BANARAS HINDU UNIVERSITY

Master Seminar Presentation

On
“Corporate Social Responsibility :A Case Study of
Mondelez India Pvt. Ltd.”
Advisor: Presented by :
Prof. Rakesh Singh Akash Rai
Dept. of agril economics I.d. ABM -15222
Institute of agricultural Enroll - 375460
sciences,B.H.U Varanasi MABM-II
Sem-II
2015-17
 Corporate Social
Responsibility(CSR)
 What Is CSR
• Corporate – Business
• Social - People + Environment
• Responsibility – Things You have to do

CSR is a management concept where company combines social and environmental

concern.

“Corporate Social Responsibility is the continuing commitment to business to eave

ethically and contribute to economic development while improving the quality of
life of the workforce and their families as well as of the local community and society
at large.”
The World Business
Council for sustainable Development
 Introduction
• Corporate Social Responsibility is a management concept
whereby companies integrate social and environmental
concerns in their business operations and interactions
with their stakeholders.
• As per the Business Dictionary, CSR is defined as -A
company’s sense of responsibility towards the community
and environment (both ecological and social) in which it
operates. Companies express this citizenship
(1) through their waste and pollution reduction processes.
(2) by contributing educational and social programs and .
(3) by earning adequate returns on the employed resources.
 Indian Perspective.
• The Sachar committee was appointed in 1978 to look into
corporate social responsibility issues concerning Indian
companies .
• The company must behave & function as a responsible
member of society.
• Committee suggests openness in corporate affairs &
behaviour.
• Some business houses have established social institutions like
Schools, colleges, charitable hospitals etc.
• Corporate sectors have not made significant contributions.
(Polluting Environment).
 The Companies Act 2013
• The Ministry of Corporate Affairs has notified Section 135 and
Schedule VII of the Company Act 2013 as well as the
provisions of the Companies (Corporate Social Responsibility
Policy) Rules, 2014 to come into effect from April 1, 2014
Highlights:
Every company, private limited or public limited, which
either has a net worth of Rs 500 cr. or a turnover of Rs 1,000
cr. or net profit of Rs 5 cr. needs to spend at least 2% of its
average net profit for the immediately preceding three
financial years on corporate social responsibility activities.
 CSR Activities
(Under Section 135 of the Companies Act ,Rule 2014)

i. Eradicating hunger, poverty & malnutrition, promoting

preventive health care & sanitation & making available safe
drinking water.
ii. Promoting education, including special education & employment
enhancing vocation skills especially among children, women,
elderly & the differently unable & livelihood enhancement
projects.
iii. Promoting gender equality, empowering women, setting up
homes & hostels for women & orphans, setting up old age homes,
day care centers & such other facilities for senior citizens &
measures for reducing inequalities faced by socially &
economically backward groups.
iv. Reducing child mortality and improving maternal health by
providing good hospital facilities and low cost medicines.
 Contd……
v. Providing with hospital and dispensary facilities with more
focus on clean and good sanitation so as to combat human
immunodeficiency virus, acquired immune deficiency
syndrome, malaria and other diseases.
vi. Ensuring environmental sustainability, ecological balance,
protection of flora & fauna, animal welfare, agro forestry,
conservation of natural resources & maintaining quality of
soil, air & water;.
vii. Employment enhancing vocational skills .
viii.Protection of national heritage, art & culture including
restoration of buildings & sites of historical importance &
works of art; setting up public libraries; promotion &
development of traditional arts & handicrafts.
 Contd……
ix. Measures for the benefit of armed forces veterans, war widows
& their dependents;
x. Training to promote rural sports, nationally recognized
sports, sports & Olympic sports;
xi. Contribution to the Prime Minister‘s National Relief Fund or any
other fund set up by the Central Government for socio-economic
development & relief & welfare of the Scheduled Castes, the
Scheduled Tribes, other backward classes, minorities & women;
xii. Contributions or funds provided to technology incubators
located within academic institutions, which are approved by the
Central Government;
xiii. Rural development projects, etc
xiv. Slum area development
 CSR

nt

Economy
me

So
cia
on

l
vi r
En

It is generally underlined the way in which a company achieves a

balance of Environment, Economy and Social value.
 contd…..
When company are trying to be corporately and socially
responsible where need to achieve Triple Bottom Line.
Environmental-not harming the environment and picking trash a
Social- which is giving back to community
Finance - Which is amount of money you are making to increase
livelihood
Environment

ce
So

an
c
ial

Fin
 The 3Ps
Planet

People

Prosperity

(Creating a better Tomorrow)

 Social responsibility

“ Social Responsibility is a central Thought”

 Responsibility Towards
Society Government Shareholders Employee Consumer
Performing Follow rules and Ensure the Provide healthy Provide socially
Business Ethically regulation reasonable rate of work environment harmless product
and Morally return over time
Prevention of Regular payment of To work for survival Grant regular and Supplying of quality
environmental taxes and the growth of fair wages standard as promised
pollution the concern

Minimize Cooperating with govt. To build reputation Provide welfare Adopt Fair pricing
ecological to promote social of the company services
imbalance values
Development of Not to take advantage To remain unbiased Training and After sale services
social health, of loopholes in business and accountable promotion
education laws

Use of appropriate Cooperating with the Reasonable Resisting black

technology govt. for economic working standard marketing and
growth and & norms profiteering
development

Overall Efficient Maintaining consumer

Development mechanism to grievances cell
redress worker’s
grievance

Proper recognition Fair competition

of efficient and
hard work
 Arguments for the CSR

• Corporate should have some moral & social obligations to

undertake for the welfare of the society.
• Proper use of resources, capability & competence.
• The expenditure on CSR is a sort of investment.
• Company can avoid many legal complications.
• It create a better impression.
• Corporate should return a part of wealth.
 Arguments against the CSR

• Fundamental principles of business gets violated.

• It vey expensive for business houses.
• CSR projects will not be successful.
• There are not the special areas of any business.
• CSR is to induce them to steal away the shareholders money.
India’s Top Companies For Sustainability and CSR
• Tata Steel Ltd.
 Health Initiatives- 1,45,600 persons from urban and rural & remote areas were
treated.
 11,320 women received ante-natal checkup& 9000 children get immunisation
collected 1312 unit blood by conducting 14 blood camp

• Mahindra & Mahindra Ltd.

In year 2015-16  the Foundation is running 150+ projects at 10 locations in 9
states/union-territories of India. 
• ITC Ltd.
e- Choupal -4million farmers empowered, 6500 e-chaupal installed
Primary education-252,329 Children covered & 2334 Supplementary Learning
Centre
• Larsen & Turbo Ltd.
Single Teacher School “A Second School” start at 5 ‘O’ clock.
Integrated Community Development Project for rural communities in
Maharashtra
(Ranking is done by IIM Udaipur, Futurescape and Economic Times)
 Contd……..

• Indian Oil Corporation Ltd.

 LPG Scheme for BPL families
 Swachh Vidyalaya Abhiyaan-Construct/Repaired 2855 toilets in Govt.
School
 Swachh Bharat Abhiyaan-Ten decentralized waste-to-fuel plants(50 tons/day)
 IndinOil’s Assam Oil Division Hospital, Digboi, Assam
 Swarna Jayanti Samudayik Hospital, Mathura, Uttar Pradesh
• Jubilant Life Sciences Ltd.
 Muskan – an initiative to support quality education
 Swastha Prahari – an initiative to reduce infant & maternal mortality ratio
  Integrated Counselling & Testing Centre (ICTC) for HIV/AIDS
 DOTS centre for Tuberculosis treatment.
• Tata Consultancy Services Ltd.
 Since 2010, the company has trained 22,236 youngsters, of which 7,681 are
from affirmative action groups
• JSW Steel Ltd.
 JSW cares for development of poor children
(Ranking is done by IIM Udaipur, Futurescape and Economic Times)
 Contd……

• Yes Bank Ltd.

 YES BANK commits to contribute Rs 250 Cr towards
livelihood, water and environment sustainability up to 2020.
 YES BANK to partner with ECT, Australia to promote Clean
Coal Technology in India
• Reliance Industries Ltd.
 Project Jagruti-A project to uplift and bring dyslexic
students from the underprivileged segment into the main
stream.
 Women & Youth Empowerment Programmes
 Reliance Dhirubhai Ambani Protsaham Scheme
 Reliance Community Development Programmes
 Criteria For Ranking of CSR
• The study focuses on four main criteria, Governance, Disclosure, Stakeholders and
Sustainability.

Governance
20%
Stakeholders
30%

Disclosure
15%

Sustainability
35%
 Case Study
•Mondelez International is rooted in the Type Public
National Dairy Products Corporation Industry Food processing
(National Dairy) Predecessor Kraft Foods Inc. (1923–2012)
•Founded on December 10, 1923, by Founder Thomas H. McInnerney
Thomas H. McInnerney. Headquarters Deerfield, Illinois, United
States
•In 1969, National Dairy changed its
Area served Worldwide
name to Kraftco Corporation.
Key people Irene Rosenfeld
•In 1980 Kraft merged with Dart (Chairman & CEO)
Industries, manufacturers
Products Baby food, coffee, dairy
of Duracell batteries. products, breakfast
•At the end of 1988, Philip cereals, confectionery, bottled
water, ice cream, pet foods
Morris purchased Kraft for $12.9 billion.
On September 7, 2009 Kraft made a Revenue  US$25.92 billion (2016)
hostile £10.2 billion takeover bid for the Operating income  US$2.569 billion (2016)
British confectionery group Cadbury. Net income  US$1.659 billion (2016)
•In August 2011 Kraft Foods split into two Number of 99,000 (2016)
publicly traded companies, one snack- employees
food and the other grocery. Website www.mondelezinternational.c
om
 CSR Projects Run By Mondelez India
Pvt.Ltd.
• Shubh Aarambh
 Focuses on the holistic development of a child from “childhood to
youth”.
 Delivering nutrition education lessons, participating in sports for
development sessions and improving access to fresh foods in schools
and communities across India.
  In 2015-16 impacted over 23,000 lives including children, youth,
parents, teachers, and the community
 Reach out to 200,000 beneficiaries across 5 states
 locations in India where it has its operations- Induri, Thane, Mumbai
(Maharashtra), Kolkata (West Bengal), Delhi, Chennai (Tamil Nadu),
Hyderabad, Sricity (Andhra Pradesh), Baddi (Himachal Pradesh),
Malanpur (Madhya Pradesh), and Pollachi (Tamil Nadu).
 Contd…..

• Integrated Village Development, Pondicherry – 2006 – 2013

 Started in 2006 -SARVAM (Sri Aurobindo Rural Village Action
Movement)
 Redevelop the two villages Puthurai and Perambai in the Villipuram
district of Tamil Nadu.
 Improves the livlihood of 1,400 families in areas like education, health,
sanitation, housing and special programs for children, girls, youth,
women and elders .
• Addressing Child Malnutrition in 1000 Day Program, Maharashtra -2013 :
 Saved the Children and targeted 4000 children under the age of 2.
 Saved 828 pregnant mothers in 30 villages of Jawhar and Mokhada
blocks in Thane district.
 Aims to save and protect the children from hunger and malnutrition
for the first 1000 days of their lives by providing access to basic
maternal, newborn and child health and nutrition services. The project
also included establishing a Nutrition Rehabilitation Center (NRC)
where children with Severe Acute Malnutrition (SAM) are treated &
mothers educated .
 Contd…..
• E-Learning Centers @ Induri, Baddi and Malanpur - 2013 :
 Installation & set up of three E-Learning Centers with 10 computers
each across 3 schools at Induri, Baddi and Malanpur.
 The project supports teacher and student's computer training and
knowledge in English and Math’s to over 600 children.

• iCARE - 2012-13
 iCARE, an employee volunteering program, inspires employees to
invest time, skills and passion in the areas of education,
child/elderly welfare, NGO capacity building, etc..
 The program is active in Mumbai and Delhi and has impacted 990
beneficiaries across 35 NGOs with over 1,050 hours of employee
volunteering and 80 employees.
 Contd…..

• Global Founders Month Celebration - 2013 :

 In India over 500 employees volunteered, clocking
close to 1,500 volunteering hours
Impacting 3,600 beneficiaries (school children, old
age home and orphanage) through various
activities like sports, nutrition education, kitchen
gardening and eye and blood donation camps.
 Goals for 2020
• Cocoa Life program to empower 200,000 cocoa farmers
• Reducing absolute carbon dioxide emissions from
manufacturing in line with science-based targets
• Reducing deforestation within our agricultural supply
chain
• Focusing water-reduction efforts in high-priority
locations
• Eliminating another 65,000 tonnes of packaging material
• Reducing total manufacturing waste by 20 percent
 Is CSR Necessary ?
• Positive environment - Recreation facility

• Sell more product

 High CSR – More Customer. e.g.- ITC, Patanjali etc.
Low CSR – Less Customer. e.g.-New organisation
Need for Corporate Social Responsibility
• To reduce the social cost.
• To enhance the performance of employees.
• It a type of investment.
• It leads to industrial peace.
• It improves the public image.
• Can generate more profit.
• To provide moral justification.
• It satisfies the stakeholders.
• Helps to avoid government regulations & control.
• Enhance the health by non polluting measures.
 References
• http://ec.europa.eu/enterprise/policies/sustainable-
business/corporate-social-responsibility/index_ en.htm
• 2 http://www.wbcsd.org/work-program/business-role/previous-
work/corporate-social-responsibility. aspx
• 3 http://www.unido.org/what-we-do/trade/csr/what-is-
csr.html#pp1[g1]/0/

• www.futurescape.in
• www.aurosociety.org
• www.wikipedia.com
• www.slideshare.net
• www.thehindu.com
• www.finance.bih.nic.in
• www.pwc.in