CHAPTER 1: INTRODUCTION

1.1 Introduction:

CSR is defined as ‘’operating a business that meets or exceeds the ethical, legal, commercial and
public expectation that society has of business’’.

CSR is also called as corporate social responsibility, corporate responsibility opportunity etc., it is a
concept whereby a company is responsible for providing more benefits than just profit for the
shareholders. It has a role to play in treating the employees well, preserving the entertainment,
developing and sound corporate governance, supporting philanthropy, fostering human rights,
respecting cultural differences and helping to promote fair trade, among others. All are meant to
have a positive impact on the communities, cultures, societies and environment in which companies
operate.

These efforts should also benefit company’s stakeholders, who comprise all or some of the following
customers, employee, executive, non-executive, local communities, environmentalists, charities,
indigenous people, foundation, religious groups and cultural organizations.
And in this context CSR report is used by most of the companies i.e. CSR reports is the strategic
document that offers a balanced, objective and reasonable assessment of almost every aspect of a
firm’s performance.

There are clear benefits for the organizations that undertake quality CSR reporting they are:

1. It allows them to demonstrate their interest in the environment their employees and
communities.
2. It builds trust and promotes transparency; and
3. Solicits feedback on their performance from a growing number of stakeholders.

‘’CSR reporting is now an expectation of business and large organization really have no choice,” It
helps management to track year on year progress. One of the main challenges of CR reporting is
determining what issues to exclude, as well as prioritizing those issues that are included.

And this project includes the four pillars of any organization i.e. environment, community,
marketplace and workplace to focus on the activities taken up by them i.e. this project covers the complete
report of Infosys and Reliance industries ltd.

And the process of globalization has raised concerns that MNC’s might be pursuing profit at the
expense of vulnerable workforce, the environment and so on. In response to such concerns. MNC’s have
increasingly taken steps aimed at demonstrating their social responsibility as business organization. One
prominent development has been the elaboration and adoption of Code of Conduct concerning CSR, which
sums up the approach ‘by firms that voluntarily take account the externalities produced by their market
behaviour’. Some observers stress the role od CSR codes in guiding employee behaviour in ways that are
compatible with the image of the firm that senior managers want to convey, while others stress the way
that codes help MNC’s to achieve a degree of legitimacy in the eyes of those outside the organization.
Thus, CSR codes appear to be a principal way in which MNC’s seek to achieve a degree of consistency
across the operation or/and a degree of legitimacy in their external environment.

1.2 Objectives:

1. To study the social responsibilities taken up by the Infosys and Reliance industries ltd.
2. To understand the various social responsibility programmes undertaken by these companies
towards employees, consumers, society and environment.
3. To study the contribution of these companies towards fulfilling their social responsibility.

1.3 Need:

1. Better Public Image:

Each firm must enhance its public image to secure more customers, better employees and higher
profit. Acceptance of social responsibility goals lead to improve public image.

2. Conversion of Resistances into Resources:

If the innovative ability of business is turned to social problems, many resistances can be
transformed into resources and the functional capacity of resources can be increased many times.

3. Long Term Business Interest:

A better society would produce a better environment in which the business may gain long term
maximization of profit. A firm which is sensitive to community needs would in its own self-interest
like to have a better community to conduct its business. To achieve this, it would implement social
programmes for social welfare.

4. Avoiding Government Intervention:

Regulation and control are costly to business both in terms of money and energy and restrict its
flexibility of decision making. Failure of businessmen to assume social responsibilities invites
government to intervene and regulate or control their activities. The prudent course for business is
to understand the limit of its power and how to use that power carefully and responsibly thereby
avoiding government intervention.

1.4 Significance:

· It aims at consumer protection.

· It aims at protection of local and global environment.
· It ensures respect for human rights.
· It results in avoiding bribery and corruption.
· It promotes adherence to labour standards by companies and their business partners.

1.5 Scope:

To study is confined to analysing the social responsibility undertaken by Infosys and Reliance
industries limited through their corporate offices branches and subsidiaries.

1.6 Benefits of Corporate Social Responsibility:

1) Productivity and Quality: Improved working conditions, reduced environmental impacts or

increased employee involvement in decision making which leads to – increased productivity and
defective rate in a company.

2) Improved Financial Performance: Socially responsible business are linked to positive financial
performances. Improved financial results are attributed to stable socio-political legal environment,
enhanced competitive advantage through better corporate reputation and brand image, improved
employee recruitment, retention and motivation and a more secure environment to operate in.

3) Brand Image and Reputation:

A company considered socially responsible can benefit both from its enhanced reputation with the
public as well as its reputation within the business community, increasing the company’s ability to
attract trading partners.

4) Access to Capital: The growth of socially responsible investing concept means companies with
strong CSR performance have increased access to capital that might not otherwise have been
available.

1.7 Aims and Objectives:

The companies intend to make a positive difference in society and contribute its share towards the
social cause of betterment of society and area in which these companies operate
The company aims to create educated, healthy, culturally vibrant communities. They also
contribute to various charitable causes
 CHAPTER 2: LITERATURE REVIEW

2.1 Introduction:
CSR is becoming an investment differentiator benefitting companies that have clear ethical and sustainable
mission complemented by tangible and transparent reporting. Company’s brands, customer retention
levels, and intellectual capital are of intense interest to investors. Companies that report more
comprehensively on these important non-financial assets can often improve their valuation in the capital
markets. Corporate social responsibility generally includes disclosure in annual report or disclosure through
other medium like website, separate community to stakeholders, advertisements etc. through such
reporting company discloses about its performance in the areas like employee relations, environment and
other issues of sustainability, community, involvement, energy, etc.

The role of business in society has undergone a sea change. From the exhortation that there are no social
obligations for business to the understanding that being socially responsible is CSR. The more traditional
business perspective is now giving way to realization that CSR touches not only economic issues but also
social community including employees and customers.

However different organizations have framed different definitions of CSR. Although no universally
accepted definition exists, the world business council for the sustainable development (WBSCD) defines
CSR as, “the commitment of the business to contribute to sustainable economic development, working
with employees, their families, the local community and society at a large to improve their quality of life”.

CSR means an obligation that a firm owes to the society. It no longer seems to be a tripartite venture i.e.
owners, workers and consumers, but has become a multiparty system. It includes government, financial
institutions, bank owners, workers, consumers and society. All these classes have their own objective to
achieve from the business. Thus, the meaning of CSR is two-fold. On one hand it exhibits the ethical
behaviour on then other end it denotes then responsibility of an organization towards environment and
society in which it operates.

2.2 Features of CSR:

1. CSR contains 3 type of behaviour- positive, neutral and negative.

2. Every person in this society has social obligation to be fulfilled.
3. Sr involves fulfilling obligations in various parties concerned with the functioning of the
organization. Some of these parties are concerned directly others indirectly.
4. The standards fixed for fulfilling obligations to various parties to be decided according to social
norms and regulations, hence obligations can vary from society to society.

2.3 Why should business be socially responsible:

Social responsibility is a voluntary effort on a part of business to take various steps to satisfy the
expectation of the different interest groups. The various groups may be owners, investors, employees,
customers, etc. But the question that comes is why SR is associated with the business.

a. Public Image: The activities of business towards the welfare of the society earn goodwill and
reputation for the business. The earnings of businesses also depend upon the public image of its
activities. People prefer to buy products of company that engages itself in various social welfare
 program. Again, good public image also attracts honest and competent employees to work with
such employers.

b. Governance Regulations: To avoid government regulations businessmen should discharge their

duties voluntarily. For example, if any business firm pollutes the environment it will automatically
come under strict government regulation, which may ultimately force the firm to close down its
business. Instead the firm should engage itself in maintaining the pollution free environment.

c. Survival and Growth: Every business is a part of society. So, for its survival and growth, support
from the society is very much essential. Business utilizes the available resources like power, water,
land, roads, etc. of the society. So, it should be the responsibility of every business to spend a part
of its profit for the welfare of the society.

d. Employee Satisfaction: Besides getting good salary and working in a healthy atmosphere,
employees also expect other factors like proper accommodation, transportation, education and
training. The employees should try to fulfil all the expectations of the employees because employee
satisfaction is directly related to productivity and is also required for the long-term prosperity of
the organization

e. Consumer Awareness: Now-a-days consumers have become very conscious about their rights. The
protest against the supply of inferior and harmful products by forming different groups.

2.4 Examples of Companies and their CSR activities:

SR.NO COMPANY CSR FOCUS

Sustainable livelihood, Education, Infrastructure
1 Aditya Birla Group development, Social causes.
2 Amway Helping people live better lives

The house has a separate wing for community

3 Bombay Stock Exchange activities

Gurkha Project- Targeting women’s empowerment

4 Cadbury and female infanticide.

Employees donate 3rs per month to a social cause of

5 Canara Bank their choice.

6 HDFC Specific micro-finance initiatives.

7 Elementary education health at birth and micro-

ICICI financial services
 Education, women’s projects, healthcare, community
8 Infosys development, and preservation of art and culture.
9 Philips India Rural Healthcare
10 Wipro Applying thoughts in school project

2.5(A) Arguments for and against social responsibility:

The core arguments against business assumption of any responsibilities other than to produce goods and
services efficiently and to make as much money as possible is that business is an economic institution and
economic values should be soul determinant of its performance in the context arguments against are:

 Contrary to basic functions of business:

Milton Friedman a respect economist holds the classical view that only responsibility of business is
to earn profit. He says that;

‘’There is only one responsibility of business, to use its resources and engage in activities designed
to increase its profit so long as it says within the rules of the games which is to say, engages in open
and free competition without deception or fraud. Few trends could so thoroughly undermine the
very tradition of free society as the acceptance by the corporate officials of a social responsibility
other than to make much money for their stakeholders as possible. This is subversive doctrine.”

 Domination of business values:

Business should not be socially responsible otherwise business values will dominate the social
values. Harold Leavitt, the famous psychologist holds the view that;

‘’ The danger is that all these things will turn the corporation into 20th century equivalent of the
medieval church. The corporation would eventually invest itself with all embracing duties,
obligations and finally powers ministering the whole man and moulding him and society in the in
the image of corporation narrow and its essentially unsocial need.”

His fear is true because in the past, results were not good when value of a society were dominated
by one major institution, where it was the church, business, the military or anything else.

 Inefficiency of the system:

There is no substitute for the power of self interest to get people to act. Any replacement of
altruism for self interest will therefore be fatal to efficiency of the system. The rigor of the market
mechanism will place in jeopardy the competitive position of that system which adds to its cost by
assuming social responsibilities.

“taken seriously the doctrine of social responsibility fosters megalomania in its adherence. It places
upon the businessmen conscience intolerable burdens that tempt him continually to arrogance and
pharisaic.”
 2.5(B) Arguments for Social Responsibility:

Though there is no core idea in the argument that business has no social responsibility there are
several ideas about social responsibility of the business. Over the period of time, the things have
changed too much giving new thoughts and replacing the classical view of business objectives.

 Business- A part of the society:

Business organization are creators of society and must respond to social demands. A business
operates within a set of cultural norms and restraints. These are certainly not only economic but
also legal, political, social and technical. They are powerful and business should know instinctively
that as they change, they must be incorporated in the decision-making process. There is another
point in this. Since business is a sub system of society, its functioning should contribute to the
welfare of the system as a whole and not only to the sub system alone.

 Avoidance of government regulations:

When business is unable to fulfil its social responsibility, it invites more government intervention in
the business system. Government regulation cuts flexibility and freedom of doing business,
concentrates power in the government which may be against the basic feature of the free
democratic country.

 Long run self-interest of business:

Discharge of social responsibility ensure long run self interest of business. It is possible that at the initial
stage, the cost of discharging social responsibility may be high but in the long run the business can do better
by creating better public image among the various interest groups.

 Traditional values:

In any country economic growth is not possible without the co operation of people. People cannot be
enthused to participate for the development they have a reasonable assurance that they will share the fruit
of growth.
 Chapter 3: RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN:

Qualitative data includes biographies, records, documents, published material, computer databases, policy
statements, etc.

Quantitative data would have market research and economic documents.

3.2 SAMPLE DESIGN:

For studying the CSR, a sample of two companies from IT sector is collected from the population.

3.3 DATA COLLECTION:

As the project is based upon a case study of these two companies the data is collected indirectly
i.e., secondary data is used for collecting information.

Secondary data:

Secondary data is collecting and processing of data gathered by others for research purpose. It can be used
to get a new perspective on the current study, to supplement or compare the work or to use parts of it.

 Methods of Data Collection:

The sources through which the data is collected includes Journal Articles, data bases, organizational
records, books, internet, the media, and other archival records.

3.4 Data Analysis Tools and Techniques:

The whole data analysis is based in the form of the content analysis as if was provided and discussed in
structure format.
 CHAPTER 4: DATA DESCRIPTION ANALYSIS

Introduction:

Collective data means adequate analysing and interpreting the data collected from Infosys and Reliance
Industries Limited (RIL), in order to provide a support system for accurate and proper analysis.
And this entire project is based upon the case study of this companies the information is collected through
secondary data i.e., through books, websites, journals, newspapers etc.

Table-1

CSR TOWARDS EMPLOYEES:

Sr. Responsibilites No. of Respondents

no

1 education of employees children Infosys and RIL

2 literacy programme Infosys and RIL

3 train the trainee programme for Infosys and RIL

employees

4 education and research group

programme for employees children Infosys and RIL

5 provides avenues for vocational, personal

and psychological counsel to employees Infosys and RIL

6 provides freedom to explore and learn RIL

7 encourages every employees to reach

his/her full potential RIL

8 develop and recruit staff with skill and

motivation to meet current and future RIL
business needs

9 medical facilities Infosys and RIL

 10 loan schemes Infosys and RIL

11 employment of family members of

deceased employee Infosys and RIL

12 special scheme for handicapped family

member of employees Infosys and RIL

13 transport facilities to family member of

employees Infosys and RIL

14 priority for women employment RIL

By referring to the above table the information can be grouped into two parts i.e., the table can be
presented in the form of two diagrams where the first one shows the responsibilities taken over by both
the companies and the second one shows the responsibilities exclusively taken over by RIL.

Diagram 1: CSR undertaken by both the companies:

From the above graph it can be seen that the horizontal axis represents the various responsibilities taken
over by the companies and the vertical axis show the no. of respondents i.e., Infosys and RIL whether they
are fulfilling this responsibilities or not.

It can be inferred from the above graph that both the companies are providing education to employees
children, training to employees, transport facilities etc., to the employees for the purpose of fulfilling their
CSR objectives.
Diagram 2: responsibilities taken up only by RIL

From the above diagram it can be seen that this are the additional responsibilities which is taken over by
RIL but not Infosys i.e., freedom to explore and learn, encouraging every employee to reach their potential
, developing and recruiting the staff with proper skill, and the most important is providing priority for
women employment which is not generally taken by the companies but RIL has considered. So, in terms of
CSR towards employees RIL ranks in a first position as it undertakes all the responsibilities and Infosys
ranks second as it is fulfilling some of the responsibilities when compared to RIL.

Table 2:

CSR TOWARDS CUSTOMERS:

Diagram 3: responsibilities taken up by both the companies:

It can be inferred from the above diagram that both the companies i.e., RIL and Infosys follow all the
responsibilities for achieving their objectives. It can be clearly seen that both the companies conduct their
responsibilities correctly and accurately and provide quality services to its customers. Thus in terms of CSR
towards customers they both ranked in a same position.

Table-3:

CSR TOWARDS ENVIRONMENT:

Diagram 4: corporate social responsibilities towards environment carried on by each company:

It can be noticed from the above graph that corporate are becoming more and more responsible towards
environment. As noticed almost all the responsibilities are taken over by both the companies but RIL has
fulfilled all the responsibilities when compared to Infosys so RIL stands in a better position than Infosys in
terms of CSR towards environment.
Table-4:

CSR TOWARDS SOCIETY:

By referring to the above table the information collected for CSR towards society can be presented in two
forms i.e., first it can be presented in a graphical manner where the responsibilities taken over by both the
companies are shown and in the second form it is presented in the form of a diagram which shows the
responsibilities taken over by RIL but not Infosys and in table the last responsibility is not fulfilled by both
the companies it is shown with different colour.
Diagram 5: responsibilities taken over by both the companies:

It can be inferred from the above graph that both the companies fulfill the responsibilities ranging from 1-
10 and 12 but both of them does not fulfill the responsibility for abolition of child labour which is very
important for every corporate society so both the companies stand in a same position in terms of
responsibilities towards society by referring to the above graph.
Diagram 6: responsibilities exclusively taken over by RIL:

From the above diagram it can be seen that this are the additional responsibilities which is taken over by
RIL but not Infosys i.e. hostel for physically challenged female students, providing community safety and
rural infrastructure facilities , relief operations and etc, and the most important is providing education
programme for girl child in rural regions which is not generally taken by the companies but RIL has
considered. So, in terms of CSR towards society RIL ranks in a first position as it undertakes all the
responsibilities and Infosys ranks second as it is fulfilling some of the responsibilities when compared to
RIL.
Table-5:

CSR TOWARDS SOCIAL ADVERTISEMENTS:

Diagram 7: responsibilities taken up each company:

Social advertisements generally means the social activities which is to be taken by every corporate world to
achieve its objectives. So from the above graph it can be inferred that responsibilities towards medical
camp and cleanliness programme, literacy programmes, consumer awareness programmes, and health and
hygiene programme are undertaken by both the companies and RIL in addition to these also under takes
awareness programme about TB, HIV/AID‘S and safety on road and safe driving. But both the companies
does not take into consideration about the abolition of child labour which is very important for every
corporate world.
Diagram 8: it shows which company fulfills corporate responsibility effectively and efficiently:

POLICY ON CSR:

It can be inferred from the above diagram that out of the total corporate social responsibilities towards
society, social advertisement, employees, environment and customers. RIL fulfills 61% of the
responsibilities and Infosys fulfil 39% of the responsibilities. But both of them does not fulfil the
responsibility towards abolition of child labour. So, from the above diagram it can be known that RIL fulfils
the majority of the responsibilities when compared with Infosys.
 CHAPTER FIVE- SUGGESTIONS AND CONCLUSIONS

CONCLUSIONS:

In conclusion it can be said that social consciousness of the companies today with respect to customer,
employees, creditors, investors, owners, suppliers, interest groups, trade associations, local community,
local government, state government, and foreign government is on a rise. This project helped in covering a
large number of aspects relating to these two companies to the field of corporate social responsibility
(CSR)
The following are the conclusions drawn from referring to these project:

 Both the companies care about quality, research and development, health, safety and
environment, energy conservation, corporate citizenship which is very essential for every
organization to carry on its activities smoothly and effectively and there by accomplish its goals.

 Generally CSR activities at Infosys is carried on the basis of DC‘s(development centers) where as RIL
covers each and every aspect of the corporate world as a whole.

 Both the companies provides world class health care to the people of the society there by
constructing hospital wards, donating advanced equipments, organizes health camp for the people,
and distributes medicines to the underprivileged sections of the society so in these way these two
companies fulfill their responsibilities towards society effectively and efficiently.

 When compared to Infosys RIL trains new recruits and grooms the next generations of leaders
where as Infosys only educate and provide certain training to employees. At RIL people are always
learning , irrespective of their age and work experience.

 RIL mainly focuses its attention on providing education to physically challenged female students of
the underprivileged segment of the society when compared to Infosys.

 So these project covers the details of both the companies with regard to their growth, profitability,
sustainability and responsibilities carried on by them towards various groups.

To conclude one may finally say that both the companies are doing well both on corporate governance and
CSR(corporate social responsibility) although Reliance Industries(RIL) seems to be carrying on corporate
responsibility more effectively and efficiently.

SUGGESTIONS:

The following are the few suggestions to both the companies which will enable them to fulfill corporate
social responsibility more efficiently.
1. Corporate social audit should be conducted more often and periodically to evaluate correct actions and
measures to improve performance withstanding the time and expense evolved.

2. The areas which requires special attention should be taken care of like abolition of child labour is not
fulfilled by both the companies so measures should be taken to accomplish this task.

3. Corporations must communicate their CSR initiatives to promote a positive image about the company in
people‘s mind.

4. Emphasize the need for better measurement of CSR that capture and estimate clearly the effects of a
companies CSR actions on its companies stakeholders as well as the nation in which they are operating.

5. It is important for corporations to take CSR priorites seriously, bearing in mind the triple bottom –line of
‗people, planet and profit‘. This will not only help in the overall betterment of the country but will also
help corporations to gain valuable mind space in stakeholders community as well.
 CHAPTER 6 – BIBLIOGRAPHY AND REFERENCES

REFERENCES:

Websites:

1. www.karmayog.org
2. www.ril.com
3. www.google.com

Books:

1. Principles and practice of management-L.M Prasad

2. Management theory and practice-C.B Gupta
3. Management –stephen P Robbins

Mary coulter
4. Management-Ricky W. Griffin
5. Fundamentals of management –Donnelly

Gibson and Iran Cevich

Journal:
1. THE CHARTERED ACCOUNTANT- volume 59 no.6 december 2010

Editor-CA. Amarjit Chopra