ASSIGNMENT

ON

CORPORATE SOCIAL RESPONSIBILITY

ADOPTED BY IT SECTOR

SUBMITTED TO: SUBMITTED BY:

Dr. Seema Ashita Singla
(Assistant Professor) MBA (Sec A) (F)
Usm,kuk Roll No. 17

University School Of Management, Kurukshetra University,

Kurukshetra
 CORPORATE SOCIAL RESPONSIBILITY ADOPTED BY
IT SECTOR

INTRODUCTION
It has become necessary for the organizations to practice CSR practices so that they can classify
their roles the society and stick to ethical, legal, social responsible standards. Maon, Lindgreen,
&Swaen (2009) have strengthened the same approach by writing that CSR “has moved from
ideology to reality and represents an important dimension of modern business practices”.
The researches have been progressively done since the year 1950’5 on Corporate Social
Responsibility. Bowen in 1953 has done research on CSR and published it under the name “Social
Responsibilities of the Businessman”. He has mentioned in his book that, when corporate become
global, they would need to suitably handle their natural resources. Though,. It is not an easy task
to define CSR as in the early stages it was seen as “voluntary and uncoordinatedpractice”.
Corporate Social Responsibility is yet to get an exclusive definition due to its complex nature. At
most of the time the CSR is defined in vague statements as e.g, Peloza (2009) collected a number
of literature reviews exclusive related to conceptualization and metrics of CSR and particularly the
term “social”. It was confronted with a number of debates as the term “social” has always been
vague and lacking a specific definition. The term CSR is influenced by community norms which
keep on changing and thus the definition of CSR also keep changing. All these aspects make
difficult to lay down a universal definition.
Here is carol CSR pyramid:
 Economic: It is the primary responsibility of the firm to satisfy the satisfy the
economic needs of the and generation of surplus for rewarding the investors and
further expansion and diversification as it is an economicentity.
 Legal:The laws of the land and international laws of trade and commerce has to be
followed and compliedwith.
 Ethical:Ethical responsibilities are norms which the society expects the business to
observe like not resorting to hoarding and othermalpractices.
 Discretionary:Discretionary responsibilities refer to the voluntary contribution of the
business to the social cause like involvement in community development or other
social projects pertaining to health and awareness of themasses.
Classification of SocialResponsibility

 Responsibility towards itself:

o It is the responsibility of every corporate unit run business and to work
towards growth, development and stability and thus earn profits. If the
corporation is to attain social and economic ends, organizational
competence should be boosted up.

 Responsibilitytowardsemployees:
The most important part of an organizationis employees and some of the
responsibilities which a business entity has towards it employees are asfollows-
 Timelypayment
 Hygienicenvironment
 Good and impartialbehavior
 Health care throughyoga
 Recreationalactivities
 Encouraging them to take part in managerialdecisions

 Responsibility towards shareholders :Safeguarding the shareholders

investment and make efforts to make available a reasonable return on their
investments is the responsibility of the corporate entity.
  Responsibility towards state:Certain share of profits has to be paid towards the
state as per income tax. Extreme transparency has to be exerted about the profit
&loss account and the balance sheet.

 Responsibilitytowardsconsumers: The Company should uphold high

quality standards at reasonable prices. It should not route to malpractices such as
hoardingand blackmarketing.

 Responsibility towards environment :It is the responsibility of the organization to

contribute to the protection of environment. It should manufacture eco -friendly
products. In addition, industrial waste management must be followed.

InternalCSR
Internal corporate social responsibility deals with all the internal operations of the
company especially the employees. As Employees are central to all internal activities of
the company so it is essential for the company to take care of the needs of the employee
like the welfare of employees, their lives, and productivity, which in turn affects the
organization’s profitability and bottom line. Internal CSR practices are those practices
which are related to the physical and psychological operational environment of employees.
This focus on employees is because they are considered extremely essential internal
stakeholders to the organization. Internal CSR relate to improvement of employees’ skills,
social equity, well-being and satisfaction of the worker, health and safety at work, and
quality of work (Longo, M., Mura, M. and Bonoli, A., 2005).

External CSR
External corporate social responsibility deals with the activities and operations of the
company which are external to the company and have an impact on society and natural
environment. External CSR provides guidelines as how to deal with the external
stakeholders of the company. It defines the duties like towards its customers; it is the duty
 socially responsible companies to provide products or services in a competent, ethical,
and environmentally friendly manner. At present time the customers not only look for the
better quality products and services from the company but also for eminence relationship
with the company so that they can easily and without any problem provide suggestion,
proposals and complaints (European Commission(2001).

It is essential for the companies to be good to their business partners As regards business
partners, it is essential for socially responsible companies to be good partners and follow
all the legal requirements and labor standards. As a part of society it is essential for
thecompanies to take philanthropic initiatives like sponsorship activities,launch
community development activities, make infrastructure investments, encourage their
employees to participate in community projects, and make available financial support to
social and other non-commercial community projects. These initiatives and actions add
value equally to the company and community (Graafland, J. and van de Van, B.,2006).

InformationTechnology
The information technology (IT) industry has become of the most robust industries
in the world. IT, more than any other industry or economic facet, has an increased
productivity, particularly in the developed world, and therefore is a key driver of global
economic growth. Economies of scale and insatiable demand from both consumers and
enterprises characterize this rapidly growing sector. The Information Technology
Association of America (ITAA) explains 'information technology' as encompassing all
possible aspects of information systems based on computers. Both software development
and the hardware involved in the IT industry include everything from computer systems,
to the design, implementation, study and development of IT and management systems.
Owing to its easy accessibility and the wide range of IT products available, the demand
for IT services has increased substantially over the years. The IT sector has emerged as a
major global source of both growth and employment (Economy Watch, 2010).

With improvements in information technology, globalization has increased. The world

 is brought closer, and the world’s economy is quickly becoming a single
interdependent system. Information can be shared quickly and easily from all over the
globe, and barriers of linguistic and geographic boundaries can be torn down as people
share ideas and information with each other. Communication has become an easier,
cheaper, and faster system with the help of information technology. Using the internet,
people can speak to each other all over the world using video conferencing. (Frobes
2010).

Information technology inIndia

IT services and Business Process Outsourcing (BPO) are the two important components
of Indian Information technology Sector.. It sector has increased its contribution to
India’s GDP from 1.2% in1998 to 7.5% in 2012. Accordin revenue standing at
US$99 billion and domestic revenue at US$48 billion, growing by over 13%
(NASSCOM, 2012). ‘Digital India' projected has been started by Prime Minister
Narender Modi to help secure IT a position both inside and outside of India. IT Industry
was born in Mumbai in 1967 with the establishment of Tata Group in pertmership with
Burroughs. It was in Muman in 1973 the first software export zone, SEEPZ-the precursor
to the modern-day IT park. In 1980’s more than 80% of country’s software were
fromSEEPZ.

In 1991 Software technology Parks of India (STPI) created by the Department of

Electronics, being owned by the government, could provide VSAT communications
without breaching its monopoly. The software technology parks setup across different
cities were provided with satellite links to be used by firms; the local link was a wireless
radio link. Further advancement in this sector was made when in 1993 the government
began to allow individual companies their own dedicated links, which allowed work done
in India to be transmitted abroad directly. Indian firms soon convinced their American
customers that a satellite link was as reliable as a team of programmers working in the
clients’ office (Desai 2006).
 India accounts for approximately 67% of US$ 124-130 billion market hence making
India world’s largest sourcing destination for information technology (IT) industry.
About 10 million workforce is employed in IT industry, which has led to the economic
transformation of the country and altered the perception of India in the global economy.
India's cost competitiveness in providing IT services, which is approximately 3-4 times
cheaper than the US, continues to be the mainstay of its Unique Selling Proposition
(USP) in the global sourcing market. However, India is also gaining prominence in terms
of intellectual capital with several global IT firms setting up their innovation centers in
India. In education sector especially in engineering and computer science, It industry has
created significant demand (NASSCOM 2012).

1.7 Futureoutlook

In the present scenario the Indian IT market focuses on providing global IT

services at low-cost. The existence of Indian companies in the product development
business of worldwide IT is very not enough, but, this number is slowly on the rise. The
other prominent trend is that IT jobs, once confined to Bangalore are gradually starting to
experience a geographical diffusion into other cities like Chennai, Hyderabad and Pune.
According to Google estimates, the Indian community of developers will be the largest in
the world by 2018 (Google for Mobile event 2015)

In India the market of public cloud services is slated to grow 35.9 per cent to reach US$
1.3 billion according to IT consultancy, Gartner. Amplified incursion of internet (together
with in rural areas) and quick surfacing of e-commerce are the main drivers for sustained
growth of data centre co-location and hosting market in India. The Indian Healthcare
Information Technology (IT) market is valued at US$ 1 billion at present and is projected
to grow 1.5 times by 2020. India's business to business (B2B) e-commerce marketplace is
likely to reach US$ 700 billion by 2020 while the business to consumer (B2C) e-
commerce market is estimated to reach US$ 102 billion by 2020 (Gartner 2016)
The Indian IT sector is projected to grow up at a rate of 12-14 per cent for FY2016-17 in
invariable currency terms. The sector is as well likely triple its existing annual revenue to
reach US$ 350 billion by FY 2025. Employees from 12 Indian start-ups, such as Flipkart,
Snapdeal, Makemytrip, Naukri, Ola, and others have gone on to form 700 start-ups on their
own, thus mounting the Indian start-up network. India lines third among global start-up
ecosystems with more than 4,200 start-ups. Total spending on IT by banking and security
firms in India is anticipated to grow 8.6 per cent year-on-year to US$ 7.8 billion by 2017.
India’s internet economy is likely to lay a hand on Rs 10 trillion (US$ 146.72 billion) by
2018, accounting for 5 per cent of the country’s GDP ( ZMC, 2016)

1.8 Investments/Developments
Significant investments from major countries have been attracted by Indian IT’s
core competencies and strength. In the data revealed by Department of Industrial Policy
and Promotion (DIPP), the computer software and hardware sector in India involved
cumulative Foreign Direct Investment (FDI) inflows worth US$ 22.83 billion between
April 2000 and December 2016, In order to create differentiated offerings, the leading
Indian it companies like Wipro, TCS, Infosys and Tech Mahindra are showcasing leading
ideas in block chain, artificial intelligence to clients using innovation hubs, research and
development centers (DIPP, 2016).

Top 10 IT Companies

1. Tech Mahindra: With the merger of Satyam Computers, Tech Mahindra has become
largest IT Company in Chennai. They offer wide range of new age IT services and
solutions to their clients across the globe. They are present in 51 nations in USA, Asia-
Pacific, Australia, Europe, Middle East and Africa. They are 4.2 Billion US Dollar
Company and serve around 837+ clients across the world, including large Fortune 500
Companies.
 2. Tata Consultancy Services; TCS needs no Introduction in India. A subsidiary of Tata
Group and with annual revenue of 15.5 Billion US Dollar, TCS is considered as one of
the largest IT Company in India. They operate in 46 countries in the world. In Chennai
alone, they have 13 office locations. Their main service offerings are Application
Development and Maintenance, Business Process Outsourcing, Development and
Maintenance, Business Intelligence, Enterprise Solutions, Engineering and Industrial
Services, and IT Infrastructure Services.

Wipro: Wipro stands tall at number 3 positions in IT Companies present in Chennai. They
have 5 delivery centers at Chennai at Anna Salai, Guindy, Taramani, CSIRroad
Shollinganallur (2 offices). With offices in all over India and in different countries in all
six continents, they have Global Workforce of 160,000+ employees. Every Year they are
awarded for their outstanding work. They have recently won 'IT Provider of the Year'
Customer's Choice Award at the Payload Asia Awards.

3. Infosys: Headquartered at Bangalore, Infosys has 2 offices in Chennai. Infosys in

among top 5 IT Company in India. They serve 1045 clients in 50 countries in the world.
They are also voted as most trusted Indian Outsourcing Company. They have expertise in
Business Consulting services, Data Analytics, Technologies like SAP, Oracle
&Microsoft, Application Development & Maintenance, Cloud Infrastructure, Enterprise
Mobility, BPO, Application outsourcing, andTesting.

4. Virtusa Polaris:Earlier named as Polaris Consulting & Services, Virtusa Polaris is a

leading IT Service Provider Company serving Global 2000 Companies. Their portfolio
includes Business Consulting, Enterprise Information Systems, ERP Offerings,
Infrastructure Management, Cloud Services, Mobility, Plat-forming, and Customer
Experience Management. They have expertise in Banking and Finance Industry. Also,
they serve clients in Education, Healthcare, Travel, Logistics, Media, Retail,
Manufacturing and TelecomDomain.
5. Cognizant: Cognizant is an American Company, which was recently voted as
Fortune’s world’s Most Admired Companies (Feb 2016). Cognizant has delivery centers
in India and offer wide range of new age solutions & services such as Application
services, BPO Services, Business Consulting, IT Infrastructure, and Quality Assurance
Services. They have 9 delivery centers in India, out of which 1 is located atChennai.

6. Oracle India: World’s leading IT Company Oracle operates in India via its subsidiary
Oracle India. They offer array of services and solutions that are helping 420,000
customers in 145 countries in the world. Their Database Solutions, Cloud, Servers,
Applications,Storage,andITInfrastructureServicesareunmatched.Asafact,theyare
number one in the world in Application Server, Database, Business Analytics, Middleware,
Marketing Automation, Embedded Database, and Data Warehouse.

7. Capgemini India:World’s leading IT and Outsourcing Company Capgemini, operates in

India as Capgemini India. This French Company has 190,000 employees in 40 countries in
the world. They offer Application services, Cloud, Consulting, Business Process
Management Solutions, Business Process Outsourcing (BPO), Cyber Security, Digital
Customer Experience, Finance & Accounting, Global Engineering Services, and many other
IT services. They have 4 offices inChennai.

8. Computer Sciences Corporation (CSC): CSC is an American Company, which entered

in India in the year 1991. Their India Operations is their largest operations outside US. They
not only have International customers, they also serve to domestic clients in Banking,
Finance, Healthcare, and Insurance industries. They are pioneer in new age IT enabled
services, Infrastructure Services, Big Data Solutions, Mobility Solutions, Cloud Services,
Data Center, Storage & Computing platforms, Application Management Services, and Cyber
Security Solutions.

9. TVS Infotech (TVSi): TVS is a Level 3 Company, with complete focus on IT solutions
and services for Automotive, Manufacturing, and Trading & Distribution Industry domain.
As a subsidiary of automotive group - TVS Group, they have extensive knowledge of
requirements and challenges of Automotive Industry. With this experience, they offer
customized IT solutions, Enterprises Planning Services, Operations Excellence, Business
Process Management, IT Infrastructure Management, Tailored Application Development and
Maintenance, Independent Testing, and MobilityServices.

In a nutshell, it is to be concluded that the conceptual framework of CSR, and an

overview of CSR in IT companies will deal with the perception of CSR with a detailed
analysis.