Project report

(Submitted for the Degree of B.Com Honours in Accounting & Finance/Marketing under the
University of Calcutta)

TITLE OF THE PROJECT

CORPORATE SOCIAL
RESPONSIBILITY

Submitted by

Name of the Candidate: VISHAL AGARWAL

Registration No.: 126-1121-0469-12

Name of the College: UMESCHANDRA COLLEGE

College Roll No.: D-495

Supervised by

Name of the Supervisor: Prof. A. Biswas

Name of the College: UMESCHANDRA COLLEGE

Month & Year of Submission: February, 2015

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 ACKNOWLEDGEMENT
“Perseverance inspiration and motivation have always played a key role in success of any
venture”. I hereby express my deep sense of gratitude to all the personalities involved
directly and indirectly in my project work.

I would like to thank my parents for their valuable suggestion and support in my project
report.

With immense pleasure, I would like to express my thanks to Prof. A. Biswas, for having
given me this privilege of working under her and completing this study.

I would also like to thank who has guided during this project directly or indirectly.

Last but not the least; I would like to express my sincere gratitude to all the faculty members
who have always been a source of guidance, inspiration and motivation. However, I accept
the sole responsibility for any possible errors of omission and would be extremely grateful
to the readers of this project report if they bring such mistakes to my notice.

-Vishal Agarwal

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Annexure-I

Supervisor's Certificate
This is to certify that Mr. Vishal Agarwal a student of B.Com. Honours in Accounting &
Finance of “Umeschandra College” under the University of Calcutta has worked under my
supervision and guidance for her Project Work and prepared a Project Report with the title
‘CORPORATE SOCIAL RESPONSIBILITY’. The project report, which she is submitting is her
genuine and original work to the best of my knowledge.

Place: Kolkata Signature:

Date: 14.02.2015
Name: Prof. A. Biswas

Designation: Lecturer

Name of the College: UMESCHANDRA COLLEGE

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Annexure II
Student's Declaration

I hereby declare that the Project Work with the title ‘CORPORATE SOCIAL RESPONSIBILTY’
submitted by me for the partial fulfilment of the degree of B.Com. Honours in Accounting &
Finance under the University of Calcutta is my original work and has not been submitted
earlier to any other University /Institution for the fulfilment of the requirement for any
course of study.

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

Place: Kolkata
Signature:
Date: 14.02.2015
Name: Vishal Agarwal

Address: 7. G.K. Mukherjee Avenue,

Konnagar,
Hooghly- 712235

Registration No. : 121-1126-0469-12

Roll no.:

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 INDEX
PAGE
Chapter PARTICULARS SIGNATURE
NO.
1. INTRODUCTION 06-18
 Corporate Social Responsibility
 The Three-Tiered Model of CSR
 History of Corporate Responsibility
 Levels of CSR
 The Situation In India
 The Levels Of CSR In India
 Section 135 of Companies Act, 2013 (CSR)
 Arguments Against Social Involvement In Business
 Literature Review
2. CONCEPTUAL FRAMEWORK 19-23
 Conceptual Framework/ Hypotheses of Research
 Methodology
 Conceptual Framework/ Hypotheses of Research
 Objective of CSR
 Objective of Our Study
3. CASE STUDY 24-35
 Findings In National Scenario
 Findings In International Scenario
 Suggestions For Proper Implementing of CSR In Business
4. CONCLUSION 36-37
5. BIBLIOGRAPY 38

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CHAPTER 1: INTRODUCTION
1.1 CORPORATE SOCIAL RESPONSIBILITY:

Corporate social responsibility (CSR, also called corporate conscience, corporate

citizenship, social performance, or sustainable responsible business/ Responsible
Business) 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 a process with the aim to embrace
responsibility for the company's actions and encourage a positive impact through
its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public sphere who may
also be considered as stakeholders.

The term "corporate social responsibility" came into common use in the late 1960s
and early 1970s after many multinational corporations formed the
term stakeholder, meaning those on whom an organization's activities have an
impact. It was used to describe corporate owners beyond shareholders as a result
of an influential book by R. Edward Freeman, Strategic management: a stakeholder
approach in 1984. Proponents argue that corporations make more long term profits
by operating with a perspective, while critics argue that CSR distracts from the
economic role of businesses. Others argue CSR is merely window-dressing, or an
attempt to pre-empt the role of governments as a watchdog over
powerful multinational corporations.

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. ISO 26000 is
the recognized international standard for CSR. Public sector organizations (the
United Nations for example) adhere to the triple bottom line (TBL). It is widely
accepted that CSR adheres to similar principles but with no formal act of
legislation. The UN has developed the Principles for Responsible Investment as
guidelines for investing entities.
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Corporate strategy howsoever carefully crafted will have limited legitimacy if it is
not tempered by a sincere concern for public interest and social good. A business
enterprise being a socio-economic entity has a responsibility towards society.

1.2 THE THREE-TIERED MODEL OF CSR:

A watershed in CSR was 1971 when the Committee for Economic Development
(CED) published its Social Responsibilities of Business Corporations. As a code of
conduct, the CED outlined a three-tiered model of CSR:

The inner circle: the basic responsibilities an organisation has for creating
profit and growth;
The intermediate circle: an organisation must be sensitive to the changing
social contract that exists between business and society when it pursues its
economic interests; and
The outer circle: the responsibilities and activities an organisation needs to
pursue towards actively improving the social environment e.g. poverty or urban
crowding issues.

This model is even now used in CSR project planning. By focusing on the
responsibilities within all rings of the model, a corporation is working within and
caring for the ecosystem it belongs to.

The five main forms of corporate giving identified were as:

Cash donation

Employee volunteering

Matching employee contributions

Product donations

Donating spare capacity or leveraging other corporate assets.

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 HOW MUCH PERCENT OF DIFFERENT CORPORATE GIVINGS ARE USED BY
THE COMPANY.

1.3 HISTORY OF CORPORATE SOCIAL RESPONSIBILITY:

Industrial Revolution (IR) introduced changes and influenced the relations between
individuals and groups. The persistent influence of IR on various communities, over
a period of time, changed the meaning of CSR. As the world of business
environment is changing, the requirements for success and competitiveness are
also changing. As a result, large corporations are emphasizing the strategic
relationships with different sections of the society. In this process, CSR is gaining
importance.IR was a period of change and transformation from hand-made items
to machine made items and mass-produced goods. This change brought both
positive (productivity, employment to men and women, etc.) and negative
(pollution, congestion, deterioration in working conditions, etc.) effects in general
life. The government, art, literature, music, architecture and man‟s way of looking
at life changed during this period. Two industrial revolutions that took place
resulted in both productive and dire consequences.
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The First IR (1750-1850): England‟s economy in early 1700s was based on its
cottage industry, owned and managed by one or more people who maintained
close relations with workers.

The Second IR (1875-1905): It utilized electricity and improved technology and

social life. During this period, chemicals were produced and communications
improved with telephone/telegraph. There was large migration from countries to
cities, from one work place to another and resulted in change in social values,
which had lasted for centuries, resulting in recognition of characteristics.

1.4 LEVELS OF CSR:

Another main contribution to the development of CSR made by Carroll (1991),

considered the economic, legal, ethical and philanthropic levels of CSR. These
levels represent what is required, expected and desired for CSR strategies (Crane,
Matten, Spence, 2008). According to Crane, Matten and Spence, Carroll's pyramid
of CSR is the most widely accepted definition of CSR. Until the 1980s,
environmental corporate responsibility was the part of "social responsibility",
which was used as a frame term that covered a wide field of ideas. However,
corporations became to understand the importance of environmental
responsibility. For this reason, the concept of "corporate environmental
responsibility" has started to be used by researchers such as Rondinelli and Berry
(2000) in parallel with the development of "corporate social responsibility" by
Carroll (1998), Maignan and Ferrel (2000) and Zarkada-Fraser (2004).

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1.5 THE SITUATION IN INDIA:

As discussed above, CSR is not a new concept in India. Ever since their inception,
corporate like the Tata Group, reliance industries, and Indian Oil Corporation, to
name a few have been involved in serving the community. Through donations and
charity events, many other organizations have been doing their part for the
society. The basic objective of CSR in these days is to maximize the company's
overall impact on the society and stakeholders. CSR policies, practices and
programs are being comprehensively integrated by an increasing number of
companies throughout their business operations and processes. A growing number
of corporates feel that CSR is not just another form of indirect expense but is
important for protecting the goodwill and reputation, defending attacks and
increasing business competitiveness.

Even our Economist-Prime Minister, Dr. Manmohan Singh, has also reiterated the
importance to corporate social responsibility of business by saying, “These are
good times for Indian business. But with greater opportunity comes greater
responsibility.

You must pay due attention to improved corporate governance. You must be
sensitive to the urgent need to protect our environment and to prevent
degradation of our land, water, and air resources. You must ensure that the
interests of your shareholders and stakeholders are best served. Even as you
demand a more hospitable environment for business, you must become more
socially responsible.”

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1.6 Section 135 of Companies Act, 2013 (CSR)
(1) Every company having net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five
crore or more during any financial year shall constitute a Corporate Social
Responsibility Committee of the Board consisting of three or more directors,
out of which at least one director shall be an independent director.
(2) The Board's report under sub-section (3) of section 134 shall disclose the
composition of the Corporate Social Responsibility Committee.
(3) The Corporate Social Responsibility Committee shall,—
(a) Formulate and recommend to the Board, a Corporate Social
Responsibility Policy which shall indicate the activities to be
undertaken by the company as specified in Schedule VII;
(b) Recommend the amount of expenditure to be incurred on the activities
referred to in clause (a); and
(c) Monitor the Corporate Social Responsibility Policy of the company from
time to time.
(4) The Board of every company referred to in sub-section (1) shall,—
(a) After taking into account the recommendations made by the Corporate
Social Responsibility Committee, approve the Corporate Social
Responsibility Policy for the company and disclose contents of such
Policy in its report and also place it on the company's website, if any,
in such manner as may be prescribed; and
(b) Ensure that the activities as are included in Corporate Social
Responsibility Policy of the company are undertaken by the company.
(5) The Board of every company referred to in sub-section (1), shall ensure that
the company spends, in every financial year, at least two per cent of the
average net profits of the company made during the three immediately
preceding financial years, in pursuance of its Corporate Social Responsibility
Policy:
Provided that the company shall give preference to the local area and areas
around it where it operates, for spending the amount earmarked for
Corporate Social Responsibility activities:
Provided further that if the company fails to spend such amount, the Board shall,
in its report made under clause (o) of sub-section (3) of section 134, specify
the reasons for not spending the said amount.
Explanation.— For the purposes of this section “average net profit” shall be
calculated in accordance with the provisions of section 198.

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1.7 THE NEED FOR CORPORATE SOCIAL RESPONSIBILITY:

Goyder argues: “Industry in the twentieth century can no longer be regarded as a

private arrangement for enriching shareholders. It has become a joint enterprise in
which workers; management, consumers, the locality, Government and trade
union officials all play a part. If the system which we know by the name enterprise
is to continue, some way must be found to embrace many interests which go to
make up industry in a common purpose.” Later, in 1978, while delivering the
C.C.Desai Memorial Lecture, he reiterated his plea that if the that if the
corporation has to function effectively, it has to be accountable to the public at
large; and he sought to equate the suggestion of the responsible company with the
trusteeship concept advocated by Gandhiji, the aim of which was to ensure that
private property was used for the common good. The declaration issued by the
international seminar on the social responsibility of business held in India in 1965
also correlated the Gandhian concept of trusteeship with the social responsibility
of business as “responsibility to customers, workers, shareholders and the
community”

There has been a growing acceptance of the plea that business should be socially
responsible in the sense that the business enterprise, which makes use of the
resources of society and depends on society in enhancing the welfare of the
society of which it is an integral part. The „High-Powered expert Committee on
companies and MRTP Act (Sachar Committee), in its report submitted to
Government in August 1978, observed that “ in the development of corporate
ethics, we have reached a stage where the question of the social responsibility of
business to the community can no longer be scoffed at or taken lightly.”

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1.8 ARGUEMENTS AGAINST SOCIAL INVOLVEMENT OF BUSINESS:

1) Business should confine to its own business. There are government and social
organizations to carry out social activities.
2) Involvement in social activities could adversely affect the economic health of a
business enterprise.
3) If the cost of the social involvement of the business is ultimately passed on to
the consumers, there is no point in exalting the social involvement of business.
Sometimes there could even be a net loss to the society because of the corporate
sector undertaking such activities.
4) Many companies involvement themselves in social activities because of the tax
exemptions on the income spent on special social purposes.
CSR is now at the stage where it is being integrated into the core business of
companies rather than being simply an ad-on for the sake of positive publicity.
Shelly Lazarus, CEO of Ogilvy & Mather Worldwide says; “Have your philanthropy
be an organic extension of who you are as a brand, so that it does not appear to be
something that you do out of obligation, but instead something that you do to be
consistent with your company‟s ethos.”
The following graph demonstrates the growing importance of social concerns when
new business opportunities are being considered.

. RESPONDENTS VIEW ABOUT BUSINESS OPPORTUNITIES RELATING TO SOCIAL

CONCERN

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1.9 LITERATURE REVIEW:

The 21st Century has seen much advancement in the issue of corporate social
responsibility (CSR), and there has been particular interest in the impact CSR could
have globally. This literature review will begin by defining what is meant by
corporate social responsibility. There are a lot of debates about the origins of CSR;
however it is clear that CSR is a modern term, a consequence arising from the
history of business responsibility. The modern term is considered to have western
origin; however it has developed from different countries' ideas and theories. This
has created a number of definitions of CSR. This can lead to confusion making CSR
less effective. It is interesting to observe that none of the definitions actually
defines the social responsibility of businesses, as so famously discussed by Milton
Friedman (1970), but rather describe it as a phenomenon. The Government sees
CSR as a business contribution to sustainable development. However, the modern
concept of CSR has been influenced by Globalization and so CSR has developed and
is taken in different context worldwide. (Crane, Matten, Spence, 2008). In
addition, organizations such as the European Union (EU) see CSR as a concept
integrating social and environmental concerns in business operations and in their
interactions with their stakeholders on a voluntary basis. However, others like
Ethics in Action Awards (2003), describe CSR as a company's obligation to be
accountable to all of its stakeholders in all operations and activities (Dahlsrud,
2006). There are a number of debates raised in academic literature over the issue
of to whom the business must have responsibility. Various authors have referred to
the common approaches: shareholder, stakeholder and societal approaches.
According to shareholder approach, the classical view on CSR maximizing the
profits of shareholders (Friedman, 1962). This approach can also be interpreted as
being that the company should make contributions to the extent, to which it can
be connected with the creation of long-term value for the shareholders (Foley,
2000). From the stakeholder theory, it is obvious that organisations should be
accountable towards other groups of stakeholders, who can affect or be affected
by a company's objectives (Freeman, 1984).

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The last approach, which is regarded to give the broader view on CSR, argues that
the organisations should be responsible to societies as a whole, of which they are
an integral part.

The aim of the following literature review is to identify the most valuable
academic studies and important practical investigations.

TABLE: THEORIES ON SOCIAL RESPONSIBILITY

AUTHOR THEORETICAL NATURE RESULT

Freidman (1970) Agency Theory Focus on economics

benefit

Stewardship Theory Emphasis on moral

Donaldson and
obligations
Davis(1991)

Stakeholder Theory Emphasis on moral

Donaldson and Preston
dimensions
(1991)

Hart (1995) Resource-based Theory

Achieving competitive
advantage according to
social responsibilities

Institutional Theory
Jennings and Zandbergen Governmental
(1995) institutions and their
roles are so important

Baron(2001) Governance Theory Focus on strategic social

responsibilities

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AUTHOR THEORETICAL NATURE RESULT

Governance Theory Emphasis on

nongovernmental
Feddersen and Gilligan
organisations for
(2001)
balancing consumer’s
information.

Governance Theory Focus demand/supply to

responsibility
McWilliams and Siegel
(2001)

McWilliams et al (2002) Resource-based Theory

Creating competitive
advantage according to
supporting political
strategies

Waldman et al (2004) Leadership influence on

Governance and
responsibility
strategic
Leadership Theory

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GRAPH SHOWING HOW THE COMPANIES THROUGHOUT THE WORLD
VALUE CSR

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CHAPTER 2: CONCEPTUAL FRAMEWORK

2.1 CONCEPTUAL FRAMEWORK/ HYPOTHESES OF RESEARCH:

Carol‟s pyramid of corporate responsibility (1979 and 1991) introduces four levels
of responsibility which explains level of commitment of companies to society
(Carroll, 1979 and 1991). Individuals are units of analysis and aspects of social
responsibility based on following concepts (Tan and Komaran, 2006):

Carol‟s pyramid of corporate responsibility;

Principles of friendship, stewardship and charity;
Environment friendly approach;
Social performance;
Advantages of social responsibility.

Since the study has been conducted in an Islamic country and in order to Carol‟s
model, a compound model of Islamic values and Carol‟s model considered in this
study. The aspects of the conceptual model in this work are:

1. Workplace policies: Staff supporting policies regarding health, safety, and

welfare affairs;
2. Environment policies: Environment preservation, recycling and reducing energy
consumption policies;
3. Market policies: Fair procurement policies and consumers support regulations;
4. Community policies: Providing training chances for local community members
and financial support of community activities; and

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5. Company values: Having clear and transparent values and also defined codes
and commitment to them.

Philanthropic
Responsibility • Desired by Society

Ethical • Expected by
Responsibility
society

Legal responsibility
• Required by
society

Economic Responsibility
• Required
by society

Carroll’s Four-Part Pyramid of Corporate Social Responsibility (Hennigfeld et al.,

2006).

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2.2 METHODOLOGY:

The research methodology employed in this is explorative research. The

explorative research means investigation into a problem or situation
which provides insights to the researcher. The research is meant to
provide details where a small amount of information exists. It may use
a variety of methods such as trial studies, interviews, group
discussions, experiments, or other tactics for the purpose of gaining
information.

In order to develop some measure of social and environmental disclosure, we

carried out at thorough content analysis of the corporate social responsibility (CSR)
reports published by the companies of our sample for the year 2008. Content
analysis is defined as a method of codifying text into different groups depending on
selected criteria (Weber, 1990). This research method has been used extensively
to investigate CSR reporting. We plead for the use of content analyse having in
mind a conclusion of Milne and Adler (1999) which state that the research method
most commonly used to assess social and environmental disclosures of a company
is content analysis. In content analysis, several alternatives have been proposed in
order to measure the amount of CSR reporting (Unerman, 2000). Gray Etal. (1995)
suggest that the extent of disclosures (number of words, sentences or pages)
provides richer data and automatically encompasses the number of disclosures.
Generally, studies measure the number of words (Deegan and Gordon, 1996;
Zéghal and Ahmed, 1990), number of sentences (Hackston and Milne, 1996) or
number of pages (Gray, et al., 1995; Patten, 1992) used to address the different
CSR topics. The extent of disclosure can be taken as an indication of the
importance of a CSR topic to the reporting entity (Krippendorf, 1980). It seems
now widely accepted that the number of pages is the preferred method for
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computing the amount of disclosure. Because it reflects the total space given to
corporate issues, the importance attached to that theme can be contingent.

2.3 OBJECTIVES OF SOCIAL RESPONSIBILITY:

Social responsibility typically refers to the practices of a company or organization.

A company with strong levels of social responsibility will prove to be an asset to
the community and society where it is based. Social responsibility requires a
balance of responsible business practices, sound business decisions and strong
ethics and morals.

1. Social

 A major objective of the social responsibility model is to foster a

positive relationship between the business and the general public.
This refers to all facets of the company's reputation and the
perception the public has of the

business and the company. Ideally, the company will be known for
having good customer-service practices, reliable products and
services, and generally an all-around positive effect on the
community. A company that is active in the community and
involved in community service will also positively impact the
reputation of the organization.

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 2. Financial

 The financial impact of the company is also an area that of focus.

This can refer to how well the company responds to, and takes
care of, its shareholders, according to Flat World Knowledge.com.
Being transparent in their financial practices is also a part of
social responsibility, as well as focusing on long-term growth,
returns and financial stability.

2.4 OBJECTIVE OF OUR STUDY:

Corporate Social Responsibility has gained importance in recent times as more and
more companies are incorporating this in their policies. The main objectives of our
study are:

To emphasize the need for corporate social responsibility as it is pursued by

businesses to balance their economic, environmental and social objectives while
at the same time addressing stakeholder expectations and enhancing
shareholder value.
To promote adherence to labour standards, respect for human rights, protection
of the local and global environment, avoiding bribery and corruption and
consumer protection.
To bring into light its benefits such as making business more socially responsible
, achieving long term objectives, enhancing brand image and reputation,
helping minimize ecological damage, improving financial performance, reducing
operating costs.
To explain the CSR mechanism of different companies.

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CHAPTER 3: CASE STUDY

3.1 FINDINGS IN NATIONAL SCENARIO:

Case study on INFOSYS and its success stories:-

INFOSYS:
INTRODUCTION

Infosys Technologies Ltd is an information technology (IT) Services Company

founded in Pune, (India) in 1981 by N. R. Narayana Murthy and six of his
colleagues. In 1983, Infosys moved its headquarters to Bangalore, the capital of
Karnataka. It operates nine development centers in India and has over 30 offices
worldwide. Infosys is India second largest outsourcing company with more than $4
billion in annual sales. It was the first Indian company to get listed on NASDAQ (in
1999)." It was among the first companies to adopt Western business practices, such
as Six Sigma protocols for efficiency. Infosys emphasizes every aspect of IT.

Weight age Given by the Company for Different Parameters:

PARAMETERS WT.
Board Accountability 20%
Financial Disclosure and Internal Controls 15%
Shareholder Rights 15%
Remuneration 5%
Market for Control 10%
Corporate Behaviour 15%
Management Assessment 10%
Value creation of stakeholders 10%

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 CORPORATE BEHAVIOR OF INFOSYS:

Company (or a current or former senior No
executive) has been subject to a formal
regulatory investigation for a material
issue other than for accounting
irregularities within the last year
Company (or a current or former senior No
executive) has been cited, settled, or
been found guilty of by either national or
supranational authorities for some
breach of law involving non-accounting
issues within the last year
Discloses its environmental policies
Discloses its environmental performance
Alleged by a responsible party that the No
company used child labour (under 14 or
the minimum in market, whichever is
higher) within the last three years
Alleged by a responsible party that the No
company used child labour as a source for
sub-contracted work within the last three
years
Yes Has been charged with three or more No
serious workplace safety violations within
the last two years
Yes Has a policy addressing workplace safety Yes

Discloses its policy regarding corporate Yes Discloses its workplace safety record in Yes
level political donations the annual report or in another form
accessible to shareholders

KEY INITIATIVES TAKEN FOR CSR

Health care:

Since inception in 1996, t he Infosys Foundation is making high-quality healthcare

accessible to the underprivileged. Apart from constructing hospital wards,
donating hi-tech equipment and organizing health camps, the Foundation also
distributes medicines to economically weaker sections in remote areas.

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The Foundation is involved in several healthcare programs:

Constructed the Infosys Super-specialty Hospital on the campus of Sassoon

Hospital in Pune.
Spread donations for medicines to aged and poor patients suffering from
cancer, leprosy, defects of the heart/ kidney, mental illnesses and other
major disorders
Helped patients meet substantial medical expenses and ensured that they
have a steady source of income for their treatment
Installed office management software at KEM Hospital in Mumbai. This
enables the hospital to manage store requirements, keep accounts as well
as publish hospital papers and other information online.
Built additional blocks at Swami Sivananda Centenary Charitable Hospital at
Tirunelveli in Tamil Nadu and at Bangalore Diabetes Hospital
Constructed a dharmashala at Kidwai Memorial Institute of Oncology in
Bangalore
Constructed a pediatric hospital at Capitol Hospital in Bhubaneswar and
donated a CT-scan machine
Built additional wards at Swami Shivananda Memorial Charitable Hospital in
Pattumadai, Tamil Nadu
Built an annex to a cancer hospital in Kanchipuram, Tamil Nadu
Built a hospital for tribals at H.D. Kote, Mysore
Constructed a hospital to treat patients with brain fever in Bellary
Donated an air conditioner unit to the burns ward at Victoria Hospital,
Bangalore
Purchased a high-energy linear accelerator unit to treat cancer patients at
Chennai Cancer Institute in Tamil Nadu
Donated ambulances to medical centers and hospitals in Kanchipuram,
Tamil Nadu, Gadag, B.R. Hills and Dakshina Kannada in Karnataka and
Kalahandi, Chandrashekarpur and Bhubaneswar in Orissa

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Education:

Education is a fundamental right enshrined in the Constitution of India. However, a

dynamic public-private partnership is required to help children from
underprivileged sections of society gain access to primary education.

In a world where education has become the biggest differentiating factor, the
Foundation, through its activities, offers an edge to deprived and rural students.

The Foundation partners with schools in rural India to enhance education and
library facilities:

Under the Library for Every Rural School project, 10,200 sets of books were
donated in Karnataka, Andhra Pradesh, Orissa and Kerala. Each set has
around 200 to 250 books and the cost of each set ranges between Rs. 2,000
and Rs. 3,000. Subjects include science, history, mathematics, general
knowledge, grammar, literature, geography, vocational training and fiction.
Set up more than 10,150 libraries in rural government schools. A minimum
of 200 books, depending on the strength of the school, were provided.
A book that simplifies computer education for rural areas has been
published in Hindi, Tamil and Telugu
Full-fledged libraries that can be accessed by underprivileged students have
been established in Hubli and Bangalore. These libraries have the latest
books prescribed in hi-tech streams such as medicine and engineering. A

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student can pay a deposit of Rs. 800 for unlimited use of the library
throughout his/ her education.
Donated funds for reconstruction of old school buildings. 14 government
schools in slum areas of Hyderabad have been reconstructed.
Renovated Gandhinagar, Kottara St. Peter's School and Kapikad Zilla
Panchayat schools in Dakshina Kannada, Karnataka
Contributed towards construction of additional classrooms, school funds/
corpus funds, school furniture, equipment and so on, especially in backward
areas
Donated an index Braille printer for the Sharada Devi Andhara Vikasa Kendra
in Shimoga, Karnataka
Donated study material, including science kits, to 20 schools in rural
Karnataka

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Rural Development:

The primary challenge of development in rural India is the skills deficit of the local
population. Education and vocational training help villagers earn a sustainable
livelihood.

The Infosys Foundation has organized training camps for destitute women and built
orphanages where education is earmarked as a priority area. The Foundation
donated US$ 6.8 million towards relief and rehabilitation of flood-affected districts
of Karnataka. The project is a model of sustainable community development.

The Foundation implements programs to improve the welfare of people in rural

India:

Took up relief work at tsunami-affected areas of Tamil Nadu and the

Andaman Islands, earthquake-affected areas of Kutch, cyclone-devastated
areas of Orissa, tribal areas of Kalahandi in Orissa and drought-hit areas of
Andhra Pradesh
Constructed 2,541 homes for flood victims of Belgaum, Gulbarga, Dharwad,
Gadag, Bagalkot, Bijapur, and Karwar
Donated towards mid-day meal program of the Akshaya Patra Foundation,
Bangalore, for poor children in North Karnataka.

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Offered compensation to families whose bread-winners have served in our
Armed Forces and died fighting for the country.
Worked with the Red Cross Society to supply aid equipment to the physically
challenged in rural areas and economically weaker sections of Karnataka.
Improved the lives of children with leprosy and those living on the streets,
and in slums.
Constructed hostel buildings for poor students at Ramakrishna Mission
centers in Tamil Nadu, Orissa, Maharashtra and Andhra Pradesh.
Constructed orphanages in rural areas of Tamil Nadu, Orissa, Maharashtra
and Andhra Pradesh to provide shelter to the children of local communities.
Built a girls hostel at Maharshi Karve Sthree Shikshana Samsthe, Hingne,
Pune; a girls hostel for the blind in Banapur, Orissa, Jagruthi Blind School in
Pune, Sri Ramana Maharshi Academy for the Blind in Bangalore and Sri
Sharada Andhara Vikasa Kendra in Shimoga, Karnataka.
Constructed The Sri Ramakrishna Students' Home in Chennai, Tamil Nadu.

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GRAPHS DEPICTING HOW AND WHERE DOES INFOSYS SPEND ON
DIFFERENT CORPORATE SOCIAL ACTIVITIES

GRAPH SHOWING THE GROWTH OF CSR IN INFOSYS OVER THE

YEARS:

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3.2 FINDINGS IN INTERNATIONAL SCENARIO:

In recent years Corporate Social Responsibility (CSR) has gained growing

recognition as a new and emerging form of governance in business. It is already
established in a global context, with international reference standards set by the
United Nations, Organization for Economic Co-operation and Development (OECD)
guidelines and International Labour Organization (ILO) conventions. With brand
value and reputation increasingly being seen as one of a company‟s most valuable
assets, CSR is now seen as building loyalty and trust amongst shareholders,
employees and customers1. CSR applies to a wide variety of company activities,
especially in enterprises that operate multi-nationally in very different social and
environmental settings.

International CSR Standards and Guidelines:

# ILO Tripartite Declaration of Principles Concerning Multinational Enterprises &
Social Policy
# OECD Guidelines for Multinational Enterprises
# UN Global Compact
# the Universal Declaration of Human Rights

THE LIVING EXAMPLES:

KFC:

SOCIAL RESPONSIBILITY
KFC has made it their responsibility to consumers that they will provide quality
chicken in a fast, efficient way. - They also say that their meat comes about
ethically and through humane treatment. This has not always proved true in
the past, since the PETA has become involved with their warehouses that
“grow” the chickens. KFC has made statements to the patrons of KFC,
though, that the chickens will not be treated badly in the progression from birth to
the processing plant. - KFC sponsors a reward for senior citizens, those who live
life to the fullest and are recognized in their community- KFC also has the
Colonel‟s Kids program, a charity organization that helps kids b e c o m e

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educated and grow up in a better world than that which they
h a v e k n o w n . I t addresses the child care crisis and steps up to the plate to help
out where possible. - Scholarships and diversity programs are a part of
KFC‟s social responsibility as well. Recently, the PETA group secretly
recorded a worker at the Pilgrim‟s Pride, one of the processing plants,
beating a live chicken against the wall in order to kill it. As soon as KFC
was notified of this treatment, they immediately submitted a written
statement saying that the treatment was “appalling” and took action
immediately, placing an animal welfare expert at the plant to ensure the ethical,
humane treatment of the chickens. The statement said that: "We do not tolerate
animal abuse by any of our suppliers, under any circumstance.” KFC also told
the company Pilgrim's Pride that, "unless they can definitively assure us
there are absolutely no abuses taking place, we will not purchase from
this Moorefield, West Virginia, facility.” PETA says that more action
should be taken, but KFC has done all it can to ensure that people are happy with
the facilities and means by which their food comes about.

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3.3 SUGGESTIONS FOR PROPER IMPLEMENTING OF CSR IN
BUSINESS:

Despite the differences in size, culture, industry and commitment in leadership,

there are some common approaches in properly implementing Corporate Social
Responsibility into business operation to make it as an integral part of business
entity.

Usually, CSR can be best implemented if it is stated in company's Mission, Vision

and Objectives in order that all shareholders and stakeholders can be familiar with
it. A company should have good corporate policies and develop a CSR culture
within the organization itself. People must feel that the CSR concept is not only
formally written statements on paper, but also an important part of any company.
Without good CSR practice, no company can flourish and benefit itself as well as
the community in which it operates. CSR must be implemented at every stage of a
company's operation such as; quality maintenance in supply chain, providing job
opportunities to local people, producing environmentally-friendly goods and having
a good analysis in measuring the impact on the environment. This will help in
reducing the impacts of business on the environment and avoid public and
nongovernmental organization scrutiny against the company's potentially
irresponsible practices.

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Conceptual overview of Ricoh Group’s information

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CHAPTER 4-CONCLUSION:

Corporate Social Responsibility represents the new challenge for multinational

business corporations.

There is now a growing consensus which pushes multinational companies towards

sustainable development. Many companies have realized the importance of
implementing Corporate Social and Environmental responsibility practices into
business process, especially in developing countries. However, it is also evident
that the companies are very slow in translating CSR at corporate level to visible
sustainable actions at community level. Businesses have to take economic, social
and environmental responsibilities seriously. Business activities should be held
towards minimising social and environmental costs and impacts, while
simultaneously maintaining or raising the financial costs.

Undoubtedly, multinational corporations like Coca-Cola are capable of making

significant direct and indirect contributions to the communities where they
operate. From the case studies it is obvious that CSR initiatives are the response to
the stakeholders' activisms and pressure from non-governmental organizations. For
example scandals regarding unethical practices of multinationals have focused
significant attention on the companies' commitments towards ethical and socially
responsible behaviour. As a result, multinational corporations are expected to
address or even more, solve social and economic issues, especially in developing
countries. Otherwise, activists and nongovernmental organizations can target
corporations perceived to be socially irresponsible. Public demonstrations,
boycotts, shareholders resolutions and severe critics towards companies are
nowadays, widely used as a call for changes in global business practices. Continued
deterioration of public health and environmental conditions will definitely grow
the public awareness about such challenges leading to exerting added pressure on
the multinational corporations. While establishing CSR concepts, multinational
companies can generate important advantages not only for the host country, but
also for the companies themselves and their home economies.

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Taking a CSR step forward in the context of developing countries is likely to
require actions from multinational corporations. It is obvious that it will require
efforts and collaborations with community, nongovernmental organizations and
local authorities. In addition, for improved social and environmental
responsibilities, the following will be useful: stakeholder engagement, regulations
from local governments, developing a comprehensive Code of Conduct, partnership
with nongovernmental organizations and others. The multinationals should accept
that they play a crucial role in the livelihoods of many people, developing
countries in particular. Hence, the main objective of their business must be
benefiting both itself and society as well as decreasing negative social and
environmental impacts. Corporate initiatives must be "before profit" rather than
"after-profit". If worldwide, well known brands show their commitment towards
sustainability, other medium and small companies will follow suit and try to adopt
mainstream CSR policies within their operations.

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CHAPTER 5-BIBLIOGRAPHY

Internet

 http://en.wikipedia.org/wiki/Infosys
 http://en.wikipedia.org/wiki/Corporate_social_responsibility
 http://www.google.com

Papers and Magazine

 Annual Reports of the Companies

 The Telegraph
 The Statesman
 Times of India
 Banerjee S. Corporate social responsibility: the good, the bad and
the ugly. Edward Elgar Publishing; 2007
 Frey, W. and Cruz-Cruz, J. A. 2009. Three Views of CSR
(Corporate Social Responsibility).

Books

 Companies Act, 2013 And Rules And Forms

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