2. CSR IMPLEMENTATION PROCESS AND OUTCOME 2.

1 Person Responsible for CSR Implementation in Companies

The survey reveals that the CSR Director followed by the CEO of the company is chief canvasser and the main person responsible for implementation of CSR initiatives across organisations. In case of PSUs, HR departments and administrative wings are also responsible for implementation of CSR activities besides CSR Director and the CEO (Fig.7).
Fig 7: Person Responsible for CSR Implementation (In per cent)

70 60 50 40 30 20 10 0

53 37 27 27 18 9 10 14 18 9 0 0 1
CEO CSR Director/Manager Administration

49 36 20 3 3 5
HR Deptt. Not Stated

36

PSU

Private Agency (National)

Private Agency (Multinational)

All

Total exceeds 100 due to multiple responses

2.2 Stakeholders in CSR Implementation Process

On the question of who are the stakeholders in the implementation of the CSR activities and initiatives, the survey reveals that the CSR initiatives are implemented through companies own CSR project management initiatives (68 per cent), voluntary organisations (29 per cent) and by giving financial support directly to community or community-based organisations (11 per cent) (Fig 8).
Fig. 8: Stakeholders in Implementation Process (In per cent)

Financial support to Community based Organisations

11 8 11 20 29

Voluntary Organisation

25 25

35

Project Management Initiatives 0 PSU 10 20 30 40 50 60

68 66 64 71

70 All

80

Private Agency (National)

Private Agency (Multinational)

Total exceeds 100 due to multiple responses

2.3 Types of CSR Initiatives

All participating respondents were asked whether the CSR initiatives implemented in the past three years were regular programmes or onetime events. The survey highlights that 84 per cent of the participating organisations implemented regular programmes whereas 7 per cent of organisations implemented one time CSR events. Similar trend is noticed in case of PSUs, private multi national and private national organisations (Table 3).
Table 3 : Types of CSR Initiatives (In per cent) Type One-Time Events Regular Programmes Not Stated Total N* Public Private Agency Sector (Multinational) Undertaking 18 82 0 11 3 82 15 39 Private Agency (National) 9 88 3 32 All 7 84 9 82
*N=Universe

Total exceeds N due to multiple responses

2.4 Outcome of CSR Initiatives Benefits of CSR On being asked if CSR is seen as a catalyst in bringing positive social change, almost all the respondents replied affirmatively. About threefifth of the organisations (59 per cent) work on CSR to improve perception about the company, while more than half (54 per cent) do so to brand the company among people. Tax benefit under 80G is a motivating factor in case of two-fifth of the organisations (43 per cent), while onetenth of the organisations (13 per cent) reported to be taking up CSR work as it is mandatory in their case (Fig. 9a).
Fig 9a : Possible Benefits of CSR (In per cent)
100 90 80 70 60 50 40 30 20 10 0
10 9 13 36 36 31 54 43 55 51 56 54 51 56 59 91

As it has been made mandatory by Govt.

PSU

To get Tax Benefits (under 80G)

Private Agency (National)

To Brand Company among People

Improve Perception about Company

All

Private Agency (Multinational)

Total exceeds 100 due to multiple responses

The respondents were also asked about possible benefits of investing in CSR, the findings indicate that though goodwill is a common factor of CSR initiatives among all the three types of organisations, branding seems to be higher on agenda in case of private multinational companies. On the other hand PSUs seem to be more concerned about improving perception of the company in the eyes of the public and their stakeholders (Fig. 9b).
Fig 9b : Possible Benefits of CSR (In per cent)

90 80 70 60 50 40 30 20 10 0

82

85

81 75 69 55 62 69

82 72 72 75

Goodwill PSU

Branding Private Agency (National)

Improved Perception about Company Private Agency (Multinational) All

Total exceeds 100 due to multiple responses

Other possible benefits highlighted by the participating respondents include the following: Positive and long-term relationship with communities Nation-building and prosperity of region of their operations and activities Providing support where Governments support is inadequate and limited Helping supply chain management and Supporting creation of a healthy human resource base for the corporates

Perceptions about Tax Benefits Though CSR initiatives are not implemented with the sole intention of tax saving, half of the organisations surveyed (51 per cent) felt that Governments proposal to abolish section 80G granting tax benefits would discourage CSR spendings by the companies. According to the survey findings, the rest of the organisations are divided in their views as 6 per cent believe that this is a good decision, 17 per cent are of the view that it will not affect the CSR spendings and yet another 6 per cent state that it does not have any relevance to CSR spending (Fig 10).

Fig 10 : Perceptions about Tax Benefits (In per cent)

Does not have any Relevance

0 0

6 6 8

It will not Affect

17 16 15 27 51 50 56 36 6

It will Discourage CSR spending by Companies/ Industries

This is good for Companies/ Industries 0

9

13

10

20

30

40

50

60

PSU

Private Agency (National)

Private Agency (Multinational)

All

Total exceeds 100 due to multiple responses

Factors Leading to Corporate Houses forming Foundations for CSR Work According to the survey findings, the factors which lead the corporate houses to form foundations for CSR-related work, include the following: Exclusive focus on CSR initiatives and activities Demarcation of commercial activities from the social activities Genuine social concerns for community Transparency in CSR activities and Generation of funds to support CSR activities