Practical File

Of

Research Lab
On

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY

ON
CONSUMER LOYALTY
IN FARIDABAD
DISTRICT
Research Report File
MASTER OF BUSINESS ADMINISTRATION

By
CHETNA (21/MBA06)

SANGEETA KAUSHIK (21/MBA21)

Under the Guidance of

Mr. Samir Kumar Upadhyay
(Assistant Professor)

B.S ANANGPURIA INSTITUTE OF TECHNOLOGY & MANAGEMENT

AFFILIATED TO JC BOSE UNIVERSITY OF SCIENCE AND TECHNOLOGY
FARIDABAD
Academic Year 2021-22
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Mr. Samir K. Upadhyay as
well as our Head of Department Ms. Kamana Singh who gave us the golden opportunity to do
this wonderful project on the topic Impact of Corporate Social Responsibility on Customer
Loyalty which also helped me in doing a lot of Research and i came to know about so many new
things we really thankful to them.Secondly I would also like to thank my parents and friends

who helped me a lot in finalizing this project within the limited time frame.
 DECLARATION
We hereby declare that the Project report entitled " A STUDY ON IMPACT OF THE
LOYALTY PROGRAMMES ON CONSUMER RETENTION" submitted to the J.C.Bose
University of Science and Technology YMCA, Faridabad in partial fulfilment of the
requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is
a record of original dissertation work done by me, under the guidance and supervision
of Mr. Samir K. Upadhyay Department of Management Studies, B.S.Anangpuria
Institute of Technology & Management and it has not formed the basis for the award
of any Degree/Diploma/Associateship/ Fellowship or other similar title to any

candidate of any University.

Place
Date
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
CHAPTER 2: LITERATURE REVIEW
CHAPTER 3: RESEARCH METHODOLOGY
CHAPTER 4: RESULT AND FINDINGS
CHAPTER 5: LIMITATION OF STUDY
CHAPTER 6: CONCLUSION OF THE STUDY
INTODUCTION
“Corporate Social Responsibility is the continuing commitment by
business to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of
the local community and society at large...”

The concept of CSR is changing with the passage of time. In ancient time companies used to
contribute voluntarily by the name of donation or sponsorship. After 2013, the new
companies Act,2013 made mandatory for companies having a turnover of Rs. 1000 crore for
more or net worth more than 500 crore or more and for companies which has net profit of
Rs. 5 crore or more to contribute 2%of their net profit toward the Corporate Social
Responsibility and suggest to form separate CSR committee and also to disclose CSR
activities in official Annual Report of the Company under the section 135 of Schedule VII of
Companies Act, 2013.
According to Lea (2002) describe Corporate Social Responsibility as “Corporate Social
Responsibility is about all types of business and other organization doing beyond legal
obligation to manage the impacts they have on the environment and society. In particular,
this could include how organization interact with employees, suppliers, customers and the
communities in which they operate, as well as the extent they attempt to protect the
environment.
Corporate Social Responsibility (CSR) is continuing commitment by businesses to integrate
social and environmental concerns in their business operations. Changes in the global
environment increasingly challenge business around the world to look beyond financial
performance, and to integrate social and environmental concerns into their strategic
management.
Prior to Companies Act 2013, CSR in India has traditionally been seen as a philanthropic
activity. And in keeping with the Indian tradition, it was believed that every company has a
moral responsibility to play an active role in discharging the social obligations, subject to the
financial health of the company. In the early 90’s Mahatma Gandhi introduced the concept
of trusteeship helping socio-economic growth. CSR was influenced by family values,
traditions, culture and religion.
Corporate Social Responsibility
During the industrial revolution a significant portion of the human work force was replaced
with machines used in factories. This helped to produce a substantial number of millionaires
and corporate figures causing a significant gap between the upper class and working class
(Ahmad and Jaseem, 2006). The significant income disparity between the rich
(entrepreneurs) and the poor (working class), led to the call for social justice and hence the
advent of sound realisation of socially responsible practices (Pokorny 1995; Bergtedt and
Nilsson, 2010). In the last twenty years, CSR has become increasingly important to
multinational enterprises, with clear links to business case for corporations (Brown and
Dacin, 1997; Porter and Kramer, 2011). The major plus point that CSR brings is to ensure
that companies are on par with the expectations of their customers (Surricchio, 2009). Baker
(2001) stated that CSR is the positive outcome a company provides while it manages its
normal business trade. CSR is said to provide a long-term commitment to social contribution
be it towards the society or for the development of a particular company's workers. In doing
so, a company as a whole, can organise its business ethically in order to directly contribute
to the betterment of the society as a whole (Soni, 2009; Verhoeff, 2009; Verma, 2010). Neito
(2009) stated that when blended together, CSR and branding strategies can add value to
companies in the eyes of both customers and employees. Levine (2008) suggested that due
to the importance of CSR some non-governmental Murali Raman et al. 74 organisations
(NGOs) are looking into options to make it legally mandatory for CSR programmes to
become part of every corporation's business agenda.
More firms today are beginning to realise the importance of corporate social responsibility
(CSR), and its impact on societal well-being, apart from the overall governance of the supply
chain processes of every organisation. Ratings are being developed to measure
performances of most firms with regard to their CSR efforts besides their financial
performance. This rating would then be used to measure each firm's progress in the
business world. Many studies have been conducted linking CSR to consumer loyalty. It is
found that the higher the CSR rating the stronger the bond would be between these two.
Given this scenario, the main objective of this study is to find relevant evidence to link
consumer loyalty and CSR initiatives within a company.

Corporate Need for Social Responsibility-

CSR is pursued by business to balance their economic, environmental and social

objectivities while at the same time addressing stakeholder expectations and enhancing
shareholder value. Over the past decade, CSR has risen in global prominent and importance.
More companies than ever before are engaged in serious efforts to define an integrate CSR
into all aspects of their business, with their experiences being strengthened by a growing
body of evidence that CSR has a positive impact on business economic performance.
India as a host location for CSR policies

India is an ideal location in which to study CSR policies of international companies. It is a

country with substantial international presence and investments, which implies that there
will be many companies who can, and are willing to, engage in CSR activities. Furthermore,
India still faces challenges of for example poverty alleviation and development, which
implies that there are possibilities for CSR initiatives to contribute to positive effects for, and
development of, the host community. A brief overview of the economic and social
background of India will provide a more detailed introduction to the country context.
Corporate Social Responsibility

Corporate Social Responsibility

Social
Legal Behavior Ethical Behavior Responsibility
Behavior

Legal Behaviour
Society must use the law to define, as clearly as possible, those practices that are legal,
antisocial, or anticompetitive. Organisations must ensure that every employee know and
observe any relevant laws. For example, sales managers can check that sales representative
know and observe the law, such as the fact that it is illegal for salespeople to lie to
consumers or mislead them about the advantage of buying a product.
Ethical Behaviour
Companies must adopt and disseminate a written code of ethics, build a company tradition
of ethical behaviour, hold its people fully responsible for ethical and legal guidelines.

Social Responsibility behaviour

Individual marketers must practice a “social conscience” in specific dealings with customers
and stakeholders. Increasingly, people say that they want information about a company’s
record on social and environmental responsibility to help decide which companies to buy
from, invest in, and work for.
Consumer Loyalty
Chaffey (2008) defined consumer loyalty as a desire on the part of the customer to continue
toto conduct business with a given company over time. Kotler and Armstrong (2008) use the
idea of repetitive buying patterns of a particular brand as an indication of consumer loyalty.
This also includes a verbal promotion of the currently used product or services by the
incumbent consumer to others who have yet to try a particular product or service (Kotler
and Armstrong, 2008). The author classified purchase behavioural loyalty into three aspects:
(1) The hardcore – those who only buy one particular brand; (2) The softcore – those who
buy only a couple of brands; and (3) The switchers – those with no loyalty. Kotler's work in
this context implies that CSR efforts could convert the "softcore" and "switchers" consumers
to the "hardcore" category. Grant (2000) stated that a loyal consumer is seldom discount-
oriented. He associated loyalty to recognition and preference towards a particular company
or its brands. The author further asserted that consumer loyalty can be enhanced though its
societal contributions.
Brand Equity
In the early days, giving away branded articles to customers will get businesses recognised
(Buchholtz and Carroll, 2003). Today, corporations know that CSR is linked to their
reputation and brand identity (Holding and Pilling, 2006). Manhaimer (2007) stated that
customer loyalty is linked to brand equity. Stated differently, this means that there is a
possible relationship between CSR and loyalty via brand equity. CSR efforts by a company
can enhance its brand equity and thus the overall consumer loyalty. Smith, Gradojevic and
Irwin (2007) asserted that one of the most interesting marketing factors that most private
companies were indulging in is in developing brand equity. Pakseresht (2010) argued that
now, most companies are distinguished by their brand thus they are evaluated based on
how they perform in the eyes of society. This is further substantiated given the fact that
technology and web-based intelligent sources assist consumers in verifying indexes about a
particular company vis-a-vis its social responsibility. Van Heerde, Gupta and Wittink (2003)
also suggested that brand equity can impact loyalty and these two factors in turn can be
driven by CSR initiatives. Other researchers such as Balsara (2009) called for making CSR
compulsory in relation to a company's overall brand strategy. These authors added that CSR
can be used to not only promote a cause, but also help to create unique brand equity for
the company. Myers (2003) suggested that customers tend to affiliate themselves with a
particular brand based on the value of its brand. Upon such significant relationship with the
brand, a company can form a unique identification between the customer and the brand.
The above discussion implies that a possible relationship exists between consumer loyalty,
brand equity and CSR initiatives.
Other researchers such as Balsara (2009) called for making CSR compulsory in relation to a
company's overall brand strategy. These authors added that CSR can be used to not only
promote a cause, but also help to create unique brand equity for the company. Myers
(2003) suggested that customers tend to affiliate themselves with a particular brand based
on the value of its brand. Upon such significant relationship with the brand, a company can
form a unique identification between the customer and the brand. The above discussion
implies that a possible relationship exists between consumer loyalty, brand equity and CSR
Company Identity Attraction

Davis (2008) suggested that companies that associate themselves with consumer attributes
do better than companies that identify themselves by their products. Verma (2010)
elaborated that companies can distinguish themselves from their competitors through the
way that they carry out their business in accordance with their own corporate mission that
focuses on consumer loyalty. Melisende (2007) explained that a firm can attract consumers
by providing a unique identity. He further asserted that identity attraction can also benefit
from CSR ideals. Longinos and Salvador (2007), in this context, argued that corporate
performance is associated with CSR initiatives and that CSR ideals can help a company to
raise its identity attraction thereby increasing consumer loyalty. In this regard, one could
hypothesise that CSR, company identity attraction, and consumer loyalty are related
(Pavithira, 2009; Chaffey, 2008; Langford and Smith, 2004).
Consumer-Company Identification
Consumer-company identification (CCI) is often defined as the extent to which a consumer
affiliates her/himself to a particular company's business objectives and ideals in general
(Davis, 2008; Farfan, 2007). Bhattacharya and Sen (2003) defined CCI as the extent to which
consumers are willing to identify themselves and develop significant relationship with a
company – leading to consumers becoming champions for the product, service, and what
the company represents. CCI is often measured in three ways: (1) The feeling of interest
towards supporting a particular company; (2) The affiliation towards the particular
company; and (3) The similarity between the other consumers of the particular company
(Davis, 2008; Farfan, 2007; Balsara, 2009; Marx, 2011; Melisende, 2007). Perez (2009)
related CCI with the way in which a company carries itself during trade and its business goal
with the intention of influencing purchasing habit. The author in this context suggested that
that CSR efforts can impact CCI as CSR efforts can enhance the ability of consumers to
identify themselves with a particular product and company. Nevertheless, other researchers
asserted only limited studies exist to determine if CCI and CSR relationship does indeed hold
true (Marx, 2011; Brown and Dacin 1997; Melisende, 2007). Wu and Chen (2010) also stated
that the CCI and CSR relationship in relation to consumer loyalty does not exist. Given rather
sporadic viewpoints on this matter, this study aims to examine if the CCI relationship does
indeed impact consumer loyalty and if this relationship is induced via CSR ideals.
Impact of CSR on Customer Perception and Purchase Intentions
Many studies on CSR establish that good corporate citizenship is a prerequisite for
contemporary companies. For this reason, it is imperative for business to achieve lasting
profitability as well as survival is now achievable by pursuing the betterment of the societies
In which they operate, and the community members will be more than eager to return the
favour (Du Plessis and gobbler, 2013). In essence, suitability and profitability are the key
motivators of CSR practices (Ofari, Nyuur, Daako,2014). Through CSR, organisation can
boost their business in the long run because social responsibility can help build as well as
rebuild communal trust in the focal firms, and fulfil customers’ sustainable expectations and
needs (Doan,2012). Understanding the relationship between social responsibility and
customer behaviour is the best way of justifying the significant company expenses incurred
in the pursuit of CSR activities (Poolthong and Mandhacritara, 2009).
There is a positive nexus between social responsibility and a customer’s valuation of a
company’s offerings, which indicates that good corporate citizenship produces commercial
returns for an organisation (Garcia et al., 2005). Hildebrand et.al. affirm this statement by
noting that the responsible also helps to foster consumer loyalty and devotion (2011). At the
same time, firms that conduct their business irresponsibly, face the risk of boycotts that can
hurt their sales and ultimatel, profitability (Abd-rahim, jalaludin, and Tajuddin, 2011;
Udomkit, 2013). Since social responsibility has morphed into a standard operational
element, companies currently try to leverage it in establish lasting relation with customer.
McElhaney notes that firm today is keen on fostering relationships with consumers instead
of focusing on generating mere transaction, and CSR is an effective avenue fpr building
relationships in ways that offering cannot on their own (2009).
According to Melikyan, CSR has great potential as a powerful marketing mechanism as it
enables businesses to position their offerings and marketing material to customers as the
firm interacts with Societal members at the ground level (2010). Also, CSR approaches are
useful in targeting and penetrating noval consumer segments by introducing offerings that
match the interest of the targeted market (McElhaney,2009). A good example of this is
when a firm seeks to target a niche of consumer who value environmental responsibility. In
order to tap into this segment, an organisation can use fully recyclable packaging, which will
improve the consumers’ perception of its products. As key stakeholders, customer
nowadays expects firms to behave responsibly (Van den berg and Lindfors,2012). In highly
developed markets, this evaluation even goes as far as comparing a firm’s CSR practices
against key rival (Gao,2009). The level of awareness of and interest in CSR activities,
however varies from one country to another (Veersalu,2011). What this mean is that
interest, as well as awareness levels registered in the west, are not the same ones in
developing countries. The concept of CSR is yet to catch on among many consumers in third
world countries.
The importance of customer retention to a business cannot be overemphasized as it
contributes to sustainable profitability and market leadership. Having a loyal customer base
enables a firm to withstand competition or the rapidly changing condition that characterize
contemporary market. As brand loyalty is recognized as an important objective for a
corporation’s growth and survival, building a loyal consumer base has not only come to be a
fundamental goal in marketing, but it is also critical for fostering a sustainable competitive
edge.
Company Profile
MAHINDRA AND MAHINDRA LIMITED
Mahindra & Mahindra Limited is an Indian multinational vehicle manufacturing company. It
headquarters in Mumbai, Maharashtra, India. The company operate in 21 key industries,
providing insightful and ingenious solutions to customers. The company have an operational
presence in over 100 countries and employ more than 200,000 people and operate across
vast geographies, governing spirit of “Rise” binds as one Mahindra, dictating that empower
people everywhere to not only chart new frontiers, but to conquer them too.

It is one of the largest vehicle manufacturers by production in India and the largest
manufacturer of tractors in the world. Mahindra & Mahindra is a part of Mahindra Group.

Establishment

Mahindra & Mahindra Limited established in 1945.

 1945, the company was founded as steel trading company in Ludhiana as

Mahindra and Muhammad.
 1948, the company renamed Mahindra and Mahindra.
 In 1999, the company purchased 100% of Gujarat Tractors from
the Government of Gujarat.
 2007, the company acquired Punjab Tractor Limited (PTL) making it the
world’s largest tractor manufacturer.
 2009, PTL was merged into M&M and transformed as Swaraj division of
Mahindra & Mahindra.
 2011 Mahindra and Mahindra acquired South Korea’s SsangYong Motor
Company.
 2017, the company signed a memorandum of understanding (MOU)
agreement with Belgium-based Dewulf, a supplier of a full line of potato and
root crop machinery. Under the agreement, Mahindra will manufacture and
market potato planting equipment in India, for which the co-branded planter
is developed. 
 2020, the company ended its joint venture with Renault and buying out
Renault’s stake. The company is expanding its business in all over the world.

Founder

Mahindra & Mahindra Limited founded by Jagdish Chandra Mahindra, Kailash Chandra
Mahindra and Sir Malik Ghulam Muhammad.

J.C Mahindra

Jagdish Chandra Mahindra was born on 1892 at Ludhiana, Punjab. He was an Indian
businessman and founder of the company. Jagdish was the eldest child of none children. He
started his career with as the senior sales manager. At an early age, the responsibility of the
family placed on his shoulders. He believed strongly in the power of education and ensure
that all his brothers and sisters studied hard. In 1951, he died.

K.C. Mahindra

Kailash Chandra Mahindra is second in Mahindra brothers. He was born on 1894 at

Ludhiana. Kailash attended Government college. He joined Messrs. Martin & Company,
where he edited the monthly magazine India and, briefly, the Hindustan Review. In 1942, he
was appointed Head of the Indian Purchasing Mission in the United States. He contributed
to develop strategic coal policies and applying the latest methods of coal mining in India,
helped shape the industry and his Coal Commission Report became a seminal document in
the industry. He served as a Director of the Reserve Bank of India, Air India, and Hindustan
Steel. On 1963, he died

M.G. Muhammad

M.G. Muhammad was an Indian businessman and the founder of Mahindra & Mahindra
company. He was born on 1895 and was a Pakistani politician and financier who served as
the third Governor-General of Pakistan. He did education from Aligarh Muslim university.
After his graduation, he joined the Indian Civil Service as a chartered accountant at
the Indian Railway Accounts Service. He was very talented. Along with J.C Mahindra, he
founded Mahindra & Mahindra company. on 1956, he died.

Recently, the Chairman of the company is Anand Mahindra and Managing Director and
Chief Executive Officer of Mahindra is Pawan Kumar Goenka.

Networth

Mahindra & Mahindra Limited is an Indian automobile industry. In 2020, the company
revenue is Rs.1.06 lakh crores (US$15 billion).

If you want to know anything else about the Mahindra & Mahindra Limited. Please
comment below we will try to provide information.

Operations and products

under the “Mahindra” brand name, the company produces SUVs, Multi utility vehicles, pickups,
lightweight commercial vehicles, heavyweight commercial vehicles, two wheeled motorcycles
and tractors. Mahindra maintains business relations with foreign companies like Renault SA, France.[40]
M&M has a global presence and its products are exported to several countries. Its automotive global
subsidiaries include:

 Mahindra Europe S.r.l. based in Italy,

 Mahindra Automotive North America (MANA) in US.,
 Automobile Pininfarina in Italy
AMBUJA CEMANT

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India
and commenced cement production in 1986. Initially called Gujarat Ambuja Cements Ltd,
the Company later became Ambuja Cements Ltd.

ACL enjoys a reputation of being one of the most efficient cement manufacturers in the
world. Its environment protection measures are considered to be on par with the finest in
the country. It is also one of the most profitable and innovative cement companies in India .

Ambuja Cements Limited is an India-based holding company, which is engaged in

the manufacture of clinkers and cement. The Company operates through Cement and
cement related products segment. Initially called Gujarat Ambuja Cements Ltd, the
Company later became Ambuja Cements Ltd. The Company has a range of products for the
B2B and retail markets.

The Company's product, Ambuja Plus Roof Special, is suited for constructing roofs and slabs.
It also offers install rooftop rainwater harvesting technology. Its products also include
Ambuja Powercem, which caters the ready-mix (RMX) sector; Ambuja Railcem, which is
designed for railways, and Ambuja Buildcem, which serves the requirements of the mass
housing segment.

The Company also co-owns two brands in micro materials' category. These include
Alccofine, which includes a range of micro slag materials, and Dirk Pozzocrete, which
includes superfine fly ash. Alccofine Micro Materials are used in construction projects, such
as metro rail, dams, roads, flyovers, bridges and tunnels.

Ambuja Cement - Founder and History

Ambuja Cement was founded in 1983 by Narotam Sekhsaria and Suresh Neotia, two
traders with very little knowledge of cement or manufacturing. What made up for this lack
was their far-sightedness: Anticipating that cement would be a critical resource for a
developing economy like India, they invested in a state-of-the-art cement plant in Gujarat
and went on to build a trusted cement brand that has become synonymous with quality and
strength.

ACL has grown manifold over the past decade. Its current cement capacity is 27.25 million
tonnes. The Company has 5 integrated cement manufacturing plants and 8 cement grinding
units across the country. ACL enjoys a reputation of being one of the most efficient cement
manufacturers in the world. Its environment protection measures are considered to be on
par with the finest in the country. It is also one of the most profitable and innovative
cement companies in India.

ACL is the first Indian cement manufacturer to build a captive port with three terminals
along the country's western coastline to facilitate timely, cost-effective and environmentally
cleaner shipments of bulk cement to its customers. The Company has its own fleet of ships.
ACL has also pioneered the development of the multiple, bio-mass, co-fired technology for
generating greener power in its captive plants.

Ambuja Cement - Mission

Ambuja Cement's mission statement says, "To be the most sustainable and competitive
company in our industry."

Ambuja Cement - Partnership

The company has entered into a strategic partnership with Holcim, the second-largest
cement manufacturer in the world from 2006. Holcim had, in January, bought a 14.8
percent promoters' stake in the GACL for INR 21.4 billion. Currently, Holcim holds 61.62% of
shares in Ambuja Cemant.

Ambuja Cement - Revenue and Growth

reported an increase of 87.77 per cent in net profit at INR 440.53 crore as against on a
standalone basis, Ambuja Cements, part of Swiss firm LafargeHolcim, INR 234.61 crore in
the year-ago period. Revenue from operations was INR 2,852.46 crore, up 8.63 per cent as
compared to the year-ago period.

Revenue from operations was up 1.51 per cent at INR 6,169.47 crore during the quarter as
compared to INR 6,077.29 crore in July-September a year ago. Total expenses were at INR
5,144.38 crore, down from INR 5,400.94 crore a year ago. The consolidated results of
Ambuja Cements also include the financial performance of its step-down firm ACC.
Reliance Industries Limited 

Reliance Industries Limited is an Indian multinational conglomerate company,

headquartered in Mumbai. It has diverse businesses
including energy, petrochemicals, natural gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the largest publicly
traded company in India by market capitalisation, and the largest company in India as
measured by revenue. It is also the tenth largest employer in India with over 236,000
employees. RIL has a market capitalisation of US$243 billion as of March 31, 2022.
The company is ranked 155th on the Fortune Global 500 list of the world's biggest
corporations as of 2021. Reliance continues to be India's largest exporter, accounting for 8%
of India's total merchandise exports and access to markets in over 100 countries. Reliance is
responsible for almost 5% of the government of India's total revenues from customs and
excise duty. It is also the highest income tax payer in the private sector in India. The
company has negative free cash flows. Reliance Industries became the first Indian company
to cross 100Bn$ in revenues.
HISTORY
1960–1980

Stamp released in 2002 to honour company founder Dhirubhai Ambani.

The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's as
Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued
the polyester business of the firm. In 1966, Reliance Textiles Engineers Pvt. Ltd. was
incorporated in Maharashtra. It established a synthetic fabrics mill in the same year
at Naroda in Gujarat.  On 8 May 1973, it became Reliance Industries Limited. In 1975, the
company expanded its business into textiles, with "Vimal" becoming its major brand in later
years. The company held its Initial public offering (IPO) in 1977. The issue was over-
subscribed by seven times. In 1979, a textiles company Sidhpur Mills was amalgamated with
the company. In 1980, the company expanded its polyester yarn business by setting up a
Polyester Filament Yarn Plant in Patalganga, Raigad, Maharashtra with financial and
technical collaboration with E. I. du Pont de Nemours & Co., U.S.
1981–2000
In 1985, the name of the company was changed from Reliance Textiles Industries
Ltd. to Reliance Industries Ltd. During the years 1985 to 1992, the company expanded its
installed capacity for producing polyester yarn by over 1,45,000 tonnes per annum.
The Hazira petrochemical plant was commissioned in 1991–92.
In 1993, Reliance turned to the overseas capital markets for funds through a global
depository issue of Reliance Petroleum. In 1996, it became the first private sector company
in India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable
outlook, constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade,
constrained by the sovereign ceiling".
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX,
USA, and promoted Reliance Telecom Private Limited in India.
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance
Gas.
The years 1998–2000 saw the construction of the integrated petrochemical complex at
Jamnagar in Gujarat, the largest refinery in the world.
2001 onwards
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters. In 2001–02, Reliance Petroleum was
merged with Reliance Industries.
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in
nearly three decades and one of the largest gas discoveries in the world during 2002. The in-
place volume of natural gas was more than 7 trillion cubic feet, equivalent to about 120
crores (1.2 billion) barrels of crude oil. This was the first-ever discovery by an Indian private
sector company.
In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL),
India's second largest petrochemicals company, from the government of India, [21] RIL took
over IPCL's Vadodara Plants and renamed it as Vadodara Manufacturing Division
(VMD). IPCL's Nagothane and Dahej manufacturing complexes came under RIL when IPCL
was merged with RIL in 2008.
In 2005 and 2006, the company reorganised its business by demerging its investments in
power generation and distribution, financial services and telecommunication services into
four separate entities.
In 2006, Reliance entered the organised retail market in India with the launch of its retail
store format under the brand name of 'Reliance Fresh'. By the end of 2008, Reliance retail
had close to 600 stores across 57 cities in India.
In November 2009, Reliance Industries issued 1:1 bonus share to its shareholders.
In 2010, Reliance entered the broadband services market with acquisition of Infotel
Broadband Services Limited, which was the only successful bidder for pan-India fourth-
generation (4G) spectrum auction held by the government of India.
In the same year, Reliance and BP announced a partnership in the oil and gas business. BP
took a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance
operates in India, including the KG-D6 block for $7.2 billion. Reliance also formed a 50:50
joint venture with BP for sourcing and marketing of gas in India.
In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl
rubber plant in Jamnagar, Gujarat, to be operational by 2018.
In August 2019, Reliance added Fynd primarily for its consumer businesses and mobile
phone services in the e-commerce space.
On the 18th of August 2021, Reliance Industries Limited (RIL) stated that it had shut down
its manufacturing units at Nagothane town in Maharashtra.
Reliance Net Worth
The total net worth of Reliance is estimated to be 233 billion USD, which in Indian
currency is approximately equal to 17.60 Lakh Crore INR., Reliance Industries Ltd has a has
a very massive net worth and its assets count is millions or rather billions. The net income of
the company is expected to be around $7.5 billion and the total assets of the company has a
worth more than $233 billion. Its total equity is also expected to be around $97 billion.
These figures speak a lot about the might of the company. Reliance industries Ltd has a
market capitalisation of $228 billion which is huge.
Literature Review

Mahabubur Rahman, M. Angeles Rodriguez-Serrano and Mary Lambkin highlighted the

how the CSR affect the Marketing performance. Their study shows that customer viewed
CSR activities positively and rewarded such activities by using more product and services
from these companies. Their finding also shows that the relationship between CSR activities
and market share was moderated positively by the extent of advertising intensity, as
hypothesized. They also analysed that if the company increased the advertising expenditure,
it strong the relationship between CSR activities and marketing performance. Their result
also indicate that the companies do not have to advertise their environmental and
community CSR activities. Even if they just advertise their products, the advertisement will
create awareness about the company itself, which will encourage the consumer to seek out
more information about the company’s other activities, including CSR.

Micheal L. Barnett (2005) – In his paper he talked about the Stakeholder influence capacity
and variability of financial return to corporate social responsibility. His paper agues that
research on the business case must account for the path dependent nature of firm-
stakeholder relations, and develop the construct of stakeholder influence capacity (SIC) to
fill the void. SIC help explains why the effect of corporate social responsibility (CSR) on
corporate financial performance (CFP) vary across firms and across time, and so provides a
missing link in the study of the business case.

Dr. Rajni Saluja and Sangam Kapoor (2017) They found that Organizations must realize
that the government alone will not be able to get success in its endeavours to uplift the
downtrodden of society. The present societal marketing concept of companies is
constantly evolving and has given rise to a new concept-Corporate Social Responsibility. In
his study they studied about the legal framework for CSR.

Vethirajan .C, He discovered that the CSR activities have a positive effect on the
performance of Companies.

Kuldeep Kumar Chauhan and Shuchi Dawra, He found that the reporting is another
dimension of CSR transparency. In line with the expectation in Law and guidelines
framed by the government from time to time.

Mrs. Abilasha.N, Pro. Madhu Tyagi, she studied the effectiveness of New Companies Act,
2013 with respect to CSR and examined its impact on financial performance of selected
10 Indian companies which was measured by financial ratios such as Profit before tax,
Return on capital employed, Return on Equity and Return on Asset.

Dr. R Ramakrishna (2020) He studied about the scenario of CSR in the Indian market. And
he also studied the history of CSR. In which he discovered that changes in business have
stressed upon the application of a wide range of approach. These are characterised by
harnessing the product with increased levels of satisfaction among consumers. Attention to
business ethics is rising across the globe, and many companies realize that to succeed, they
must earn the respect and confidence of their customers.
Atul Sood and Bimal Arora (2004) They highlighted the History and trends of CSR in India.
And Explain Corporate Social Responsibility in a political and economic way, They explain
the Concept of CSR in India in which they talked about that India have two broad categories
of company that are most likely to adopt codes of conduct or participate in certification
schemes: those that exports to Northern countries and those thar form part of the supply
chain of North-based corporation or TNCs that have adopted a code.

“Carol A Tilt (2016) He studied the trends of CSR in developing countries. There paper
discuss three contextual issues that warrant more and improved consideration in CSR
research, with particular emphasis on CSR reporting research. In his Research he talked
about the Countries like China, US, UK and Australasia.
RESEARCH METHODOLOGY

INTRIDUCTION

The research methodology is a way to solve the research problem in a systematic

manner. The various steps like objective of the study, how the data is collected, and
limitation of the research. An empirical study has been undertaken to understand and
study the Process of CSR. Data to be collected for the Research project titled “Impact of
Corporate Social Responsibility on Customer Loyalty. The research project is an attempt
of exploratory research based on the secondary data sourced from internet, books
journal, newspaper, magazine etc.

Research Objective

The main objective of the study is to discover the effect of Corporate social
responsibility on Customer loyalty. In order to reach this objective, the research will
address the following sub-objective:

1. Clarify the impact of Corporate social responsibility on Customer Loyalty.

2. To exhaustively study the contribution made by Indian Companies towards the
society as a part of corporate Social Responsibility activities.
3. To finding the relationship between CSR and Customer Loyalty.
4. To Find out whether CSR activities play a role in consumer purchasing decision.
5. To find out whether the consumer is aware of the CSR activities.
6. To develop an understanding of the concept of corporate social responsibility.
7. The core objective of this research is to provide a detailed understanding regarding
the relationship between CSR activities and Customer Loyalty.

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of
Current English lays down the meaning of research as “a careful investigation or inquiry
specially through search for new facts in any branch of knowledge.”1 Redman and Mory
define research as a “systematized effort to gain new knowledge.”2 Some people consider
research as a movement, a movement
from the known to the unknown. It is actually a voyage of discovery. We all possess the
vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller understanding of the unknown.
This inquisitiveness is the mother of all knowledge and the method, which man employs
for obtaining the knowledge of whatever the unknown, can be termed as research.

Importance of Study
The importance of the study through:
1. Clarify the role CSR programs and their impact on Customer Loyalty.
2. This research helps us to understand the consumer behavior and their perception on
Companies CSR.
 3. This type of research also helps to business organization.
4. Represents a specialized scientific addition in the field of studying the CSR
Activities.
5. This research will explore whether there is positive or negative correlation
between the Customer Loyalty and CSR engagement.

The purpose of this study is to obtain a deep understanding of the impact of Corporate
social Responsibility on Customer Loyalty. The data is collected through a secondary source.
We study the information on the annual report of three companies: Mahindra and
Mahindra Limited, Ambuja cement, Reliance Industries Limited. For Four consecutive
years: 2017-18, 2018-19, 2019-20, 2020-21.

Problem Discussion

In this research we try to finding the correlation between the CSR activities and customer
loyalty. Customer known as king of market so they marketer is always try to won his loyalty
towards their product.

The study addressed the following question:

1. Is there impact of Corporate Social Responsibility on customer loyalty?

2. Is the Consumer aware with Companies CSR Responsibility?
3. Are Consumer aware of the CSR activities of the companies in India?

Data Source and Type

This study is based on secondary data of three companies for Net sales and CSR for
the financial year 2017-2021.

Sampling Units & Sampling data

For analysing the impact of Corporate social Responsibility on Customer Loyalty, a sample of
three companies was drawn from the Various companies

Data Collection & Classification:

The study is purely based on Secondary sources of data collection. The data collected from
Annual Reports, and CSR report of the Companies, Director’s Report,
Notes to accounts, Schedule of accounts and Auditors report which was taken from
Companies official website and from Moneycontrol.com website for the year 2014 to 2017.

Data analysis
To find out the impact of CSR on Customer Loyalty and CSR, Correlation function is used in
which Corporate Social Responsibility as dependent variable and Annual net sales is
independent variable.

Research Tools

Correlation

The relation between two observation (X, Y) is called correlation. Correlation is a statistic that
measures the degree to which two variables move in relation to each other. Correlation shows the
strength of a relationship between two variables and is expressed numerically by the correlation
coefficient. The correlation coefficient's values range between -1.0 and 1.0.

Types of Correlation

There are three types of correlation:

 Positive Correlation
 Negative Correlation
 No correlation

Positive Correlation

A perfect positive correlation means that the correlation coefficient is exactly 1. This

implies that as one security moves, either up or down, the other security moves in
lockstep, in the same direction.

Negative Correlation

A perfect negative correlation means that two assets move in opposite

directions, while a zero correlation implies no linear relationship at all.

No Correlation

 A correlation of zero means there is no relationship between the two variables. In other

words, as one variable moves one way, the other moved in another unrelated direction.

Method of Correlation/Coefficient of Correlation of X and Y

There are three methods to finding Coefficient of correlation:

1. Graphical Method
2. Karl’s Pearson Coefficient of correlation
 3. Spearman Coefficient of correlation

Coefficient of Correlation is denoted by rxy

Where X is denoted as Independent Variable.

Where Y is denoted as dependent variable.

In our Research Project CSR Spending of the company is Dependent variable and Net Sales
is independent variable.

Time Series Analysis

The next statistical tool for research is time series analysis. Time series analysis is a specific
way of analysing a sequence of data points collected over an interval of time. In time series
analysis, analysts record data points at consistent intervals over a set period of time rather
than just recording the data points intermittently or randomly.

Time series analysis is used for non-stationary data—things that are constantly fluctuating
over time or are affected by time. Industries like finance, retail, and economics frequently
use time series analysis because currency and sales are always changing. Stock market
analysis is an excellent example of time series analysis in action, especially with automated
trading algorithms. Likewise, time series analysis is ideal for forecasting weather changes,
helping meteorologists predict everything from tomorrow’s weather report to future years
of climate change.

For our u Research Project, we used the time series analysis to find the future trends Of CSR
spending by the company.

Data Analysis, Result and Discussion

Ambuja Cemant

INTERCEP
YEAR NET SALES CSR CORRELATION T SLOPE TREND CSR
2018 10977 53.46 0.8269 -4838.685 2.425 54.965 53.46
 2019 11688 62.57       57.39 62.57
2020 11175 53.97       59.815 53.97
2021 13794 64.41       62.24 64.41

This is the analysis of Ambuja Cemant Company Annual Net sales and companies spending
on CSR.

In 2018 the company annual net sales were 10977 Cr. and there spending on CSR was 53.46
Cr.

In 2019 the company annual net sales were increased with 24.53%. And there spending on
CSR was increased by 26 %.

In 2020 the company annual net sales decreased by 23% and there spending on CSR as also
decreased by 23% in this year.

In 2021 the company annual net sales again increased by 28% And there spending on CSR
was also increased by 27% in this year.

From the above tables we are come to this conclusion there is Positive Correlation between
the company CSR and annual net sales. For the Correlation equation the independent
variable is Net Sales and Dependent variable is the CSR spending by the company.

Trends Line of Company Ambuja Cemant

This Graph shows the Trends of CSR spending of the “Ambuja Cemant” and the series 1
shows the actual trends and series 2 shows the Expected trends of CSR Spending in future
by company.

Reliance Industries Limited

INTERCEP
YEAR NET SALES CSR CORRELATION T SLOPE TREND CSR
 2018 430731 771 0.4256 -246429.5 122.5 775.5 771
2019 622809 904       898 904
2020 659205 1022       1020.5 1022
2021 539238 1140       1143 1140

This is the analysis of reliance industries limited Company Annual net sales and the CSR
spending by them.

In 2018 the Company annual net sale were 430731 Cr. and CSR spending were 771 Cr. in this
year.

In 2019 the company annual net sale was increased with 27.65% and CSR Spending
increased by 23.56% in this year.

In 2020 the company annual net sales were increased with 29.27% and CSR spending
increased by 26.63% in this year.

In 2021 the company annual net sales were decreased by 23.94% and but CSR increased by
29.71%in this year.

From the above tables we are come to this conclusion there is Positive Correlation between
the company CSR and annual net sales. For the Correlation equation the independent
variable is Net Sales and Dependent variable is the CSR spending by the company.

Trend Line of Company Reliance Industries Limited

This Graph shows the Trends of CSR spending of the “Reliance industries limited” and the
series 1 shows the actual trends and series 2 shows the Expected trends of CSR Spending in
future by company

Mahindra and Mahindra Finance

 YEAR NET SALES CSR CORRELATION INTERCEPT SLOPE TREND CSR
-
2018 47577 81.97 -0.6248 25113.839 12.487 84.927 81.97
2019 52848 93.5       97.414 93.5
2020 44866 126.6       109.901 126.6
2021 44574 112.56       122.388 112.56

This is the analysis of Mahindra and Mahindra finance Annual net sales and CSR spending by
them.

In 2018, the Company annual net sales were 47577 Cr. and CSR spending were 81.97 Cr. in
this year.

In 2019, the company annual net sales were increased by 27.83% and CSR spending were
increased by 22.55%.

In 2020, the company annual net sales were decreased by 23.63% and CSR Spending were
increased by 30.53%.

In 2021, the company annual net sales were decreased by 23.47% and CSR spending were
decreased by 27.14%.

From the above tables we are come to this conclusion there is Negative Correlation
between the company CSR and annual net sales. For the Correlation equation the
independent variable is Net Sales and Dependent variable is the CSR spending by the
company.

Trend line of Company Mahindra and Mahindra Finance

 140

120

100

80
TREND
60 CSR

40

20

0
1 2 3 4

This Graph shows the Trends of CSR spending of the “Mahindra and Mahindra Finance” and
the series 1 shows the actual trends and series 2 shows the Expected trends of CSR
Spending in future by company

Limitation of the Study

1.This research is based on the Secondary data only.

2. This research conducted in a short span of time.

3. Our research only the study the effect on CSR activities of companies on the customer
Loyalty.

4. Due to Shot span of we are not collected the huge data for our research so it is based on
Limited data.

5. Our Sample size is only limit to three companies.

6. This research is only find a correlation between the CSR and Customer loyalty.

Conclusion Of the study

This Project presents the study of CSR as a variable that allows for competitive
differentiation of the company through the improvement of its relationship with consumers
and the generation of value.

Numerous studies analyse the influence of CSR on satisfaction or loyalty, but very few
contemplate the variable perceived value in their model. In addition, we have linked the
study of CSR to the stakeholder approach, focusing solely on the consumer group because it
is the most relevant and most studied from the marketing perspective .

The Charity was part of Indian culture and history at all times. The concept Community
food, giving alms to the poor and destitute, making offerings in the temple Serving the
underprivileged and feeding orphans on their birthdays, keeping some part of Their
monthly income aside for donations or in the name of the Almighty, etc. are an Indication of
rich and socially responsible behaviour of every Indian.
From the above study we come to this conclusion that CSR has a positive relation the
Customer loyalty, and also the consumers ware with firms CSR activities.

Corporate social responsibility (CSR) is a buzzword worldwide. In today's globalized

world, one of the great challenges faced by the firms is integration of CSR in business.
Stakeholders require a lot more from companies than merely pursuing growth and
profitability. CSR has come a long way in India and other emerging markets. From
responsive activities to sustainable initiatives, corporates have clearly exhibited them
ability to make a significant difference in the society and improve the overall quality of
life.
These project help to understand the Impact of Corporate social responsibility on customer
loyalty. The consumer is known as the king of the market every marketer do each and every
activity to attract and retain the customer towards the product. From this project we got to
understand the customer aware the CSR spending of companies.
For this project we collect the data of three companies through annual Report of company
for the period 2017-2021. From the annual report we take out the net annual sales and the
CSR spending for the period of 2017-2021 and find correlation between net annual sales and
CSR spending.
The Big companies like TATA, Reliance, Adani Group, Ambuja Cement spend there earning
on the society because they know the value of society benefit, this will not help to earn
goodwill for their but also make positive image in the market. And it is the moral duty of
each and every company to give back to the society because they use the society resource
for their company.
And In country like India where the Charity is the culture of each and every home so why the
business organisation left behind.
From our Research project we talked about the most important part Business world i.e.,
Corporate social responsibility.
And we come to this conclusion the Impact Corporate Social Responsibility on customer
loyalty is positive.
Reference
Mrs. Abilasha. N, Pro. Madhu Tyagi “Impact of CSR on financial performance of
top 10 performing CSR companies in India”
Atul Sood and Bimal Arora “The political Economy of Corporate responsibility
in India”

Carol A. Tilt “International Journal of Corporate Social responsibility”

Dr. Rajni Saluja and Sangam Kapoor “Corporate Social Responsibility –

Evolution”

Dr. R Ramakrishnan “Indian CSR – An Overview”

Bhattacharya, C.B., Sankar Sen and Daniel Korschun (2008), “Using Corporate
Social Responsibility to Win the War for Talent,” MIT Sloan Management Review,
49 (2), 37-44.

Mohan, A. (2001). Corporate Citizenship: Perspectives from India ‘, Journal of

Corporate Citizenship, Spring, pp 107-117.

Prahalad C. K. & Kenneth, L. (1998), ―The End of Corporate Imperialism, ‖

Harvard Business Review, July-Aug, pp. 68-79.
“Murali Raman”, “Wayne Lim”, and “Sumitra Nair” (2012) – The Impact of Corporate Social
on Customer Loyalty.
“David Servera-Frances” and “Lidia Piqueras-Tomas” – The effect of Corporate Social
Responsibility on consumer loyalty through consumer perceived value.
“Mahabubur Rahman”, “M. Angels Rodriguez-Serrano”, “Marry Lambkin” – Corporate Social
Responsibility and Marketing Performance.