Professional Documents
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CSR Project Part II
CSR Project Part II
CSR Project Part II
INTRODUCTION
CORPORATE SOCIAL RESPONSIBILTY (CSR, also called CORPORATE
CONSCIENCE, CORPORATE CITIZENSHIP or SUSTAINABLE RESPONSIBLE
BUSINESS/ RESPONSIBLE BUSINESS) is a form of corporate self-regulation integrated into
a business model. CSR policy functions as a self-regulatory mechanism whereby a business
monitors and ensures its active compliance with the spirit of the law, ethical standards and
international norms. With some models, a firm’s implementation of CSR goes beyond
compliance and engages in “actions that appear to further some social good, beyond the interests
of the firm and that which is required by law. CSR aims to embrace responsibility for corporate
actions and to encourage a positive impact on the environment and stakeholders including
consumers, employees, investors, communities, and others.
The term “CORPORATE SOCIAL RESPONSIBILTY” become popular in the 1960s and
has remained a term used indiscriminately by many to cover legal and moral responsibility more
narrowly constructed.
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1.1 BACKGROUND OF THE STUDY
We are living in a world surrounded with numerous problems related to environment and
society. CSR is a mean to sort out these problems to some extent because business of every
business organisations. Business comes in contact with various groups of society such as
owners, employees, customers, government, suppliers etc. The responsibility of business
includes satisfaction of these parties along with the owner, is called social responsibility of
business. According to Steiner “Social Responsibility implies recognition and understanding of
the aspirations of society and determination to contribute towards their achievements”. In spite
of its current popularity, there are several issues which remained pending and corporate need to
be aware about them. Today, the society as a whole and media increasingly request companies
to consider social and environmental problems while doing business activities. CSR has become
one of the catchphrases of new millennium across the world and the corporate as well as
government must take care of it. Today, Government has also come as an initiative to control
those business activities which make a harmful effect on the society.
The government suggested time to time to the business units that the corporate should entact
a framework related to CSR i.e. its areas, investments, activities etc. include them in the vision,
mission and strategic planning. CSR typically includes issues related to business ethics,
community engagement, global warming, water management, manage the use of natural
resources, human rights etc. So, in order to get sustainable development and to survive in this
competitive world, the organisations need to demonstrate a close and good relationship with
society.
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1.2 LITERATURE REVIEW
At the individual level, CSR has been constructed by PUTH AND LUBBE (1994) who define
Corporate Social Responsibility as ‘generic concept referring to the business organisation’s
concern and active two-way involvement with the social, economic and political force which
influence the environment within which it exist’.
et al .SKINNER (2007) argued that “around the world, the phrase ‘corporate social
responsibility’ (CSR) or ‘corporate social investment’ (CSI) is commonly used to describe the
practice of good corporate citizenship”. Prior to democratic change in the early nineties big
business argued that CSR was neither an admission of guilt for their share of the agony of the
deprived, nor is it implying responsibility for the socio-economic welfare of the country
(MERSHAM et al 1995).
KOTLER AND LEE (2005) stated that according to KPMG US Professionals Services firm, a
2002 survey of the Global Fortune Top 2005companies indicated a continued increase in a
number of American companies reporting on corporate responsibility. In 2002, 45 percent of
these companies issued environmental, social, or sustainability reports compared with 35 percent
in their 1999 survey. Major avenues for this reporting include corporate giving and, increasingly,
the publication of a separate annual community giving reports. In the study ECONEST and
NRZ are the two corporate organisation based in Zimbabwe that practices CSR or CSI.
ECONET, just like NRZ gives to the publics through donations and charity.
DOUGLAS AND CHRISTOPHER (1999) in their study emphasized the need for
environmental reporting standards to avoid confounding comparability and verification by
external parties for reliability. The environmental reports issued in hard copies and on websites
were mercifully diverse. BELAL (1999) reported that out of the companies selected, maximum
number of companies and lastly on some ethical issues in Bangladesh.
KILCULLEN AND KOOLSTRA (1999) focused on changing role of business ethics and
CSR. They found that CSR has taken hold as a movement and through some organisations still
indulge in unethical behaviour but many more firms take social responsibility towards their
stakeholders.
PURUSHOTAHMAN, et al (2000) focused on corporate social reporting in Singapore, taking
five themes such as environment, human resources, energy, community involvement and
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products and services. The study concluded by presenting a relationship between size of the
company and CSRD. The relationship was doubtful regarding industry and corporate social
reporting. The economically better performing companies were found to be more inclined
towards corporate social reporting. It also asserted the fact that award winning companies were
following more corporate social reporting practices.
JEFFERY AND UNERMAN (2000) deliberated upon the documents that need to be scanned
for corporate social reporting and methods used for measurement of the quantum of the
corporate social reporting. They warned that the studies solely based upon the content analysis
of annual reports is certainly going to present an incomplete and misleading picture of corporate
social reporting for a lot of information on social and environmental projects existed in
documents other than reports. About the technique of measurement, the study concluded that use
of sentences for measuring the volume of CSD in comparison to words or proportions of pages
shall ensure greater accuracy at the cost of reduction in relevance of the study.
BELAL (2001) pointed towards lack of adequate research in corporate social responsibility
disclosures been in the context of developing countries. This study reported the results of a
survey of CSR practices in Bangladesh. In addition to measuring the extent and volume of
disclosures by using content analysis, it explored the socio-political and economic context which
these disclosures take place.
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1.3 RESEARCH GAP
1. The Nestle global site doesn't even acknowledge the controversy in India. There is this
set of FAQs on the official Nestle India site, which you might read if you ever find it. It
hardly receives star ranking on the company website, and hardly qualifies as a response
to the media storm raging right now
2. It remains to be seen if Nestle can pull the same PR rabbit out of its hat. The situation
is similar with allegations of contamination -- in this case, lead and MSG -- and the
need to convince consumers of their product's safety
3. To know whether Nestle India Ltd is being able to meet its CORPOARTE SOCIAL
RESPONSIBILITY targets in Howrah.
4. To figure out how much Indian citizens are aware about the CSR activities taking place by
Nestle India Ltd. In Howrah.
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1.4 OBJECTIVES OF THE STUDY
2. To know how the NESTLE GROUP has fulfilled its responsibility towards all stakeholders;
what specific activities, programs and strategies it has set, devised and implemented for the
same.
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1.5 RESEARCH METHODOLOGY
Research design-
Questionnaires: Questionnaires are a good way to obtain information from a large number of
people and/or people who may not have the time to attend an interview. Questionnaires typically
contain multiple choice questions, attitude scales, closed questions and open-ended questions.
Surveys: Surveys involve collecting information, usually from fairly large groups of people, by
means of questionnaires but other techniques such as interviews or telephoning may also be
used. There are different types of survey.
Sampling Design-
A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure adopted in selecting items for the sample. The main
constitution of the sampling design is as below:-
Sampling Unit
Sample Size
Sampling Procedure
Sampling Unit
A sampling framework i.e. developed for the target population that will be sampled i.e. who
is to be surveyed, Retailers, Customers, Working people, school students, unemployed and
housewives i.e. males and females irrespective of their education level.
Sample Size
It is the substantial portion of the target population that is sampled to achieve reliable
results,50 respondents.
Sampling Procedure
The procedure to choose the respondents to obtain a representative sample, a non-profitability
sampling technique is applied for the target market.
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Data Collection-
Primary Data
Primary Data consists of a collection of original primary data collected by the researcher.
Primary data is collected from 50 odd people from across different demographics
Secondary Data
Secondary Data refers to data that was collected by someone other than the user. Common
sources of secondary data includes censuses, information collected by government departments,
internet, and online websites. Here Secondary data used is the information about Nestle India
Ltd , its CSR works and about CSR.
Type of study: The case study analysis have been taken in the form of secondary data from
different reports, financial statements & websites as well as primary data in the form of
questionnaires.
Data time: In order to collect the following data time was taken by me as the source of data
collection was from a secondary source:
Data collection 20 days
Report preparation 20 days
Literature review 10 days
Analysis and findings 20 days
Report correction 10 days
Final report preparation 10 days
Total time 90 days
Tools Used- Tools Used: Various tools have been used in this project for proper data
evaluation. Statistical data, numerical & various geometrical representations have been made for
a clear analysis.
Place of Study: The survey and study is done in Howrah region only
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1.6 LIMITATIONS OF THE STUDY
The area of research has been limited to Kolkata area due to finance and time.
The number of respondents has been limited to 50 only due to limited time.
Time Consuming-To be done correctly primary data collection requires the development and
execution of a research plan. Going from the start-point of deciding to undertake a research
project to the end-point to having results is often much longer than the time it takes to acquire
secondary data.
Not Always Feasible-Some research projects, while potentially offering information that could
prove quite valuable, are not within the reach of a marketer. Many are just too large to be carried
out by all but the largest companies and some are not feasible at all
Inaccurate Feed-backs. In case the research involves taking feedbacks from the targeted
audience, there are high chances that feedback given is not correct. Feedbacks by their basic
nature are usually biased or given just for the sake of it.
More number of resources are required.-Leaving aside cost and time, other resources like
human resources and materials too are required
Talking to someone one-on-one allows a researcher to cover more ground than may be
covered if a respondent was completing a survey. The reason lies with the researcher’s
ability to dig deeper into a respondent’s comments to find out additional details that might
not emerge from initial responses.
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Chapter-2
Conceptual
framework
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2.1 COMPANY PROFILE:
SECTOR: CONSUMER STAPLES
INDUSTRY; CONSUMER PRODUCT
SUB-INDUSTRY: PACKAGED FOOD
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866 by
brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri
Nestlé (born Heinrich Nestle).Nestle SA is a multinational packaged food company that manufactures
and markets a wide range of food products. The Company’s product line includes milk, chocolate,
confectionery, bottled water, coffee, creamer, food seasoning and pet foods. Nestlé S.A is
a Swiss transnational food and beverage company headquartered in Vevey, Vaud, Switzerland. It is
the largest food company in the world measured by revenues, and ranked #72 on the Fortune Global
500 in 2014.
BOARD MEMBERS
CHAIRMAN: PETER BRABECK-LETMATHE
VICE CHAIRMAN: ANDREAS KOOPMANN
CHIEF EXECUTIVE OFFICER: PAUL BULCKE
BOARD MEMBERS: HENRI CASTRIES
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2.2 MARKETING MIX
PRODUCT
Nestle India manufactures products of truly international quality under internationally famous
brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID
and NESTEA and in recent years the Company has also introduced products of daily
consumption and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi and
NESTLE Jeera Raita.
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PRICE
Flexible prices are the key factor of success of Nestle
Prices are affordable to almost all types of consumers as they have wide range of single product
as in the case of beverages, fruit juices are affordable to low economy class and expensive tin
packed beverages are also doing business in the market.
The strength of pricing for Nestle comes from its packaging or consumption based pricing. For
Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In supermarkets, you
can even find a 16 packet Maggi whereas in small retail shops, you can find Rs 5 Maggi.
The price is dependent on the market of each individual products. For example, Nescafe and
Maggi being the clear leaders are priced with higher margins for the company as compared to
competition. This is because the product quality is good enough and a bit of skimming price will
not cause the customer to switch brands.
Bulk purchase discount is also provided at the whole sale markets as well as at the market
stores.
Nestle offers competitive pricing. You will find that nestle will be similar priced to many of
Cadbury’s Products in the chocolate segment.
PLACE
Nestle follows the FMCG strategy of distribution which involves breaking the bulk. The typical
distribution strategy of Nestle is as follows.
Manufacturing >> C&F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer
These are the two different forms of distribution which Nestle has. It is typical of any FMCG
company. However, the Nestle channel is known to be strong with a good marketing and sales
network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep the channel
motivated.
Nestle products are available in all its variety at the maximum outlets, as the company is always
looking forward to expand its outlets
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PROMOTION
• Promotion strategies of the company are very well planned and they always pay multiples of
the expected amounts.
• Advertising on electronic and print media along with sign boards having tempting figurations
of the brand always proves good for the brand
• Sometimes limited economy offers boost up the popularity of brand especially in the case
when new induction to the market is made.
Nestle regularly uses TVC’s and ATL marketing. It is also present online through some smart
creative.
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SWOT ANALYSIS
STP
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A world class brand providing good quality, healthy and tasty food
Positioning and beverages
Competition
1.Unilever
2.Kraft Foods
3.Sara Lee
4.Danone
5.Mars Incorporated
6.Hershey’s
Competitors 7. Parle
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Chapter 3
Presentation of
Data Analysis
and Findings
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3.1 ANALYSIS OF NESTLE’S CORPORATE
SOCIAL RESPONSIBILITY ACTIVITIES IN
INDIA
CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY:
Nestle India Limited (the ‘Company’) is a leading Nutrition, Health and Wellness Company. As
a responsible Company, it has since its inception, participated in business activities which help
in improving the quality of life for the communities where it operates. This also includes
creating livelihood opportunities.
In consultation with stakeholders, the Company has decided to focus its activities on the
following areas, where it is in a position to create maximum value. These focus areas are:
• Nutrition:
A large part of our population is impacted by the double burden of malnutrition. Improving
nutrition awareness of communities particularly school children will be a focus area.
India is among the world’s most water stressedregions. Additionally, safe drinking water is
a concern in many parts of the country. The Company would focus on helping farmers reducewa
ter usage in agriculture, raising awareness on water conservation and providing access to water a
nd sanitation.
•Rural Development:
Supporting the sustainable development of farmers will be the third focus area.The Company wil
l continue to engage with stakeholders including farmers, experts, NGOs and the Government
and would take up such other CSR activities in line with Government’s intent and which are
important for society.
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3.2 DATA ANALYSIS AND INTERPRETATION
Q1. Gender
Male 20
Female 30
Others 0
Total 50
GENDER
0%
40%
60%
Interpretation:
Out of 50 customers, 30 are Male and 20 are Female which indicates more
popularity of the brand among Men.
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Q2. Age Group
18-25 years 15
26-35 years 27
36-45 years 5
Above 45 years 3
Total 50
AGE GROUP
54%
6%
18-25 years
26-35 years
16%
36-45 years
30%
Interpretation:
The data above indicates more popularity amongst the age group 18-25 years and
the minimum above 45 years.
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Q3. Occupation
Service 9
Business 10
Self-employed Professional 10
Student 15
Homemaker 5
Retired 1
Total 50
OCCUPATION
20
9 10 15
10
5
0
1
No.of Persons
Interpretation:
It is the students which prefer Nestle more.
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Q4. Annual Family Income (in Rs.)
1,00,000 - 4,00,000 30
4,00,001 - 8,00,000 12
8,00,001 - 10,00,000 5
Above 10,00,000 3
Total 50
20
12
10
5
0 3
No.of Persons
No.of Persons
Interpretation:
It is more common among the middle class societies, lying within the income
group 100000-400000
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Q5. Which brand do you normally prefer?
Nestle 22
HUL 18
ITC 7
Others 3
Total 50
BRAND
25 22
20 18
15
10
7
5 No.Of Persons
0 3
Nestle
HUL
ITC
Others
Interpretation:
Out of 50 customers, 22 uses Nestle, 18 use HUL, 7 use ITC and rest 3 opt for
other brands. This indicates that market is being ruled by Nestle but it is having
a high competition with HUL.
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Q6. From where did you come to know about Nestle?
Television 30
Magazines 9
Posters 9
Others 2
Total 50
SOURCE
30
30
25
20
15
9 No.of Persons
10 9
0 2
Television
Magazines
Posters
Others
Interpretation:
The data above indicates that maximum customers out of the total 50 have come
to know about the Nestle India via television, the count being 30, 9 customers
via magazines, 9 via posters and the rest 2 via other sources.
Nestle India54 seemingly have good hold over its promotion techniques.
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Q7. Why do you like Nestle?
Brand Name 18
Customer Service 5
Quality 27
Total 50
ADVANTAGES
30
25
20
No.of persons
15 27
10 18
5
5
0
Brand Name Customer service Quality
Interpretation:
Out of 50 respondents, 20 likes due to its Quality, 3 its Customer Service and
the rest 27 its brand name.
Nestle seems to have created a good brand image but it needs to work on its
customer services.
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Q8. Do you have any idea about the Corporate Social
Responsibility of Nestle India Ltd?
Yes 40
No 10
Total 50
AWARENESS
20%
Yes
No
80%
Interpretation:
Out of 50 respondents, only 10 people are aware about the Corporate Social
Responsibility of Nestle India and 40 people are unaware about it, which is
quite disappointing.
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Q9. If yes, what was the recent CSR activity of Nestle India Ltd?
Rural Development 10
Afforestation 7
Preserving Water 5
Don’t Remember 28
Total 50
TRACK
5%
28% Rural development
7% Afforestration
78% Preserving Water
Interpretation:
On being asked 28 out of 50 respondents are not aware of recent CSR works of
Nestle India, 10 believe it was Rural Development and, 7 believe it to be
afforestation and 5 think it to be water conservation.
28
Q10. Is Nestle India Ltd doing enough on its part of CSR?
Yes 28
No 22
Total 50
SATISFACTION
30
25
20
22
28 No.Of Persons
15
10
0
YES NO
Interpretation:
Out of the 50 respondents, 28 satisfied with the CSR activities of NESTLE India
Ltd and 22 weren’t
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Q11. How many people in Kolkata do you think will know about
the CSR activities of Nestle India Ltd?
10%-30% 28
31%-60% 15
61%-90% 7
Above 90% 0
Total 50
DRAWBACK
0%
14%
0%
10%-30%
31%-60%
56% 61%-90%
30%
Above 90%
0%
Interpretation:
Out of the 50 respondents, 28 believe that 10%-30% people of Kolkata are
aware about CSR activities, 15 believe 31%-60% people are aware, 7 believe
that 60%-90% are aware but no one believes above 90%
30
Q12. .What you suggest Nestle India, how to promote its CSR
Activities?
Television 19
Magazines 7
local and national newspapers 10
Posters 3
Flash Mobs 11
Total 50
22%
38% Television
Magazines
6% local and national newspapers
0% Posters
Flash Mobs
20% 0%
14%
Interpretation:
Out of 50, 19 respondents would suggest Nestle to promote its CSR activities
via television, 7 via magazines , 10 via local and national newspapers , 3 via
posters and lastly 11 via flash mobs .
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3.3 - FINDINGS
The Company aims to create awareness regarding nutrition, good cooking practices,
good hygiene and the importance of physical activity among children in schools
particularly village schools through various programmes. The school based programmes will
involve students receiving focused nutrition training and will be
based on a multipartnership approach in collaboration with leading regional universities,
NGOs and other stakeholders. This will enable joint development and regional customisation of
the content.
The Company aims to create awareness among students regarding water conservation and protec
tion of water resources to ensure the responsible utilisation of water for a sustainable future.
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CHAPTER – 4
CONCLUSION
&
RECOMMENDATIONS
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4.1
CONCLUSION
Organisation are coming to realize the bottom-line benefits of incorporating sustainability into
their DNA. It’s beneficial for attraction and retention and it’s the right thing to do. HR is a key
organisational leader and can take the lead or partner with other executives to work cross-
functionally to integrate CSR objectives into how business gets conducted. HR practitioners can
act as translators of the organisation’s CSR commitment vertically and horizontally across
departments. Indeed, the roadmap is predicated on the assumption of this top level commitment.
The firm of the future is expected to have undergone significant transformation such that CSR
no longer becomes managed as a separate deliverable, but is part of the experience of being an
employee in an organisation that lives its values. For human resource professionals embarking
on CSR or deepening their CSR experience, this roadmap can help them understand their role is
sustainability and CSR and how they can foster an environment that embeds a CSR ethic in “the
way we do business around here”.
In the ever changing markets Globalization and Liberalization are the buzz words. In the age of
globalised world, the concept of CSR can’t be ignored by the corporate firms. By keeping in
mind the changing market scenario business firms have to change their work culture as per the
market demands. Previously we were fighting for the issues like labour laws, factory acts and
child labour. But we can see the paradigm shift in the relation of corporate house and workers.
Nowadays firms and workers all together works as a family and work for achieving the common
goals. Profit sharing in the main agenda of the corporate houses. Those days have gone when
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basic business of business is to earn profits only. In conclusion, the findings of this study
provide insights into an area of growing concern of firms towards society. Firms have been
doing great effort for the achievement of business goals and marring the business goals with
social responsibility practices. As per the changing market demands need of the hour is for the
development of CSR framework that has been imposed by the government. So that, we can
contribute to make better planet to live in.
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4.2
Nestle India should spend more on the CSR activities in India in comparison to its competing
companies
The company should invest more in the promotional activities of its work in CORPORATE
SOCIAL RESPONSIBILITY, to increase awareness in the common people.
Engagement in strategic use of social investment budget;
Ensuring the existence of CSR skills in all employees within organisation;
Implementing an effective audit/review system in terms of improving the quality of CSR.
Introducing CSR aspects of the business at the initial stages of the project and integrating it with
long-term aims and objectives;
Nestle India Ltd should focus on Woman Empowerment.
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4.3 BIBLIOGRAPHY
1. www.google.com
2. http://en.wikipedia.org/wiki/levistrauss
3. http://www.levi.co.in/
4. http://www.csrhub.com
5. http://www.nestle.in
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4.4 Questionnaire
Q1. Gender
Male
Female
Others
18-25 years
26-35 years
36-45 years
Above 45 years
Q3. Occupation
Service
Business
Self-employed
Professional
Student
Homemaker
Retired
100000-400000
400001-800000
800001-1000000
Above 1000000
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Q5. Which brand do you usually prefer?
Nestle
HUL
ITC
Others
Television
Magazines
Posters
Others
Quality
Customer Service
Brand Name
Q8. Do you have any idea about the Corporate Social Responsibility of
Nestle India Ltd?
Yes
No
Q9. If yes, what was the recent CSR activity of Nestle India Ltd?
Rural Development
Forestation
Water Conservation
Don’t Remember
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Q10. Is Nestle India Ltd doing enough on its part of CSR?
Yes
No
Q11. How many people do you think will know about the CSR activities of
Nestle India Ltd, taking place in India?
10%-30%
31%-60%
61%-90%
Above 90%
Q12.What you suggest Nestle India, how to promote its CSR Activities?
Television
Magazines
Local and national newspapers
Posters
Flash Mobs
40
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