International Journal of Retail

Management and Research (IJRMR)

ISSN(P): 2277–4750; ISSN(E): 2319–4502
Vol. 11, Issue 1, Jun 2021, 1-12
© TJPRC Pvt. Ltd.

CSR PRACTICES IN INDIAN RETAIL INDUSTRY

SITAKSHI GUPTA
Post Graduate in Retail Management, Birla Institute of Management Technology (BIMTECH), Greater Noida, India
ABSTRACT

Any business whether it is small scale or large scale cannot run in isolation. Moreover, the companies, in order to operate
smoothly, are largely dependent upon the society and environment for resources. Hence, it becomes imperative to pay
back to the society and the environment in which they operate. This mutual interdependence gives rise to the concept of
Corporate Social Responsibility (CSR). Corporate Social Responsibility (CSR) is a business model that helps a company to
be socially responsible for all its stakeholders and also to the society at large. By practising CSR, the company can
consciously contribute towards the society at large covering its various areas and aspects. A sound CSR strategy not only
benefits the society, but it also benefits the company practising it. The benefits of CSR to retailers are enhanced
reputation, loyal customers and a more committed workforce. The heavy influx of FDI in the retail industry, increased
disposable income of the consumer, changing lifestyle of the consumer and a lot of other factors have led to immense
growth of retail industry in India. This paper tries to explore various CSR initiatives taken by top Indian retailers; using
case study methodology. The three cases under study reveal that different retailers adopt different approaches towards

Original Article
their respective CSR endeavours. It also uses statistical methodology (line graphs) to explain the CSR contribution trends
of the three retailers under study over three consecutive financial years (2017-2020).

KEYWORDS: Social Responsibility, Sustainability, Retail Industry, CSR, Business Responsibility, Sustainable Practices
& Corporate Citizenship

Received: Oct 22, 2020; Accepted: Nov 12, 2020; Published: Apr 05, 2021; Paper Id.: IJRMRJUN20211

INTRODUCTION

With the changes brought by the Companies Act 2013 in which the contribution towards CSR has become a
mandate, Indian corporate and across the globe have actively contributed towards CSR by not simply interpreting
and analysing the benefits of CSR but taking the required steps towards the same and hence bringing the actual
change in the society.

The International Organization for Standardization(ISO) defines CSR as “The responsibility of an

organization for the impacts of its decisions and activities on society and the environment resulting in ethical
behaviour and transparency which contributes to sustainable development including the health and well being of
society takes into account the expectations of stakeholders; complies with current laws and is consistent with
international standards of behaviour and is integrated throughout the organization and implemented in its relations.’’

In the last 10 years, the Indian Retail industry has grown to a huge extent. The Retail market at an overall
scale will reach the $1.75 tn mark by 2026, which stood at $795 bn in 2017. In 2019, the e-retail market of India
was valued at $ 30 bn. The same is also expected to grow at a huge CAGR (i.e.30%). By 2026, the same is expected
to be worth $ 200 bn. From the point of view of investment in Retail industry, India is one of the most preferred
countries. Retail is the largest industry segment of India. More than 10 % of the Indian GDP comes from Retail

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2 Sitakshi Gupta

industry. Also, it contributes to 8 % of the total employment in the country. In this context, this paper highlights the CSR
activities and approaches of top Indian retailers.

In the modern retail era, CSR has become a regular practice. For shopping malls and retail brands; a commitment
towards Corporate Social Responsibility means stature and increased reputation of the company practising the same. The
overall objective of the company practising CSR is to bring about a positive change in the society while maximizing its
own profits.

Some of the benefits of adopting sound CSR practices to the companies are:

a. Improves Public image: Brands and malls that exemplify a concern for the society are considered more
bountiful than those who contribute little towards CSR. The enhanced reputation of the company gives a boost to its sales
as well. It is a known fact that consumers are enticed to be associated with brands who contribute to the society. Usually
malls conduct various events and support NGOs through financial contribution, volunteerism, donating products (and
services) and other partnerships.

b. Boosts Employee Engagement: CSR endeavours reinforce the bonding among employees. People
inculcate in them a sense of working together as a team to help others. In fact, they start enjoying team work and develop
great mutual bonding with time. They also develop a sense of belongingness towards their organization as it is thinking for
the betterment of society. Corporate Social Responsibility also contributes largely in building brand reputation.

c. Attracts &Retains Investors: Investors who invest huge money into malls and brands want to know
whether their funds are being used in a right manner or not. This implies that along with having a sound budget as well as a
strong business plan, companies should also be high on their CSR (Corporate Social Responsibility) endeavours. When
companies engage themselves in various CSR activities and encourage their employees to volunteer for the same, they
demonstrate to investors that they are not merely concerned about profits. Instead; they show that they are also concerned
about the local and the global community. Investors are more likely to be attracted towards and hence continue investing in
companies that demonstrate a commitment not only to their employees and customers but also to causes that touch upon
and improve the lives of others.

d. Encourages Professional & Personal Growth: Brands and malls with a strong CSR program can,
therefore, promote volunteerism among their employees and encourage them to volunteer towards the same. When
employees give their time and money to these causes, they also develop themselves on a personal and professional front.
By actively engaging themselves in CSR activities and volunteering for the same in teams, employees learn the spirit of
working together as a team towards executing and completing various projects. Employees also feel proud about their
company when they get to know that it contributes actively towards society welfare and encourages its workforce to
actively contribute towards this noble cause.

METHODOLOGY

The analysis of the Corporate Social Responsibility of the retailers has been analysed by adopting Case Study approach.
For research purpose, Empirical Research has been conducted. The top three retailers in organised retail market (Source:
www.indianretailer.com); namely-Pantaloons Retail India Limited, Shoppers Stop Ltd and Trent Ltd have been considered

Impact Factor (JCC): 4.2093 Index Copernicus Value (ICV): 59.87

Csr Practices in Indian Retail Industry 3

for the research. The secondary data that has been collected from the websites and other journals has been used for
developing the case study on the retailers.

The three cases were analysed in depth with reference to their own respective areas in which they have conducted
the CSR activities. Also, the annual reports of the three retailers (for three consecutive financial years) have been analysed
in detail and based upon the same, conclusions have been arrived at regarding the extent, trend and nature of CSR activities
of the three retailers. Based upon the same, further scope and suggestions have also been arrived at.

Shoppers Stop

Shoppers Stop was established on October 27, 1991, by the K.Raheja Corp. group of companies. Being one of India’s
major hospitality and real estate giants, the Group has crossed another milestone by foraying into and also successfully
running its lifestyle segment. Since its inception, the company has progressed from being a single brand outlet to becoming
a complete one stop destination in the fashion and lifestyle segment. Today, Shoppers Stop is a popular name famous for
its quality products, services and above all, for the wonderful shopping experience that it provides. With an unparalleled
assortment of the leading international and domestic brands in clothing , accessories, perfumes & cosmetics, footwear;
home décor items and home furnishing products, their stores provide customers a truly satisfying shopping experience.
The company has won many awards and recognitions. Among the many awards and recognitions Shoppers Stop has
received, some of the most prominent ones are: “MOST ADMIRED RETAIL COMPANY OF THE YEAR AWARD” at
MAPIC India Retail Awards 2019, CSR Excellence Award by Bureaucracy Today 2017, Most Trusted Retailer of the
year- Popular Choice by ET Retail Awards 2014.

The following table throws light on the CSR endeavours of Shoppers Stop:

Table-1: CSR Activities of Shoppers

Stop Ltd
 Shoppers Stop has tied up with an organization named Goonj to jointly
run a pan India Campaign in which old clothes is recycled for a noble cause.
These clothes are donated to those families in rural areas which are
underprivileged and have limited means by their side. Goonj is an NGO which
works in a manner that the resources from the urban India (which is rich in
resources) can be moved to the needy rural/slum India. Materials including
clothes, books, toys and other relief materials are shared with the
underprivileged. Shoppers Stop also facilitates the collection of usable clothes
from their customers at their outlets. The same are thereby sent to the recycle
centres of Goonj.
 Shoppers Stop supports NGOs such as Child Rights and You (CRY)
1.Inclusive
and Concern India Foundation.
Growth and
 Shoppers Stop partners with an organization named TRRAIN to hire
Equitable
the differently abled, as its focus is maintaining talent diversity within its
Development
workforce.
 Post the execution of solar pipe system at the Mumbai store of
Shoppers Stop, the waste and leftover materials of the same were reutilized for
creating infrastructure facilities in the government schools for underprivileged
children.
 Shoppers Stop helps acid attack survivors to rebuild their lives. For this
purpose, it has joined hands with Brave heart Foundation (Make Luv Not Scars)
and Chhavn Foundation, to help the survivors get back on their feet by
supporting them in their treatment and the expenses relating to the same,
imparting them the necessary skills for their employability and funding their
children’s’ education.

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4 Sitakshi Gupta

 Shoppers Stop is one of the 16 fashion brands that have signed the
Project named Su.Re (Sustainability Resolution). This project has been launched
by the Ministry of Textiles, CMAI (Clothing Manufacturers Association of
India) and IMG Reliance. The signatories to this project have pledged to use
sustainable raw materials and processes in sourcing and utilizing a substantial
portion of their total consumption by 2025.
 Further, in the Mumbai store, Shoppers Stop installed a solar pipe
system aiming to add more natural light in the store during sunny days and bad
weather days. The Solar Pipe system which has been installed at their Mumbai
2.Environmental
Store is based on the concept of maximizing the use of Renewable Energy, by
Responsibility
reflecting and intensifying sunlight, and even normal daylight within the store;
down through a pure silver base mirror-finish aluminium tube.50% of the store
lighting is eliminated.
 Shoppers Stop has introduced "Back to Earth” merchandise range in its
home products section. These products are made of eco-friendly material, cotton
(chemically untreated), jute, and bamboo. It also uses dead wood for
manufacturing goods, for which it gets certification from the vendor. The
vendors also involve themselves actively in maintaining nature by tree
plantation.

 Shoppers Stop has framed various SOP s to support the overall safety,
health and well being of its employees.
 Shoppers Stop ensures that workplaces are free from any kind of
discrimination or harassment .It also provides equal work opportunity for
3.Well being of
everyone.
employees
 To ensure the safety of its employees during the worldwide outbreak of
the COVID pandemic, Shoppers Stop went the extra miles to not only meet the
guidelines laid down by WHO, Central and State Government Authorities for
the same, but also in exceeding the same.

 Shoppers Stop ensures that it maintains periodic and effective

4.Responsiveness communication with all its stakeholders.
to Stakeholders  Shoppers Stop addresses the concerns of all its stakeholders through its
well established grievance redressal systems.

 Shoppers Stop abides by all the guidelines for ethics, transparency and
5.Ethics,
accountability –in all aspects of its business.
Transparency
and  Shoppers Stop has well established mechanisms to address the
concerns/complaints raised by its various stakeholders. The company
Accountability
dedicatedly works towards the same.

Trent

Trent is one of the top branded retailers of India. It is a part of the Tata group and was established in 1998. Headquartered
in Mumbai, the company successfully runs its stores pan –India.

The company operates its outlets across four formats, as mentioned below:

Westside offers a wide range of its fashion apparel under its own brand name. It is the flagship brand of the company.
Trent has 143 Westside stores. These stores measure 8,000 -34,000 sq.ft. and are located across 82 cities.

Impact Factor (JCC): 4.2093 Index Copernicus Value (ICV): 59.87

Csr Practices in Indian Retail Industry 5

Zudio offers fashion in an irresistible price range. Trent has established 20 Zudio stores, which are located across 12
cities.

Star, is a retail chain offering grocery and fresh food. Trent operates 26 supermarkets and 10 hypermarkets.

Landmark is a family entertainment concept. Trent operates 5 independent stores of Landmark .Landmark is retailed
through select locations of Westside.

Corporate Social Responsibility ("CSR") is a main part of Trent’s culture and value systems. The Company strongly
believes in the Tata ethos of "what comes from the community should go back many times”. The Company has
adopted a CSR Policy that duly complies with the provisions mentioned in the Companies Act for the same.

Majority of the CSR endeavours of Trent are covered in 4 key focus areas. These are:

Table-2: CSR Activities of Trent Ltd

 Under Employability the company focuses on imparting necessary skills,

especially to youth and women, so as to enhance their employability.
 The Company has partnered with Tata STRIVE, through which it supports seven
retail lab centres (located in Pune,Mohali,Hyderabad,Bhubaneshwar,Nashik,Mumbai
).These centres equip the youth with the necessary skills to enhance their employability
within the retail sector.
1. Employability
 The Company has undertaken initiatives to support the youth from the
economically backward sections of the society, by enhancing their communication skills
which will further enhance their employability. For the same, the company provides
training to them for improving their communication skills in English. It also provides
them exposure to Retail Industry. For running this program, the Company has partnered
with St.Xavier’s College and Tata STRIVE.

 The Company sponsors the education (by providing financial support) of the
students of National Institute of Fashion Technology (NIFT)-Mumbai, to those ones who
are equally exemplary like the other students but belong to the economically weak sector.
In addition to the same, the Company also hires them as interns, which assists in their
complete development.
2. Education  The Company has partnered with Salaam Bombay Foundation. Through this
project the company aims to bring about a change in the lives of the students who belong
to the demarcated and deprived sections of the society. The company trains them for
effective English communication skills and also provides them the knowledge of
corporate ethics and values, so that they are well trained and become capable before being
employed.
 Under Entrepreneurship the company empowers the rural women who have got
entrepreneurship skills. The company skills them, empowers them as well as gives them
an opportunity to earn.
3.Entrepreneurship
 The Company targets rural women who want to earn but lack skills imparts them
skills and knowledge of garments through nongovernmental organizations and hence
helps them fetch employment opportunities and promote their product.

 Under its Affirmative Action programme, the company empowers the youth
belonging to the Scheduled Caste/Scheduled Tribe category, so that they can stand on
4. Affirmative their feet.
Action initiatives  The Company takes special care in taking care of its stakeholders, especially
those who belong to the demarcated sector of the society.
 The Company supports inclusive growth & equitable development.

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6 Sitakshi Gupta

Future Retail Ltd

Future Retail is one of the most popular Indian retailers. The company has built a great reputation by providing products
which are of good quality as well as rich in innovation. Also the company offers its products at reasonable prices, which is
an add-on to the customers. They have a customer base numbering millions. They are present through both online and
offline platforms. Their stores are over 1500 in number (covering over 16 million sq.ft).They have well established
presence in each and every state of the country, with their stores in over 400 cities.

Their flagship brand Big Bazaar has won the trust of its customers through its value proposition and lucrative
offerings. Easy Day Club and Heritage Fresh- their concept of neighbourhood stores offer a variety of services to their
members.

"HAPPINESS MATTERS "- A thought that is well accepted and followed by the company while carrying out its
operations in a sustainable manner .Their vision is: "Striving to grow responsibly, and achieve their dual goal of a happy
environment and society, both of which are necessary ingredients for long term business growth.

Future Group, while carrying out its business in a sustainable manner, focuses on four key parameters:

• Responsible Products and Services

• Resource Efficiency

• Responsible Supply Chain

• Happy Communities

The following table gives a detailed explanation of the above mentioned points:

Table-3: CSR Activities of Future Retail Ltd

 “Think Circular”-it is a thought that the company has imbibed well. The
company realizes that it cannot sustain in the long run ,if it simply procures
materials ,makes finished products and disposes the waste; hence it needs to ensure
that the usage of resources as well as the generation of waste should be minimized
at all the stages of the product life cycle.
1.Responsible
 The company keenly works with organizations that encourage and work
Products and
towards the recycling of old products, rather than just disposing them.
Services
 Towards this initiative, Future Lifestyle Fashions Limited (FLFL)
organizes a policy through which customers can handover used clothes to them in
exchange for promotional coupons, thus preventing these old clothes to end up in
landfills. Similarly minutely defective garments are refurbished and sold to local
communities at discounted prices.

 People at Future Group plan their usage of resources in such a manner

that the precious resources of the planet Earth are judicially utilized instead of
2.Resource being over utilized and hence simply wasted. They dispose off their wastes in a
Efficiency very environmental friendly manner.
 As the company grows, it always strives for the utmost happiness of its
human resources, as it firmly believes that employees’ happiness has a positive

Impact Factor (JCC): 4.2093 Index Copernicus Value (ICV): 59.87

Csr Practices in Indian Retail Industry 7

impact on their productivity.

 Among the many social enterprise groups from which Future Lifestyle
Fashions Ltd (FLFL) sources products, Industree Crafts Private Ltd (ITCPL) is a
major one. Through its associate company, FLFL owns about 72% worth in
ITCPL. ITCPL has facilitated giving full time and part time employment to 300
3.Responsible
and 2000 artisans respectively, most of which are women (spread over six districts
Suppliers
of Tamil Nadu and Karnataka).
 Future Enterprise Ltd (FEL), their apparels business avails the services of
its local communities for the manufacturing of its readymade garments. For this
purpose, it also imparts the necessary training to them.

 The Group believes in Community Driven Development. It provides

employment to the rural and urban youth of our country. It also gives utmost
4.Happy
importance to the interests of farmers, suppliers and distribution systems while
Communities
carrying out its operations.
(Community
Driven  Future Group aids those organizations who share a common purpose with
Development) the SKC Foundation. It also motivates its employees and the participants of its
value chain to come forward and volunteer for this noble cause, hence taking a step
forward in addressing the inequalities.

CSR CONTRIBUTION BY THE THREE RETAILERS- A FINANCIAL INSIGHT

The CSR activities of the three retailers over 2017-2020 have been explained graphically as below. In the graphs given
below, the financial analysis of the CSR activities of the three retailers has been done on the basis of two parameters:

a. CSR Contribution of the respective company, expressed in terms of percentage of its Average Net Profit (for
last 3 financial years).

b. CSR Contribition of the respective company (Actual Amount)

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8 Sitakshi Gupta

Impact Factor (JCC): 4.2093 Index Copernicus Value (ICV): 59.87

Csr Practices in Indian Retail Industry 9

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10 Sitakshi Gupta

Note: In case of Future Retail Limited, financial analysis has been done only over a period of two years (2017-2019)
unlike the other two retailers where analysis has been done over a period of three years (2017-2020). The reason for
the same is that data is unavailable for CSR figures of Future Retail Limited for 2019-2020.

CONCLUSIONS

Retailers are actively contributing towards CSR, and today retailers are going much beyond mere donations and charity,
and they are including CSR as an integral part of their corporate strategy.

The analysis of the CSR endeavours of the three retailers under study indicates that the companies are
contributing towards sustainability in a very responsible manner. The CSR activities of the three retailers show that the
companies are covering all the aspects while adopting sustainable approach and are actively contributing towards the
society, the environment and also towards various stakeholders (Customers, Employees and Suppliers). A financial
overview of the retailers’ CSR activities show that the companies are abiding to the guidelines relating to the same as
mentioned in the Companies Act, 2013 (Section 135). At times, the companies while doing the same have also exceeded
the mandatory limit.

REFERENCES

1. https://www.indianretailer.com/article/whats-hot/trends/Top-Retailers-in-India.a404/

2. https://www.indiaretailing.com

3. https://www.indianretailer.com/article/whats-hot/trends/Top-Retailers-in-India.a404/

4. https://www.shoppersstop.com

Impact Factor (JCC): 4.2093 Index Copernicus Value (ICV): 59.87

Csr Practices in Indian Retail Industry 11

5. https://www.scribd.com/document/256125980/Understand-the-growth-of-Shoppers-Stop

6. https://www.westside.com/pages/about-us

7. https://www.starbazaarindia.com/

8. http://dev.futuregroup.in/sustainability/sustainability-overview.html

9. https://www.futureretail.in

10. https://youmatter.world/en/definition/csr-definition/

11. https://www.investindia.gov.in/sector/retail-e-commerce

12. https://www.investopedia.com/terms/c/corp-social-responsibility.asp

13. https://www.researchgate.net/publication/282701370_CSR_IN_RETAILING_INDUSTRY-
A_CASE_OF_THREE_RETAIL_STORES

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