DECLARATION

I hereby declare that the project report entitled “Corporate Social responsibility- A study”, is my
original work and it has not been submitted any where before. The findings in the report are based on the
information collected by me during the study.

1
Date:

INDEX
S.No CHAPTER Page No.
1. Introduction 5
1.1 Introduction 6

1.2 Objectives & Logic behind the study 6

1.3 Methodology 6

1.4 Scope of the study & Limitations of the study 7

6. Review of literature 8
2.1 Evolution of Corporate Social Responsibility 9

2.2 Introduction to Corporate Social Responsibility 10

2.3 Models of Corporate Social Responsibility 12

2.4 The Interest Groups 13

2.5 Why social responsibilities of business? 16

2.6 Reasons behind corporate social responsibility 19

2
 2.7 What to consider when starting a CSR strategy? 20

2.8 Benefits of corporate social responsibility to business 21

15.Corporate social responsibility of different companies 22

3.1 Reliance Corporation 23

3.2 Mahindra & Mahindra 29

3.3 Standard Chartered 34

19.Findings and Conclusion 40

4.1 Findings 41

4.2 Conclusion 42

22.Bibliography 44

CHAPTER 1

3
 INTRODUCTION

1.1 INTRODUCTION

Corporate Social Responsibility(CSR) covers all aspects of corporate governance. It is about

how companies conduct their business in an ethical way, taking account of their impact
economically, socially, environmentally and in terms of human rights. This moves beyond
traditional business stakeholders such as shareholders or local suppliers. CSR includes social
partners such as local communities, and global responsibilities such as protecting the
environment and ensuring good labour standards in overseas suppliers. CSR also includes
relationships with employees and customers. It inevitably involves working in partnership with
other organisations or groups. It can be seen as a form of strategic management, encouraging the
organisation to scan the horizon and think laterally about how its relationships will contribute
long-term to its bottom line in a constantly changing world.

1.2 OBJECTIVES & LOGIC BEHIND THE STUDY

OBJECTIVES

 To study the different aspects of corporate social responsibility

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  To study the different activities carried out by different companies with regards to
corporate social responsibility

LOGIC BEHIND THE STUDY:

Today a lot of premium companies are undertaking corporate social responsibility initiatives to
contribute towards the society, to support stakeholder’s interest, to build their brand image, for
long run success, for future development and growth and for financial and non-financial aspects.

Businesses undertaking corporate social responsibility can build goodwill among the society
whilst contributing towards it. Companies can earn many intangible benefits by carrying out such
activities.

1.3 METHODOLOGY:

This study is a descriptive and analytical study. The data has been collected from secondary
sources internet, journals, magazines and books. This data has been reviewed, and specific &
valuable findings are compiled to fulfill the objectives of the study.

1.4 SCOPE OF THE STUDY & LIMITATIONS OF THE STUDY

SCOPE OF THE STUDY:

This study is confined to four companies namely Reliance, Satyam, Mahindra and Mahindra and
Standard Chartered.

LIMITATIONS OF THE STUDY:

- The study could not be done in a detailed way because of time constraint.

- The data is collected from secondary sources.

- The study is confined to 4 companies namely, Satyam, Reliance, Mahindra and Mahindra
and Standard Chartered Bank.

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 CHAPTER 2
REVIEW OF LITERATURE
6
 2.1 EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

The concept of corporate social responsibility is not brand new; however it has evolved
considerably in the last few decades since the phrase corporate social responsibility was coined
in 1953 with the publication of ‘Social Responsibility of Businessmen’ by Howard R. Bowen.

The phrase has been in wide use since the 1960’s and through the 70’s and 80’ discussion of the
concept grew. Around the same time, big international companies also faced anti-corporate
sentiments because of environmental and human rights issues. In fact, companies faced large
scale boycotts of their goods and services to force change.

Though initially CSR was seen as the moral responsibility of corporate managers, it is now
increasingly being accepted as being in the long term interest of corporations. Organisations as
well as consumers are recognizing that companies have a responsibility not only to their
shareholders, but also to stakeholders including their employees, consumers, suppliers,
communities, legislators and the environment. CSR now represents an organisations contribution
to these stakeholders, the society at large and increasingly the global society in which they
operate. Organisations exhibit their corporate social responsibility in a number of ways,
depending on the resources they have allocated for this purpose. Prior to the 1990’s, CSR was a
philanthropic activity based on a fixed budget that the organisation allocated – mostly doing so

7
to “look good”. These funds were sometimes allocated to many organisations and causes with
the idea to satisfy as many interest groups and to gain as visibility as possible. The commitment
was usually short term and restricted to making donations that were heavily influenced by the
wishes of the senior management of the organisation.

With the changing attitudes to CSR, corporations are increasingly taking on long term
commitments in few strategic areas. Major international organisations such as the United
Nations, World Bank, and ILO are spreading endorsing and setting guidelines for CSR.
Companies are following through by employing CSR strategies that are in line with corporate
goals while doing the most good. Some of these strategies include:

 drafting a code of ethics for the organisation to follow

 public education programs

 setting up community forums

 undertaking pro bono work and contributing corporate expertise

 employee volunteering programs

2.2 INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILITY

According to A.B Caroll and A.K. Buchholtz, corporate social responsibility can be defined as
"economic, legal, ethical, and discretionary expectations that society has of organizations at a
given point in time".
Business as it is said, is a product of environment. The nature of business, location, the product
to be manufactured, the size, volume of operation, etc is determined by the environment in which
it operates.

Similarly it has an impact on the environment in which it exists. The business decisions in an
organization completely depend upon the environment and their impact. The environment can be
divided into:

 Internal Environment
 External Environment

Business
External Environment
Internal Decision
Environment

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Social Responsibility of business refers to what business does over and above the statutory
requirement for the benefit of the society. The word “responsibility” emphasizes that the
business has some moral obligations towards the society. The term corporate citizenship is also
commonly used to refer to the moral obligations of the business towards the society. It implies
that like individuals, corporate are also the part of the society and their behavior shall be guided
by the social norms. Social Responsibility has been defined by Davis as follows:

“Social responsibilities refer to businessman’s decision and actions taken to reason at least
partially beyond the firm’s direct economic or technical interest.”

In addition, some other aspects have been encompassed by Andrews. According to him, “By
social responsibility, we mean the intelligent and objective concern for the welfare of the society
that restrains individual and corporate behavior from ultimately destructive activities, no
matter how immediately profitable, and leads in the direction of positive contributions to human
betterment, variously as the latter may be defined.”

Philip Kotler defines corporate social responsibility as: Corporate social responsibility (CSR)
is a commitment to improve community well-being through discretionary business practices and
contributions of corporate resources.There has been a growing acceptance of the plea that
business should be socially responsible i.e. it should discharge its duties and responsibilities
in enhancing the welfare of the society of which it is an integral part.

9
 2.3 MODELS OF CORPORATE SOCIAL RESPONSIBILITY

There are some models, which endeavor to describe the evolution and extent of social orientation
of companies.

Carroll’s Model: Carroll defines CSR as a range and obligations a business has towards the
society. There are four categories of the obligation.

Discretionary Resp.

Ethical Resp.

Orgn Legal Resp.

Economic Resp.

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 Economic Responsibility: A firm being an economic unity, this is its prime responsibility, i.e. to
satisfy the economic needs of the society through generating surplus and investing in development
of the society.
 Legal Responsibility: A company performs this because it is bound to obey the law and the
legal system.
 Ethical Responsibility: Business organization is expected to undertake these though they are
not mandatory. These include not restoring to unfair trade practices, not cheating the
customer, etc.
 Discretionary Responsibility: It refers to the voluntary activities undertaken by the
organization for social development programs.
These levels of responsibilities was named as “Pyramid of Corporate Social Responsibility”
Ackerman’s model:

Also described that CSR done by a company generally spreads over three phases:
 FIRST where the top management recognizes the existence of social problem,
which deserves attention and acknowledges the company’s policy towards it by
making an oral or written statement.
 SECOND phase is where the Co. appoints staff specialists or external consultants
to study the problem and suggest ways of dealing with it.
 THIRD phase involves the implementation of the social responsibility programs.

2.4 THE INTEREST GROUPS

Social Responsibility requires the identification of various interest groups, which may
affect the functioning of a business organization and may also be affected by its functioning.
Normally various groups associated with a business organization are shareholders, workers,
customers, creditors, suppliers, government and society in general. The management owes
responsibility towards all these groups. Therefore, management should show a standardized
norm of behavior.

11
Shareholders: The first responsibility of the management is to protect the interest of
shareholders. The interests of majority of shareholders and large minority of shareholders are
generally well protected through either direct participation in the management actions or they
have real power to intervene, if necessary. They should be informed about the functioning of the
organization adequately and timely. Therefore, management has a responsibility to provide
proper safeguard to the money invested by shareholders.

Workers: Workers have direct interest in an organization because by working there, they satisfy
their needs. Thus, it is the management’s responsibility to protect the interest of workers in the
organization. This can be done by the management in the following ways:
 Management should treat workers as another wheel of the cart
 Management should develop administrative process in such a way that promotes
cooperative endeavor between employers and employees.
 The management should adopt a progressive labor policy based on recognition of
genuine trade union rights – participation of workers in management, creating a sense
of belongingness, improving their living and working conditions.
 Management should pay fair and reasonable wages and other financial benefits to
workers.

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Customers: Management owes a primary obligation to give a fair deal to the customers. This
can be done in the following ways:
 Customers should be charged a fair and reasonable price.
 The supply of goods and services should be of uniform standard and of reasonable
quality.
 Management should not indulge in profiteering, hoarding, or creating artificial
scarcity.
 Management should not mislead the customers by false, misleading and exaggerated
advertisements.

Creditors, Suppliers and Others: They affect the organization in various ways. Therefore, the
management is responsible to fulfill its obligations towards them. This can be done in the
following ways.
 Management should create healthy and cooperative inter business relationship
between different businesses.
 Management should provide accurate and relevant information to creditors and
suppliers.
 Payments of price of materials, interest on borrowings, other charges should be
prompt.

Government: It is very closely related with the business system of the country. It provides
various facilities for the development of business. Government, no doubt, exercises control over
business, but these controls are meant for overall development of business. Management can
discharge its obligation to government by:
 Management should be a law-abiding citizen
 Management should pay taxes and other dues fully, timely & honestly.
 It should not corrupt government workers and public servants and the democratic
process
 It should not buy political favors by any means

13
Society: Organizations exist within a social system and get facilities from the system. Therefore,
they owe obligations to the society as a whole. This can be done by:
 Management should maintain fair business policies and practices.
 It should play a proper role in civic affairs.
 It should provide and promote general amenities and help in creating better
living conditions in general.

2.5 WHY SOCIAL RESPONSIBILITIES OF BUSINESS?

“Why business should be concerned about social responsibilities?” is a question that has
attracted the attention of many thinkers, both from academics as well as from practitioners.
There have been arguments and counterarguments in favour of and against social
responsibility of business.
Arguments against Social Responsibility:

1. Profit maximization: The first and the most important argument against CSR is that a
business organization’s primary objective is profit maximization. Since business operates
in a world of poverty and hunger, the economic efficiency of the business is a matter of
top priority and should be the sole mission of business. Its function is economic and not
social and economic values should be the only criteria used to measure success.
2. Society has to pay the cost: Another argument is that the costs of social responsibility will be
passed on to the society and it is the society, which has to bear its cost. The question is whether
the society can afford these costs?
3. Lack of social skills: Business managers are best in managing matters related to business.
They are not equally good at solving social problems. If society is going to depend on someone to
work with social problems, why choose a group, which is not qualified to do it.

14
 4. Lack of accountability: Another point of view is that business has not direct
accountability towards the people, so it is unwise to give the businessman the
responsibility for areas he is not accountable. Until the society can develop mechanisms,
which establish direct lines of social accountability from business to the public, it should
pursue its goal of profit where it is directly accountable through the market system.
5. Friedman’s Views: The most convincing criticism has been voiced by the economist
Milton Friedman. Friedman based his arguments on two principal contentions, one
economic and one legal. From the economic perspective, he asserted that if managers
spend corporate funds on projects not intended to maximize profits, the efficiency of the
market mechanism will be undermined and resources will be misallocated within the
economy.
On the legal side, Friedman contended that because managers are legal agents of the
stockholders, their sole duty is to maximize the financial return to the stockholders. Hence if they
spend corporate funds for social purposes they are essentially stealing from the stockholders.

Arguments for Social Responsibility:

1. Changed Public Expectations of Business: One of the most potent arguments for
social responsibilities is that public expectations from business have changed. It is reasoned
that the institution of business exists only because it satisfies the valuable need of the
society. Society gave business its charter to exist, and the charter can be amended or
revoked at any time that business fails to live up to society’s expectations. Therefore, if
business wishes to remain viable in the long run, it must respond to society’s needs and
give society’s needs and give society what it wants.
2. Public Image: Another argument in favor of social responsibility is that it improves
public image. Each individual firm seeks an enhanced public image so that it may gain
more customers, better employees more responsive money market and other benefits.
Affirm which seeks better public image should support social goal.
3. Avoidance of Government Regulation: It seeks to regulate business in the public interest.
Government regulation is costly and denies the much needed freedom in decision-making. Before
government stretches its long arms, business should discharge its obligation to society.

15
 4. Business has the Resources: Another argument for social responsibility is that business
has a vast pool of resources in terms of men, talents, fictional expertise and money.
Probably, business is without peers in respect of the resources it possesses. With these
resources at its command, business is in a better position to work for social goals.
5. Prevention is Better than Cure: If business delays dealing with social problems now, it
may find itself constantly occupied with social problems now, it may find itself
constantly occupied with putting out social fires so that it has no time to accomplish its
goal of producing goods and services. Since these social problems have to be dealt some
time, it is actually more economical to deal with them before they develop into serious
social breakdowns that consume management time.
6. Citizenship argument: If individual members of society have an obligation to improve
society, corporations also have this responsibility. After all, corporations unlike citizens
are created by the society. Corporations are citizens and citizens have civic duties and
responsibilities.
The proponents of social responsibility say that the old concept of profit maximization has
vanished and even economists have accepted it. They have substituted profit maximization
with satisfactory profit. Today, business decision – making is a mixture of altruism, self
interest and good citizenship. Managers do take actions, which are in the social interest even
though there is a cost involved and the connection with the long-range profit is quite remote.
Therefore, the responsibilities of a business can be represented as follows:

Economic Mutual Social

Concern Concern Concern

The figure shows that though there may be some cleary distinct economic and social goals of
an organisation, there is always a common area. This is the area that provides a realistic view of
the social responsibility of a business

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 2.6 REASONS BEHIND CORPORATE SOCIAL RESPONSIBILITY

CSR has grown in importance in recent years, often through public scandals and mis-
management. This has meant increased demands from customers, employees, statutory bodies
and the general public for detailed information about whether companies are meeting acceptable
standards. Increasingly companies have to take account of how their actions impact on society.
The ‘employer brand’ has become an important way to add value but it is also more vulnerable
to scrutiny and suspicion. Bad publicity travels fast through communication channels which are
often out of organisational control such as the Internet.

CSR is an issue in which we all have a stake. Our actions today will influence the lives of future
generations through for example, trying to protect the environment. It is changing the way
business is done.

Being proactive about CSR will increasingly provide a competitive advantage both externally
through protecting company reputation and the accompanying publicity, and internally through
employee engagement. To really ‘do’ CSR businesses need to accept that they don’t exist in a

17
vacuum but operate in a wider community that has an impact on their, and others, futures.

When CSR is done well, it means a precious, though precarious, trust in your business.
Successful CSR can bring benefits such as a distinct position in your marketplace, protecting
your employer brand, and building credibility and trust with current and potential customers and
employees. It can help significantly with recruitment, engagement and retention of employees.

2.7 WHAT TO CONSIDER WHEN STARTING A CSR STRATEGY?

 Clarify your core values and principles.

 Make sure you know who your key internal and external stakeholders are and which
issues affect your relationship with them.
 Get the top team on board, and know how to sell the benefits of CSR to different
stakeholders.
 Understand how the CSR strategy is aligned to your business strategy and HR practices.
 Get endorsement for the CSR strategy from inside and outside your organisation.
 Communicate consistently.
 Training is vital, as CSR will only have an impact if employees are engaged: attitudes or
behaviour won’t change otherwise.
 Effectively measure and evaluate CSR, otherwise the time, effort and money invested are
based on assumptions, not results.

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 2.8 BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY TO BUSINESS

CSR is not just about doing the right thing. It also offers direct business benefits.

 Building a reputation as a responsible business sets a business apart. Many consumers

prefer to buy from ethical businesses. Companies often favor suppliers who demonstrate
responsible policies as this helps them to minimise the risk of any damage to their own
reputation.
 A good reputation makes it easier to recruit employees.
 Employees stay longer, reducing the costs and disruption of recruitment and retraining.
 Employees are better motivated and more productive.
 CSR helps ensure the company comply with regulatory requirements.
 Activities such as involvement with the local community are ideal opportunities to
generate positive press coverage.
 Good relationships with local authorities make doing business easier.

19
 Understanding the wider impact of the business can help think up profitable new products
and services.
 CSR can make a company more competitive and reduces the risk of sudden damage to
the reputation (and sales). Investors recognise this and are more willing to finance such
companies.

CHAPTER 3
20
 CORPORATE SOCIAL RESPONSIBILITY
ACTIVITIES OF DIFFERENT COMPANIES

Three premium companies have been chosen randomly to learn more about corporate social
responsibility initiatives undertaken by them. These companies are Reliance, Satyam, Mahindra
and Mahindra and Standard Chartered.

3.1 RELIANCE CORPORATION

Reliance thinks beyond business. As corporate citizens, they invest in social infrastructure,
believing strongly that their business strength fuels their social contributions. To this end,
Reliance encourages, funds and develops numerous education, health, human capital and
infrastructure initiatives. It has partnered with various social and environmental organizations to
address the issue of sustainable development and social upliftment. The major partners in these
areas are International Institute for Sustainable Future (IISF), Lion's Club, Rotary Club,
Maharashtra Energy Development Association (MEDA) and various local NGOs.  

 Educational Initiatives

21
Aligned with the goals and vision of the management, several educational initiatives have been
proposed / established as leaps into the future. These ventures aim at building confidence,
capacity, global mindsets and communication skills in young people-how they grow will shape
and give direction to the growth of our country. 

 Reliance is associated with the Indian Institute of Management (IIM), Bangalore and the
Indian Institute of Technology (IIT), Bombay. They have sponsored the participation of over
250 engineers in a customized Management course - MPRE (Management Program for
Reliance Engineers) at IIM-Bangalore. They have sponsored 91 science graduates and diploma
holders to complete a Reliance Certified Engineering course with IIT-Bombay.

 Dhirubhai Ambani Institute of Information and Communication Technology (DA-IICT),

Gandhinagar, India. DA-IICT, Gandhinagar, is a statutory university as per an enactment of the
Government of Gujarat in the year 2003. Its status was further acknowledged in November
2004 when the University Grants Commission (UGC) notified its inclusion in the list of
universities maintained under Section 2(f) of the UGC Act.. To meet the rising demand for ICT
professionals Reliance, proposes two new DA-IICTs be established at Kolkata and Srinagar.

 Dhirubhai Ambani International School, Mumbai. The Dhirubhai Ambani International

School commenced academic sessions in March 2003. The school provides international
educational opportunities in the context of the emerging educational needs of students. The
school prepares students for the Indian Certificate of Secondary Education (ICSE), Cambridge
University's International General Certificate of Secondary Education (IGCSE) and the
International Baccalaureate Diploma (IB) examinations.

 Reliance has started a teacher training project called Anand-Dayee Shikhshan with UNICEF
and the Raigad zilla parishad covering all the 2500 primary schools of the zilla parishad and has
trained more than 5000 teachers and officers. Recently Reliance has joined with other corporate
houses to setup a world-class business school in India, in association with the Wharton and
Kellogg business schools of USA. 

Rewards and scholarships

22
The Dhirubhai Ambani Foundation (DAF) has instituted several rewards and scholars schemes
over the years.

 The Dhirubhai Ambani SSC Merit Reward Scheme and Dhirubhai Ambani
Undergraduate Scholarship Scheme encourages and assists district level meritorious students to
pursue professionally oriented higher education. Both the schemes, instituted in June 1996, are
currently applicable in the states of Gujarat, Maharashtra, Goa and the Union Territory of Diu,
Daman, Dadra and Nagar Haveli.
 The Reliance Kargil Scholarship Scheme was launched with the generous contribution of
Reliance employees. It continued to support 383 children from 103 families of martyrs of the
Kargil war as well as disabled soldiers.
 In 2003 a special award and a scholarship scheme have been introduced for district
toppers in the physically challenged category, to help such students obtain equal opportunities in
education.

Healthcare Initiatives

As with education, Reliance stresses one more key contributor to the country's human
index factor - programs and projects in areas of health awareness and management. Along with
other pre-occupations, social infrastructure is foremost in their activities.

 Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC), Mumbai. The
Dhirubhai Ambani Foundation joined the management of Sir Hurkisondas Nurrotumdas
Hospital and Research Centre in December 1997 with the commitment to restore the hospital
to its erstwhile glory by re-structuring the hospital services and setting up state-of-the-art
technology in the field of healthcare that will conform to international standards.
 The Company has constructed a 6- storey, 100 bed hospital in Mumbai viz. BSES
MG Hospital.  The building is spread on a plot of area of 40,000 sq. ft. This fully equipped
hospital will cater to the needs of the Company's consumers. Apart from general medical
services, specialty services like C T Scan, Stress Test, Intensive Care Unit, etc. will also be
made available to patients.

23
 Dhirubhai Ambani Hospital, Lodhivali, Raigad. This 82-bed state-of-the-art hospital was
established seven years ago. It has served the population in the industrial and rural areas of
Raigad District, Maharashtra. Besides taking care of hospitalization requirements, the
hospital provides poor patients and senior citizens free outpatient and subsidized inpatient
treatment. It has provided critical intervention in the case of numerous highway accidents and
saved lives by providing prompt, specialized and free life saving treatment. Reliance
provides free trauma care and treats all local people in nearly all area of medicine and
surgery.

COMMUNITY DEVELOPMENT

At all manufacturing locations, care is taken to improve the quality of life in the surrounding
communities. These community development programs focus on key areas of healthcare,
education, child welfare, and infrastructure development. Reliance offers medical services at all
its locations. At Jamnagar Reliance organized community meals programs in surrounding
villages, safety awareness programs to educate villagers in community safety, mobile medical
van service to surrounding villages, multi diagnostic medical camps and a village medical center.
They carried out repairing of village roads, supply of drinking water through water tankers on
need basis.

At Hazira Reliance initiated a major outreach program towards HIV/AIDS and TB intervention,
by the creation of a DOTS (Directly Observed Therapy Short-term) centre. This unique and first
of its kind Public-Private Partnership project, with 4,154 registered patients, has been recognized
by United Nations Development Project (UNDP) and has been widely acclaimed. They are
conducting Eye camps, blood donation camps, a mobile dispensary catering to nearly 15,000
patients and a physiotherapy centre for mentally challenged children constituted some of the
other healthcare initiatives at Hazira.

At Patalganga the Patalganga complex undertook several community health initiatives. These
included organising an HIV awareness drive benefiting 500 tanker drivers, and a blood donation
camp. 

24
THE HARMONY INITIATIVE

Harmony, an initiative of the Dhirubhai Ambani Memorial Trust, is dedicated to the cause of a
growing population of Senior Citizens. The Harmony Interactive Centre, in South Mumbai,
provides a unique opportunity for senior citizens to interact and connect with their peers in a
space of their own. The Centre also aims to sensitize people on issues pertaining to the elderly.

Over 1000 enthusiastic Senior Citizens came together to Celebrate Age in the Harmony
initiated 5kms Senior Citizen Special Run, held in association with the Standard Chartered
Mumbai Marathon 2005 on January 16, 2005. The event placed the image of senior citizens in
the forefront, helping increase awareness and sensitivity towards them.

OTHER INITIATIVES:

After the devastating cyclone that hit Jamnagar in June 1998, Reliance carried out a large-scale
relief operation that covered the entire Jamnagar city and neighboring villages. Over 2000 light
poles were erected and within just 3 days power was supplied. 7 medical centers and 4
ambulances carried out medical relief operations throughout the region and free medicines were
also distributed besides supplying essential commodities to the entire area 20 standard houses
were handed over to landless labourers of the village.

When the super cyclone devastated parts of Orissa, the Company deputed a team of engineers
with support staff for restoration of electricity in the affected areas.  The timely assistance
rendered by their team was effective and widely commended. In January 2001, immediately in
the aftermath of the earthquake that struck parts of Gujarat, Reliance rushed teams of its
executives; engineers and skilled workforce to the quake affected areas and speedily restored
electricity supply.  The Chairman and senior officials of Gujarat State Electricity Board lauded
the efforts put in by our team.  In addition, Reliance organized a 3-day drive for collection of
relief materials in Mumbai, which were immediately dispatched to the affected areas

25
In the year 2002 the floodwater entered the homes of all those who lived at ground level in
Dahanu and their Dahanu plant had to be shut down. Enormous damage was caused due to this
disaster. The total damage in this region was about Rs. 25crore. In spite of this Reliance went to
help the citizens of Dahanu with clean drinking water and bags of grain were distributed to those
who lived in the affected areas.

Reliance also took up a turnkey contract on no profit basis for the construction of more than six
hundred houses in Dudhai of Bhuj district, Gujarat in association with a social welfare
organization.  The township was completed in a record period of 100 days and dedicated to the
residents of the village by the Hon'ble Prime Minister. Reliance with contributions from its
employees and matching contribution from the Company constructed a 30-room secondary
school and a community center, the latter also was inaugurated by the Hon'ble Prime Minister.

The Company, in association with Forest Department of the Government of Maharashtra, has
adopted Kainad village as a part of the 'Adopt a Village" Program for its strategy of developing
rural areas.   Under the program, Reliance assisted in constructing smokeless 'chullas' (stoves)
and toilet blocks for tribal families and installed photovoltaic streetlights in the village.  During
monsoon, the Company supplied chlorine in plastic bottles for purification of drinking water to
over 5,000 tribal community members at Dahanu. When several villages on the banks of Surya
and Vaitarna rivers in Palghar Taluka where the Company's Dahanu Power Station is situated
were flooded, Reliance promptly responded to the calamity and assisted over 800 families with
utensils and other essential items.  The Company's fire tenders played a major role in dewatering
and cleaning the affected villages. 

26
 3.2 MAHINDRA AND MAHINDRA

Mahindra & Mahindra Ltd. (M&M), the flagship company of the Mahindra Group of
companies, is one of the largest private sector companies in India, and amongst the top ten
industrial houses in India. Mahindra started operations in 1945 to manufacture General
Purpose Utility Vehicles and later on entered into manufacturing of Tractors and Light
Commercial Vehicles (LCVs) and then expanded its operations to steel, trading and
manufacturing of Ash Handling Plants & Traveling Water Screens.

The Company has, over the years built up a reputation as a responsible corporate and social
citizen. This is amply reflected in the Company's record of 60 years of peaceful and cordial
labour relations. As a core business value, M&M believes that its human resources are its
richest assets, and thus the wealth generated by the Company must go towards the
enrichment of its people. It follows the following five principles:

27
Their five golden commandments –

1) Transparency

2) Local partnership

3) People participation

4) Voluntary work

5) Openness

Mahindra & Mahindra undertakes quite a bit of charitable work, and even
though the figure against its name shows Rs 1.3 crore, this is just the amount available
under the head donations in its annual report. Its activities include:

 1. KC Mahindra Education Trust

Established in 1953 by the late K.C. Mahindra, M&M is the main sponsor of the KC
Mahindra Education Trust. The trust's objective is the promotion of education at various
levels, and it is involved in and contributes to various education initiatives.

In 34 schools in India the trust has instituted the Mahindra Search for Talent
scholarships to encourage and reward students who have achieved academic excellence.
These scholarships are awarded every year to over 300 students from all over India. These
are students with good scholastic records who come from lower income groups and are keen
on pursuing job-oriented diploma courses.

The trust has also instituted the KC Mahindra Chair at the Institute of Science,
Mumbai, since 1970 to encourage research in the field of nuclear chemistry. Besides, the
trust has established the Mahindra Search for Talent scholarship at the Banasthali
Vidyapeeth, a deemed university in the state of Rajasthan, where it has also recently started
a management school called Wisdom - Women's Institute for Studies In Development-
Oriented Management. 

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2. Nanhi Kali

In 1996 the KC Mahindra Trust kicked off an ambitious program aimed at helping the
underprivileged girl child in India. Christened Nanhi Kali, the project's principal goal is to
promote primary education for the underprivileged girl child in both rural and urban parts of
the country.

The program is implemented with the help of several non-government organizations (NGOs)
and voluntary agencies doing community-based development work. To make the project
more participatory and involving, individual sponsorship is encouraged wherein individual
donors adopt a girl child. The Nanhi Kali project, backed by an encouraging response from
sponsors, currently supports the education and general welfare of over 1,700 girl children
through 18 NGOs.

The project hopes to reach out to thousands of such underprivileged girls across India to
provide them with opportunities and choices that give them a fighting chance in life.

3. The Mahindra United World College of India

The Mahindra United World College of India (MUWCI) situated about 40 Kilometers to the
West of Pune, was founded in 1997, as a premier educational institute offering ‘true’
international education to students from India and abroad. The global education offered by
MUWCI brings together students of various nationalities for a pre-university degree. The
school is global not only because of the International Baccalaureate degree, but also because
of the true international culture, in which the students study, lives and learns. Each year’s
batch of about 100 students accommodates about 65 to 70 international students. The
students also contribute to the local neighborhood through community service programs as
an intrinsic part of their curriculum.

M&M has in association with the Joseph Cardijn Technical School, a non-aided industrial
training centre affiliated to the Government of India National Council for Vocational
Training, has set up an industrial training centre in Mumbai.  The focus of this project is to
upgrade the quality of training to automotive technicians in the industry.  This new
generation training school emphasizes on ‘hands-on’ experience and front line technology.

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The Company through its Vishwakarma Program in Punjab and Rajasthan imparts free
training to individuals in backward areas to drive, repair and maintain their tractors
irrespective of the brand of tractor they use.  The farmers are also educated on good
agricultural practices through lectures by agricultural experts arranged by the Company. The
Banasthali Vidyapith, a deemed university in Rajasthan, where the Trust has already
established the Mahindra Search for Talent Scholarship, has recently started a Management
School ‘WISDOM” – Women’s Institute for Studies In Development-Oriented Management
which is being funded by the Company.

4. Welfare Centre

The Welfare Centre came into existence in August 1971 to work not only towards the
development of Employee and his family but also to co-ordinate other human and social
resources available in the community. Thus, the welfare activities cover both people from
the low economic strata of the society within and outside the factory.

Activities carried out by Welfare Centre:

a).Family Planning – To popularize the idea of a small family norm, Mahindra has a
government recognized Vasectomy Centre in the factory premises itself. Through publicity
or film shows in the community, people were given education on Family Planning.

Under the guidance of the Welfare centre, employees have formed the Social Activity group
known as Avani, which works actively for the cancer patients by donating money through
various sales and also organize sale of products by the disabled organizations.

b). Healthcare - There are diverse health-related services offered by the Company.  These
activities are coordinated by the Welfare Departments at the respective locations.  A team of
consultants in various specializations is available for consultation at the Medical Centre.

Family planning, awareness on spread of education on AIDS issues among employees and
their families and sex-education programs are conducted.  Blood Donation drives are a
regular feature as are regular social awareness programs on topics such as family welfare,
cancer, aids-awareness, heart care, diabetes and other ailments. Periodic health checks ups

30
for all employees’ as well as psychiatric consultation when needed for employees and their
families is provided.  

c). HIV/AIDS Prevention and Care Activities - HIV/AIDS activities were started for both
the Automotive Sector as well as Farm. At the Automotive Sector Welfare Centre, the social
workers and counselors initiated dialogue with other business houses such as L&T and
Glaxo. Recognizing the various impacts of HIV/AIDS, a need to develop awareness
initiatives within the respective companies was felt. Thus the Company got involved in
various HIV/AIDS initiatives.

I. Awareness Generation and Training

Awareness activities are carried out in both the divisions along with the staff and members
of the Trade Union. These include information dissemination through exhibitions, posters,
pamphlets, booklets, street play, newsletter articles and interactive discussions with
employees, which provide a platform to the employees to ask questions, clarify,
misconceptions, etc.

Members of the Trade Union are involved very closely in the implementation of the
program and participate actively in the awareness programs. The Company treats them as
equal partners. Some of the Trade Union members and staff volunteer their time and skills
for social initiatives. This group, after attending various awareness sessions, expressed an
interest in working on issues of HIV/AIDS. They were given further training on HIV/AIDS,
on motivation and being peer educators, as well as education materials and condoms. The
group since then has been regularly conducting one-to-one as well as group discussions on
HIV/AIDS, providing information to and facilitating referrals for the employees.

II. Condom Distribution and STD Treatment

Quality condoms are distributed free of cost by both the sectors. Condoms are kept at the
Welfare Centres, Family Counselling Centres and the Medical Centre. The Company as a
component of the family welfare programs had initiated condom distribution and promotion.
Later, information about condoms as disease prevention tools was also disseminated.

III. Advocacy Initiatives:

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Personnel from M&M along with others from L&T and Glaxo, were involved in designing
and writing an HIV/AIDS policy guideline for Indian industries entitled, “Corporate
Response to AIDS: Policy Guidelines” in partnership with Bombay Chamber of Commerce
and Industry (BCCI).

IV. General Concern for Environment

A committed separate department monitors the Environment Pollution Control and Effluent
Treatment facilities, re-cycling of effluents and control of stack emissions.  The Company
has been the recipient of the prestigious International Award ‘Oscar of the Safety World’ –
the “Sword of Honour” from the British Safety Council, London in 1993.  The Award is
presented to 30 best/safest companies in the world over.

Environment protection efforts include developing and maintaining gardens at various

locations in Mumbai – the Gateway of India (Shivaji Udayan), Regal Cinema Traffic Island,
a garden near Oval Maidan, including restoration of the boundaries of Oval Maidan, Rajni
Patel Garden and a garden in Ghatkopar near Mahindra Park.

3.3 STANDARD CHARTERED

Standard Chartered employs 38,000 people in 950 locations in more than 50 countries in the
Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the
United States of America. Standard Chartered is one of the world's most international banks,
with employees representing 80 nationalities. Since SCB operates all around the globe and
in such a diverse culture they face a variety of corporate responsibility issues.

In June 2004 SCB carried out an audit of Corporate Responsibility activities through a cross
section of the Bank’s operations. The audit provided a snapshot of the organizations strength
and weakness in the area of Corporate Responsibility and covered its approach and

32
management of Corporate Responsibility related issues and the effectiveness of both its
internal and external communication. 

SCB like most of the leading organizers sees Corporate Responsibility as an opportunity to
make its brand stand out. Working on this, SCB has set some goals for itself for the year
2005 as follows: -

By the end of 2005 it aims to have:

I. An established governance structure for Corporate Responsibility

II. Raised awareness, internally and externally, of its priorities and intentions
III. Corporate Responsibility aspirations that are aligned with its business goals
IV. Established clear goals for all areas overseen by the Corporate Responsibility
Committee
V. Actively engaged all its employees in its Corporate Responsibility program to spread
understanding and best practice
VI. Community Partnership around the Globe
VII. Seeing is Believing

“Seeing is Believing” is one of the major global community programs conducted by SCB. It
was launched in 2003 to help alleviate the issue of blindness across the globe. In first year of
its functioning SCB raised enough money to restore the sight of 56,000 people. This
achievement exceeded their goal of raising enough to restore sight to 28,000 people by
World Sight Day on the 9th October 2003. 

Due to this overwhelming success, SCB has continued with its program, in partnership with
VISION 2020 – the international body for the elimination of avoidable blindness - and
together aim to raise US$ 6 million over the next three years which will help to restore sight
of about one million people.

The bank believed in discharging its social responsibility and so as part of the bank's 150th
anniversary in 2003, a global fund raising campaign - 'Seeing is Believing' -- was launched
that aimed to restore eyesight for nearly 30,000 persons globally (one for each Standard
Chartered Bank employee). The Bank raised over US$ 1.44 million globally (enough to

33
restore eyesight for 56,000 persons). In India, the Bank raised about US$ 200,000 from its
staff and customers and is in the process of partnering with several organizations and NGOs
across the country to restore eyesight to over 7,500 persons.

LIVING WITH HIV

SCB’s “Living with HIV” program focuses on training all of its 30,000 plus employees in
more than 50 countries on the facts about HIV/AIDS, how it spreads, how it can be
prevented and how to care for those who are infected or affected by HIV.

SCB in through their unique program hopes to take away the stigma attached to HIV/AIDS
in the hope that more people will come forward for testing and treatment, which they also
offer to their staff members. In Botswana for example SCB’s work with the youth
organizations has helped to educate people about prevention and treatment. Similarly, in
Malaysia, SCB is working with the student organization, AIESEC, and have trained 30
young people who will in turn train a further 3,000 counselors, thus spreading awareness in
the country.

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Standard Chartered had organized an International Marathon in Mumbai on 15th February
2004, as an innovative platform to bring together the corporate and the NGOs. What
emerged from this initiative was a fun-filled way to channel funds to those in the country
who needed it the most. Like, Give India, the charity partner for the event, raised an
impressive figure close to Rs. 52,00,000/- for various causes. The funds are now been
allotted to various causes as per the choices of the participants. They range from child
welfare and education to aid for the blind and programs for the elderly.

SCB, through this marathon was able to bring closer donors like ICICI, McKinsey,
celebrities and international sports personality to various NGOs like the Give India and
National association for the Blind (NAB).

The participants of the Marathon began at the start and ended at the finish line. But the funds
generated began at the Marathon and ended in spurring social action for the under
privileged. Following the choice of the donors and the variety of donation options, funds
have found their way to a variety of causes. It took Rs 600 to sponsor a mid-day meal for
120 children, Rs700 to sponsor an artificial limb for a disabled child, Rs2000 to sponsor a
blind child’s education for a year, Rs5000 to sponsor a set of books and journals for a rural
library and Rs11,250 to sponsor teacher training workshops for 25 women.

The Nation Association for the Blind (NAB) has spread the Marathon generated funds for
cataract operations, Braille presses and rehabilitation activities, while the Children Toy
Foundation is busy formulating nutrition programs, teaching aides, uniforms and libraries
with it. 125 children are now assured of an education while 30 disabled people will have
access to rehabilitation facilities. Dream a Dream will initiate the Dream Outdoor Program,
aimed at giving disadvantaged children exposure and empowerment through the means of
outdoor activities.SCB will be arranging similar such marathons this year in Nairobi and
Singapore and in Hong Kong the next year.

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ASHRAY CENTRE 

In continuing the Bank's pledge for providing support to HIV affected people Standard
Chartered India has recently supported the children of Ashray Centre.

Ashray centre is a local NGO which provides residential shelter for children of 0-12 years
affected and infected by HIV /AIDS. A total of 60 children are currently housed at the
centre. The Standard Chartered Branch staff donated generously for the mission along with
money that was available out of selling old newspapers. School bags, notebooks and pencil
were donated to each child. And as a token of their gratitude towards the Bank, the children,
all trained by Shiamak Davar, entertained the Banks staff when the staff had visited the
NGO to distribute the gift items.

MOBILE MEDICAL UNIT

The Mobile Medicine Unit sponsored by Standard Chartered Bank to Helpage India has
continued to render primary healthcare at the doorsteps of the poor and needy old persons
living in slums and peripheral villages of Kanpur and Patna in India. During the period of
April to June 2002, a total number of beneficiaries for treatments reached 12,521.  

Health education and awareness activities were also undertaken by the Mobile Medical Unit
to address eyes related problems and organizes preventive health-checking camps.
Arrangements have also been made under which the patients can be referred for a secondary
level and tertiary level health care. The Mobile Medicine Unit is believed to have fulfilled a
long felt need of the disadvantaged older persons in the society who were otherwise
neglected by the society.

CENTRAL SCHOOL FOR THE EDUCATION OF THE DEAF

The Bank is a strong supporter of the Central School for the Education of the Deaf - a
registered society and public charitable trust founded in 1966. Its prime concern is to
rehabilitate profoundly and severely deaf children by providing model teaching and training
facilities, both in English and Marathi. In doing so, the School also endeavors to bring
vocational and other employment opportunities, which would otherwise be denied to them,
within the reach of deaf children.

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The Central School for the Deaf has 62 children divided into 6 classes. Education is
imparted to the children free of charge and a school bus service is provided for bringing and
taking the children to and from school. A balanced mid-day meal is also provided to the
children free of cost. Regular medical and dental camps are conducted every year for the
children and follow-up treatment is ensured. The school also offers assistance for the
purchase of the individual hearing aids wherever necessary.

The Bank provides ongoing assistance to the School, through cash donation, as well as the
Standard Chartered Income Fund, in which the Bank's donations and the School's own funds
are invested, and which interest returns fund the School.

PREM DAN 

Prem Dan, a charity run by Sister Felicity Morris in Mumbai, has three learning centers for
children forced into living on the streets. 

Standard Chartered Bank has committed an annual donation for a period of five years
towards the Education and Nutrition Program for the under privileged children in Mumbai.
The children covered under program are provided with a wholesome mid-day meal and are
given free tuition classes to help them cope with their studies. This program has helped the
children because they leave their homes early morning and return home only in the night for
their supper. The program supports around 572 children in four local schools in Mumbai.

VICTORIA MEMORIAL SCHOOL FOR THE BLIND

In 1995, during the visit to India of Chairman Sir Patrick Gillam, the Bank undertook to
sponsor the refurbishment of the central hall of the Victoria Memorial School for the Blind
in Mumbai.

The school required nearly five years to complete the renovation project, due to the
meticulous care with which the renovation to an 86-year old Heritage building needed to be
carried out. The hall, now complete and known as the Standard Chartered Hall, was
inaugurated by Dr. P. C. Alexander, Governor of the state of Maharashtra, in January 2001.

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PRATHAM MUMBAI INITIATIVE 

The Bank has made a three-year commitment to Pratham to contribute necessary funds
towards the running of 50 balwadis (pre-primary schools) per year.  

Pratham is a registered public charitable trust, founded in 1994, and their successful model
of tripartite collaboration between corporates, government and the voluntary sector is being
replicated in Delhi, Bangalore, Pune, Vadodara, Surat, Ahmedabad and Patna. The model
has three basic elements: supplementing and strengthening the government school system,
working on a city or large regional scale and cost effectiveness expected of a catalyst. The
uniqueness of Pratham is that the organization allows and encourages young executives to
volunteer time to work in their balwadis which are pre-primary classes set up in slum
colonies in Mumbai, with bridge courses and computer-assisted learning centre.

 Standard Chartered is the largest donor and supporter of the Balwadi program and the bank
is now exploring the possibility of taking on the role of the 'Leading Organization' in this
ward. Standard Chartered India has increased its involvement with this organization, to
embrace not only donations of funds, but also the inclusion of need-specific contributions,
with the Bank donating old computers and furniture for the Mahila Mandals during the
Pratham Mumbai Initiative in 2001.

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 CHAPTER 4
FINDINGS AND CONCLUSION

4.1 FINDINGS
39
From the study the following key findings have been derived:

1. With the passage of time and increased privatization and globalization, the stakeholder model
is gaining more importance.
2. Corporate responsibility is becoming an integral part of the business strategy.
3. Finding creative ways to work in collaboration with the NGOs would help companies to
enhance the corporate image.
4. Companies must focus on their prime responsibility to the shareholders, the owners of the
company.
5. Working within and as part of society is all-important, failing which society will reject the
socially unconscientiously corporation, often sooner rather than later.
6. Corporate social responsibility enables companies to earn various intangible benefits like
creating goodwill, building brand image and supporting the shareholders’ interests.
7. Reliance, Mahindra and Mahindra and Standard Chartered are some companies who are
actively involved in corporate social responsibility and hence they fall under the category of
premium companies and have a good brand image.

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 4.2 CONCLUSION

The concept of corporate social responsibility is not new in India. Right from the pre-
independence times, the Gandhian model has been in practice. Many family owned businesses
continue to engage in philanthropic activities. However with the passage of time and increased
privatization and globalization, the stakeholder model is gaining more importance. Hence,
corporate responsibility is becoming an integral part of the business strategy.

Companies must focus on their prime responsibility to the shareholders, the owners of the
company. In order to sustain such achievements, working within and as a part of society is all-
important, failing which society will reject the socially unconscientiously corporation, often
sooner rather than later. Such are the challenges and opportunities for corporations in quest of
world-class standards of excellence in the twenty first century.

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CHAPTER 5
BIBILOGRAPHY

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