A

SUMMER REPORT
ON
“A study of corporate social responsibility of IT
companies in India”

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER
OF MANAGEMENT STUDIES (MMS) UNDER UNIVERSITY OF
MUMBAI.

SUBMITTED BY:
SACHIN YUVRAJ KEDAR

REG NO:192081029
BATCH NO: 2019-2021

UNDER THE GUIDANCE OF

Dr. N.MAHESH

ANNASAHEB CHUDAMAN PATIL COLLEGE OF ENGINEERING,

MANAGEMENT STUDIES AND RESEARCH, KHARGHAR.

i
 COLLEGE CERTIFICATE

This is to certify that Mr. SACHIN YUVRAJ KEDAR. student of Masters of

Management Studies (MMS) has undergone and completed his project report
on “A study of corporate social responsibility of IT companies in India” as a
partial fulfilment of requirement of award of degree of Masters of Management
Studies (MMS) from University of Mumbai, Academic year 2019-2021.

Dr.N.Mahesh Dr.V.N.Pawar

(Professor and Head) (Director)

ii
 GUIDE CERTIFICATE

This is to certify that Mr. SACHIN YUVRAJ KEDAR student of Masters of

Management Studies (M.M.S) has undergone and completed his project report on
“A study of corporate social responsibility of IT companies in India” under my
guidance as a partial fulfillment of requirement of award of degree of Masters of
Management Studies (MMS) from University of Mumbai, Academic year 2019-
2021.

Place:
Date: Dr. N.Mahesh

iii
 DECLARATION

I hereby declare that this project entitled, “A study of corporate social

responsibility of IT companies in India”is record of the work carried by me under
the guidance of Dr.N.Mahesh as a partial fulfillment of award of degrees in MMS.

I also hereby declare that the project report is a result of my own efforts and not
being submitted at any time to any other university or the institute for the award of
degree or diploma.

Place:

Date: SACHIN YUVRAJ KEDAR

iv
 ACKNOWLEDGEMENT

I would also like to acknowledge my sincere thanks to V.N.Pawar , Director,

A.C. Patil College of Engineering, Management Studies & Research, for providing
me this opportunity.

Special thanks to Dr. N. Mahesh, Head of Department, MMS who provided me

with all the useful information during the project.

I would also like to acknowledge with much appreciation the crucial role of my
guide Dr.N.Mahesh who gave his valuable inputs and support throughout the
project.

Finally, I would like to thank our esteemed institute "AC Patil College of
Engineering and Management Studies and Research" for the opportunity.

"This Project is not a result of an individual effort but it is a product of collective

wisdom".

Place:

Date: SACHIN YUVRAJ KEDAR

v
 EXECUTIVE SUMMARY
India, in the past 10 years, has seen a phenomenal growth in various industries; hence, CSR
has a extensive way to voyage. Globalization and liberalization of the Indian financial
system has resulted in change of the business goals from socioeconomic spotlight towards
escalating shareholders value to the wellbeing of stakeholders. A meticulous study of CSR
in India along with significance of the study in business arena left only few essential points
to discuss. Hence, it is the constraint of today to judge this excited association in the Indian
context with association to socially responsible initiatives. However CSR has been
accomplished by most of the organizations, still it’s not clear to what extent they are being
implemented and followed. Government has passed a bill on CSR in the parliament clause
135 schedule VII of Company Bill 2013, formulate the organizations which are registered
under the companies law or any previous laws (Section 1) of (Section-135) having net
worth of rupees 500 crore or more or turnover of rupees 1000 crore or more or net profit of
rupees 5 crore or more during any financial year to adopt the corporate social responsibility
mandatorily and they have to spend at least 2% of their average net profit made during the
three immediately preceding financial years on CSR still there is question of to what extent
this has been implemented. With all these significance, how far CSR is the need of the hour
and to how far the above is being acknowledged and implemented by the IT companies in
India. This research focuses on the study of CSR activities put up by the IT companies to
know if those efforts are more worked on for the society benefits or to know their Stake
holder perception in terms of positive work culture and, corporate strategies. The study
also works on understanding whether reformation of corporate strategies happen as per the
CSR efforts put up and the impact of CSR efforts and its relevance with competitive
advantage of the organizations towards sustainability. The Statistical Analysis of Pearson
correlation, Regression statistics, Chi-square test and Mann-Whitney tests are done to test
and validate the various hypotheses. The thesis also depicts the result discussion and
findings of the study and provides suggestions for the IT companies with respect to CSR
efforts to be put up. vii Keywords-Corporate social responsibility, IT Companies, CSR
theme, CSR Activities, Stake holder perception, community policies

1
 CONTENTS

Chapter No. Name of the Chapter Page No.

1 Introduction 3-10
Objective
Scope
Need
Limitation
Signification
hypothesis

2 Literature Review 11

3 IT companies in India 15

4 Research Methodology 24

5 Data Analysis and Interpretation 28

Findings, Suggestions, Conclusion and Scope of Future

6 51
Research

References 56

2
 CHAPTER 1
INTRODUCTION

3
 1.1 INTRODUCTION

The concept of Corporate Social Responsibility (CSR) has grown to be an important

perform not completely under the policy of any official law or legal body but more as a
routine that a company should perform and follow. However, for many companies, it
remains extremely new. In India, a number of companies tend to vision CSR as a strategic
issue. By engaging in CSR activities, companies will gain better gratitude as responsible
corporate citizens from the perspective of international and local investors. This is against
the conventional vision of business which is essentially to maximize profits.
According to Carroll (1979)1 , Corporate Social Responsibility has been developing as
early as the 1930s. CSR can be defined as treating the stakeholders of the firm ethically or
in a responsible manner. CSR is a concept whereby organizations consider the interests of
society by taking responsibility for the impact of their activities on stakeholders as well as
the environment. This obligation is seen to extend beyond the legal obligation to comply
with legislation and sees companies voluntarily taking further steps to improve the quality
of life of employees and their families as well as the local community and society at large.
Carroll (1991)2 suggested that CSR should be divided into four levels: 1. Economic, 2.
Legal, 3. Ethical and 4. Philanthropic responsibilities. Economic responsibility refers to the
profitability of the company, while legal responsibility is complying with laws and
regulation. As for the ethical perspective, the companies’ operation should go beyond the
laws to do the right thing in fair and just ways. Philanthropic responsibility refers to
voluntary giving and service to the society. However, the traditional views are no longer
accepted in today's business environment, where, as a result, companies have adopted the
concept of CSR, which is concerned with economic, environmental and social
performance. In today’s global society there is growing and heightened concern for
Corporate Social Responsibility primarily because of the growing influence of
multinationals 2 over the world economy and the heightened publicity it attracts from the
media. The growing pressure of media sees any kind of mistake by companies and is
brought immediately to the attention of the public. Furthermore, Internet communication
among like-minded consumers and groups is empowering them to spread their message,
and giving them means to coordinate collective action i.e. refuse a product offering. The
growing concern for CSR, coupled with the growing importance of brand and brand value
to corporate success produces a shift in the relationship between the Corporation and
consumer, in particular, and between the corporation and all other stakeholder groups in
general. The stakeholders associated with the organization get influenced with both the
positive and negative news relating to the company and its operations. Therefore, it is
integral for the companies not only to develop and improve their core production processes
but also focus on social issues that reflect company’s attitude towards its stake holders.

4
1.2 CSR in India and Sustainability
In India CSR has been developed as a Philanthropic activity and in keeping with the Indian
tradition, it was an activity that was performed but not deliberated. As a result, there is
limited documentation on specific activities related to this concept. As some observations
have pointed that the practice of CSR in India still remains within the philanthropic space,
but has moved from institutional building to community development through various
projects. CSR in India tends to focus on what is done with profits after they are made.
Corporate sustainability essentially refers to the role that companies can play in 5 meeting
the agenda sustainable development and entails a balanced approach to economic progress,
social progress and environment. On the other hand sustainability is about factoring the
social and environmental impacts of conducting business. Hence much of the Indian
practice of CSR is an important component of sustainability business.

5
 1.2 OBJECTIVES OF THE STUDY

The objectives of the study are :

 To study the pattern of CSR activities carried by IT Companies.
 To evaluate the preferences of CSR activities by IT Companies.
 To elicit the opinion of the corporate management on the CSR activities of the
 company.
 To trace the corporate management opinion about Companies Act 2013 for
corporate social responsibility.
 To find out the difficulties in implementing CSR activities.

6
 1.3 NEED AND STATEMENT OF THE PROBLEM

We are interested in exploring whether companies having operations in India

consider themselves for CSR issues, and what may be the true objective and interest
of the companies for the same, before associating themselves with CSR activities.
Apart from that, this study also aims to identify the awareness level towards CSR. The
results of this study will also be useful for IT companies to understanding the priority
of the CSR activities for the society.
The study is endeavoured to ascertain:
1. Whether CSR activities are being practiced under the clause (Section 1) of
(Section-135) of company bill in IT/ITES Industry?
2. How effectively it is being practiced?
3. Whether the CSR activities followed provides benefit to the society?
4. Whether the CSR activities impact on the corporate strategies with better
crystallization?
5. Whether the CSR activities create better work culture and employee motivation?
6. Whether CSR impacts on the competitive advantage of the organization for
sustainability?

7
1.4 SCOPE AND LIMITATIONS OF THE STUDY

All the studies Worldwide have covered various aspects of CSR from different
perspectives. Some are based on definitions and some based on theories and models to
evaluate the measurement of CSR contributed by the organizations to the society.
Though several studies have been conducted, still there is a scope for further research.
Considering the participation of IT companies is a very attractive proposal in India, as
till date no attempt was made by any individual or organization in this line of study
and research.
This study will enlighten on different aspects of CSR of IT Companies. The broad
areas of investigation that constitute the scope of study are listed below:
 The investigation in the present study does include only IT and ITES Companies in

India and not other supportive IT Organizations.

 The study deals only with some important elements.

 Corporate Strategy, society benefits, Perception of stake holder’s i.e.; corporate

executives connected with CSR.

 These companies are finding themselves in a trajectory of What to do, How to do,

Where to do.

 The study also explores the restructuring adoptive methods of the organization in

the context of the Indian companies Act.

 The study is focused only on the thematic Activities which are prescribed by the

Indian companies Act.

 The study does not fully explain all the core conceptual pillars of CSR in terms of

competitive advantage, work culture, Employee motivation, corporate governance

8
 and other subjects, but only shows its importance in framing a socially responsible

activity.

1.5 SIGNIFICANCE OF THE STUDY

“It’s all about the bottom line”. In the context of social change the bottom lines do

undergo a challenge in different aspects of social life. The same thing is happening with

business a corporate bottom line. Because the bottom line refers to the last line of a

financial statement – profit or loss – it has traditionally been the ultimate measure of short

and long-term organizational decisions, referring to the economics of costs and revenue.

While economics is still important, the increased complexity of global markets and

sophistication of consumers, as well as the increased importance of environmental and

social impacts, has changed the way successful organizations look at what positively

impacts their bottom line. Today, organizations that want to achieve long-term success

consider what is known as the Triple Bottom Line viz: Economic, Environmental and

Social considerations. A strategic approach to CSR is increasingly important to a

company's competitiveness. It can bring benefits in terms of risk management, cost

savings, Role of the Board Form a CSR Committee Approve the CSR Policy Ensure

Implementation of CSR activities Ensure 2% spend Disclose reasons for not spending CSR

Committee Three or more directors with at least one independent Formulate and

recommend a CSR policy to the board Recommend activities and the amount of

expenditure to be incurred Monitor the CSR policy 9 access to capital, customer

relationships, human resource management, and innovation capacity. It also encourages

9
more social and environmental responsibility from the corporate sector at a time when the

crisis has damaged consumer confidence and the levels of trust in business.

10
 1.6 HYPOTHESIS OF THE STUDY
The hypothesis stipulated in study are :

 H1: CSR Activities carried by IT Companies have significant influence on

stakeholder’s perception.

 H2: CSR Activities carried by IT Companies have significant influence on Social

responsibility policy.

 H3: CSR Social responsibility policy Activities taken by IT Companies has

significant influence of on stakeholder’s perception.

 H4: CSR Activities taken by IT Companies have dependency between CSR activity

and difficulties in implementing.

 H5: There is a significant relationship between Social responsibility policy of CSR

and CSR activity followed by IT Industry.

 H6: There is a significant relationship between CSR activity followed by IT

Industry and perception of stakeholders about CSR.

11
 CHAPTER 2

LITERATURE REVIEW

12
Literature review:

Now days the concept of Corporate Social Responsibility (CSR) has become an

important concept for the study by industrialists, scholars and researchers. As a

business concept, corporate social responsibility (CSR) has emerged in the

twentieth century, when a rising number of companies started to consider the

impacts of corporate decisions on society and the environment. In general, CSR

refers to the obligations of firms to society, more particularly, refers to the

obligations to stakeholders and those who persuade corporate policies and

practices. CSR encompasses two main aspects accountability and transparency. In

addition to the default responsibility for its financial performance and profitability,

companies are accountable to stakeholders, for their performance in relation to

human rights, environmental policies, business moral principles, corporate

governance, society development, and diversity and job creation problems. The

analysis of CSR literature reveals the below mentioned arguments which can make

implementation of CSR more successful:

Bowen (1953)7 put forward an underlying meaning of CSR as the social

responsibility of corporate. Bowen drew from Fortune magazine's study in which

the editors proposed that the importance of CSR is "Business was in charge of all

outcomes of the activities which goes past simply benefit and misfortune comes

about". He felt that however social responsibility isn't a general answer for the

issues of society, yet it contains a vital truth that gives direction to leading business.

His book likewise talks particularly on the tenet of social responsibility, denoting

the initiation of a progression of discourse on the theme. In light of the way that,

13
Bowen has been the soonest scholars on CSR and his commitments have been basic

to the advancement and development of the idea of CSR, he is frequently alluded to

as by numerous creators as the "Father of Corporate Social Responsibility."

Keith Davis (1960)8 proposes that CSR is about business and specialist's choices
took after by activities embraced for reasons overshadowing halfway association's
immediate monetary or specialized contemplations. As per him, costs on socially
16 capable business choices can be amortized and legitimized through the increases
that the firm accumulates in the long haul. Despite the fact that this is a confused
procedure, the thinking will enable chiefs to legitimize CSR costs. He ended up
plainly prevalent for his assessments on the subject of business power and its
association with social responsibility. He supported "iron Law of Responsibility,"
which implies that social energy of business men ought to by one means or another
is proportionate to the quantum of social responsibilities they include in. He
contemplated assist that if this happen representatives who maintain a strategic
distance from social responsibility will find that there is continuous disintegration
of their social power. Keith's chip away at characterizing CSR has been vital in the
development of the idea of CSR henceforth he is regularly considered as second in
running for the title 'Father of CSR after Bowen. His works have shaped the
establishments for coordinating CSR as a business Technique.
William C. Frederick (1960)9 commends that the possibility of social
responsibility incorporates that requirements of the bigger group ought to be
satisfied by the businesspeople in the procedure of dealing with the operations of
their center business exercises. An extrapolation of this proposal is that business
operations should be dealt with is such a path, to the point that the procedure of
creation and advertising ought to really enhance the welfare of the society business
works. As per him, Social responsibility implies that the assets of the business
ought to be utilized to meet the vision and goals of the society everywhere as
opposed to concentrating on the advantages of couple of private people and
organizations. He likewise acquired the thought of the more extensive parts of

14
society into what CSR ought to be related as an idea however isn't viewed as the
most famous meanings of CSR.

Friedman (1970)10 thought "It has been generally used to influence administrators
to consider the social reactions of their approaches. Benefits lose their ability to
gauge execution at the point when in their calculation, externalities have not been
considered". Likewise, CSR was additionally scrutinized by neoclassical defenders
who viewed it as "subversive," as an assault on property rights, and, by and large,
as a danger to free society.
Morrell Heald (1970)11 contended that social responsibility ought to be comprehended as
representatives themselves have characterized and experienced it. 17 He proposed that the
"significance of the idea of social responsibility regarding specialists should at long
last be looked for in the real strategies with which they were related". He went
ahead to expand on the historical backdrop of corporate strategies, different group
welfare programs furthermore, sentiments of administration. His composition
plainly recommended that amid that period, specialists were engaged with part of
corporate altruism and group improvement. Morrell did not offer any extensive
definition like different creators.
Votaw and Sethi (1973)13 proposed that "the term (social responsibility) is a
splendid one; it is something however not generally a similar thing, to everyone. To
a few, it implies socially mindful conduct in a moral sense; to even now others the
significance transmitted is that of 'in charge of' in a causal mode; many basically
compare it with 'beneficent commitments'; some interpret it as meaning socially
cognizant or 'mindful. Many of the individuals who grasp it most intensely consider
it to be a unimportant equivalent word for 'authenticity', in the setting of 'having a
place' or being appropriate or substantial. A couple of consider it to be a kind of
trustee responsibility forcing higher norms of conduct on businesspeople on the
loose. Votaw's contentions on social responsibility are same the same number of
prior creators however it merits rehashing".

15
16
 CHAPTER 3
CORPORATE SOCIAL RESPONSIBILITY OF
IT – COMPANIES IN INDIA

17
3.1 INTRODUCTION
India is the world's largest sourcing destination for the Information Technology
(IT) industry, accounting for approximately 67 percent of the US$ 124-130 billion
market. The industry employs about 10 million workforces. More importantly, the
industry has led the economic transformation of the country and altered the
perception
of India in the global economy. India's cost competitiveness in providing IT
services,
which is approximately 3-4 times cheaper than the US, continues to be the mainstay
of its Unique Selling Proposition (USP) in the global sourcing market. However,
India
is also gaining prominence in terms of intellectual capital with several global IT
firms
setting up their innovation centers in India.
The IT industry has also created significant demand in the Indian education sector,
especially for engineering and computer science education. The Indian IT and ITeS
industry is divided into four major segments – 1.IT services, 2.Business Process
Management (BPM), 3.Software products 4.Engineering services, and 5.Hardware.

3.2 INFORMATION TECHNOLOGY & INFORMATION TECHNOLOGY

ENABLED SERVICES (IT-ITES)
Information Technology sector is a field which is undergoing rapid evolution and
is changing the shape of Indian business standards. This sector includes
 Software development
 Consultancies,
 Software management,
 Online services
 Business process outsourcing (BPO).
According to an article in the Times of India, India's liberalization was possible
due to its IT industry. In the 1990s, the industry started off with an export of nearly

18
$100 million with around 5,000 employees. Now it is an industry that thrives
globally
and India's IT exports are now around $70 billion with 2.8 million employees
working
in this sector. The article states that the IT sector is one of the top two industries in
the country today.
India's IT industry is expected to grow at a rate of 12 - 14% during 2016 - 2017 as
per a report by India's software industry body National Association of Software and
Services Companies (NASSCOM.) This clearly shows that information technology
is a sector which will likely be one of the emerging markets in the days to come as
India's economy requires more hardware, software and other IT services. India's
position in the global offshore IT industry is based on five factors - abundant talent,
a creation of urban infrastructure, operational excellence, conducive business
environment and finally, continued growth in the domestic IT sector.

3.3 INFLUENTIAL FACTORS:

The IT industry is heavily influenced by factors like the global market and
sustenance of its rate of growth. The recession in the United States also impacted
the
IT community in India negatively. This segment is promising and has vast
potential,
but there are concerns regarding the demand-supply gap, which is widening. Some
challenges which the industry is facing are inadequate infrastructure, tax issues and
limited preferential access for local firms. China and Taiwan are examples of
lowcost destinations, and India needs to change its current tax structure so that it
can
outdo competition from other countries.
One of the biggest benefits that the computer and IT industry provide in India is
the employment it can generate. Other benefits are export and Foreign Direct
Investments (FDI). New markets have opened up in the Middle East, Africa,
Eastern

19
Europe, and South and South East Asia. India is now a major destination for IT
outsourcing. There is no dearth of IT job opportunities in India. In fact, India is
expected to overtake the US to have the most number of software developers in
2018 (52 lakh developers in India against America’s 42 lakhs.)

3.4 MARKET SIZE

The Indian IT sector is expected to grow at a rate of 12-14 percent for FY2016-17
in constant currency terms. The sector is also expected triple its current annual
revenue to reach US$ 350 billion by FY 2025.
Employees from 12 Indian start-ups, such as Flipkart, Snapdeal, Makemytrip,
Naukri, Ola, and others, have gone on to form 700 start-ups on their own, thus
expanding the Indian start-up ecosystem.! India ranks third among global start-up
ecosystems with more than 4,200 start-ups.
Total spending on IT by banking and security firms in India is expected to grow 8.6
percent year-on-year to US$ 7.8 billion by 2017. India’s internet economy is
expected to touch Rs 10 trillion (US$ 146.72 billion) by 2018, accounting for 5
percent of the country’s GDP. The public cloud services market in India is slated to
grow 35.9 percent to reach US$ 1.3 billion according to IT consultancy, Gartner.
Increased penetration of internet (including in rural areas) and rapid emergence of
e-commerce are the main drivers for the continued growth of data center co-
location and hosting market in India. The Indian Healthcare Information
Technology (IT) The market is valued at US$ 1 billion currently and is expected to
grow 1.5 times by 2020. India's business to business (B2B) e-commerce market is
expected to reach US$ 700 billion by 2020 whereas the business to consumer
(B2C) e-commerce market is expected to reach US$ 102 billion by 2020.
Cross-border online shopping by Indians is expected to increase 85 percent in 2017,
and total online spending is projected to rise 31 percent to Rs 8.75 lakh crore (US$
128 billion) by 2018.
Post the government’s announcement of demonetization of specific currency
denominations, digital payment platforms such as Paytm, MobiKwik, Oxigen

20
 witnessed a sharp spike in user transactions, app downloads and merchant inquiries,
thereby indicating a greater demand towards digital payments by consumers.
India ranks among the top five countries in terms of digitalisation maturity as per
Accenture’s Platform Readiness Index, and is expected to be among the top
countries with the opportunity to grow and scale up digital platforms by 2020.1

3.5 INVESTMENTS AND DEVELOPMENTS

Indian IT's core competencies and strengths have attracted significant investments
from major countries. The computer software and hardware sector in India attracted
cumulative Foreign Direct Investment (FDI) inflows worth US$ 22.83 billion
between April 2000 and December 2016, according to data released by the
Department of Industrial Policy and Promotion (DIPP).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are
diversifying their offerings and showcasing leading ideas in blockchain, artificial
intelligence to clients using innovation hubs, research and development centres, in
order to create differentiated offerings.

3.6 MAJOR DEVELOPMENTS IN THE INDIAN IT AND ITES SECTOR:

 Bengaluru-based Fintech Company ZestMoney, owned by Camden Town

Technologies Pvt. Ltd, has raised US$ 6.5 million in a series A round of funding
led by Naspers-owned PayU; and will invest the funds in technology and product
development.
 Google plans to set up its first data centre in India in the city of Mumbai by 2017,
to improve its services to local customers wanting to host their applications on the
internet, and to compete effectively with the likes of Amazon and Microsoft,
 Sagoon Inc, a social network and e-commerce start-up, has filed mini-initial public
offering (IPO) papers with the US Securities and Exchange Commission (SEC), to
raise around US$ 20 million, which will be used to set up a campus in India,

21
 expand its team in India, the US and Nepal, and support marketing and branding
and other general purposes.
 Freshdesk, one of the first companies from India to offer Software-as-a-Service
(SaaS) to global companies, has raised US$ 55 million in the latest round of
funding led by Sequoia Capital India and existing investor Accel
Partners,estimating to value the company at US$ 700 million.
 Warburg Pincus LLC, the US-based private equity firm, plans to invest around US$
75 million in series C round of funding to buy a significant stake in Capital Float,
an online credit platform.
 Helpshift Inc, which makes customer support software for mobile apps, announced
raising US$ 2 million from Cisco Investments, in addition to working with Cisco to
integrate its in-app customer support with Cisco’s contact centre solutions.
 Knowlarity Communications Pvt Ltd, a cloud telephony provider, has announced
raising US$ 20 million from multiple investors such as Dubai-based private equity
investor Delta Partners, existing investors Sequoia Capital Funds and Mayfield
Fund, apart from venture-debt from Blacksoil and Trifecta Capital.

 Flipkart, India's largest e-commerce marketplace, has re-entered the private label
business by launching Smart Buy, the first of two new private labels, with a view to
boost earnings and fill gaps in its product selection.

 Fit pass, a Delhi-based revolutionary app which offers access to gyms and health
clubs membership, has raised US$ 1 million in seed funding from investors in Mumbai,
Delhi, and Bengaluru.

 Apple’s supplier and assembler, Taiwan-based Winstron, will set up an iPhone

assembly facility in Peenya, Bengaluru’s industrial hub, thus making India the third
country across the world to have an assembly unit for Apple’s iPhone.

 Kratikal Tech Pvt Ltd, a cyber-security start-up, has raised around US$ 500,000 in a
seed funding led by Mr Amajit Gupta, former director of Microsoft India, which will be
used for product development and building training modules.

22
 International Finance Corporation (IFC) plans to invest US$ 10 million as equity in
Bengaluru-based Zinka Logistics Pvt Ltd, which provides a technology platform called
Blackbuck for long-haul trucking market in India, estimated at US$ 70 billion.

 Paytm’s online marketplace unit raised US$ 200 million in a funding round led by a
US$ 177 million investment to be made by Alibaba Group Holding Ltd, and balance by
SAIF Partners.

 Intel Corporation plans to invest in Digital India related solutions such as India stack,
Unique Identification (UID), e-government 2.0 and other government initiatives, and
scale up operations of its data centre group (DCG), as per Mr Prakash Mallya, Director
DCG, Asia for Intel Corporation.  Reliance Industries Ltd (RIL) plans to set up
entrepreneurship hubs in key cities and towns, and a Rs 5,000 crore (US$ 748 million)
fund, under the name of Jio Digital India Start up Fund, to invest in technology - based
start-ups.

 Gurgaon-based digital wallet start-up MobiKwik, which is owned and operated by

One MobiKwik Systems Private Limited, has raised US$ 40 million from Nasdaq listed
firm Net1, a South African payments technology company.

3.7 GOVERNMENT INITIATIVES

In the Union Budget 2017-18, the Government of India announced the following key
proposals:

 The Government of India has allocated Rs 10,000 crore (US$ 1.5 billion) for
BharatNet project under which it aims to provide high speed broadband to more than
150,000 gram panchayats by 2017-18.

 Prime Minister of India, Mr Narendra Modi, has launched the Bharat Interface for
Money (BHIM) app, an Aadhaar-based mobile payment application that will allow

23
users to make digital payments without having to use a credit or debit card. The app has
already reached the mark of 10 million downloads

3.7.1 MAJOR INITIATIVES TAKEN BY THE GOVERNMENT:

 Mr Ravi Shankar Prasad, Union Minister of Law & Justice and Information
Technology, has launched a free Doordarshan DTH channel called DigiShala, which
will help people understand the use of unified payments interface (UPI), USSD, adhar-
enabled payments system, electronic wallets, debit and credit cards, thereby promoting
various modes of digital payments.

 The Government of India plans to revamp the United Payment Interface (UPI) and
Unstructured Supplementary Service Data (USSD), to make it easier for consumers to
transact digitally either with or without an Internet connection with the aim of
strengthening its push towards making India a digital economy.

 The Telecom Regulatory Authority of India (TRAI) will soon release consultation
papers ahead of framing regulations and standards for the rollout of fifthgeneration
(5G) networks and the Internet of Things (IoT) in India.

 The Government of Gujarat has signed 89 MoUs worth Rs 16,000 crore (US$ 2.3
billion) in the IT sector, during Vibrant Gujarat Global Summit-2017.

 The Government of Telangana has signed an agreement with network solutions giant
Cisco Systems Incorporation, to cooperate on a host of technology initiatives, including
Smart Cities, Internet of Things, cybersecurity, education digitisation of monuments.

 The Railway Ministry plans to give a digital push to the India Railways by
introducing bar-coded tickets, Global Positioning System (GPS) based information
systems inside coaches, integration of all facilities dealing with ticketing issues, Wi-Fi facilities
at the stations, super-fast long-route train service for unreserved passengers among other
developments, which will help to increase the passenger traffic.

 The Pune Smart City Development Corporation (PSCDCL) has signed a memorandum of
understanding (MOU) with the European Business and Technology Centre (EBTC), which will
24
allow it to gain access to real-time knowledge of technologies, solutions and best practices
from Europe.  The Human Resource Development (HRD) Ministry has entered into a
partnership with private companies, including Tata Motors Ltd, Tata Consultancy Services Ltd
and real-estate firm Hubtown Ltd, to open three Indian Institutes of Information Technology
(IIITs), through public-private partnership (PPP), at Nagpur, Ranchi and Pune.

 The Government of India has launched the Digital India program to provide several
government services to the people using IT and to integrate the government departments and
the people of India. The adoption of key technologies across sectors spurred by the 'Digital
India Initiative' could help boost India's Gross Domestic Product (GDP) by US$ 550 billion to
US$ 1 trillion by 2025.

 India and the US have agreed to jointly explore opportunities for collaboration on
implementing India's ambitious Rs 1.13 trillion (US$ 16.58 billion) ‘Digital India Initiative’. The
two sides also agreed to hold the US-India Information and Communication Technology (ICT)
Working Group in India later this year.

25
 CHAPTER 4

RESEARCH METHODOLOGY

26
 RESEARCH METHODOLOGY

Exploration of the methodology is the systematic way to explain the research. It

involves in exploring all feasible methods in solving research problem; it examines the
best possible method bearing the resources available to the researcher. Here an
endeavor is made to describe the research design and methodology involved in the
study.

4.1 RESEARCH DESIGN:

The research study has been developed in three stages:

Stage I - Conceptual outlook and Review of Literature.

Stage II - Preparation of Structured Questionnaire for eligible IT Companies in India

and the administration of the survey instruments

Stage III - Core study of implementation and follow up of Corporate Social

Responsibility activities by IT companies in India.

The First Stage of the research was a thorough understanding of the concept of CSR
and Regulations framed by the Government by focusing on the review of literature
through secondary data. Data included all types of secondary sources of National and
International relevance.

The Second Stage of the research concentrated on the development of a questionnaire

for the IT companies in view of the companies’ bill 2013 and administration of a
questionnaire to the corporate respondents.

The Third stage demonstrates the main focus of the research on CSR study and its
activities and practices by IT Companies in India with statistical proof. This revealed to
answer the statement of problems and hypothesis used descriptive research design it
was involved in developing the Objectives and Hypothesis and identified independent
and dependent variables. To explore the results of the outcome it was used a structured

27
questionnaire as a primary source of data collection and analyzed the data using
weighted average technique and SPSS software.

4.2 SOURCES OF DATA COLLECTION:

Data collection was done through the secondary source and as well as the primary
source as follow:

4.2.1 SECONDARY DATA SOURCES:

The Secondary sources of information are as follows: a) National and International

CSR related Journals, Annual reports of various IT Companies, CSR authoritative
Books and Magazines. b) Earlier research works & publications. c) Working papers by
various researchers d) Govt. of India policies and Acts.

4.2.2 PRIMARY DATA SOURCES

The primary data was elicited by carrying a survey of the IT companies in India, a
questionnaire design and developed for this purpose was administered to the eligible
chosen IT companies. From each company, a responsible executive involved in CSR
activities was respondent to the questionnaire.

4.3 TARGET RESPONDENTS:

Population for the study has considered based on the eligibility of IT / ITES Companies
in India as per the stipulation of the Indian companies Act 2013. About 1045
companies were identified comprising of public ltd companies and private ltd
companies. Each chosen company becomes respondent. Out of 1045 companies most
of them are public ltd companies which find a place in SEBI list. List of the Top IT
companies listed by SEBI has been considered for the study as provided in Annexure –
B.

4.4 SAMPLING PROCEDURE:

28
The technique adopted for choosing the respondent companies is convenience
sampling. Convenience sampling with snow bowling technique was adopted in the 64
first stage fourteen companies were chosen and personally contacted to receive the
filled questionnaire. In the second stage each company executive was enlightened to
further delineate and distribute the questionnaire to six to ten corporations involved in
CSR.

4.5 SAMPLE SIZE:

The questionnaire reached 117 IT companies involved in CSR activities out of these
106 questionnaires were received from the respondents. Out of these five instruments
were found not properly filled up. Hence were avoided for the study finally a sample of
101 companies was arrived at for the study. Out of this 79 are public ltd companies and
22 are private ltd companies.

4.6 QUESTIONNAIRE DESIGN:

The purpose of this research is to study CSR activities and approaches as mentioned in
the Companies Act and its impact that are followed by the IT Companies. The
questionnaire was framed by taking the opinions of academicians and researchers in
order to fulfill the purpose of the research study. Before formulating the research
questions, various sources of materials regarding the subject were examined and
subsequently the research questions were introduced. study.

29
 CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

30
 5. INTRODUCTION
This chapter represents the results; analysis & interpretation of primary data
collected through the structured questionnaire and which was developed to judge
the opinion of respondents about the various CSR activities performed by their
respective companies.
The data collected has been primarily tabulated and a master table was
prepared. The sample was tested for reliability using Cronbach Alpha. There
were totals eleven activities and 51 sub activities. The Cronbach alpha value of
each question/statement was more than 0.7 (α > 0.7), that means internal
consistency falls under the excellent category. Table 5.6 gives the details of
reliability results.
Likert scale was adopted. As mentioned, statistical techniques like Chi-
Square, Regression, Correlation Analysis and ANOVA were used for analysis of
the data. Through confirmatory factor analysis, conceptual model was
developed. SPSS software was extensively used for statistical analysis.

5.1 DEMOGRAPHIC DETAILS OF THE RESPONDENTS:

This section in data analysis and interpretation chapter explains the basic
demographic profile of the respondents such as age, gender, qualification,
position and experience in total and particular in the current working company.
Details of the Indian states where CSR activities were undertake and also cited.

5.1.1 DESIGNATION OF THE RESPONDENTS:

At the director’s position there are thirteen members followed by 23 ‘Sr.

Managers’, nine ‘operation level Managers’, thirty nine at ‘Managers level’.
‘Secretary’ designated are ten members, ‘Local heads’ are just five and three are
the ‘Vice- presidents’. All the respondents are at the higher level management
and middle level management.

31
 Table No-5.1.1

Designation of the Respondents

Sr.No Qualification No of
Respondents
1 Director 13
2 Sr. Manager 23
3 Manager 9
(Operations)
4 Manager 39
5 Secretary 10
6 Local Head 5
7 Vice President 2
Total 101

5.1.2 QUALIFICATION OF THE RESPONDENTS:

Table No-5.1.2

Qualification of the Respondents

Sl. No Qualification No of
Respondents
1 U.G 5
2 MBA 69
3 M. Tech 18
4 M. 9
Sc/M.Com/LLM
Total 101

Table No-5.1.2 represents the details of the qualification of the respondents

who have participated in the research study. There are four types of qualifications
present. ‘U.G’s are five members in count with 5 percentage weight, ‘MBA’
degree holders are 69 members with 68 percentage, ‘M.Tech’ qualified
respondents are 18 members (18 percentage) and M.Sc/M.Com/LLM qualified
respondents are nine with the same percentage of weightage.

32
 5.1.3 GENDER DETAILS OF THE RESPONDENTS:
Table No-5.1.3

Gender of the Respondents

Sl.No Gender No of Respondents Percentage
1 Male 67 66
2 Female 34 34
Total 101 100

From the above Table No-5.1.3, it can be interpreted that out of 101 total
respondents the majority category are male (67) which is equal to 66 percentage
and female respondents are 34 equaling to 34 percent.
5.1.4 TYPE OF COMPANY (IT or ITES):
Table No-5.1.4
Type of Company

Sl.No Type of Company No of Respondents Percentage

1 IT 64 63
2 ITES 37 37
Total 101 100

Table No-5.1.4 shows the details of the respondents based on the type of
company they work. These are categorized in two types such as IT and ITES.
The number of respondents working in IT is 64 that are equal to 63 percent of
total respondents. There are 37 respondents, who belong to ITES company type.
5.1.5 THE PROMINENT INDIAN STATE FOR CSR ACTIVITY (2016-17):
Table No-5.1.5 States
for CSR Activity

Sl.No States No of Ranking

Respondents
1 Andhra Pradesh 4 6
2 Telangana 2 9
3 Tamilnadu 18 3

33
 4 Odissa 2 9
5 Karnataka 17 4
6 Madhya Pradesh 11 5
7 Uttar Pradesh 1 12
8 New Delhi 19 2
9 Rajasthan 2 9
10 Maharashtra 22 1
11 Kerala 4 6
12 West Bengal 3 8
13 Gujarat 2 9
14 Pondicherry 1 12
15 Bihar 1 12
Total 101

Different corporations have carried CSR activities in different states of India.

They have listed the states where they have carried CSR activities in year 2016-
17. The listed states were ranked in the order of operations carried as many as
22 companies had their activities with the highest priority in ‘Maharashtra’,
‘New Delhi’ (19), ‘Tamil Nadu’ (18). The least preferred states are ‘Uttar
Pradesh’, ‘Bihar’ and ‘Pondicherry’. Each preferred by only one company. The
trend may be an indication of the levels of industrialization and the presence of
the IT companies.

5.2 CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

UNDERTAKEN BY THE IT COMPANIES:
This section would highlight the activities under corporate social responsibility
according to the agreeability of the respondents in their organizations. Activities
are listed below.
Nine themes are areas of activities have been specified by Indian companies
act to carry CSR activities. Beyond this a tenth item consisting of civil activities
and a eleventh item as others were added to receive the choice of the company
among the eleven activities ‘Health care’, is most preferred and effectively
executed activity by
98 companies. This followed by ‘Education’-76 companies, ’Employment a n d
34
employability’-73 companies the others category taken the last eleventh rank
where 33 companies participated beyond the specified list. ‘Environmental
sustainability’ activities carried by 35 companies only, taking into 9th position.
Table No-5.2
Pattern of Corporate Social Responsibility Activities

Sl.No CSR Activity No of Rank

Respondents
Yes No
1 Hunger and Poverty 65 36 4
2 Education 76 25 2
3 Women empowerment 61 40 5
4 Child Mortality and Improving 37 64 8
maternal Health
5 Health-care 78 23 1
6 Environmental Sustainability 35 66 9
7 Social Business Projects 50 51 6
8 Contribution to PM relief fund and 39 62 7
other funds
9 Employment & Employability 73 28 3
10 Community welfare activities 34 67 10
11 Others; (Please specify): 33 68 11

The Details of activities undertaken by the organizations as Corporate Social

Responsibility are being shown in the above Table No-5.2 There are ten
activities been represented as CSR as a means of solving ‘Hunger and Poverty’
problem. 65 members expressed their acceptance on this statement, remaining 36
said. For the purpose of ‘Education’, 76 said yes and 25 respondents opinioned
as not. ‘Women empowerment’ could be the means of CSR said by 61 members
and 40 are not agreed. ‘Child Mortality and Improving maternal Health’ activity
is not a CSR activity felt by 64, ‘Health care’ is one among the most prioritized
activity voted by 78 respondents and remaining 23 not prioritized.
‘Environmental Sustainability’ has 35 members support and 66 members’
rejection, ‘Contribution to PM relief fund and other funds’ are accepted by 39
respondents and 62 were not accepted this activity under CSR, ‘Employment &
Employability’ should be an activity under CSR accepted by 73 members and 28
members not supported this activity as CSR.

35
 FREQUENCY TABLES AND DIAGRAMS

5.3 SOCIAL RESPONSIBILITY POLICIES

5.3.1 ORGANIZATION STRUCTURE FOR CSR:

The respondent’s opinion about their organizations definite Corporate social

responsibility structure has shown in the below table.

Table No: 5.7.1

Organization structure for CSR

Sl.No Opinion Levels Frequency Percentage

1 Very poor 0 0
2 Poor 0 0
3 Satisfactory 13 13
4 Good 28 27
5 Very Good 60 59
Total 101 100

Chart No:5.7.1 Organization

CSR Structure

From the above chart, it can be interpreted that the highest number of
respondents is having a very good opinion about their organizations CSR
structure (59 respondents out of 101 respondents ), 27 percent of respondents

36
have felt that their organization CSR structure is just Good and remaining 14
percent respondents are satisfactory about their organization CSR structure.
5.3.2 IT COMPANY HAS A SEPARATE ALLOCATION OF FUNDS
FOR CSR IMPLEMENTATION OF CSR ACTIVITIES:
The opinion towards the statement “Our IT company has a separate
allocation of funds for CSR Implementation of CSR activities” is represented
in the below table.
Table No: 5.7.2
Separate Funds for CSR
Sl.No Opinion Levels Frequency Percentage
1 Very poor 0 0
2 Poor 2 2
3 Satisfactory 24 24
4 Good 41 40
5 Very Good 34 34
Total 101 100

Pie Diagram No: 5.7.2

Separate Funds for CSR

The above pie diagram would show the details of respondents’ satisfaction on
allocation of separate funds for CSR in their respective organizations. Since, the
majority of them (40 percent) has been said it is good enough. 34 percent of
respondents have been declared, it is very good enough, 24 percent of total
sample felt it is satisfactory.
37
 5.3.3 LOCAL COMMUNITY ACTIVITIES:

Employees are encouraged to participate in local community activities (e.g.

providing employee time and expertise, or other practical help)Table No 5.8.3
shows the details of respondent’s response on encouragement from
organizations to participate in local community activities under CSR.

Table No: 5.7.3

Local Community Activities

Sl.No Opinion Levels Frequency Percentage

1 Very poor 5 5.0
2 Poor 0 0.0
3 Satisfactory 27 26.7
4 Good 29 28.7
5 Very Good 40 39.6
Total 101 100
Graph No:5.7.3 Local
community activities

The graph that was shown above represents the frequency of respondents
whose responses range from very poor to very good. The highest number of
respondents i.e., 40 out of 101 samples was encouraged to participate in

38
community activities under CSR since they said it is very good. 28.7 percent of
respondents agreed it is good and 26.7 percent of sample respondents are just
satisfied about their participation in community activities under CSR.

5.3.4 FINANCIAL SUPPORT TO LOCAL COMMUNITY ACTIVITIES:

Enterprise gives regular financial support to local community activities and

projects (e.g. charitable donations or sponsor ships)

Respondent’s opinion about financial support to local community activities and

projects has been represented in the below table.

Table No: 5.7.4

Financial Support to Local Community Activities

Sl.No Opinion Levels Frequency Percentage

1 Very poor 0 0.0
2 Poor 15 14.9
3 Satisfactory 15 14.9
4 Good 35 34.6
5 Very Good 36 35.6
Total 101 100
Chart No: 5.7.4

Financial Support to Local Community Activities

39
 From the above chart no 5.8.4, it can be understood that the majority of
respondents are saying that financial support to local community activities given
by organization is very good ( 35.6 percentage of respondents) and 34.7 percent
of respondents felt it is good. The least number of respondents is just satisfied
(14.9 Percent) and even the same 14.9 percent of respondents have felt it was
poor.

5.3.5 TARGETS FOR FUTURE GENERTIONS:

Company target sustainable growth, which considers future generations. The

opinions about considering future generation’s sustainable growth through CSR
activities by the company that the respondents work was shown in below table
no 5.7.10.

Table No: 5.7.10

Targets for Future Generations

Sl.No Opinion Levels Frequency Percentage

1 Very poor 2 1.98
2 Poor 3 2.97
3 Satisfactory 25 24.75
4 Good 22 21.78
5 Very Good 49 48.51
Total 101 100

40
 Chart No: 5.7.10 Targets
Future Generations

From the above chart no 5.8.10, the opinion of respondents about their
company’s consideration of future generation’s sustainability could be
understood clearly. As the chart shows it is a very good strategy in CSR
responded by 48 percent of respondents that are majority of the sample. 25
percent of respondents said it is satisfactory in their organizations and 22 percent
of respondents are having an opinion that it is good considering future
generations sustainability through CSR by the company.

41
 5.8.1 RESPONSIBILITY OF CSR IMPLEMENTATION:

Implementing CSR should be a responsibility of every corporation. The detail of

respondents’ different levels of acceptance or rejection has been shown in the form of
a frequency table below.

Table No: 5.8.4

Responsibility

Sl.No Opinion Levels Frequency Percentage

1 Very poor 3 2.97
2 Poor 10 9.90
3 Satisfactory 20 19.80
4 Good 18 17.82
5 Very Good 50 49.50
Total 101 100

Pie Diagram No: 5.8.4

Responsibility

42
 Very Good with a 49 percent majority of responses has confirmed that
implementing CSR should be every organization’s responsibility. Implementing CSR
should be every organization’s responsibility is a satisfactory perceptional statement
said by 20 percent of respondents in the study and 18 percent of respondents said it is
a good statement.

5.8.2 TRAINING FOR COMPANIES:

Governments should provide training to companies to help them in implementing

CSR.

Opinions of respondents on the perception of stakeholders about CSR as

Government should provide training to companies to help them in implementing CSR
is shown in below table no.5.9.5.

Table No: 5.8.5

Training for Companies

Sl.No Opinion Levels Frequency Percentage

1 Very poor 0 0.00

2 Poor 8 7.92

3 Satisfactory 12 11.88

4 Good 30 29.70

5 Very Good 51 50.50

Total 101 100

43
 Diagram No: 5.8.5
Training for Companies

50.5

29.7

11.88
7.92

The perceptional statement that the governments has to provide training on CSR
activities to the companies so that it helps them to implement CSR properly has
been approved at a very good level of acceptance with 50.50 responses given by
respondents.29.70 percentage has agreed at a good level and 11.88 percent had
gotten satisfied with this statement.

44
 5.8.3 HIGHER RECOGNITION:

Higher public recognition should be given to companies doing well in the

area of CSR.

Perception about CSR has been asked as companies should get higher
recognition for doing CSR well and the respondent’s opinion about the statement
was shown in the below table 5.9.6.

Table No: 5.8.6

Higher Recognition

Sl.No Opinion Levels Frequency Percentage

1 Very poor 0 0.00
2 Poor 1 0.99
3 Satisfactory 31 30.69
4 Good 38 37.62
5 Very Good 31 30.69
Total 101 100

Histogram No: 5.8.6

Higher Recognition

45
 From the above diagram, 37.62 which is the highest percent in the total
percent of different opinions said good and agreed it is correct. 30.69 percentage
of respondents have agreed it is a very good statement and more interestingly,
even the same percent (30.69) percent of respondents feels that it is a
satisfactory statement that is higher recognition should be given t the
companies those are all doing well in the area of CSR .

5.8.4 HIGHER EMPLOYEE SATISFACTION:

CSR initiatives have lead to higher employee satisfaction.

CSR activities carried out by the organizations have lead to higher employee
satisfaction was one of the statement that the study raised and opinions are
represented in the table below.
Table No:5.8.9
Higher Employee Satisfaction

Sl.No Opinion Levels Frequency Percentage

1 Very poor 1 0.99
2 Poor 3 2.97
3 Satisfactory 34 33.66
4 Good 25 24.75
5 Very Good 38 37.62
Total 101 100

46
 Pie Diagram No: 5.8.9
Higher Employee Satisfaction

Majority of the respondent’s i.e 37 percent have agreed with the statement
that CSR leads to higher employee’s satisfaction as it is a very good notice, 34
percent of respondents are satisfied about the statement and 25 percent of
respondents said it is a good point that supports higher employee satisfaction
through CSR activities.

5.8.5 EMPLOYEE PARTICIPATION IN CSR ACTIVITIES:

Companies motivate employees to participate in CSR activities & Projects.The

respondents opinion about motivation of employees to participate in CSR and related
projects given by their company has shown in the below table no 5.8.12.
Table No: 5.8.12
Employee Participation in CSR

Sl.No Opinion Levels Frequency Percentage

1 Very poor 2 1.98
2 Poor 7 6.93
3 Satisfactory 20 19.80
4 Good 33 32.67
5 Very Good 39 38.61

47
 Total 101 100

Chart No: 5.8.12

Employee Participation in CSR

From the above chart, the frequency of responses based on different

levels of opinion i.e. very poor to very good has been observed and interpreted
that highest percentage with very good opinion is 38.61 followed by 32.67
percentage with good opinion and 19.80 percentage has been given as
satisfactory opinion by the respondents.

48
 5.8.6 JOB SATISFACTION:

Employee level of job satisfaction has increased due to impact of CSR activities.
Table no 5.8.13 represents the frequency of responses given on Employee
level of job satisfaction has increased due to impact of CSR activities as a
perception of stakeholders about CSR.
Table No: 5.8.13
Job Satisfaction

Sl.No Opinion Levels Frequency Percentage

1 Very poor 0 0
2 Poor 5 4.95
3 Satisfactory 29 28.71
4 Good 49 48.51
5 Very Good 18 17.82
Total 101 100
Chart No: 5.8.13
Job Satisfaction

49
 Higher percent ( 48.51 percent) of respondents would feel that it is good
considering that employee level of job satisfaction has increased due to impact of
CSR.28.71 percent of respondents has given a satisfactory opinion and 17.82
percent of respondents have expressed their opinion as it is very good.

5.8.7 ETHICAL BEHAVIOR:

Ethical behavior at all levels of management improved due to CSR.

Table no 5.8.17 represents the details of opinion of the respondents on
ethical behavior at all levels of management would get improved due to CSR.
Table No: 5.8.17
Ethical Behavior

Sl.No Opinion Levels Frequency Percentage

1 Very poor 2 1.98
2 Poor 8 7.92
3 Satisfactory 42 41.58
4 Good 38 37.62
5 Very Good 11 10.89
Total 101 100
Graph No: 5.8.17
Ethical Behavior

50
 From the graph that was shown above, the highest frequency could be observed
(41.58 percent) at satisfactory level towards the statement that due to CSR
activities, the ethical behavior of management at all levels would get improved,
37.62 percent of respondents were agreed at a good opinion and 10.89 percent of
respondents have agreed at a very good level towards the statement.

51
CHAPTER - 6 FINDINGS

52
 FINDINGS

PRIORITIES OF CSR ACTIVITIES

Most of the IT/ITES companies are giving priority to Corporate social responsibility
by spending time and money on betterment of education in the society as it has got the
highest positives response (N=96), health care (N=98), and employment & employability
(N=92) and the least priority has given to child mortality and improving maternal health
(N-46), environmental sustainability (N=44).

CSR PREVALANCE IN THE STATE

A few states like Maharashtra, New Delhi have higher involvement of IT companies in
delivering CSR programs. Few states like Pondicherry, Bihar, Odessa and Uttar Pradesh
have very low involvement of IT companies.

INITIATIVES FOR CSR ACTIVITIES

From the present research study, it was found that CSR had been implemented because
of legal or regulatory obligation (Rank 1: N=69), due to Information demands of the
stakeholders (Rank-2,N=52 and also due to community pressure (Rank3,N=51). Though
legal and regulatory obligation is higher stated reason CSR initiative community pressure
and demand by stake holder’s have been the next strong reasons. The first reason need not
be perceived purely from the legal point. But it does have social implementation by virtue
of mandarins.

CORPORATE MANAGEMENT PERCEPTION OF CSR ACT

There is a significant influence of corporate social responsibility activities on stake
holder’s perception. (ANOVA sig. value is 0.00<0.05) and it conveys the
understanding of when certain activity was started under CSR Scheme, it could
definitely influence the management perception about the program or scheme and its
objectivity so that organization’s familiarity is also established well.

53
SUGGESTIONS

DEVELOPMENT OF DURABLE SYSTEMS FOR SPECIFIC ACTIVITIES:

Corporations are involved in some CSR activities, There is a need to carry and
conduct the same activities with a more systematic and managerial approach, so that
value imparted will be more efficient and effective. With managerial and professional
impact better models and bench marking can be attained in delivering benefits and
value to the beneficiaries.

KNOWLEDGE AND CREATIVITY

Most of the activities carried by the companies are within the preview of those
enlisted in the Companies act 2013. Companies should be able to develop new ideas
and innovations along with systematic body knowledge in concert activities. So that
novel benefits are delivered to the society.

EMPLOYEE EMPOWERMENT
Employee involvement and participative approach to improving the conscious need of
CSR should be evolved. Participative systems like quality circles, quality of work life
should contain CSR machine.

COMPANIES SHOULD PROMOTE HIGHER MOTIVATION

Companies which are practicing CSR have to concentrate on: Create interest among
employees to work on CSR practices to overcome difficulties in CSR implementation.
Innovations related to CSR activities. New ideas to implement to improve corporate
skills. Knowledge on CSR practices.

CSR MUST BE PROMOTED AS A MANAGEMENT CONCEPT AND

STRATEGY AMONG THE STAKEHOLDERS AND MAKE THEM
INVOLVED

All changes, actions and future plans relating to CSR should be educated to all
stakeholders externally and internally. Companies could make the best of any
opportunity to enhance reputation should develop and promote their techniques in the
area which remains rather vague. This will increase all the level of employee’s
involvement in CSR.

CSR AS A CHANGE AGENT IN SUSTAINABLE DEVELOPMENT

IT companies have a vast scope for incorporation of organization’s objectives towards
community and society benefits. Companies should develop a policy and practice of
their objectives with willingness to take up the community tasks and the major thrust
area is to set-up a new agenda with a societal interface and aiming at social change for
smooth change towards sustainable development.

54
 INSTITUTIONAL TRAINING PROGRAMS TO BE DEVELOPED
The Government should initiate the establishment of an Institution comprising of
itself and various stake holders which can act as an apex body in promoting the
philosophy of CSR, monitoring and appreciation of the value and
sustainabilityoriented activities and contributions. It can promote education, training,
designing and implementation CSR programs by companies.

55
CONCLUSION

 Understanding the impact of CSR on the population, society and environment is

important in developing the practices in an evolutionary way.
 The companies Act 2013 is having a significant impact on the CSR activities
conducted by IT companies on the society benefits, stake holder’s perception, and
corporate strategies towards CSR.
 CSR activities of IT companies with respect to knowledge on implementing CSR
practices have to be improved.
 The competitiveness towards sustainability can be enhanced with the development
of proper measures and interventions.
 CSR can be an economic commitment and burden sometimes; but it can pay out to
the corporation by social acceptability and goodwill.
FUTURE SCOPE OF THE STUDY
 Future studies can be focused industry wise to develop, and implement better CSR
strategies and practices.
 The benefits to the society, stake holders and environment protection can be
studied and evaluated.
 Corporate collaborations and interfaces with other stake holders is an alternative
area to be investigated.
 Employees’ involvement at all levels in the Organization for CSR will be a
valuable contribution of Tran’s- economic outcome.
 Impact of CSR activities on the goodwill and economic performance of the
organization can be evaluated.

56
REFERENCES

[1] Barton, Jonathan, ―Corporate Social Responsibility in Latin America: A

Phenomenon in Search of an Agenda‖, United Nations Conference on Trade and
Development, 2010, pp. 1-4.
[2] Baxi, C.V and Ajit Prasad (2005) ―The Indian Experience – Corporate Social
Responsibility Concepts and Cases, ICFAI.
[3] Bhal Kanika T. ―Construct of Corporate Social Responsibility: A Framework
―Management & Change, Vol. 6 . No. 1, 2002 PP. 37-50.
[4] Bowen, H. P. (1953), "Social Responsibilities of the Businessman" (Harper, New
York)

BOOK REFERENCES
[1] Philip Kotler, Nancy lee, Corporate Social Responsibility: Doing the Most Good
for Your Company and Your Cause, Wiley, 2005, 320 pages.
[2] Samuel O. Idowu, Nicholas Capaldi, Ananda Das Gupta, Liangrong Zu,
Encyclopedia of Corporate Social Responsibility, Springer Berlin Heidelberg, 2013,
2772 pages.
[3] Jeremy Moon, Corporate Social Responsibility: A Very Short Introduction,
Oxford University Press, 2014,
[4] Nayan Mitra,Schmidpeter, Corporate Social Responsibility in India: Cases and
Developments After the Legal Mandate, Corporate Social Responsibility in India:
Cases and Developments After the Legal Mandate, 238 pages.

WEB SITES
[1] www.pwc.com
[2] https://www.microsoft.com/en-in
[3] https://www.oracle.com/in/index.html
[4] https://www.ibm.com/in-en/
[5] https://www.sap.com/india/index.html
[6] https://in.norton.com/
[7] https://www.vmware.com/in.html
[8] www.adobe.com/in/
[9] https://www.ca.com/us.html
[10] https://www.cisco.com/c/en_in/index.html
[11] https://www.siemens.com/in/en/home.html
[12] www.tcs.com
[13] www.wipro.com/india

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