(Submitted for the Degree of B.

COM Honors in Accounting and Finance under the

University of Calcutta)

CORPORATE SOCIAL RESPONSIBILITY

of Indian Companies: A Study

SUBMITTED BY:
Name of the Candidate: RAJAN KUMAR
Registration No: 122-1111-21-0279-18

University Roll no: 181122-21-0356

College Roll No : 267

Name of the College: City College Of Commerce & Business Administration

SUPERVISED BY:

Name of the Supervisor: M.K. Banerjee

Name of the College: City College Of Commerce & Business Administration

MONTH AND YEAR OF

SUBMISSION JULY 2021

 ACKNOWLEDGEMENT
It is a matter of great pleasure to present this project on
“CORPORATE SOCIAL RESPONSIBILITY” of Indian
Companies: A study
I take this opportunity to thank our respected Principal Dr. Sandip
Kumar Paul for giving me an opportunity to work on this field. I am
grateful to our respected Vice- Principal Prof. Tarasankar Maiti
without whom this project would not have been successful. I am
very thankful to my Supervisor M.K. Banarjee for her full support
in completing this project work. All that I have done is only due to
such supervision and assistance for which I would not forget to
thank all of them.

1
 This is to certify that Mr. Rajan Kumar, a student of B.Com Honors in Accounting & Finance of City
College of Commerce and Business Administration under the University of Calcutta has worked under
my supervision and guidance for his Project Work and prepared a Project Report with the title
Corporate Social Responsibility of Indian Companies: A study

The Project report, which he is submitting, is his genuine and original work to the best of my
knowledge.

Place : Kolkata Signature :

Date : 04-07-2021 Name : M.K. Banarjee

Designation : SACT-1

Name of college : City College of Commerce

and Business Administration

2
 Student’s Declaration
I hereby declare that the Project Work with the title CORPORATE SOCIAL RESPONSIBILITY of
Indian Companies: A study submitted by me for the partial fulfillment of the degree of B.Com.
Honours in Accounting & Finance under the University of Calcutta is my original work and has not
been submitted earlier to any other University / Institution for the fulfillment of the requirement for
any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this
report from any earlier work done by others or by me.

However, extracts of any literature which has been used for this report has been duly acknowledged
providing details of such literature in the references.

Place : Kolkata Signature : Rajan Kumar

Date : 04-07-2021 Name : Rajan Kumar

Address : Dumdum Cantonment, Kolkata

C.U. Registration No. : 122-1111-21-0279-18

C.U. Roll No. : 181122-21-0356

3
CHAPTER NAME OF THE TOPICS PAGE NO.
NO: CHAPTER
Acknowledgement
Supervisor’s Certificate
Student’s Declaration
1 Introduction 5-23

1 Introduction
1.1 Background
1.2 Justification of study 5-11
1.3 Literature Review 11
17-20
1.4 Objective of study
21
1.5 Methodology
21-22
1.6 Limitations of the study 22
1.7 Chapter Planning 22-23
2 Conceptual Frame 24-34
Work

2.1 Concept/ Different terminologies 24-30

2.2 National Scenario 31-34

3 Presentation and 35-40

DataAnalysis
3.1 Data Analysis and Interpretation

4 Conclusion and 4.1Recommendation & Conclusion 41-43

Recommendation 4.2 News 43-44
4.3 Refrences 45

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1.1 BACKGROUND

The current belief that corporations have a responsibility towards society is not new. In fact, it is possible to

trace the business’ concern for society several centuries back. Corporate Social Responsibility (CSR) has come

a long way, morphing from a nice thing to do to what it is today: a necessity for a successful business.

Today’s CSR programs have their roots in corporate philanthropy. Wealthy businessman and philanthropist

Andrew Carnegie challenged wealthy people to support social causes, following his belief in the Gospel of

Wealth. Evidence of businesses’ concern for society can be traced back to practices originating from the

Industrial Revolution. Making an appearance in the late 1800s was the rise of philanthropy. Howard Bowen,

an American economist and Grinnell College president, is often cited as the “father of CSR.” He connected

the responsibility of corporations to society and published a book in 1953, which advocated for business ethics

and responsiveness to societal stakeholders called “Social Responsibilities of the Businessman.” [1]

Many of the companies we hear about today developed their modern strategies in the 1980 - 1990s .The very

early adopters of CSR were companies such as Johnson & Johnson, whose founder, Robert Wood Johnson,

established their credo in 1943, which requires that the needs of those they serve are put first. The Hershey

Company founder, Milton Hershey built more than just a company in Hershey. He built a town and a

community with facilities, civic centers and cultural institutions that continue to grow today,

These initiatives were in the first half of the 20th century, and their founders understood that when their

customers and communities were healthy and vibrant , their companies would be as well.

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Today, CSR is essential to the bottom line, and corporate citizenship professionals are empowered to align

their work with the business to maximize impact.

What did Bowen mean by SR or CSR? Corporate social responsibility (CSR) is a self-regulating business

model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing

corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of

impact they are having on all aspects of society, including economic, social, and environmental. [5]

It mostly concerns about firm's operational and strategic behavior towards the elements like health, safety,

environmental protection, human rights, human resource management practices, corporate governance,

community development, consumer protection, labor protection, supplier relations, business ethics, and

stakeholder rights.

Corporate social responsibility – A three legged tool: [6]

So, as introduced earlier, CSR is a three-legged tool of people, planet, and profit, CSR is often described as the

corporate “triple bottom line”–the totality of the financial, social, and environmental performance in

conducting its business.

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To engage in CSR means that, in the ordinary course of business, a company is operating in ways that will

enhance society and the environment, instead of contributing negatively to them.

There are three main questions that cut across corporate responsibility theory. Which are as under : [7]

i) For what is business responsible?

ii) To whom is business responsible?

iii) How can business be responsible?

i) For what is business responsible?

Corporate Responsibility theory draws together different types of responsibility, that different companies may

employ. These different responsibilities have sometimes been treated as mutually exclusive (Blowfield &

Murray 2008). However, the most established and accepted model of CSR is the "Four-Part-Model of

Corporate Social Responsibility" proposed by Archie Carroll (1979). Carroll regards CSR as a multi-level

concept, which can be differentiated into four interrelated aspects: economic, legal, ethical, and philanthropic

responsibilities. He presents these as consecutive layers within a pyramid, which means that "true" social

responsibility requires the meeting of all four levels consequently, as he says in his definition.

“Corporate social responsibility encompasses the economic, legal, ethical, and philanthropic expectations

placed on organizations by society at a given point in time” (Carroll & Buchholtz 2000).

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I. Economic responsibility, according to Carroll (1991), is the first responsibility of business; it has to be a

properly functioning economic unit to stay in business. The satisfaction of economic responsibilities is required

for all corporations because this first layer is the basis of all the subsequent responsibilities (in Crane & Matten

2004).

II. Legal responsibility – It demands that business abide by the law and "plays by the rules of the game".

Laws are the codification of society’s moral views, and therefore is a necessary prerequisite for any further

reasoning about social responsibilities. Satisfaction of legal responsibilities is required of all corporations

seeking to be socially responsible.

III. Ethical responsibility -It requires corporations to do what is right, just, and fair even when those

corporations are not compelled to do so by legal framework. This type of responsibility is generally expected

by society above economic and legal legislation.

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IV. Philanthropic responsibility -It is at the tip of the pyramid, or its fourth level. In business context it

includes: improving the quality of life of employees, local communities, and doing well to society in general.

This type of responsibility is merely desired of voluntary responsibility (Crane & Matten 2004).

The main advantage of Carroll’s four-part model is that it structures the various social responsibilities into

different dimensions, at the same time the model does not seek to explain social responsibilities without

acknowledging the most important demands placed on the firm, i.e., to be profitable and legal. The main

limitation of this model is that it does not adequately address the problem of what should happen when two or

more responsibilities are in conflict. Another problem with Carroll’s model is that it is strongly biased towards

US context.

ii) To whom is business responsible?

The idea that business has responsibility to a variety of stakeholders has been an important element of corporate

responsibility theory. This is based on that many people and groups of people have a stake in a corporation and

that, in order for a company to achieve its objectives effectively, it must consider them all (Blowfield & Murray

2008). The further discussion is about whether the purpose of a business is to create profit or to please its

stakeholders, also known as the Friedman / Freeman debate: In 1970, Milton Friedman protested against the

social responsibilities for corporations – this view is known as Shareholder perspective. In Shareholder

perspective, the company is seen as related to only four groups of people: Suppliers, employees, and

iii) How can business be responsible?

The third issue we have to agree about, concerns the question about who decides the values to which the

business should adhere: companies themselves or the societies within which they operate. If one sees corporate

responsibility as a choice that business makes, companies have to consider three competing issues that will

determine their corporate responsibility strategy. The first is a moral issue (obligations that the company has

to society); the second is rational issue (taking proactive steps that will minimize the restrictions society

9
imposes on business); and the third is the economic issue (adding financial value to the company by preserving

its legitimacy with its stakeholders).

The new direction of CSR debate in the 21st century reveal, corporate responsibility and governance are being

reframed and shifted to the interplay between state / non-state regulatory measures and voluntary measures.

So far, the study has focused on positive views on Corporate Social Responsibility. However, there is a parallel

body of literature describing Corporate Social Responsibility as "Corporate Green washing" and other forms

of corporate disinformation which seek to “repair” company’s public reputation and further shape public

images of the company (Lyon & Maxwell 2008, Karna at al. 2003). Among others, (Subhabrata Bobby

Banerjee (2007) argues that discourses of corporate citizenship, social responsibility and sustainability etc. are

defined by narrow business interests. The author also problematises the popular notion of organizational

"stakeholders". He points to that stakeholder theory of the firm represents a form of stakeholder colonialism

that serves to regulate the behavior of stakeholders in a way which is beneficial to corporations (Banerjee

2007). Stakeholder theory implies a focus on stakeholders who can influence the financial or competitive

position of the firm, leaving little or no resources directed to serve the interests of marginalized stakeholder

groups. Thus, corporate social responsibility becomes a product or service strategy designed to sustain a

competitive advantage (Banerjee (2007). However, the limits of corporate rationality when applied to social

issues are exposed, if one takes this argument further. If CSR is indeed a competitive strategy, it is not a

particularly valuable one because the very visible nature of CSR practices makes it easier for competitors to

develop similar strategies. However, there is no evidence that CSR can harm or benefit financial performance

of business companies. Green washing practices- Critics argue that in society that's increasingly aware of its

10
own negative impact on the natural world, it's no surprise corporations promoting themselves as

environmentally friendly or "green". Such promotions might be as simple as sprinkling product packaging with

leafy logos or as involved as publicizing investments in emerging technologies. Organizations spend a lot of

money each year in an attempt to convince consumers that their operations have a minimal impact on the

environment. The term Green washing means that corporations social responsibility claims are false or

presented in a deceptive manner (Lyon & Maxwell 2008, Karna at al. 2003). For instance, production and sale

of environmentally friendly products is a growth business. However, there is no consensus whether it is the

new generation of "green" customers which is willing to pay higher prices to clean products and corporations

are simply responding to this shift. Or rather business has become savvier about their strategy, taking proactive

steps to make them look better (Lyon & Maxwell 2008).

1.2 JUSTIFICATION OF STUDY

The present survey can be considered very important because of its academic and professional importance.

1) Academic Importance: Only few empirical surveys are made on the subjects in Indian Background.

So, the researcher is interested to know more about the subjects.

2) Professional Importance: The researcher being a student of 1st year requires some practical training

combined with classroom theoretical teaching to submit a dissertation for that the researcher performed

this survey on “CSR”.

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GLOBAL HISTORY

The concept of corporate social responsibility (CSR) has a long and varied global history. As we know, the

new CSR term became popular after Howard Bowen published a book “Social Responsibility of Businessman”

in 1953. Since then, the debate on corporate social responsibility begins. Katsulakos and his friends

(Katsulakos et al, 2004) define the stage of development of CSR into 3 phases: [2]

1. Initiation Phase of CSR (1960-1990)

2. Stage of development-momentum CSR (1990 to 2000)

3. Stage 3 initiation stage mainstreaming / initiation mainstreaming CSR (2000-present)

During the 50s, it began to be known by the term Social Responsibility (SR). In this era, underdeveloped

capitalist influence strongly. The idea of social responsibility comes across first through Howard R. Bowen in

his book: “Social Responsibility of the Businessman”, “which states that businesses have an obligation to

pursue a policy and to make decisions or implement appropriate action with the goals and values of society.

This view can be considered as a milestone for the emergence of the modern CSR. Books written by Bowen

(1953) specifically relates to the doctrine of social responsibility. Bowen believes that social responsibility is

not a panacea, but it contains an important truth that is capable of guiding the business in the future. Bowen

made his opinion deserve to be the “Father of Corporate Social Responsibility.”

In the 1960s, a lot of effort is made to provide a definition of CSR. One of the academics CSR famous at that

time was Keith Davis. Davis was known for successfully providing in-depth view of the relationship between

12
CSR and business strength. Davis expressed his “Iron Law of Responsibility” which states that the social

responsibility of entrepreneurs together with the social position they have (Davis, 1960).The definition means

that in the long run, employers who do not use power responsibly in accordance with the public perception,

will lose the power they have now. Corporate word began to be included in this period. This could be due to

the contribution of Davis who had shown a strong correlation between corporate and social responsibility.

McGuire introduced the term corporate citizenship. “The idea of social responsibility requires that the company

not only has the economic and legal obligation, but also a particular responsibility to society that goes beyond

this obligation” (McGuire, 1963), he further explain the word “beyond” by stating that the corporation should

pay attention to political issues, public welfare, education, “happiness” of employees and other social

problems. Therefore, corporations must act in “good,” as where the citizen (citizen) is good.

 Era 70: Concentric

CSR truly began to take hold in the U.S. in the 1970s, when the concept of the “social contract” between

business and society was declared by the Committee for Economic Development in 1971. The social contract

is based on the idea that business functions because of public “consent,” therefore business has an obligation

to constructively serve the needs of society. This is often referred to today as “license to operate” – that is to

contribute more to society than solely their products for sale.

Professor Archie B. Carroll summarized the above in 1979 in A Three-Dimensional Conceptual Model of

Corporate Performance, which created a model to make CSR less nebulous. By the 1980s, early CSR

continued to evolve as more organizations began incorporating social interests in their business practices while

becoming more responsive to stakeholders.

In 1971, the Committee for Economic Development (CED) published the Social Responsibilities of Business

Corporations. The issuance of which can be considered as a code of conduct of the business because it is

triggered by the assumption that the business has the basic purpose to provide a constructive service to meet

the needs and satisfaction of the people.

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CED formulated CSR to describe it in concentric circles. The inner circle is the basic responsibility of the

corporation for the implementation of effective policies on economic considerations (profit and growth); the

middle circle illustrates the corporate responsibility to be sensitive to the values and social priorities that apply

in determining which policy will be taken. The outer ring depicts responsibility that might come up along with

the increasing role of the corporation in maintaining the environment and society.

 Era 80: Theory

This era was marked by efforts targeted to more precisely articulate what exactly is corporate responsibility.

Although, it has raised the question of CSR in 1954, Master Peter F. Drucker’s management theory was just

beginning to discuss seriously the field of CSR in 1984.

“But the proper social responsibility of business is to tame the dragon, that is to turn a social problem into

economic opportunity and economic benefit, into productive capacity, into human competence, into well-paid

jobs, and into wealth” Drucker (1954).

Drucker has been stepped up further by providing new ideas so that corporations can manage CSR activities

and are done in a way that will still be a lucrative business opportunity.

Using The Evolution of the Corporate Social Performance Model, which debuted in 1985, Carroll’s

definition of CSR was understood as a 3-pronged approach:

1. Companies adopted principles (or ethics),

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2. Created and executed formal processes (how they would respond), and

3. Developed policies (managing specific issues).

This approach brought together social responsiveness and business ethics into one field of study and

performance.

In 1987, the United Nations through the World Commission on Environment and Development (WECD)

published a report called “Our Common Future” – also known as the Brundtland Report in honor of Gro Harlem

Brundtland who was chairman WECD that time. The report makes the environmental issues as a political

agenda that ultimately aims to encourage the development policies more sensitive to environmental issues. The

report is the basis for multilateral cooperation within the framework of sustainable development.

 Era 90: Momentum

It had been noticed that very little contribution to the definition of CSR occur during this period, Carroll (1991)

issued a pyramid concept, which characterizes CSR with four different levels: philanthropic, ethical, legal and

economic. Event meeting the Earth Summit held in Rio de Janeiro in 1991, which was attended by 180

countries with the main theme of the Environment Sustainable development produced 27 agenda of the Rio

declaration and several other agreements.

The end result of the meeting emphasized the importance of eco-efficiency serve as the main principle of doing

business and running a government. Elkington (1998) expressed a sustainable concept called Triple Bottom

Line, in his book “Cannibals with Forks The Triple Bottom Line of 21st Century” Business. In the concept,

the corporation must not only look at the economic aspects that reflect the financial condition of any company,

but should include social and environmental aspects, so that the concept is known as the principle of 3P (People,

Planet, Profit).

 Era 2000: Mainstreaming initiation

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Porter and Kreamer (2006) connects the competitive advantage and CSR. The linkage between the two

integrate widely.CSR strategies used will have an impact on the identity and branding.

Porter and Kreamer (2011) issued a new idea regarding CSR into creating shared value (CSV). CSV is a policy

concept operating practices to improve the competitiveness of companies which continuously advance the

economic and social conditions of a community area. The sustainability of a business will be formed by

creating new value in the surrounding community, so as to increase a company’s competitiveness.

Since a good argument can be made that CSR began to take form in the 1950s. Industrial Revolution can be

referred as a useful starting point as we know already through the above paragraphs because when examining

the mid-to-late 1800s, it is apparent that emerging businesses were especially concerned with employees and

how to make them more productive workers. Then, and now, it is sometimes difficult to differentiate what

organizations are doing for business reasons, i.e. making the workers more productive, and what the

organizations are doing for social reasons, i.e. helping to fulfil their needs and make them better and more

contributing members of society. According to management historian, Daniel A. Wren, there were criticisms

of the emerging factory system in Great Britain, particularly regarding the employment of women and children,

and these same issues occurred in America as well. Reformers in both countries perceived the factory system

to be the source of numerous social problems, including labor unrest, poverty, slums, and child and female

labor. However, industrial betterment and welfare movements at the time were viewed as a combination of

humanitarianism and business acumen.

For decades, companies have been using corporate social responsibility (CSR) to give back to society while

bolstering brand reputation. This management concept as we know it today is mainly a product of the twentieth

century, taking shape in the early 1950s. However, the history of corporate social responsibility is one that

actually spans over two centuries.

By the early 2000s, CSR had become an essential strategy for many organizations, with multi-million dollar

companies, such as Wells Fargo, Coca-Cola, Walt Disney, and Pfizer incorporating this concept into their

businesses processes.

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i) Dr. Rajni Saluja and Sangam Kapoor : Corporate social responsibility (CSR) is a

buzzword worldwide. In today‘s globalized world, one of the great challenges faced by 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, corporations have clearly exhibited their ability to make a significant difference in the

society and improve the overall quality of life. The concept of Corporate Social Responsibility (CSR) is not

new in India. Corporate Social Responsibility has been defined and conceptualized in several ways during

the past four centuries following a process of analysis,

debate and scholarly confrontation around the theme. The concept 'Corporate Social

Responsibility' (CSR) refers to 'soft', voluntary self regulation adopted by firms to improve aspects of the

company, this can relate to labor, environmental and human rights issues.

ii) Manabhanjan Sahu conducted a research from March- April in 2016 where he researched that
in the world of business, the main "responsibility" for corporations has historically been to maximize profit

and increase shareholder value. In other words, corporate financial responsibility has been the sole bottom line

of success. With an era of globalization the economies of business has changed from corporate centric to the

consumer centric, where the consumer's perception for a product, service, concept or an organization is most

concerned. Business being an integral part of the society, which influences and is influenced by the society,

cannot ignore the importance of society. In the last few decades this wind of transformation gave birth to a

broader corporate responsibilities-for the environment, for local communities, for working conditions, and for

ethical practices-has gathered momentum and taken hold which is known as corporate social responsibility

(CSR). This consists of wide range of activities and programs.CSR plays a vital role in the sustainable business

strategy, which emphasizes on how to maximize the utility of resources with minimum consumption,

17
exploration of resources without exploitation and maintain surplus balance of resources for future generations.

In this context, it is noteworthy to mention that The Brundtland Report (1987) says "Sustainable development

is development that meets the needs of the present without compromising the ability of future generations to

meet their own needs."

iii) John Dudovskiy stated that major differences between public and private sector organisations
have been specified and addressed by a range of management scholars. According to Wirick (2009) the main

difference between public and private sector organisations relates to forms of ownership. Specifically, public

sector organisations are owned and operated by government, whereas private sector organisations are not part

of the government. Kassel (2010) and Starling (2010) assert that the primary objective of organisations

operating in private sector is profit maximisation. Gallos (2008) advises not to be deluded by charitable acts

of private sector organisations in regards to intentions and insists that all of these acts are aimed at supporting

the primary objective of private sector organisations which is profit maximization. The aims of public sector

organisations, on the other hand, involve serving the interests of taxpayers through various manners according

to the type of the organisation (Sims, 2010). Importantly, the source of funding of organisations represents

another point of difference between public and private sector organisations (Sabatier, 2007). Namely, public

sector organisations are funded by taxpayers; therefore serve the interest of taxpayers, while private sector

organisations are funded by individuals and corporate investors aiming to make a profit.

iv) Marlen C. Jurisch, Christian Ikas, Petra Wolf, Helmut Krcma on

4th July , 2014 stated : The public sector is subject to constant changes. In order to tackle the current financial,

social, and political challenges, public sector organizations all over the world need to rethink, adapt, and change

their underlying service processes. Prompted by these challenges public managers have turned to the private

sector for solutions. By facilitating resource efficiency and allowing for a more straightforward way of service

provision, business process change (BPC) assumes a leading role in the transformation of public

18
administrations. Yet, in the past decades many BPC projects both in private and in public have failed to realize

their objectives.

v) Ran Lachman (30th November,2017 ) conducted a study where he said Comparative

studies of private and public sector organizations often consider organizations with dissimilar tasks or business

purposes: profit-making business firms commonly represent the private sector, and nonprofit service or

government regulatory agencies commonly represent the public sector. The argument for this all too common

use of the distinction between public and private sectors as the basis of a framework for interpreting observed

differences is that the legitimizing goals and basic orientations of the two sectors vary, and so determine

different institutional milieux for organizations affiliated with each. Hence, investigators expect differences

between the two sectors in organization-environment relations and in managerial practices. The purpose of this

study is to examine whether or not these commonly expected private-public differences emerge from a

comparison of environmental perceptions of chief executive officers (CEOs) of organizations having similar

task environments—that is, public and private industrial organizations. If, when similar organizations are

compared, the expected differences in perceived environments appear, the case for sector differences would

be considerably strengthened. But, if such a comparison fails to support the expected differences, it will suggest

that perceived differences in organization-environment relations are probably due to differences in task or

functional environments, rather than to sector affiliation.

vi) Shravya Saxena : Basically, CSR is the contribution of organizations towards the betterment
of the Society. CSR is an important part for all the organizations to practice with their work. CSR is the

initiative of corporations so as to assess and take the responsibilities for the company’s effect on environment

and also the impact on the welfare of society .Corporate Social Responsibility can be as the work that a

company does so as to support socially, environment or community apart from their profit. Now it is becoming

the necessity of companies to work in the field of CSR so as to add to their market value.

19
vii) Sanjeev Kumar Sharma (2017) stated that The Indian Parliament passed the new
Companies Act in August 2013. Section 135 of the Act mandates the Indian corporate sector Companies,

whose net worth is Rupees Five Hundred Crore or more or which have earned a net profit of Rupees Five

Hundred Crore or more, to spend every year at least two percent of their average net profit made during the

immediately preceding three years on Corporate Social Responsibility (CSR)-related activities. It is envisaged

that through Corporate Social Responsibility (CSR), Companies can contribute to equitable growth and

sustainable development of the society. Each Company, which is legally mandated to follow the Act, is bound

to formulate a CSR policy which will indicate the CSR activities to be undertaken by it. The activities that

could be undertaken by the companies under CSR are given in the Schedule VII of the Act.

viii) Mohit Sharma in 2018 cited that Corporate Social Responsibility (CSR) has garnered a
lot of attention recently, both globally as well as in the Indian context. The study deals with both primary

(collected through questionnaire) and secondary data (annual reports, policy documents, and research papers

etc) and uses both quantitative and qualitative methods for data analysis. Ethical Responsibility has emerged

to be the most significant predictor of CSR practices followed by Education Development and Environmental

Responsibility.

ix) Nidhi Sharma in 2018 completed an empirical study of corporate social responsibility of selected public

and private sector in India. The main objectives of this study is finally to know the stakeholders’ perception on

CSR. The whole study is divided into six chapters to achieve these above stated objectives. Results of this

study is fit for present Indian scenario which show that all companies are performing CSR activities but there

is significant difference in CSR disclosure practices of selected companies. Private sector is doing better than

public sector. There is no significant impact of CSR disclosure practices of selected companies on their

profitability but CSR expenditure and average profit are highly correlated.

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The objectives of this project are:-
1). To understand the concept of CSR.

2). To study the need of corporate social responsibility, CSR mechanism and key develpoments which has been
brought about by CSR.

3). To exhaustively study the contributions made by the indian companies towards the society as a part of CSR
activities.

4). To learn the various activities of CSR taken by various sector.

5). To make the comparative study of CSR activities in four sectors like Health, Environment, Community
Development & Education between Public & Private sector.

Source of data:

Secondary source : The study is based on secondary data. Exhaustive literature survey regarding the topic and

related concepts has been done. Secondary data inclusive of quantitative data as well collected from various

Annual reports of CSR, authentic websites, previous research findings, articles, journals and research papers.

We already know that Corporate social responsibility (CSR) helps a company be socially accountable—to

itself, its stakeholders, and the public and public and private sectors have made some efforts on reporting and

monitoring their progress against CSR. Now, we need to know that what are the different areas under which

the public and private sector companies are engaged doing CSR to make themselves accountable and has CSR

benefitted the companies which adopted it just to know the relevance of CSR?

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Objectives :

 To know CSR activities of selected public and private sector companies.

 To know how CSR has benefitted the companies.

 To know the effectiveness of CSR activities.

1). The research was conducted within a limited duration. So a detailed and comprehensive

study could not be made.

2). Due to shortage of time primary data could not be collected.

In this part I have discussed project background, literature review of

the study, objectives of the study, limitations of the study and methodology.

In this part discussed the importance and prospects of

the study through national and international scenario.

22
 In this part present the data with the
use of statistical tools, different graphs to present the project are performed.

In this part discussed the

experiences, learnings from the project and also the recommendations to make the project

better in future.

23
PRIVATE SECTOR VS PUBLIC SECTOR

Some business activity exists to make a profit. In the end, if the business does not make a profit it will have to

close – although not always for many years! However, some business activity will not necessarily make any

profit but will continue to function. And that is the main difference between private sector companies as well

as public sector companies which are all operating with different goals, strategies and understandings as well.

[9]

PRIVATE SECTOR

The private sector consists of business activity that is owned, financed and run by private individuals. These

businesses can be small firms owned by just one person, or large multi-national businesses that operate around

the world (globally).

The private sector organizations are one which is owned by its shareholders. The shares are publicly listed

“available for sale” but privately owned. The organizations main aim is therefore usually to generate money

to its shareholder owners.

Corporate Social Responsibility in private corporate sector though not new to India now, is still at nascent

stage. Big business houses like TATA, BIRLA and AMBANI have already contributed to the society at large

by setting up educational institutions, super specialty hospitals, infrastructural projects, temples etc. as

discussed earlier.

It has been also an issue of debate as to whether it is obligatory for private business

24
houses to bear the burden for bridging the gap between the “corporate world” and “poor village world” in

India. The fact remains that a business house creates wealth for all its stakeholders by the products or services

it sells for use of rich and poor both. Therefore, it is the moral and ethical obligation on the corporate sector

to contribute to the development of the poor of the society through Corporate Social Responsibility.

PUBLIC SECTOR

A public sector organization is owned by the government (the public owns it through our right to vote and the

government’s representation of us). A public sector organization can make a profit but tend not to.

The public sector is the part of the economy, where goods and services are provided by the government or

local authorities carrying out the task instead. These goods and services are sometimes provided free and in

other cases consumers have to pay a price. The aim of public sector activity is to provide services or products

that benefit the public as a whole. This is because it would be difficult to charge people for the goods and

services concerned or people may not be able to afford to pay for them as well as it is considered that the public

sector companies are public owned organizations . The government provides these goods and services at a

cheaper price than if they were provided by a profit making company. The public sector shares the private

sector in most business activities. The public sector is that portion of society controlled by national, state or

provincial, and local governments.

The public sector sometimes overlaps with the private sector in producing or providing certain goods and

services. The extent of this overlap varies from country to country, state to state, province to province, and city

to city. This overlapping is most often seen in waste management, water management, health care, security

services, and shelters for homeless and abused people. Sometimes, service providers move from the public

sector to the private, which is known as privatization.

25
In other instances, a service may shift from the private sector to the public. This is less common, but health

care is one area where some governments are providing or experimenting with services previously furnished

by private providers.

Governments routinely hire private corporations to provide goods and services for the public sector, a practice

known as outsourcing .

The public sector is usually composed of companies which are owned and operated by the governments. This

includes federal, provincial, state, or municipal governments as well, depending on where you live.

Also, in case of public sector, the Governments have a very important role to play in ensuring that corporations

behave according to the rules and norms of society; corporations stand to gain from CSR activities due to its

social influence and acceptance. Hence governments play an important part in supporting corporate social

responsibility initiatives. Governments can legislate, foster, partner with businesses and endorse good practice

in order to facilitate the development of corporate social responsibility.

Introduction

Ranging from steel, automobiles and software to consumer goods and telecommunications, the Tata Group

operates more than 80 companies.

It has around 200,000 employees across India and thus has the pride to be nation’s largest private employer.

Mr. Ratan N. Tata has led the eminent Tata Group successfully. He assumed the Chairmanship of the Group

in 1991. Named Business Man of the Year for Asia by Forbes in 2004, Mr. Ratan Tata serves on the board

of the Ford Foundation and the program board of the Bill & Melinda Gates Foundation's India AIDS initiative.

Under Tata, the group went through major organisational phases — rationalization , globalization , and

now innovation, as it attempts to reach a reported $500 billion in revenues by 2020-21. Approximately, two

26
third of the equity of the parent firm, Tata Sons Ltd., is held by philanthropic trusts endowed by Sir Dorabji

Tata and Sir Ratan Tata. Through these trusts, Tata Sons Ltd. utilizes on average between 8 to 14 percent of

its net profit every year for various social causes. Even when economic conditions were adverse, as in the

late 1990s, the financial commitment of the group towards social activities kept on increasing, from Rs 670

million in 1997-98 to Rs 1.36 billion in 1999-2000. In the fiscal year 2004 Tata Steel alone spent Rs 45 crore

on social services.

As far as the Tata group is concerned , it has gone a long way in fulfilling its duty and responsibility towards

the society and the nation. It has reached the masses to elevate their lives, to nurture their dreams and to hone

their skills justifying the statement of the founder ―We do not claim to be more unselfish, more generous and

more philanthropic than other people. But, we think we started on sound and straightforward business

principles, considering the interests of the shareholder, our own, and the health and welfare of the employees,

the sure foundation of our prosperity”. [10]

Starbucks has long been known for its keen sense of corporate social responsibility and commitment to

sustainability and community welfare. According to the company, Starbucks has achieved many of its CSR

milestones since it opened its doors. According to its 2019 Global Social Impact Report, these milestones

include reaching 99% of ethically sourced coffee, creating a global network of farmers, pioneering green

building throughout its stores, contributing millions of hours of community service, and creating a

groundbreaking college program for its partner/employees.

Starbucks' goals for 2020 and beyond include hiring 10,000 refugees, reducing the environmental impact of its

cups, and engaging its employees in environmental leadership. [11]

27
Wipro Ltd. Is a technology company helmed by philanthropist tycoon Azim Premji has always been dedicated

towards CSR activities. Wipro has spent more than the prescribed CSR budget in the last three financial years.

Wipro Enterprises (officially Wipro Enterprises Private Limited) is the India-based holding company that

owns both Wipro Infrastructure Engineering and Wipro Consumer Care and Lighting. Wipro Enterprises is

headquartered in Bangalore India.

In 2013, It was part of Wipro until 2013, when the parent firm separated it's non-IT business lines into a

separate business entity

Wipro Consumer Care and Lighting (WCCLG) caters to the Fast-moving consumer goods (FMCG) segment

dealing personal care, home care, lighting and furniture products. Established as party of Wipro in 1945, its

first product was vegetable oil, later sold under the brand name "Sunflower Vanaspati."Later the company also

launched laundry bars under the brand name "787". It has gone on to sell personal care products like Santoor,

Chandrika, Aramusk and Yardley, which are its toilet soap brands.It also owns the Wipro Safewash and Wipro

Baby Soft ranges. The firm also sells lighting products that include Smartlite CFL and LED lights.

Through product sales and acquisitions, Wipro Consumer Care and Lighting has grown steadily in the FMCG

segment in Asia. In September 2019, Wipro Consumer Care and Lighting launched Wipro Consumer Care

Ventures a venture fund to invest in startups in India and Southeast Asia.

Wipro Infrastructure Engineering is the hydraulics business division of the firm and has been in the business

of manufacturing hydraulic cylinders, truck cylinders, and their components since being established in 1976

as part of Wipro. It also includes the company's industrial water treatment business. It has entered into

partnerships with Kawasaki and aerospace company EADS.

28
Wipro Infrastructure Engineering is considered to be one of the world's largest independent manufacturers

of hydraulic cylinders.Wipro 3D, which is also a part of Wipro Infrastructure Engineering, is India's largest

fully integrated metal additive manufacturing facility. Its Aerospace Business acquired Israel-based Givon in

2016.

Wipro Cares is the social contribution arm of Wipro Enterprises. It is broadly engaged in areas such as

education, primary healthcare, environment and disaster rehabilitation.Wipro Enterprises’ Santoor Scholarship

Program contributes to girl education among the underprivileged in Karnataka, Telangana and Andhra

Pradesh.

The implementation of the CSR programs happens through multiple channels –, Wipro Cares, the trust for

employee contribution and in some cases, directly through functions and groups within Wipro Ltd e.g.

Biodiversity projects for their campuses is executed directly by the Operations group of Wipro Ltd.

Over the past several years, Wipro has established a strong foundational framework for social and

environmental initiatives, both within the organization as well as outside. Wipro’s social and sustainability

initiatives center on Education, Ecology, and Community Care, started in 2011. Wipro earthian, brings together

two key concerns: education and sustainability. This national level program has directly engaged more than

12500 schools and colleges, 6500 educators and 30000 students since inception. Through this programme the

company also hosts a national sustainability quiz program for colleges, a unique internship program and

academic partnerships with IIM-Bengaluru, IIM-Ahmedabad, Xavier University – Bhubaneshwar, CEPT-

Ahmedabad, IIT-Mumbai and ICT-Mumbai on developing and integrating sustainability curriculum.

Infosys is a global leader in next-generation digital services and consulting.

From a capital of US$250, they have grown to become a US$58 billion company. Established in 1981, Infosys

is a NYSE listed global consulting and IT services company with more than 240k employees. From a capital

29
of US$250, they have grown to become a US$12.87 billion (Q2 FY21 revenues) company with a market

capitalization of approximately US$58.82 billion.

In their journey of 39 years, they have catalyzed some of the major changes that have led to India's emergence

as the global destination for software services talent. They pioneered the Global Delivery Model and became

the first IT Company from India to be listed on NASDAQ. Their employee stock options program created

some of India's first salaried millionaires.

“CSR can’t be merely a job, it’s a passion,” says Sudha Murthy, Chairperson, Infosys Foundation, the CSR

arm of IT services conglomerate Infosys.

Infosys Foundation through its CSR projects has worked towards helping society and achieving sustainable

development. It leverages its high tech background and implements projects which are tracked on a real-time

basis and hence create lasting impact in the community. Infosys sets a very high standard for sustainable

operations by striving to achieve the coveted carbon neutral status.

The company spent nearly Rs. 360 crore towards various CSR schemes the previous year. COVID-19 relief

work dominated the activities, with education and health-related programmes following after.

Among the main CSR initiatives in the financial year 2019-20 were a 100-bed quarantine setup in Bengaluru

in partnership with Narayana Health City, and another one which had 182 beds for COVID-19 patients for

Bowring and Lady Curzon Medical College & Research Institute.

Infosys Foundation primarily works with non-governmental organizations as the nodal agency for

implementing projects. Highlights of the Foundation’s interventions in the past include the introduction of

Aarohan Social Innovation Awards, restoration of water bodies in Karnataka, enabling the pursuit of access

and excellence in sports through the Go Sports Foundation, and disaster relief efforts in Tamil Nadu, Karnataka

and Kerala.[13]

30
 2.2 NATIONAL SCENARIO

CSR is not a new concept in India too. Some large corporate like Tata group, Birla group and Indian Oil

Corporation have been engaged in community improvement programs. Through donations and charity

programs they have been doing their bit for society. The basic objective of CSR was to maximize company’s

goodwill and reputation. Corporate philanthropy was the term used for CSR wherein traditions, culture,

religions and family values strongly influenced corporate philanthropy. [3]

India has one of the richest traditions of CSR. Indian entrepreneurs are supposed to set clear objectives and

conduct and report their performance in a transparent manner. But, CSR has not yet received widespread

recognition. In recent years, Indian companies are beginning to realize that CSR is not just another indirect

expense, but is essential in the present scenario to defend them against competition, to protect their goodwill

and reputation and to remain competitive.

CSR aims at sustainable development and mainly revolves around four pillars – first pillar is concern for

employees at the work place, second pillar is concern for customers in the market place, third pillar is concern

for the society in general and last pillar is concern for the environment.

The history of CSR in India has its four phases which run parallel to India's historical development

and has resulted in different approaches towards CSR.

FIRST PHASE : CSR started as Philanthropy. In the pre-industrialization period, till 1850, merchants helped

the society in getting over phases of famine and epidemics by providing food and money and thus securing an

integral position in the society. With the arrival of colonial rule in India, the approach towards CSR changed.

The industrial families of the 19th century such as Tata, Godrej, Bajaj, Modi , Birla and Singhania were

strongly inclined towards economic as well as social developments. Culture, religion, family values, tradition

and industrialization were the key influencers of CSR. It was observed that efforts towards social as well as

industrial development were not only driven by selfless and religious motives but also influenced by political

objectives.

31
SECOND PHASE : In the second phase, during the independence movement, there was increased stress on

Indian Industrialists to demonstrate their dedication towards the progress of the society. This was when

Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders had to manage

their wealth so as to benefit the common man. "I desire to end capitalism almost, if not quite, as much as the

most advanced socialist. But our methods differ. My theory of trusteeship is no make-shift, certainly no

camouflage. I am confident that it will survive all other theories." This was Gandhi's words which highlights

his argument towards his concept of "trusteeship". Gandhi's influence put pressure on various Industrialists

to act towards building the nation and its socio-economic development. According to Gandhi, Indian

companies were supposed to be the "temples of modern India". Under his influence businesses established

trusts for schools and colleges and also helped in setting up training and scientific institutions. The operations

of the trusts were largely in line with Gandhi's reforms which sought to abolish untouchability, encourage

empowerment of women and rural development.

THIRD PHASE : Post-independence during 1960 to 1980 the element of “mixed economy”, emergence of

Public Sector Undertakings (PSUs) and laws relating labour and environmental standards gained importance.

During this period, the private sector was forced to take a backseat. The public sector was seen as the prime

mover of development. Because of the stringent legal rules and regulations surrounding the activities of the

private sector, the period was described as an “era of command and control”. The policy of industrial licensing,

high taxes and restrictions on the private sector led to corporate malpractices which lead to enactment of

legislation regarding corporate governance, labour and environmental issues. PSUs were set up by the state to

ensure suitable distribution of resources (wealth, food etc.) to the needy, but this was effective only to a certain

extent. Expectations from the private sector rose again and their active involvement in the socio-economic

development of the country became absolutely necessary. In 1965, Indian academicians, politicians and

businessmen set up a national workshop on CSR aimed at reconciliation. They emphasized upon transparency,

social accountability and regular stakeholder dialogues. In spite of such attempts CSR failed to catch stream.

32
FOURTH PHASE : During rapid industrialization in 1980, Indian companies started abandoning their

traditional engagement with CSR and integrated it into a sustainable business strategy. In 1990s , the first

initiation towards globalization and economic liberalization were undertaken. Controls and licensing system

were partly done away which gave a boost to the economy; the signs of which are very evident today.

Globalization has transformed India into an important destination in terms of production, manufacturing and

marketing. The overseas markets were becoming more and more concerned about labor and environmental

standards in the developing countries. Indian companies who were into producing goods for the developed

countries needed to pay a close attention to compliance with the international standards. The basic objective

of social responsibility was to maximize the company’s overall impact on the society and stakeholders. CSR

policies, practices and programs were being comprehensively integrated by companies throughout their

business operations and processes.

When one of the richest man in the world speaks, everyone pays attention. In 2002, Bill Gates told the World

Economic Forum, “We need a discussion about whether the rich world is giving back what it should to the

developing world.” Companies have attempted to “give back” through global corporate social responsibility

(CSR) initiatives. Some 5200 companies have promised to follow global norms on transparency,

accountability, human rights, labor law and the environment. In India, many companies have taken up sincere

initiatives. However, they still need to go a long way in taking up CSR as part of their organizational strategies.

India, has become the world’s first country to make corporate social responsibility mandatory as on December

18th, 2012. The Companies Bill of 2011 was passed by the Lok Sabha. New concepts of CSR were introduced.

Spend on CSR has been made compulsory for certain companies for which the criterion is set simple; every

company having net profit of Rs 5 crores or more, net worth of Rs 500 crores or more, or turnover of

Rs 1,000 crores or more, during last three financial year shall constitute a Corporate Social

Responsibility Committee on the Board, consisting of three or more directors, out of which at least one

director shall be an independent director. The rules further say that CSR is not charity or mere donations.

The companies should use CSR to integrate economic, environmental and social objectives with the company’s

operations and its growth. The CSR committee shall formulate its CSR policy, based on which activities and

33
specific budget would be allocated. The programs implemented would be monitored and reported through

company’s website and annual report. 2% CSR spending would be computed as 2% of the average net

profits made by the company during the preceding three financial years. Companies have to carry out and

report their CSR initiatives for the financial year 2014 – 2015 and so the assessment year would be 2015 –

2016. The reporting or governance is simple “State what you will do, report what you did”. The new

Companies Act 2013 came into effect from April 1, 2014. This makes India the only country with legislated

CSR. Before this, in 2011, the Ministry of Corporate Affairs has launched the National Voluntary Guidelines

(NVGs) for Social, Environmental & Economic Responsibilities of Business. [4]

In short, sincere CSR initiatives would translate into Lower costs plus happy employees plus happy customers

plus happy business partners plus a healthier environment and of course lead to more profits.

shareholders – which provide the basic resources for the corporation, which then uses these resources to

provide products to consumers. The shareholders are the "owners" and thus the most important group to which

the companies are responsible, because proprietary rights provide the owners with exclusive rights. In arguing

against CSR, Friedman(1970) says that it is about the primary motivations of the decision-maker. When CSR

is carried out for reasons of self-interest it is not social responsibility, but merely profit maximization. Thus,

when successful companies are seem to be operating with CSR programs, it is reasonable to suggest that the

financial success frees the company to indulge in the "luxury" of CSR in its business strategy (in Crane &

Matten 2004).

34
 CHAPTER-3

PRESENTATION AND DATA ANALYSIS

3.1 DATA INTERPRETATION AND ANALYSIS

To interpret the problem statement , a comparative study has been carried out between two public and private

sector company namely Wipro Enterprises Pvt. Ltd. and Infosys ltd.

A COMPARATIVE STUDY BETWEEN PUBLIC AND PRIVATE

SECTOR ORGANISATION IN INDIA
MAJOR CSR ACTIVITIES IN INDIA

Companies are carrying out many activities as a part of CSR. These activities can be classified using the

Carroll’s Pyramid based on their nature and Included in Companies Act 2013 clause VII The major CSR

activities by Indian companies are taken in the following areas: [14]

• Health

• Education

• Community Development

• Environment

Health Services should improve in India especially in villages where lack of adequate basic health services.

Companies as a part of CSR should provide health services through medical camps. Activities that are carried

out under health include conducting Blood Banks, Providing Hospitals, Donating Ambulance and Mobile

Clinics.

TABLE 1 : Classification of activities carried out by companies in the area of health

35
 Name of the Medical Blood Providing Donating Mobile
company camps Banks Hospitals ambulances clinics
TCS    

WIPRO  
ENTERPRISES
INFOSYS LTD.   

TOTAL 2 1 3 2 1

Among the selected companies taken for study, all of them focus in the area of health where they carry out

activities like organizing camps, running community hospitals, providing mobile health vans, etc. Majority of

the companies i.e. two out of three companies are organizing medical camps and Donating Ambulance. Two

out of three companies Donating Mobile Clinics.

Education programs are aimed to bring positive impacts on the lives of the children by making them realize

the importance of education and also to provide educational assistance. CSR activities under education include

scholarship programs, special coaching classes, school infrastructure improvement, co- curricular activities,

free education, etc.

TABLE 2 : Classification of activities carried out by companies in the area of education

Name of the Scholarships Infrastructure Hostel Mid Vocational

company building day trainings

meals

TCS   

WIPRO   

ENTERPRISES

36
 INFOSYS LTD.    

TOTAL 3 3 1 1 2

Infrastructure to the School is the major activity that has been carried out by majority of the companies in the

area of education followed by running scholarship and coaching classes. Infosys carries out the maximum

number of activities in the field of education compared to the other companies studied. TCS involve themselves

in activities such as providing scholarships, helping in the infrastructural development, and providing buildings

and supports in co-curricular activities.

Philanthropic activities carried out by companies that help in improving the quality life of the people such as

helping in people to the locality of Income generation, skill development, and better infrastructure. These CSR

activities are implemented in the locality where the company operates.

Table 3 : Classification of activities carried out by companies in the area of community development

Name of the Work Income Infrastruc Skill Women

company relief generation ture developmen empowerment

TCS    

WIPRO    

ENTERPRISES

INFOSYS LTD.    

TOTAL 2 2 2 3 3

37
Activities such as relief work, income generation, helping in improving infrastructure and skill development

are the major activities classified under community development. All the companies are equally engaged here.

They involve in relief works, help the villages in improving their infrastructure by setting up portable water

systems, bio gas plants, community centers, and provide street lights and electricity along with low cost

Name of the Pollution Waste Energy Tree Rain water housing.

company control management saving plantation harvesting

TCS    

WIPRO    

ENTERPRISES

INFOSYS LTD.   

TOTAL 3 3 2 2 1

Rapid rise in Industrialization has seen overexploitation of natural resources. Companies use large amount of

natural resources for which in return they have to contribute to Environmental conservation. To name a few,

environment conservation program include Rainwater harvesting, tree plantation, solar power generation, etc.

Table 4 : Classification of activities carried out by companies in the area of environment

Environment activities include waste management, green initiatives, soil and water conservation, measures to

reduce carbon foot printing, using wind energy, solar energy, thus making use of the renewable energy sources.

Among the three companies, Wipro and TCS carry out four out of five activities under environment. Infosys

adapt green initiatives and waste management activities.

38
The following table summarises each company’s activities under the four major areas and their total .

Name of the Health Education Community Environment Total

The above table
company development
shows that the
TCS 4 3 4 4 15
three selected
WIPRO 2 3 4 4 13 companies all
ENTERPRISES
together perform
INFOSYS LTD. 3 4 4 3 14
42 CSR activities
TOTAL 9 10 12 11 42 under different

areas. Out of the 3

companies Tata Consultancy Services implements the maximum CSR activities followed by Infosys and Wipro

Technologies.

Health
2 Education
Community
Environment
1

0
Tata Consultancy Wipro Enterprises Infosys Ltd.
Services Pvt. Ltd.

39
CSR activities of the selected three companies are categorized in four major areas as Health, Education,

Community development and Environment. It is found that all the companies giving importance to implement

many activities in the area of environment and the least preference is given to the areas concerning community

development

There is also lack of expertise in which corporates perform their CSR activities. Companies are contributing

in education promotion, healthcare, infrastructure development and environment conservation.

40
 4.1 RECOMMENDATIONS AND CONCLUSIONS

Attention needs to be paid on a mechanism which looks after the distribution of benefits to all needy in a

rational manner. As per the changing market scenario, companies should contribute more for the upliftment of

the Indian society. Indian economy is in a developing stage and there are many backward regions and

underprivileged people which need a support in real sense with relation to heath, education and livelihood,

Spread more awareness about sustainability so that our planet would become better to live in. It is suggested

that companies can implement more activities in the area of community development where they can help in

improving the locality in which they operate.

According to the need of the time and in their own long run interest companies realized the importance of CSR

and most of the companies has transformed from their traditional self centered thought to socio

economic approaches. They have accepted that business is not just for making money and this is evident

through their involvement in various community developmental activities. Many Business firms had realized

the importance of using business ethics as a tool for retaining customers and increasing its market share

by taking up the initiatives of CSR. They have also taken for providing a clean environment for the society.

Also some companies started using the CSR as a strategy, which aims at mutual development of company and

the community simultaneously, for a more reliable and long term sustainable development of business.

It can also be said that all companies have taken CSR and SD initiatives .Some companies have their own

foundations while some are contributing with the help of government and NGOs. Private sector companies are

investing in more CSR activities but, it doesn’t mean that they are investing more funds. It may be possible

that limited funds have been used in various activities while large amount of funds have been used in limited

activities. Nowadays, selected companies have taken great efforts to achieve business goals with social

responsibility.

41
Since, there is a strong link between CSR and inclusive sustainable development. CSR provides a strategic and

competitive opportunity. Government can help by mapping existing needs, opportunities and constraints in the

local or national context in order to define appropriate modes of intervention within an overall national

strategy.Therefore, the CSR strategy of any government should simultaneously go through a development

process wherein locally appropriate modes of intervention are utilized rather than simply copying models from

other countries.

As Corporate Social Responsibility (CSR) is not a new concept in India. However, what is new is the shift in

focus from making profits to meeting societal challenges. CSR pushed the managers to consider how best

they could utilize this platform for addressing issues such as organizational actions, concern for society and

the environment influence that might lead to the competitive advantage of firms.

The process of embedding sustainability in an organisation needs the same severity of goal setting,

measurement and monitoring as is common in business operations. The distinctive characteristic of corporate

sustainability is that it spans into both the worlds of business and the social arena outside. Hence, it is critical

to set up an effective governance structure that addresses the twin drivers of strategy and execution equally.

One can realize from the above study that internal business drivers, including but not limited to resource

efficiency, green innovation, sustainable infrastructure, efficient operations, energy, water usage efficiency,

and effective waste management have become the primary levers of any corporate environmental program. At

the same time, organizations must realize that in order to make a real impact at a larger, systemic level, one

can no longer ignore the externalizing the costs of ecological damage and that one has to look beyond the

boundary.

The concept of corporate social responsibility has gained prominence from all avenues. Organizations

must realize that government alone will not be able to get success in its endeavor 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. Good corporate governance means governing the

corporation in such a way that the interests of the shareholders are protected whilst ensuring that the other

42
 stakeholders’ requirements are fulfilled as far as possible. India is a fast growing economy and is booming

with national and multinational firms. At the same time, the Indian land also faces social challenges like

poverty, population growth, illiteracy just to name a few. Therefore it is all the more imperative for the Indian

companies to be sensitized to CSR in the right perspective in order to facilitate and create an enabling

environment for equitable partnership between the civil society and business. CSR-focused businesses should

proactively promote the public interest by encouraging community growth and development, and

voluntarily eliminating practices that harm the public, regardless of legality. As one of the important shloka

(quote) from the Rigveda says “A businessman should benefit from business like a honey-bee which

suckles honey from the flower without affecting its charm and beauty”.

i. The first COVID-19 case in India was reported on January 30, 2020, and the first death in India
due to COVID-19 happened on March 12. On March 30, 2019, Infosys Foundation announced 100
crore support for COVID-19 relief efforts. Of the amount committed, 50 crores were donated to
the PM CARES Fund to supplement the government’s pan-India relief efforts.

ii. WIPRO - Estimated Prescribed CSR Budget FY 2020-21: INR 206.08 Cr . The Company is always
dedicated towards CSR activities and has spent more than the prescribed CSR budget in last three
financial years.

iii. For the first time, TCS fully spent CSR money in FY20.During the financial year 2019-20, TCS
spends in the CSR activities were at Rs 602 crore, which is 2.01 per cent of the last three-year average
profits. This also satisfies the regulation threshold.

iv. Infosys Limited, a global leader in next-generation digital services and consulting
conglomerate, has spent Rs 360 crore on various Corporate Social Responsibility (CSR)
programmes during FY 2019-20, the company's annual report revealed.

43
v. India Ranked 117th in SDG Index 2020 out of 193 UN member states with a score of 61.92 out of
100,in which Sweden Tops with the score of 84.72 out of 100: Sustainable Development Report 2020
.

vi. CSR 2019-20 : Wipro spends Rs 181 Crore ;60 % goes to skill building for IT industry

44
 4.3 REFERENCES
i. HISTORY OF CSR
https://www.accprof.org/ACCP/ACCP/About_the_Field/Blogs/Blog_Pages/Corporate-Social-Responsibility-
Brief-
History.aspx#:~:text=Today's%20CSR%20programs%20have%20their,the%20late%201800s%2C%20John
%20D.
ii. GLOBAL SCENARIO
https://www.researchgate.net/publication/324862587_Evolution_of_Corporate_Social_Responsibility_A_Jo
urney_from_1700_BC_till_21st_Century

iii. INDIAN SCENARIO

https://www.researchgate.net/publication/330001773_Corporate_Social_Responsibility_Paper

iv. CRITERIA FOR CSR https://edrest.org/indias-csr-journey-and-scenario-today/

v. WHAT IS CSR ? https://www.investopedia.com/terms/c/corp-social-responsibility.asp
vi. CSR IS A THREE LEGGED TOOL –PEOPLE PLANET & PROFIT
https://www.researchgate.net/publication/326698164_CORPORATE_SOCIAL_RESPONSIBILITY_PUBLI
C_SECTOR_VS_PRIVATE_SECTOR-A_MYTH_OR_REALITY
vii. THREE QUESTIONS ON THE CSR THEORY
https://www.duo.uio.no/bitstream/handle/10852/15964/Ilyushina.pdf?sequence=3&isAllowed=y
viii. GREEN WASHING – ANOTHER FACE OF CSR
https://www.duo.uio.no/bitstream/handle/10852/15964/Ilyushina.pdf?sequence=3&isAllowed=y
ix. DIFFERENCE BETWEEN PUBLIC AND PRIVATE SECTOR
https://www.ukessays.com/essays/economics/difference-between-public-and-private-sectors-conflicting-
perceptions-economics-essay.php
x. A BRIEF INFORMATION ON TATA GROUP
https://www.researchgate.net/publication/267246400_Corporate_Social_Responsibility_A_Case_Study_Of_
TATA_Group
xi. A BRIEF INFORMATION ON STARBUCKS https://www.investopedia.com/terms/c/corp-social-
responsibility.asp
xii. WIPRO ENTERPRISES PVT. LTD https://en.wikipedia.org/wiki/Wipro_Enterprises

xiii. INFOSYS LTD. https://thecsrjournal.in/top-indian-companies-for-csr-in-2020/

xiv. A COMPARATIVE STUDY BETWEEN PUBLIC AND PRIVATE SECTOR COMPANY
https://www.ijltemas.in/DigitalLibrary/Vol.6Issue6/18-21.pdf

xv. https://journals.aom.org/doi/full/10.5465/256122
xvi. https://www.researchgate.net/publication/291521698_CSR_in_the_Indian_Scenario
xvii. https://jcsr.springeropen.com/articles/10.1186/s40991-018-0039-y
xviii. https://shodhganga.inflibnet.ac.in/handle/10603/173019
xix. https://shodhganga.inflibnet.ac.in/handle/10603/161417
xx. https://shodhganga.inflibnet.ac.in/handle/10603/234564
xxi. https://shodhganga.inflibnet.ac.in/handle/10603/219454

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