can benefit too from
building a reputation for integrity and best practice.
License to operate
Corporations are keen to avoid interference in their business through taxation or regulations. By taking
substantive voluntary steps, they can persuade governments and the wider public that they are taking
issues such as health and safety, diversity, or the environment seriously as good corporate citizens with
respect to labour standards and impacts on the environment.

IMPORTANCE OF COMMUNICATING CORPORATE SOCIAL RESPONSIBILITY

ADVERTISEMENTS
With the latest buzz about climate change and environmental friendliness several campaigns have
emerged recently targeting awareness of various social causes. However, the bandwagon doesnt consist
of just NGOs, government and semi-government organisations as might be expected. A major player has
been India Inc. promoting their CSR initiatives through socially driven ad campaigns. To name a few
recent social campaigns would be the Tata Tea Jaago Re Campaign, recent ads by Idea with respect to
Save Paper and walk-when-you-talk and the Save our Tigers campaign by Aircel. Historically, such
CSR initiatives by companies like the e-choupal by ITC or the Shiksha campaign by P&G has been more
about doing than telling. It is expected that the primary stakeholders as well as beneficiaries would be the
company itself. The secondary benefits are certain to be derived by the social cause which the brand
promotes. However, such benefits come mostly in the form of consumer awareness, which though might
be the first step, usually isnt sufficient to redress the core issue. On the hand, such campaigns does
promise concrete benefits to the company by enhancing their brand image through positive brand
association(Tamanna Padhi,2010).
However companies often fail to effectively communicate their CSR activities to target audiences, which
can hinder the companys realization of these business benefits. There are several factors that influence
how the public and other company stakeholders interpret and respond to information about CSR
activities, such as message content, information source, perceived motivations of the company, industry
of the companys business, brand reputation, and nature of their business. Another factor that is often
emphasized in academic studies is the companycause fit, which refers to the logical connection between
the business function of a company and the cause or organization it supports (Simmons & Becker Olson,
2006).
When no other information is offered to suggest a logical explanation for its support, individuals can
become skeptical of the companys true motives, which can lead to negative feelings toward the company.

While a company does not have complete control over all of these factors, effective communication
strategies can help to create and deliver a message that is most beneficial to the company.
The degree to which a company realizes benefits from its CSR activities can be moderated by a number
of contingency factors (Bhattacharya, Korschun, & Sen, 2009). Given that corporations are increasingly
engaging in CSR activities, it makes sense to communicate those achievements to stakeholders.
Unprecedented CSR efforts are driven not only by the ideological construct of a corporation as a force for
social change but also by the financial return that could be reaped from such endeavors. Surveys of senior
executives and CSR professionals indicate that CSR creates unique business value in a number of ways
by building reputation, enhancing employee morale, and strengthening competitive positions (Shuili Du,
C.B. bhattacharya and et al).
CSR communication typically focuses on a companys involvement in various social causes. There are
several factors a company can emphasize in its CSR communication, such as its commitment to a cause,
the impact it has made on the cause, and the congruity between the cause and the companys business
(i.e., CSR fit).
ESSENTIALS OF THE MESSAGE CONTENT IN CSR ADVERTISEMENTS
CSR commitment A company can support a social cause in various ways, including donating funds, inkind contributions, or providing other corporate resources such as marketing expertise, human capital
(e.g., employee volunteering), and R&D capability.
CSR impact Instead of the input side of its involvement in a social cause, a company can focus on its
output: that is, the societal impact, or the actual benefits that have accrued (or will accrue) to the target
audience of a social cause.
Emphasizing a companys CSR commitment or CSR impact is an effective communication strategy
because CSR communication should be factual and avoid the impression of bragging. Furthermore, a
companys CSR commitment and its social impact also serve as diagnostic cues with regard to its
underlying CSR motives.
CSR fit Another important factor to communicate is CSR fit, or the perceived congruence between a
social issue and the companys business. Stakeholders often expect companies to sponsor only those
social issues that have a high fit, or a logical association, with their core corporate activities. CSR fit may
result from common associations that the brand shares with the cause, such as, product dimensions (e.g., a
herbal products brand sponsors the protection of rain forests), affinity with specific target segments (e.g.,

Avon fights breast cancer), or corporate image associations created by the brands past conduct in a
specific social domain (e.g., Ben & Jerrys and the Body Shops activities in environmental protection)
( Shuili Du, C.B. Bhattacharya,and et al).

CHOOSING COMMUNICATING CHANNELS

There are a variety of communication channels through which information about a companys CSR
activities or record can be disseminated. A company can communicate its CSR activities through official
documents, such as an annual corporate responsibility report, press releases, and a dedicated section of its
official corporate website; it can also use TV commercials, magazine or billboard advertisements, and
product packaging to communicate its CSR initiatives.
Traditional advertising channels-companies sometimes use traditional advertising channels to
communicate their CSR activities. For example, Diet Coke has been running TV commercials on its CSR
initiative to help raise womens awareness about heart disease, and the brand has also set up a website
(www.dietcoke.com/reddress) to communicate the brands commitment to the cause and various ways for
consumers to get involved.
Product packaging- Companies can also use product packaging to communicate its CSR initiatives.
External communicators of CSR- In addition to company- controlled CSR communication channels, the
ranks of external communicators of CSR (e.g., media, customers, monitoring groups, consumer
forums/blogs) that are not entirely controlled by the company continue to grow. These external
communicators are likely to vary in the extent to which they are controllable by the company.
Moreover, there is likely to be a tradeoff between the controllability and credibility of CSR
communication: the less controllable the communicator is from the companys perspective, the more
credible the CSR communication is to the stakeholders, and vice versa. Stakeholders will likely perceive
the company as more self-interested than other noncorporate sources and, consequently, judge CSR
communication via corporate sources as less credible than noncorporate sources.

REVIEW OF LITERATURE
This section emphasizes on the theoretical body of knowledge on the corporate social responsibility and
its advertising contributed by the marketing scholars.
Corporate Social Responsibility (CSR) is a concept of business that concerns the important relationship
between companies and society (Carroll, 1999). CSR is broadly defined as the role that a company takes
to integrate responsible business practices and policies into its business model to promote higher
standards of living in society, for employees, and the environment while preserving profitability
(Hopkins, 2007). Academic literature and research on the practices of CSR began in the 1950s, and its
definition has evolved over this time. Archie B. Carroll, a business management professor at the
University of Georgia, has written extensively on the management of business ethics, and corporate social
performance. As he explains, corporations are expected to fulfill certain responsibilities just as private
citizens are. He distinguishes these responsibilities into four faces: economic, legal, ethical, and
philanthropic (Carroll, 1998). CSR is based on the idea that corporations are more than just profitseeking
entities, and that they must be responsible for the societal and environmental effects of their business
activities (Lantos,2001). It is difficult to define CSR, since it is technically voluntary (Carroll, 1999), in
the sense that it is not legally required, so companies are free to interpret its purpose and extent to which
it is included in their business practices (Matten & Moon, 2008).

Benefits to Consumers & the Public

A recent study showed that 85 percent of consumers say supporting a cause they care about enhances their
perception of a product or company (Cone, 2010). Being viewed as good corporate citizens can foster
longterm, loyal relationships with consumers, who see themselves as investors in the company or brand
with their purchasing power (Du et al., 2010). Consumers may also be willing to pay a premium price for
products or services offered by a company engaged in CSR (Austin, Leonard, Reficco, & Wei Skillern,
2006; Du et al., 2007 as cited in Du et al., 2010). CSR programs can also help to establish a positive

corporate reputation that makes consumers resilient to negative company news (Du et al., 2007 as cited in
Du et al., 2010). Consumers can become promotional mechanisms for a company or brand through
positive wordofmouth communication. The internet has offered a magnified platform for this, as
consumers are using social networking sites to communicate their enthusiasm for a company or brand
because of its socially responsible practices or projects. A study by Sen and Bhattacharya (2001) found a
positive relationship between the CSR actions of a company and consumers' attitudes toward that
company and its products
COMMUNICATING CSR TO PUBLIC
A disconnect in communication between CSR initiatives and public awareness will impede any potential
benefits to a company; so, it is important to intelligently and strategically communicate this to the public
(Maignan & Ferrell, 2004; Morsing & Schultz, 2006). The news media are available to report business
scandals to the public, but it is the company's responsibility to inform the public about the good things
that it does. As with any public communication campaign, it is first important to identify the objectives
and consider all of the aspects that contribute to a successful message. The desired outcome for
communicating CSR initiatives is to ensure all of the possible benefits to the company are achieved. In
order to generate favorable attribution for a company's CSR programs it is necessary to communicate the
company's motivation behind its involvement, explain the reason for choosing that particular cause, and
its commitment to the cause (Du et al., 2010).
There are different methods for companies to communicate their CSR depending on the audience they are
trying to reach. The specific audience is identified by who the company is trying to influence with
information about the good deeds they do. Communication with shareholders and investors is focused on
the companys Annual Report, which includes financial data (Du et al., 2010). Through press releases, the
company can attract media attention to their CSR programs. Internal communication with company
employees can occur through many channels including email, newsletters, and internal web portals and
can emphasize including them in the companys CSR initiatives. For companies who sell consumer
products, its purpose is to influence and improve the public image of the company, and sometimes this is
done through traditional marketing channels, such as television commercials, print advertisements,
billboard advertisements, and product packaging. Internet communications offer opportunities to engage
and share information with vast audiences. Dedicating a section of the companys website to CSR informs
visitors of its initiatives, and incorporating social networking sites (e.g. Facebook and Twitter) into the
communication plan invites consumers to join the company in support of the cause (Du et al., 2010).
Advocacy advertising and cause promotion are two approaches for communicating CSR (Menon & Kahn,
2003). Through advocacy advertising, a company provides a resource to a cause or philanthropic

organization and its involvement is communicated through channels that focus on the cause or
philanthropic organization rather than on the company (Menon & Kahn, 2003). Cause promotion
encourages audiences to purchase a product that will benefit the cause; this is also called cause marketing.
Menon and Kahn (2003) argued that when a company does not advertise in a way that shows how the
company itself benefits, this triggers more elaborate processing by the message receiver to understand the
actual motives of the company. Instead, cause promotion shows an obvious company motive to sell their
product. Menon and Khan found that cause promotions yielded higher ratings of CSR than advocacy
advertising (2003, p. 325). They attributed these results to the idea that it was easier to understand a
companys support for a cause when they saw the business benefit from selling the product; however,
advocacy advertising focusing solely on the cause led to more elaborate cognition on the companys
motives for promotion.
ADVERTISING AND CSR
In their paper The impact of corporate social responsibility on firm value: the role of customer
awareness, Henri Servaes (London Business School) and Ane Tamayo (London School of Economics)
show that corporate social responsibility (CSR) and firm value are positively related for firms with high
customer awareness, as proxied by advertising expendituresin addition we find that the effect of
awareness of the value-CSR relation is reversed for firms with a poor prior reputation as corporate
citizens.
Advertisements with a CSR theme have increased dramatically in the past decade (Alves 2009;
Drumwright 1996; Nicholson 2007). They are now common on television and in print (L.C. Leonidou et
al. 2011a; Mgele and Tropp 2010; Thorson and Page 1995). New advertising techniques have been
developed, such as corporate-nonprofit alliances (Brnn and Vrioni 2001; Lafferty, Goldsmith, and Hult
2004; Prez 2009; Trimble and Rifon 2006; Varadarajan and A. Menon 1988). CSR advertising now
appears on corporate websites (Chapple and Moon 2005a; Fukukawa and Moon 2004; Parker, Fraunholz,
and Zutshi 2009a; Rolland and Bazzoni 2009), sometimes as links to glossy electronic CSR reports
(Archel, Fernndez, and Larrinaga 2008; Dhaliwal, Li, and Tsang 2010; Fortanier and Kolk 2007;
Hooghiemstra 2000; KPMG 2011; Nikolaeva and Bicho 2011). Product labels provide another medium
(Hiscox and Smyth 2006), and packaging is now common that advertises fair trade and sustainability,
for example for the products of coffee (Basu and Hicks 2008; De Pelsmacker, Driesen, and Rayp 2005a),
apparel (Hustvedt and Bernard 2008).
IN CASE OF INDIA- It is not difficult to find the social missions that have become part of the culture of
Indian businesses. The social mission for Bharti Airtel, for example, was to get cell phones into the hands
of the hundreds of millions of people in India who otherwise had no way to communicate with each

other.Tata Motors had a similar goal with respect to providing low-cost transportation in the form of the
Nano. The social mission of the pharmaceutical and healthcare company, Dr. Reddys, is to address the
unmet medical needs of the poor in India as well as around the world. Hindustan UnileversProject
Shakti uses microfinance principles to create a sales force in the poorest regions of the country. A sense
of social mission and purpose is one of many characteristics of the India way that has resulted in the
incredible success of Indian businesses throughout the years. Companies such as Tata, Hindustan
Unilever and ITC have proved that community involvement does not have to be relegated to a side
project, but rather can be the primary focus for a firm and lead to not only a better community, but loyal
customers and a reliable well of future talent (Peter Cappelli,Harbir Singh,2010).
Corporate Social Responsibility (CSR), the new mantra in the corporate world, has now become the
recipe for the advertisements. Companies are realizing that as corporate citizens they are responsible for
highlighting the values and morals that are important for the formation of a good society and are
therefore keen on including a social tinge in their ads. Campaigns designed around societal issues help
companies to differentiate their brands from the competition, attracts investors and creates a favorable
impression about the company in the markets. These kinds of ads have become more receptive
nowadays as public sensitivity and awareness towards building a better nation have heightened.

NEED OF THE STUDY

Corporate social responsibility (CSR) has become an integral part of business practice over the last
decade or so. In fact, many corporations dedicate a section of their annual reports and corporate websites
to CSR activities, illustrating the importance they attach to such activities. But do such activities create
value for the firm i.e do these advertisements prove to be effective for the companies or not and what sort
of impact it have on the consumer mind. Another question that arise out of these activities is that do these
advertisements portray commercial or non commercial aspects of the business? Despite much research on
the topic [see Griffin and Mahon (1997), Orlitzky (2001), Orlitzky, Schmidt, and Rynes (2003), Margolis
and Walsh (2003), and Margolis, Elfenbein and Walsh (2007) for reviews of the literature], few firm
conclusions can be drawn, except that the literature is divided. While there appears to be more support for
the view that CSR activities are positively related to profitability and firm value, a large number of studies
find the opposite relation. As a result, the normative implications of research on corporate social
responsibility are still uncertain.
So effectiveness of the corporate social responsibility advertisements are a hot topic and an exciting area
for research due to its relative novelty and explosive growth.
The review of literature reveals that number of studies has been carried out on various aspects of
corporate social responsibility and related aspects but a very few comprehensive studies have been
conducted which provide detailed information on the study of effectiveness of the CSR advertisements.
And in modern marketing era, consumers tend to heavily rely on advertisements while making their
purchase decisions. So the factors that indicate the effect of CSR advertisements on consumer perception
also gains importance for the study. And there is also dearth of literature in this field especially with
regard to Indian context which explain the working and effectiveness of the CSR advertisement on
consumer mindset.

Thus through this study an attempt in this direction is made to study the consequence of the CSR
advertisement and its effectiveness on consumer mind.

OBJECTIVES OF THE STUDY

The purpose of this study is to explore the effectiveness of the CSR advertisements by Indian companies
through a consumer study. The specific objectives of the study are listed as below:
1. To study the impact of CSR advertisement on consumer perception.
2. To study whether these advertisements actually transfer into sales or not.
3. What possible impact CSR advertisements have on brand value.
4. Does CSR advertisement portray the non-commercial or commercial aspects of the company.

DATABASE AND RESEARCH METHODOLOGY

Research is not concerned to the revision of the facts and building up to date data knowledge but also to
discover the new facts involved through the process of dynamic changes in the society. Research
methodology defines the path that will be followed to achieve the research objectives.
RESEARCH DESIGN
Research design should be such that it should lead to logical and reliable conclusion. Combination of
Exploratory and Descriptive research will be undertaken to achieve the stated objectives of the present
study. Exploratory study will undertake investigation involving original field interviews with the
consumers/respondents will help to have a greater insight into all possible practical aspects of the research
problem. The adoption of the descriptive design may prove effective in the later stage of the study and be
used then at later stage.
UNIVERSE OF THE STUDY
The universe of the study will comprise of different districts of Punjab and the nearby territory of
Chandigarh.
SAMPLE AND SAMPLE DESIGN
The sample size will be at least 300 respondents from different parts of state Punjab and the UT of
Chandigarh. The sample will comprise of various individuals of different age, gender, income and
professions. The respondents will be the individuals who can reasonably understand and interpret the
concept of CSR and CSR ADVERTISEMENTS. So the respondents will include those who are educated
and exposed to such advertisements. Therefore in the present study non-probabilistic convenient sampling
technique will be used.

DATA COLLECTION
At an individual level data will be collected by personally interviewing all the respondents. A nondisguised questionnaire will be used for data collection. The sample questionnaire will be pre-tested and
based on that final questionnaires will be formulated. This present study will be based upon the primary
data only.
DATA ANALYSIS
Appropriate statistical tools and techniques will be used to analyse data to meet the objectives of the
research. The data will be processed and analysed with the use of various statistical/graphical techniques
available and seem appropriate. On the basis of the analysis of data it will be interpreted in the form of
results and conclusions.