The Changing Face of Corporate Social Responsibility in India Inc.

 
 Dr. M. Kanchan
Professor of Commerce
Mahajana Degree College
Mysore 570 012, Karnataka
India
Ph: 91-821-4243457
e-mail: kanchanherlekar@yahoo.co.in
 Shareholders

Community Customers
Board
of
Directors
Suppliers Employees

Regulators
 Table showing the main stakeholders of an Organisation

Rank Rank Rank Rank Rank Rank Rank

Stakeholders Total
1 2 3 4 5 6 7
Employees 4 5 11 1 1 0 0 22
Shareholders 10 10 2 0 1 1 0 24
Customers 11 6 4 0 1 0 0 22
Regulators 4 0 1 5 3 8 0 21
Community 1 3 1 6 8 1 1 21
Suppliers 1 1 1 8 3 6 0 20
Any other 0 0 0 0 0 0 0 0
 Organisational Stakeholders

Any other

Suppliers 5 5 5 40 15 30
Rank 1
Stakeholders

Rank 2
community 4. 8 14.2 4.8 2 8. 5 38 4. 8 4. 8
Rank 3
Regulators 19 4.8 24 14.3 38 Rank 4
Rank 5
Customers 50 27 18 4.5
Rank 6
Rank 7
Shareholders 42 42 8 .3 4. 3 4. 3

Employees 18 23 50 4. 5 4. 5

0% 20% 40% 60% 80% 100%

Percentage
 Table showing Organisation’s CSR Policy

No. of
CSR Policy Percentage
Respondents
Environment 23 92
Health and safety 24 96
Social welfare 14 56
Anti-discrimination 12 48
Human rights 10 40
Education 9 36
 Organisation Policy

None at all

Any other 8% 2

Education 36% 9
policies

Human rights 48% 10

Anti-discrimination 40% 12

Social welfare 56 % 14

Health and safety 96 % 24

Environment 92 % 23

0 5 10 15 20 25 30
No. of Respondents
 Table showing the Key-drivers of change in CSR

Rank Rank Rank Rank Rank Rank Rank Rank Rank

Key Drivers Total
1 2 3 4 5 6 7 8 9
Increasing
8 5 2 3 0 0 0 0 0 18
awareness
Business strategy 6 1 4 2 2 1 0 2 0 18
Increasing Int.
3 5 5 1 1 2 1 0 0 18
Stds
Domestic
0 5 2 3 1 2 2 2 0 17
regulations
Brand Image 3 4 4 4 2 1 0 0 0 18
Community
4 2 1 3 2 1 3 0 0 16
requirement
Board of
3 3 3 1 2 1 2 2 0 17
Directors
Employees &
2 2 1 2 3 2 2 3 0 17
shareholders
Any other 0 0 0 0 0 0 0 0 0 0
 Change in CSR Policy

Any other

employees & shareholders 11.7 11.7 5.8 11.7 17 11.7 11.7 17

Rank 1
Board of Directors 17 17 17 5.8 11.7 5.8 11.7 11.7
Rank 2
Rank 3
K ey D rivers

Community requirement 25 12.5 6 18.75 12.5 6 18.75

Rank 4
Rank 5
Brand Image 17 22 22 22 11 5.5
Rank 6
Rank 7
Domestic regulations 29 10.5 17.6 5 10.5 10.5 10.5
Rank 8
Rank 9
Increasing Int. Stds 17 28 28 5.5 5.5 11 5.5

Business strategy 33 5 22 11 11 5.5 11

Increasing awareness 44 28 11 17

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Pe rce ntage
 Table showing the obstacles faced while
implementing CSR Programmes

Rank Rank Rank Rank Rank Rank Rank

Obstacles Total
1 2 3 4 5 6 7
Lack of funds 5 3 0 1 0 1 0 10
No co-op 0 2 3 0 2 1 0 8
Resistance 1 0 2 0 2 3 0 8
Mechanisms 2 5 1 0 1 0 0 9
No Clear
3 5 2 1 0 2 0 13
linkages
Indifference 3 1 1 3 2 1 0 11
Any other 0 0 0 0 0 0 0 0
 Obstacles in CSR

Indifference 27 9 9 27 18 9

No Clear linkages 23 38.4 15.3 7.7 15.3

Rank 1
Rank 2
Obstacles

Mechanism s 22. 2 55. 5 11 11

Rank 3
Rank 4
Resistance 12.5 25 25 l 37.5 Rank 5
Rank 6
No coop
Rank 7
25 37.5 25 12.5

Lack of funds 50 30 10 10

0% 20% 40% 60% 80% 100%

Percentage
.
The main conclusions of the study are:

There is a perceptible change in the concept of a stakeholder

. after liberalization.
Lack of funds is the biggest obstacle in CSR activities in

. medium sized companies.

.
The employees are now treated more as intellectual assets than just
another factor of production.
Firms are unable to establish a connection between investment in

.
CSR and their economic well-being.

. The size of the firm is not a deterrent to CSR investment..

Leadership quality appears to be a decisive factor in the

effectiveness with which CSR is pursued
.
Suggestions :

CSR accreditation should be made by an independent

organization and act as a parameter for fast track clearance

.
of any project for raising finance.

Tax benefits, exemptions, and depreciation of the assets used

.
for CSR would be an added incentive

An organization should take an active role to promote

.
and extend its CSR principles across its supply chain

If multinational corporations in India can join with smaller Indian

firms in the same industry to strengthen their CSR activities, they
can raise the CSR bar in developing nations, thereby creating a
direct correlation between FDI and enhanced drivers for CSR.
Thank you