CORPORATE SOCIAL

RESPONSIBILITY
( CSR )
 WHAT IS CSR ?
IT IS ALSO CALLED AS CORPORATE RESPONSIBILITY ,
CORPORATE CITIZENSHIP , CORPORATE COMMUNITY
ENGAGEMENT , CORPORATE COMMUNITY INVOLVEMENT ,
COMMUNITY RELATIONS .
CSR IS NOT ONLY ABOUT ENVIRONMENT BUT ALSO ABOUT
HEALTHCARE , EDUCATION , DISASTER MANAGEMENT ETC.

HERE THERE ARE 2 APPROCHES :-

a. FRIEDMAN’S STOCKHOLDER/ SHAREHOLDER THEORY .

b. FREEMAN’S STAKEHOLDER THEORY ( KANTIAN

CAPITALISM ) .
 a. FRIEDMAN’S
STOCKHOLDER/SHAREHOLDER
THEORY
MILTON FRIEDMAN ARGUED THAT BUSINESS HAS
ONE AND ONLY ONE RESPONSIBILTY i.e. TO
INCREASE ITS PROFITS .

ONE OF HIS KEY ARGUMENTS CALLED AS ‘ THE

AGENCY ARGUMENT ’ SAYS THAT MANAGERS ARE
MERELY AGENTS OF SHAREHOLDERS AND THE
ONLY RESPONSIBILITY MANAGERS HAVE IS TO
MAXIMIZE PROFITS SO THAT THE SHAREHOLDERS
WILL MAKE AS MUCH MONEY AS POSSIBLE .

HE DOESN’T SAY THAT MORAL VALUES HAVE NO

PLACE IN THE BUSINESS , IN FACT WHILE
PURSUING PROFITS BUSINESS MUST CONFIRM TO
WHAT HE REFERS AS ‘ ETHICAL CUSTOM ’ .
 b. FREEMAN’S STAKEHOLDER
THEORY ( KANTIAN CAPITALISM )

EDWARD FREEMAN BELIEVES THAT MANAGERS

HAVE TO BALANCE THE INTERESTS OF ALL THE
DIFFERENT GROUPS WHO HAVE A ‘ STAKE ’ IN THE
COMPANY . THESE GROUPS MIGHT INCLUDE
SHAREHOLDERS , EMPLOYEES , CUSTOMERS ,
SUPPLIERS , THE LOCAL COMMUNITY AND EVEN
BROADER SOCIETY . MAXIMIZING PROFITS FOR
SHAREHOLDERS IS ONE OF THE INTERESTS OF
THIS THEORY .
 b. FREEMAN’S STAKEHOLDER
THEORY ( KANTIAN CAPITALISM )

e.g.

SOUTHWEST AIRLINES SUFFERED SEVERE ECONOMIC

HARDSHIP FOLLOWING THE SEPTEMBER 11 , 2001 TERRORIST
ATTACKS . IF SOMEBODY APPLIES STOCKHOLDER THEORY IT IS
ASSUMED SOUTHWEST WOULD HAVE LAID OFF EMPLOYEES .
HOWEVER , IT DIDN’T LAY OFF EMPLOYEES.

‘ WE ARE WILLING TO SUFFER EVEN THOUGH THERE IS DAMAGE

TO OUR STOCK MARKET TO PROTECT THE JOBS OF OUR
PEOPLE ’ , THE CEO JAMES PARKER SAID .

SOUTHWEST WOULD NOT HAVE BEEN AROUND WITHOUT

RELATIONSHIP WITH THEIR EMPLOYEES .
 CSR V/S PHILANTHROPY
CSR TOUCHES ALL THE STAKEHOLDERS OF A
CORPORATION BUT PHILANTHROPY CONSISTS OF
HELPING HANDICAPPED , SUPPLYING DRUGS TO
HIV / AIDS PATIENTS RESULTING IN CATERING TO
ONLY ONE STAKEHOLDER .

PHILANTHROPY DOES LITTLE OR NOTHING TO

HELP COMPANIES MAKE PROFITS , WHILE ALL CSR
ACTIVITIES ARE LINKED TO IMPROVING A
COMPANY’S BOTTOM LINE . CSR IS SUSTAINABLE ,
PHILANTHROPY IS NOT .

IT IS A FLAWED ASSUMPTION THAT CSR IS AN

AFTER PROFIT OBLIGATION . CSR IS A ‘ BEFORE
PROFIT ’ OBLIGATION . PROFIT IS A BY PRODUCT
OF SATISFIED STAKEHOLDERS OF COMPANY .
 WHY CSR ?
1. A COMPANY’S REPUTATION IS IMPROVED .

2. ACCESS TO FINANCE IS GREATLY IMPROVED AS

SRI ( SOCIALLY RESPONSIBLE INVESTMENT )
BECOMES INCREASINGLY IMPORTANT .

3. CSR IS A CATALYST FOR EMPLOYEE

MOTIVATION AND FOR ATTRACTING AND
RETAINING TOP QUALITY EMPLOYEES .

4. CSR GIVES A COMPANY ‘ COMPETITIVE

ADVANTAGE ’ OVER OTHER COMPANIES HAVING
POOR IMAGES .
 CSR IN INDIA
CSR IN INDIA IS NOT A NEW TERM IN INDIA . AS FAR
BACK IN 1965 , THEN THE PRIME MINISTER OF
INDIA , LAL BAHADUR SHASTRI SAID ‘ BUSINESS
ENTERPRISE , NO MATTER HOW LARGE OR SMALL
HAS RESPONSIBILITY TO ITSELF , ITS WORKERS ,
CUSTOMERS , SHAREHOLDERS AND THE
COMMUNITY ’ .

INDIAN FAMILIES SUCH AS TATA AND GODREJ

HAVE A SIGNIFICANT INDUSTRY PRESENCE AND
REPUTATION FOR SOCIAL RESPONSIBILITY . TATA
STEEL IS THE FIRST IN THE COUNTRY TO
PRODUCE CORPORATE SUSTAINABILITY REPORT
AND HAS THE ONLY INDUSTRY TOWN IN THE
WORLD , JAMSHEDPUR TO RECEIVE ISO 14001 ,
ENVIRONMENTAL QUALITY CERTIFICATION .
 CSR IN INDIA
CII ( CONFEDERATION OF INDIAN
INDUSTRY ) – INDIA’S LARGEST
INDUSTRY BODY HAS TAKEN A LEAD
IN PROMOTING CSR AMONG ITS
MEMBERS . THIS HAS SET A POSITIVE
EXAMPLE TO OTHER INDUSTRY
BODIES LIKE FICCI ( FEDERATION OF
INDIAN CHAMBERS OF COMMERCE
AND INDUSTRY ) WHICH CARRIES OUT
VARIOUS CSR RELATED EVENTS .
KARMAYOG CSR RATINGS
THE MUMBAI BASED NGO KARMAYOG
HAS BEEN RATING TOP 500 COMPANIES
OF INDIA FOR CSR INITIATIVES FROM
2007.

THE CSR STUDY RATES COMPANIES

BETWEEN 0 & 5 , 0 BEING FOR
COMPANIES THAT DO NOTHING AT ALL
OR DEAL IN PRODUCTS THAT HARM
THE HUMAN RACE.
KARMAYOG CSR RATINGS
JULY 2011 REPORTS OF THE STUDY
STATED THAT 113 COMPANIES
SECURED 0 , 12 WERE AT LEVEL 4 AND
NONE OF THE COMPANIES REACHED
LEVEL 5 .
LEVEL 4 COMPANIES WERE BALLARPUR
INDUSTRIES, HDFC , INFOSYS, JUBILIANT
LIFE SCIENCES , KANSAI NEROLAC
PAINTS, L& T, M&M, MOSER BAIER, TCS,
TITAN,TATA STEEL AND WIPRO .
 CASE STUDY

TATA GROUP CSR INITIATIVES

TATA GROUP WAS ONE OF THE FIRST TO PROMOTE
CSR ( WHAT IT CALLS CORPORATE CITIZENSHIP ) IN
INDIA . IT INVESTS ROUGHLY 30% OF PAT ( PROFIT
AFTER TAX ) IN COMMUNITY DEVELOPMENT
PROGRAMMES ACROSS INDIA . THE GROUP HAS A
CENTRALLY ADMINISTERED AGENCY TATA COUNCIL
FOR COMMUNITY INITIATIVES THAT HELPS ITS
COMPANIES TO CARRY OUT CSR ACTIVITIES . THE
GROUP HAS ALSO CREATED TOWNS AND CITIES
AROUND THEIR INDUSTRIES LIKE JAMSHEDPUR ,
BABRALA , MITHAPUR etc. FOR THEIR EMPLOYEES .

TATA STEEL HAS COME OUT WITH A PROGRAMME

UTHNAU , A SANTHALI WORD FOR ‘ UPLIFT ’ . THE
PROGRAMME TOUCHES MORE THAN 800 VILLAGES IN
JHARKHAND AND NEIGHBOURING STATE OF ORISSA .
IT PROVIDES A FREE HEALTH CARE SERVICE THAT
TREATS AROUND 2.5 LAKH PEOPLE A YEAR WITH
SPECIAL INITIATIVES TO TACKLE TUBERCULOSIS ,
CATARACT AND HIV / AIDS .
THERE IS A PROGRAMME WHICH PROVIDES
DEEP WELLS SO THAT VILLAGES HAVE
CLEAN DRINKING WATER . THERE IS A
PROGRAMME FOR FAMILY PLANNING
ADVICE . EDUCATION PROGRAMMES
INCLUDE BUILDING OF SCHOOLS AND
FINANCIAL SUPPORT FOR SEVERAL
HUNDRED STUDENTS EVERY YEAR . IN
JAMSHEDPUR , TATA STEEL TAKES CARE
OF ROAD MAINTENANCE , WATER AND
ELECTRICITY SUPPLY , SANITATION AND
MORE . TATA STEEL RECEIVED AWARD FOR
CSR IN LONDON ON MAY 23 , 2011 . SHORT
LISTED COMPANIES INCLUDED UNILEVER ,
COCA COLA , THE BODY SHOP , NOKIA etc.
 TCS RUNS THE ADVANCED COMPUTER
TRAINING CENTRE WHICH PROVIDES
COMPUTER SKILLS TO THE BLIND AND
PARTIALLY SIGHTED . TITAN INDUSTRIES
ACTIVELY RECRUITS DISABLED WORKERS
i.e. 4% OF ITS STAFF HAVE SOME SORT OF
PHYSICAL DISABILITY . TATA MOTORS IS
ENGAGED IN ANTI – LEPROSY CRUSADE .
TATA TEA JAGO RE CAMPAIGN
THIS STARTED IN 2007 . OBJECTIVE OF THIS
CAMPAIGN WAS TO AWAKEN INDIANS ON ISSUES
LIKE VOTING , PRIMARY EDUCATION FOR CHILD ,
WOMEN’S RIGHTS , CORRUPTION etc.

THE MOVEMENT OF JAGO RE STARTED WITH AIM

TO MAKE TATA TEA A DRINK FOR YOUTH . A
RESEARCH SHOWED THAT IN ADDITION TO OTHER
AGE GROUPS THE YOUTH ALSO CONSUMED TEA .

IN 2008 , WHEN ELECTIONS WERE ROUND THE

CORNER , TATA TEA MADE AN ATTEMPT TO GET
THE YOUTH OUT OF THEIR HOMES TO VOTE . IT
CAME OUT WITH VARIOUS ADS . THE COMPANY
ALSO CAME OUT WITH A WEBSITE
WWW.JAGORE.COM TO EASE OUT VOTING
PROCESS FOR YOUTH .
TATA TEA JAGO RE CAMPAIGN
THE WEBSITE GOT 28 LAKH REGISTRATIONS , OUT
OF WHICH 7 LAKH ( ONE FOURTH ) GOT
CONVERTED INTO FINAL VOTING .

WORLD BANK RECENTLY STATED THAT SINGLE

MOST FACTOR AFFECTING INDIA ADVERSLY IS
NEITHER POPULATION NOR ILLITERACY , BUT IT IS
CORRUPTION . TATA TEA HAS ALSO STATED THAT
CORRUPTION HAS EATEN INTO MORE THAN 50%
OF INDIA’S POPULATION AND HENCE THOUGHT OF
ADDRESSING IT . THE CRUX OF THE CAMPAIGN IS
THAT THERE WOULD BE NO BRIBES TAKEN IF NO
ONE OFFERS IT . IT CAME OUT WITH ADS ‘ AAJ SE
KHILANA BANDH ………… PILANA SHURU !’ .
PEOPLE ALSO COULD TAKE THE PLEDGE AGAINST
CORRUPTION ONLINE OR THROUGH MESSAGING A
SHORT CODE FROM THEIR MOBILE PHONES .
 CASE STUDY

MAHINDRA AND MAHINDRA LTD

 FACETS OF CSR IN TODAY’S
ERA
1. HEALTH AND DISASTER RELIEF
2. EDUCATION
a. K.C.MAHINDRA EDUCATION TRUST .
b. MAHINDRA EDUCATION SOCIETY .
c. MAHINDRA PRIDE SCHOOL .
d. NANHI KALI .
3. ENVIRONMENTAL INITIATIVES .
4. ART AND CULTURE .
1. HEALTH AND DISASTER RELIEF
MAHINDRA FOUNDATION WAS SET UP WITH A SPECIFIC
OBJECTIVE TO PROVIDE MEDICAL RELIEF TO POOR AND
NEEDY . THE FOUNDATION HAS ALSO HELPED PATIENTS
SUFFERING FROM BURNS , HEART AILMENTS AND
CANCER .
MAHINDRA HAS GIVEN FINANCIAL HELP , SUPPLIED
MANPOWER OR MATERIAL AND SENT VEHICLES IN CASE
OF GUJARAT EARTHQUAKE ( 2001 ) AND TSUNAMI (2004)
. RECENTLY IT HAD CONTRIBUTED RS. 1CRORE
TOWARDS UTTARAKHAND DISASTER(2013) AND RS. 2
CRORE TOWARDS KASHMIR DISASTER ( 2014) THROUGH
PM RELIEF FUND.
 2. EDUCATION
a. K.C.MAHINDRA EDUCATION TRUST :-

THIS WAS ESTABLISHED IN 1953 TO

TRANSFORM LIVES OF PEOPLE IN INDIA
THROUGH EDUCATION , BY PROVIDING
FINANCIAL ASSISTANCE AND RECOGNITION
ACROSS AGE GROUPS AND INCOME STRATA .

TILL MARCH 2014 THE TRUST HAS PROVIDED

RS. 44 CRORE IN FORM OF LOANS AND
SCHOLARSHIP .
 2. EDUCATION
b. MAHINDRA EDUCATION SOCIETY :-
MAHINDRA GROUP HAS ESTABLISHED
SCHOOLS NEAR ITS FACTORIES
PRIMARILY FOR CHILDREN OF ITS
EMPLOYEES .

AT PRESENT IT HAS 2 SCHOOLS IN

INDIA ( MALAD , ZAHEERABAD , A.P )
 2. EDUCATION
c. MAHINDRA PRIDE SCHOOL ( MPS ) :-

IT WAS ESTABLISHED IN 2007 AT PUNE AND LATER

OPENED AT CHANDIGARH , CHENNAI , PATNA AND
SRINAGAR . TARGET AUDIENCE IS RURAL STUDENTS
AGED 18-25 YEARS FROM OBC , SC , ST , NT
( NOTIFIED TRIBES) AND DNT ( DE-NOTIFIED TRIBES )
CATEGORY .

THERE IS INTENSIVE 3 MONTHS TRAINING IN THE

AREAS OF IT , CRM AND HOSPITALITY . THE AVRAGE
SALARY IS RS. 10,000 PER MONTH . RECRUITING
COMPANIES ARE MCDONALD’S , KFC, PZZA- HUT , LE
MERIDIEN , COGNIZANT , HCL , TCS ETC.
 2. EDUCATION
d. NANHI KALI :-

IN MANY PARTS OF INDIA , THE ARRIVAL OF A

BABY GIRL CALLS FOR MOURNING RATHER
THAN CELEBRATION . ABANDONING THEM AT
BIRTH OR MARRYING THEM OFF IS COMMON
PRACTICE . INDIAN FAMILIES DON’T SEE ANY
POINT IN INVESTING IN THEIR EDUCATION .
GOVERNMENT OF INDIA STATISTICS REVEAL
THAT ONLY 3 OUT OF 10 GIRLS WHO ENTER
STANDARD I COMPLETE STANDARD X .
SUCCESSFUL EDUCATION OF A GIRL CHILD HAS
BEEN REPEATEDLY ACKNOWLEDGED AS AN
EFFECTIVE MECHANISM TO BREAK CYCLE OF
POVERTY , MYTHS , SOCIAL NORMS AND
POPULATION GROWTH RATES .
 2. EDUCATION
d. NANHI KALI :-

THE MAHINDRA GROUP STARTED THE PROJECT NANHI KALI

IN 1996 WITH AN OBJECTIVE OF PROVIDING PRIMARY
EDUCATION TO THE UNDERPRIVILEDGED GIRL CHILD IN
INDIA .

IN 2005 , K.C.MAHINDRA EDUCATION TRUST ( KCMET )

ENTERED INTO A PARTNERSHIP WITH NANDI FOUNDATION ,
A REPUTED NGO TO MANAGE PROGRAMME FOR 10 YEARS .
PRESENTLY IT IS WORKING WITH 19 NGOS FOR ITS
SUCCESSFUL IMPLEMENTATION.

OVER THE YEARS THE PROJECT NANHI KALI HAS

SUCCESSFULLY EVOLVED INTO A MAJOR NATIONAL GIRL
CHILD SPONSORSHIP PROGRAMME , WHICH NOT ONLY
PROVIDES MONEY BUT ALSO MATERIAL SUPPORT IN FORM
OF CLOTHES , UNIFORMS , NOTEBOOKS etc.
 2. EDUCATION
d. NANHI KALI :-

NANHI KALI IS A PARTICIPATORY PROJECT WHERE INDIVIDUALS,

GROUPS AND CORPORATES ARE ENCOURAGED TO SPONSOR
EDUCATION OF A GIRL CHILD FOR A MINIMUM PERIOD OF 1
YEAR . TO BECOME GUARDIAN OF A NANHI KALI , IT COSTS
RS.3000 ( CLASS 1 TO 5) AND RS.4200 ( CLASS 6 TO 10 ) PER GIRL
CHILD PER ANNUM .

IN 2009 , NANHI KALI GOT INTERNATIONAL ACCLAIM WHEN IT

WAS AWARDED THE WORLD INNOVATION SUMMIT FOR
EDUCATION ( WISE ) AWARD . HERE OUT OF 588 ENTRIES , 48
PROJECTS WERE SHORTLISTED WHICH WERE THEN REVIEWED
BY 11 INTERNATIONAL JURIES .

SHEETAL MEHTA , TRUSTEE AND EXECUTIVE DIRECTOR ,

K.C.MAHINDRA EDUCATION TRUST WAS ONE OF 6 LAUREATS
WHO RECEIVED US $ 20,000 .

PRESENTLY NANAHI KALI IS SUPPORTING 1 LAKH GIRLS

ACROSS 9 STATES IN INDIA.
 3. ENVIRONMENTAL INITIATIVES
ENVIRONMENTAL PROTECTION IS A PART AND PARCEL OF
MAHINDRA GROUP RIGHT FROM HAVING VEHICLES
MEETING INTERNATIONAL STANDARDS OF SAFETY AND
EMISSION TO EFFICIENT WATER MANAGEMENT IN PLANTS .

MAHINDRA HARIYALI( 2007) IS A MASS TREE PLANTATION

INITIATIVE TAKEN AT EACH AND EVERY MAHINDRA
LOCATION BE IT A PLANT OR A CORPORATE OFFICE. THE
AIM IS TO PLANT 10 LAKH TREES EVERY YEAR.

SINCE 1984 , MAHINDRA GROUP HAS BEEN LENDING A

HAND TO ‘ GREEN MUMBAI ’ MOVEMENT BY DEVELOPING
AND MAINTAINING MUNICIPAL GARDENS . IN MUMBAI THEY
ARE TAKING CARE OF 3 GARDENS WITH A COST OF ABOUT
RS. 9 LAKH .
 4. ART AND CULTURE
THE MAHINDRA EXCELLENCE IN THEATRE
AWARDS ( META ) WAS STARTED IN 2006 .
THE AIM IS TO ENCOURAGE NATIONAL
THEATRE .

THE AWARDS COVER PLAYS IN ENGLISH ,

HINDI AND OTHER REGIONAL LANGUAGES
IN 13 CATEGORIES . AWARD CONSISTS OF
A SPECIALLY DESIGNED TROPHY AND A
CHEQUE .