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INTRODUCTION

Corporate social responsibility (CSR, also called corporate conscience, corporate


citizenship or responsible business) is a form of corporate self-regulation integrated into a
business model. CSR policy functions as a self-regulatory mechanism whereby a business
monitors and ensures its active compliance with the spirit of the law, ethical standards and
national or international norms. With some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good, beyond the interests
of the firm and that which is required by law." The aim is to increase long-term profits through
positive public relations, high ethical standards to reduce business and legal risk, and shareholder
trust by taking responsibility for corporate actions. CSR strategies encourage the company to
make a positive impact on the environment and stakeholders including consumers, employees,
investors, communities, and others.
Proponents argue that corporations increase long-term profits by operating with a CSR
perspective, while critics argue that CSR distracts from businesses' economic role. A 2000 study
compared existing econometric studies of the relationship between social and financial
performance, concluding that the contradictory results of previous studies reporting positive,
negative, and neutral financial impact, were due to flawed empirical analysis and claimed when
the study is properly specified, CSR has a neutral impact on financial outcomes.
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Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR. or that
CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a
watchdog over powerful multinational corporations.
Political sociologists became interested in CSR in the context of theories of globalization,
neoliberalism and late capitalism. Some sociologists viewed CSR as a form of capitalist
legitimacy and in particular point out that what began as a social movement against uninhibited
corporate power was transformed by corporations into a 'business model' and a 'risk
management' device, often with questionable results.
CSR is titled to aid an organization's mission as well as a guide to what the company
stands for its consumers. Business ethics is the part of applied ethics that examines ethical
principles and moral or ethical problems that can arise in a business environment. ISO 26000 is
the recognized international standard for CSR. Public sector organizations (the United Nations
for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to
similar principles, but with no formal act of legislation.
Definition
The term "corporate social responsibility" became popular in the 1960s and has remained
a term used indiscriminately by many to cover legal and moral responsibility more narrowly
construed.
Business Dictionary defines CSR as "A companys 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."
A broader definition expands from a focus on stakeholders to include philanthropy and
volunteering.

Consumer perspectives

Most consumers agree that while achieving business targets, companies should do CSR at
the same time. Most consumers believe companies doing charity will receive a positive response.
Somerville also found that consumers are loyal and willing to spend more on retailers that
support charity. Consumers also believe that retailers selling local products will gain loyalty.
Smith (2013) shares the belief that marketing local products will gain consumer trust. However,
environmental efforts are receiving negative views given the belief that this would affect
customer service. Oppewal et al. (2006) found that not all CSR activities are attractive to
consumers. They recommended that retailers focus on one activity. Becker-Olsen (2006) found
that if the social initiative done by the company is not aligned with other company goals it will
have a negative impact. Mohr et al.(2001) and Groza et al. (2011) also emphasise the importance
of reaching the consumer.

CSR Approaches

Some commentators have identified a difference between the Canadian (Montreal school
of CSR), the Continental European and the Anglo-Saxon approaches to CSR. It is said that for
Chinese consumers, a socially responsible company makes safe, high-quality products; for
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Germans it provides secure employment; in South Africa it makes a positive contribution to


social needs such as health care and education. And even within Europe the discussion about
CSR is very heterogeneous.
A more common approach to CSR is corporate philanthropy. This includes monetary
donations and aid given to nonprofit organizations and communities. Donations are made in
areas such as the arts, education, housing, health, social welfare and the environment, among
others, but excluding political contributions and commercial event sponsorship.
Another approach to CSR is to incorporate the CSR strategy directly into operations. For
instance, procurement of Fair Trade tea and coffee.
Creating Shared Value, or CSV is based on the idea that corporate success and social
welfare are interdependent. A business needs a healthy, educated workforce, sustainable
resources and adept government to compete effectively. For society to thrive, profitable and
competitive businesses must be developed and supported to create income, wealth, tax revenues
and philanthropy. The Harvard Business Review article Strategy & Society: The Link between
Competitive Advantage and Corporate Social Responsibility provided examples of companies
that have developed deep linkages between their business strategies and CSR. CSV
acknowledges trade-offs between short-term profitability and social or environmental goals, but
emphasizes the opportunities for competitive advantage from building a social value proposition
into corporate strategy. CSV gives the impression that only two stakeholders are important shareholders and consumers.
Many companies employ benchmarking to assess their CSR policy, implementation and
effectiveness. Benchmarking involves reviewing competitor initiatives, as well as measuring and
evaluating the impact that those policies have on society and the environment, and how others
perceive competitor CSR strategy.
Cost-benefit analysis
In competitive markets cost-benefit analysis of CSR initiatives, can be examined using a
resource-based view (RBV). According to Barney (1990) "formulation of the RBV, sustainable
competitive advantage requires that resources be valuable (V), rare (R), inimitable (I) and nonsubstitutable (S)." A firm introducing a CSR-based strategy might only sustain high returns on

their investment if their CSR-based strategy could not be copied (I). However, should
competitors imitate such a strategy, that might increase overall social benefits. Firms that choose
CSR for strategic financial gain are also acting responsibly.
RBV presumes that firms are bundles of heterogeneous resources and capabilities that are
imperfectly mobile across firms. This imperfect mobility can produce competitive advantages for
firms that acquire immobile resources. McWilliams and Siegel (2001) examined CSR activities
and attributes as a differentiation strategy. They concluded that managers can determine the
appropriate level of investment in CSR by conducting cost benefit analysis in the same way that
they analyze other investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only sustain
an abnormal return if it could prevent competitors from imitating its strategy.

Scope
Initially, CSR emphasized the official behavior of individual firms. Later, it expanded to
include supplier behavior and the uses to which products were put and how they were disposed
of after they lost value.

Supply chain
Incidents like the 2013 Savar building collapse pushed companies to consider how the
behavior of their suppliers impacted their overall impact on society. Irresponsible behavior
reflected on both the misbehaving firm, but also on its corporate customers. Supply chain
management expanded to consider the CSR context. Wieland and Handfield (2013) suggested
that companies need to include social responsibility in their reviews of component quality. They
highlighted the use of technology in improving visibility across the supply chain.

Implementation
CSR may be based within the human resources, business development or public relations
departments of an organisation, or may be a separate unit reporting to the CEO or the board of
directors. Some companies approach CSR without a clearly defined team or programme. For
example, see the ethnographic study of social responsibility as a subjective state, conducted in a
UK-based multi-national corporation. Results revealed four different modes of moral
commitment to social responsibility and sustainability, with the 'Conformist' mode representing
the majority of employees. Some of these were in formal CSR roles. Interestingly, support was
found for the notion of corporate social entrepreneurship: a minority of employees, driven by
their dominant self-transcendent values. These individuals had enlarged their own job roles of
their own volition and were progressing a social agenda, in addition to their formal job role to
achieve the company's profit targets.

Engagement plan
An engagement plan can assist in reaching a desired audience. A corporate social
responsibility individual or team plans the goals and objectives of the organization. As with any
corporate activity, a defined budget demonstrates commitment and scales the program's relative
importance.
Accounting, auditing and reporting
Social accounting is the communication of social and environmental effects of a
company's economic actions to particular interest groups within society and to society at large.
Social accounting emphasizes the notion of corporate accountability. Crowther defines social
accounting as "an approach to reporting a firms activities which stresses the need for the
identification of socially relevant behavior, the determination of those to whom the company is
accountable for its social performance and the development of appropriate measures and
reporting techniques." Reporting guidelines and standards serve as frameworks for social
accounting, auditing and reporting:
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Account Ability's AA1000 standard, based on John Elkington's triple bottom line (3BL)
reporting

The Prince's Accounting for Sustainability Project's Connected Reporting Framework

The Fair Labor Association conducts audits based on its Workplace Code of Conduct and
posts audit results on the FLA website.

The Fair Wear Foundation verifies labour conditions in companies' supply chains, using
interdisciplinary auditing teams.

Global Reporting Initiative's Sustainability Reporting Guidelines

Economy for the Common Good's Common Good Balance Sheet

GoodCorporation's standard developed in association with the Institute of Business


Ethics

Synergy Codethic 26000 Social Responsibility and Sustainability Commitment


Management System (SRSCMS) Requirements Ethical Business Best Practices of
Organizations - the necessary management system elements to obtain a certifiable ethical
commitment management system. The standard scheme has been build around ISO
26000 and UNCTAD Guidance on Good Practices in Corporate Governance.The standard
is applicable by any type of organization.;

Earthcheck Certification / Standard

Social Accountability International's SA8000 standard

Standard Ethics Aei guidelines

The ISO 14000 environmental management standard

The United Nations Global Compact requires companies to communicate on their


progress (or to produce a Communication on Progress, COP), and to describe the
company's implementation of the Compact's ten universal principles.

The United Nations Intergovernmental Working Group of Experts on International


Standards of Accounting and Reporting (ISAR) provides voluntary technical guidance on
eco-efficiency indicators, corporate responsibility reporting, and corporate governance
disclosure.

The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance of
companies.

EthicalQuote (CEQ) tracks reputation of the worlds largest companies on


Environmental, Social, Governance (ESG), Corporate Social Responsibility, ethics and
sustainability.

The Islamic Reporting Initiative (IRI) is a not-for-profit organization which leads the
creation of the IRI framework; the guiding integrated CSR reporting framework based on
Islamic principles and values.

In nations such as France, legal requirements for social accounting, auditing and reporting
exist, though international or national agreement on meaningful measurements of social and
environmental performance has not been achieved. Many companies produce externally audited
annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line
Reports"), but the reports vary widely in format, style, and evaluation methodology (even within
the same industry). Critics dismiss these reports as lip service, citing examples such as Enron's
yearly "Corporate Responsibility Annual Report" and tobacco companies' social reports.
In South Africa, as of June 2010, all companies listed on the Johannesburg Stock Exchange
(JSE) were required to produce an integrated report in place of an annual financial report and
sustainability report. An integrated report reviews environmental, social and economic
performance alongside financial performance. This requirement was implemented in the absence
of formal or legal standards. An Integrated Reporting Committee (IRC) was established to issue
guidelines for good practice.

Verification
Corporate social responsibility and its resulting reports and efforts should be verified by
the consumer of the goods and services. The accounting, auditing and reporting resources
provide a foundation for consumers to verify that their products are socially sustainable. Due to
an increased awareness of the need for CSR, many industries have their own verification
resources. The include organizations like the Forest Stewardship Council (paper and forest
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products), International Cocoa Initiative, and Kimberly Process (diamonds). The United Nations
also provides frameworks not only for verification, but for reporting of human rights violations
in corporate supply chains.

Ethics training
The rise of ethics training inside corporations, some of it required by government
regulation, has helped CSR to spread. The aim of such training is to help employees make ethical
decisions when the answers are unclear. The most direct benefit is reducing the likelihood of
"dirty hands", fines and damaged reputations for breaching laws or moral norms. Organizations
see increased employee loyalty and pride in the organization.

Common actions
Common CSR actions include:

Environmental sustainability: recycling, waste management, water management,


renewable energy, reusable materials, 'greener' supply chains, reducing paper use and
adopting Leadership in Energy and Environmental Design (LEED) building standards.

Community involvement: This can include raising money for local charities, providing
volunteers, sponsoring local events, employing local workers, supporting local economic
growth, engaging in fair trade practices, etc.

Ethical marketing: Companies that ethically market to consumers are placing a higher
value on their customers and respecting them as people who are ends in themselves. They
do not try to manipulate or falsely advertise to potential consumers. This is important for
companies that want to be viewed as ethical.

Social license
Social license refers to a local communitys acceptance or approval of a company.
Social license exists outside formal regulatory processes. Social license can nevertheless be

acquired through timely and effective communication, meaningful dialogue and ethical and
responsible behavior.
Displaying commitment to CSR is one way to achieve social license, by enhancing a companys
reputation.

Potential business benefits


A large body of literature exhorts business to adopt measures non-financial measures of
success (e.g., Deming's Fourteen Points, balanced scorecards). While CSR benefits are hard to
quantify, Orlitzky, Schmidt and Rynes found a correlation between social/environmental
performance and financial performance.
The business case for CSR within a company employs one or more of these arguments:

Triple bottom line


"People, planet and profit", also known as the triple bottom line form one way to evaluate CSR.
"People" refers to fair labour practices, the community and region where the business operates.
"Planet" refers to sustainable environmental practices. Profit is the economic value created by the
organization after deducting the cost of all inputs, including the cost of the capital (unlike
accounting definitions of profit).
This measure was claimed to help some companies be more conscious of their social and moral
responsibilities. However, critics claim that it is selective and substitutes a company's perspective
for that of the community. Another criticism is about the absence of a standard auditing
procedure.
The term was coined by John Elkington in 1994.

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Human resources
A CSR program can be an aid to recruitment and retention, particularly within the competitive
graduate student market. Potential recruits often consider a firm's CSR policy. CSR can also help
improve the perception of a company among its staff, particularly when staff can become
involved through payroll giving, fundraising activities or community volunteering. CSR has been
credited with encouraging customer orientation among customer-facing employees.

Risk management
Managing risk is an important executive responsibility. Reputations that take decades to build up
can be ruined in hours through corruption scandals or environmental accidents. These draw
unwanted attention from regulators, courts, governments and media. CSR can limit these risks.

Brand differentiation
CSR can help build customer loyalty based on distinctive ethical values. Some companies use
their commitment to CSR as their primary positioning tool, e.g., The Co-operative Group, The
Body Shop and American Apparel
Some companies use CSR methodologies as a strategic tactic to gain public support for their
presence in global markets, helping them sustain a competitive advantage by using their social
contributions as another form of advertising.

Reduced scrutiny
Corporations are keen to avoid interference in their business through taxation and/or regulations.
A CSR program can persuade governments and the public that a company takes health and
safety, diversity and the environment seriously, reducing the likelihood that company practices
will be closely monitored.
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Supplier relations
Appropriate CSR programs can increase the attractiveness of supplier firms to potential customer
corporations. E.g., a fashion merchandiser may find value in an overseas manufacturer that uses
CSR to establish a positive imageand to reduce the risks of bad publicity from uncovered
misbehavior.

Criticisms and concerns


CSR concerns include its relationship to the purpose of business and the motives for engaging in
it.
Nature of business
Milton Friedman and others argued that a corporation's purpose is to maximize returns to its
shareholders and that obeying the laws of the jurisdictions within which it operates constitutes
socially responsible behavior.
While some CSR supporters claim that companies practicing CSR, especially in developing
countries, are less likely to exploit workers and communities, critics claim that CSR itself
imposes outside values on local communities with unpredictable outcomes.
Better governmental regulation and enforcement, rather than voluntary measures, are an
alternative to CSR that moves decision-making and resource allocation from public to private
bodies. However, critics claim that effective CSR must be voluntary as mandatory social
responsibility programs regulated by the government interferes with peoples own plans and
preferences, distorts the allocation of resources, and increases the likelihood of irresponsible
decisions.

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Motives
Some critics believe that CSR programs are undertaken by companies to distract the public from
ethical questions posed by their core operations. They argue that the reputational benefits that
CSR companies receive (cited above as a benefit to the corporation) demonstrate the hypocrisy
of the approach.

Misdirection
Another concern is that sometimes companies use CSR to direct public attention away from
other, harmful business practices. For example, McDonald's Corporation positioned its
association with Ronald McDonald House as CSR while its meals have been accused of
promoting poor eating habits
Controversial industries
Industries such as tobacco, alcohol or munitions firms make products that damage their
consumers and/or the environment. Such firms may engage in the same philanthropic activities
as those in other industries. This duality complicates assessments of such firms with respect to
CSR.
The Kizhakkambalam takeover
A textile company called Kitex has taken over the administration of an entire Indian village
called Kizhakkambalam near Cochin by winning the local body elections. Environmentalists and
mainstream politicians of India point out that this can lead to a dangerous precedent because the
company got actively involved in CSR only after they were caught red-handed in polluting the
village

Negative impact of corporate psychopathy


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As corporate psychopaths have little or no conscience or care or empathy, it follows logically


that they are not driven by any notion of social responsibility or commitment to employees or to
the wider public.

Stakeholder influence
One motivation for corporations to adopt CSR is to satisfy stakeholders.
Branco and Rodrigues (2007) describe the stakeholder perspective of CSR as the set of views of
corporate responsibility held by all groups or constituents with a relationship to the firm. In their
normative model the company accepts these views as long as they do not hinder the organization.
The stakeholder perspective fails to acknowledge the complexity of network interactions that can
occur in cross-sector partnerships. It relegates communication to a maintenance function, similar
to the exchange perspective.

Ethical consumerism
The rise in popularity of ethical consumerism over the last two decades can be linked to the rise
of CSR. Consumers are becoming more aware of the environmental and social implications of
their day-to-day consumption decisions and in some cases make purchasing decisions related to
their environmental and ethical concerns.

Socially responsible investing


Shareholders and investors, through socially responsible investing are using their capital to
encourage behavior they consider responsible. However, definitions of what constitutes ethical
behavior vary. For example, some religious investors in the US have withdrawn investment from
companies that violate their religious views, while secular investors divest from companies that
they see as imposing religious views on workers or customers.

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Shareholder advocacy
Non-profits such as Ceres (organization) and As You Sow, and investing firms such as Calvert
Investments promote corporate responsibility through shareholder mobilization and corporate
engagement.

Creating shared value


Non-governmental organizations are also taking an increasing role, leveraging the media and the
Internet to increase the visibility of corporate behavior. Through education and dialogue, the
development of community awareness in pushing businesses to change their behavior is
growing.
Creating Shared Value (CSV) claims to be more community aware than CSR. Several companies
are refining their collaboration with stakeholders accordingly.

Public policies
Some national governments promote socially and environmentally responsible corporate
practices. The heightened role of government in CSR has facilitated the development of
numerous CSR programs and policies. Various European governments have pushed companies to
develop sustainable corporate practices. CSR critics such as Robert Reich argued that
governments should set the agenda for social responsibility with laws and regulation that
describe how to conduct business responsibly.

Regulation
Fifteen European Union countries actively engaged in CSR regulation and public policy
development. CSR efforts and policies are different among countries, responding to the

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complexity and diversity of governmental, corporate and societal roles. Studies claimed that the
role and effectiveness of these actors were case-specific.
The variety among companies complicates regulatory processes. Self-regulation allows each
corporate actor to balance profits and social responsibility without cumbersome governmental
involvement. Studies suggest that mandated CSR distorts the allocation of resources and
increases the likelihood of irresponsible decisions.
Bulkeley cited the Australian government's actions to avoid compliance with the Kyoto Protocol
in 1997, over concerns of economic loss and national interest. The Australian government
claimed that the pact would damage Australia more than any other OECD nation. In November
2007, the new Prime Minister Kevin Rudd ratified the protocol.
Canada adopted CSR in 2007. Prime Minister Harper encouraged Canadian mining companies to
meet Canadas newly developed CSR standards.
The Heilbronn Declaration is a voluntary agreement of enterprises and institutions in Germany
especially of the Heilbronn-Franconia region signed the 15th of September 2012. The approach
of the Heilbronn Declaration targets the decisive factors of success or failure, the achievements
of the implementation and best practices regarding CSR. A form of responsible entrepreneurship
shall be initiated to meet the requirements of stakeholders trust in economy. It is an approach to
make voluntary commitments more binding.

Laws
In the 1800s,the US government could take away a firm's license if it acted irresponsibly.
Corporations were viewed as "creatures of the state" under the law. In 1819, the United States
Supreme Court in Dartmouth College vs. Woodward established a corporation as a legal person
in specific contexts. This ruling allowed corporations to be protected under the Constitution and
prevented states from regulating firms. Recently countries included CSR policies in government
agendas.

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On 16 December 2008, the Danish parliament adopted a bill making it mandatory for the 1100
largest Danish companies, investors and state-owned companies to include CSR information in
their financial reports. The reporting requirements became effective on 1 January 2009. The
required information included:

CSR/SRI policies

How such policies are implemented in practice

Results and management expectations

CSR/SRI is voluntary in Denmark, but if a company has no policy on this it must state its
positioning on CSR in financial reports.
In 1995, item S50K of the Income Tax Act of Mauritius mandated that companies registered in
Mauritius paid 2% of their annual book profit to contribute to the social and environmental
development of the country. In 2014, India also enacted a mandatory minimum CSR spending
law. Under Companies Act, 2013, any company having a net worth of 500 crore or more or a
turnover of 1,000 crore or a net profit of 5 crore must spend 2% of their net profits on CSR
activities. The rules came into effect from 1 April 2014.

Crises and their consequences


Crises have encouraged the adoption of CSR. The CERES principles were adopted following the
1989 Exxon Valdez incident. Other examples include the lead paint used by toy maker Mattel,
which required the recall of millions of toys and caused the company to initiate new risk
management and quality control processes. Magellan Metals was found responsible for lead
contamination killing thousands of birds in Australia. The company ceased business immediately
and had to work with independent regulatory bodies to execute a cleanup. Odwalla experienced a
crisis with sales dropping 90% and its stock price dropping 34% due to cases of E. coli. The
company recalled all apple or carrot juice products and introduced a new process called "flash
pasteurization" as well as maintaining lines of communication constantly open with customers.

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Geography
Corporations that employ CSR behaviors do not always behave consistently in all parts of the
world. Conversely, a single behavior may not be considered ethical in all jurisdictions. E.g.,
some jurisdictions forbid women from driving, while others require women to be treated equally
in employment decisions.

UK retail sector
A 2006 study found that the UK retail sector showed the greatest rate of CSR involvement. Many
of the big retail companies in the UK joined the Ethical Trading Initiative, an association
established to improving working conditions and worker health.
Tesco (2013) reported that their essentials are Trading responsibility, Reducing our Impact
on the Environment, Being a Great Employer and Supporting Local Communities. J
Sainsbury employs the headings Best for food and health, Sourcing with integrity, Respect
for our environment, Making a difference to our community, and A great place to work, etc.
The four main issues to which UK retail these companies committed are environment, social
welfare, ethical trading and becoming an attractive workplace.

Top ten UK retail brands in 2013 based on Retail Week reports:


Retailer
Annual Sales bn
Tesco
42.8
Sainsbury's
22.29
Asda
21.66
Morrisons
17.66
Mark and Spencer
8.87
Co-operative Group
8.18
John Lewis Partnership
7.76
Boots
6.71
Home Retail Group
5.49
King Fisher
4.34

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Anselmsson and Johansson (2007) assessed three areas of CSR performance: human
responsibility, product responsibility and environmental responsibility. Martinuzzi et al.
described the terms, writing that human responsibility is the company deals with suppliers who
adhere to principles of natural and good breeding and farming of animals, and also maintains fair
and positive working conditions and work-place environments for their own employees. Product
responsibility means that all products come with a full and complete list of content, that country
of origin is stated, that the company will uphold its declarations of intent and assume liability for
its products. Environmental responsibility means that a company is perceived to produce
environmental-friendly, ecological, and non-harmful products. Jones et al. (2005) found that
environmental issues are the most commonly reported CSR programs among top retailers.

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COMPANY OVERVIEW

Mahindra and Mahindra Limited (M&M) is an Indian multinational automobile


manufacturing corporation headquartered in Mumbai, Maharashtra, India. It is one of the largest
vehicle manufacturers by production in India and the largest manufacturer of tractors across the
world. It is a part of Mahindra Group, an Indian conglomerate.
It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study
2014. It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011. Its
major competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok Leyland,
Toyota, Hyundai, Mercedes-Benz (Merc) and others.

History
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Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as
Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam
Mohammed. After India gained independence and Pakistan was formed, Mohammed emigrated
to Pakistan. The company changed its name to Mahindra & Mahindra in 1948. It eventually saw
a business opportunity in expanding into manufacturing and selling larger MUVs, starting with
the assembly under licence of the Willys Jeep in India. Soon established as the Jeep
manufacturers of India, the company later commenced manufacturing light commercial vehicles
(LCVs) and agricultural tractors. Today, Mahindra & Mahindra is a key player in the utility
vehicle manufacturing and branding sectors in the Indian automobile industry with its flagship
Mahindra XUV500 and uses India's growing global market presence in both the automotive and
farming industries to push its products in other countries.
Over the past few years, the company has taken interest in new industries and in foreign
markets. They entered the two-wheeler industry by taking over Kinetic Motors in India. M&M
also has a controlling stake in the REVA Electric Car Company and acquired South Korea's
SsangYong Motor Company in 2011. In 201011 M&M entered in micro drip irrigation with the
takeover of EPC Industries Ltd in Nashik.

Operations
Automobiles
Mahindra & Mahindra, branded on its products usually as 'Mahindra', produces SUVs,
saloon cars, pickups, commercial vehicles, and two wheeled motorcycles and tractors. It owns
assembly plants in India, Mainland China (PRC), the United Kingdom, and has three assembly
plants in the United States. Mahindra maintains business relations with foreign companies like
Renault SA, France.
M&M has a global presence and its products are exported to several countries. Its global
subsidiaries include Mahindra Europe S.r.l. based in Italy, Mahindra USA Inc., Mahindra South
Africa and Mahindra (China) Tractor Co. Ltd.
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Mahindra started making passenger vehicles firstly with the Logan in April 2007 under
the Mahindra Renault joint venture. M&M made its maiden entry into the heavy trucks segment
with the Mahindra Truck and Bus Division, the joint venture with International Truck, USA.
Mahindra produces a wide range of vehicles including MUVs, LCVs and three wheelers. It
manufactures over 20 models of cars including larger, multi-utility vehicles like the Scorpio and
the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build
passenger cars.
At the 2008 Delhi Auto Show, Mahindra executives said the company was pursuing an
aggressive product expansion program that would see the launch of several new platforms and
vehicles over the next three years, including an entry-level SUV designed to seat five passengers
and powered by a small turbodiesel engine. True to their word, Mahindra & Mahindra launched
the Mahindra Xylo in January 2009, selling over 15,000 units in its first six months.
Also in early 2008, Mahindra commenced its first overseas CKD operations with the
launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was
soon followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont,
Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs.
Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in North
America through an independent distributor, Global Vehicles USA, based in Alpharetta, Georgia.
Mahindra announced it would import pickup trucks from India in knockdown kit (CKD) form to
circumvent the Chicken tax. CKDs are complete vehicles that were assembled in the U.S. from
kits of parts shipped in crates. On 18 October 2010, however, it was reported that Mahindra had
indefinitely delayed the launch of vehicles into the North American market, citing legal issues
between it and Global Vehicles after Mahindra retracted its contract with Global Vehicles earlier
in 2010, due to a decision to sell the vehicles directly to consumers instead of through Global
Vehicles. However, a November 2010 report quoted John Perez, the CEO of Global Vehicles
USA, as estimating that he expected Mahindra's small diesel pickups to go on sale in the U.S. by
spring 2011, although legal complications remained, and Perez, while hopeful, admitted that
arbitration could take more than a year. Later reports suggested that the delays may be due to
Mahindra scrapping the original model of the truck and replacing it with an upgraded one before
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selling them to Americans. In June 2012, a mass tort lawsuit was filed against Mahindra by its
American dealers, alleging the company of conspiracy and fraud.
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In
2011, it also gained a controlling stake in South Korea's SsangYong Motor Company.
Mahindra launched its relatively heavily publicised SUV, XUV500, code named as W201
in September 2011. The new SUV by Mahindra was designed in-house and it was developed on
the first global SUV platform that could be used for developing more SUVs. In India, the new
Mahindra XUV 500 came in a price range between 1,140,0001,500,000. The company was
expected to launch 3 products in 2015 (2 SUVs and 1 CV) and an XUV 500 hybrid. Mahindra's
two wheeler segment launched a new scooter in the first quarter of 2015. Besides India, the
company also targeted Europe, Africa, Australia and Latin America for this model. Mahindra
President Mr. Pawan Goenka stated that the company planned to launch six new models in the
year. The company launched the CNG version of its mini truck Maxximo on 29 June 2012. A
new version of the Verito in diesel and petrol options was launched by the company on 26 July
2012 to compete with Maruti's Dzire and Toyota Kirloskar Motor's Etios.
On 30 July 2015, Mahindra released sketches of a brand new compact SUV called the TUV300
slated to be launched on 10 September 2015. The TUV300 design took cues from a battle tank
and used a downsized version of the mHawk engine found on the XUV500, Scorpio and some
models of the Xylo. This new engine was christened as the mHawk80

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24

CSR ACTIVITIES OF MAHINDRA & MAHINDRA

The social initiatives of the group have been very well streamlined where each group company
donates 0.5% of their PAT to the K C Mahindra Education Trust and adopts projects under the
Trust. The remaining 0.5% is used by the company to run community development programs on
their own.

K. C. Mahindra Education Trust:


Established by the late Mr. K. C. Mahindra in 1953, the K. C. Mahindra Education Trust aims to
'Transform the lives of people in India through education, by providing financial assistance and
recognition to them, across age groups and across income strata'. It was registered as a Public
Charitable Trust under the Bombay Public Trusts Act, 1950. The K.C. Mahindra Education Trust
25

has undertaken a number of education initiatives to make a difference to the lives of deserving
students. The Trust promotes education mainly by way of scholarships. It has provided more than
Rs. 13.80 crores (approximately US $ 3.0 million) in the form of grants, scholarships and loans.
Some of these scholarships were instituted as far back as the 1950's, while others were founded
recently. These are funded through an investment portfolio, the main donors of which are the
Mahindra Group of companies.

Mahindra Academy:
As part of its Corporate Social Responsibility activities, the Mahindra Group has established
schools near its factories primarily for children of its employees. At present, the Group has three
schools that impart high standards of education - Mahindra Academy at Malad in Mumbai,
Mahindra Academy in Zaheerabad and a school in Khopoli. The establishment of these schools
has not just benefited their employees but also the community around these schools. Teachers at
these schools are qualified and undergo regular training as well as attend relevant workshops.
Their teaching methodologies are constantly evaluated and modified when necessary.

Disaster Relief:
The Mahindra Foundation has been set up with a specific objective: to provide medical relief to
the poor and needy sections of society. The foundation has helped patients suffering from cancer,
heart ailments as well as burn victims. It has also been very active during national calamities and
disasters and has helped contribute and mobilize resources. The foundation also extends its
support to academia and other professionals and sportsmen by helping them attend workshops
and conferences overseas. The Mahindra Group has always been very responsive to any major
disaster in India. Whether it's been the tsunami or the Gujarat earthquake, the Mahindra family
has got together and always provided support either by way of financial help or by way of
sending vehicles, supplying material or manpower.

The Group has Transformed 3 municipal Gardens:


The Shivaji Garden (near Gateway of India) is admired for its beautiful architecture and
flourishing plants and flowers. Completely renovated by the Mahindra Group at a cost of Rs. 6
Lakhs, it now has pathways for pedestrians as well as new stretches of lawns and flowers. An
area formerly frequented by anti-social elements has been merged with the garden, to prevent
further misuse. Every effort has been taken to keep the garden in an immaculate condition and
visiting hours are in place, facilitating maintenance work. The Traffic Island Garden (opposite
Regal Cinema) has been completely renovated by the Mahindra Group at the cost of Rs. 1 Lakh.
26

New lamp posts and a variety of plants were put into place and the fountain was restored to its
former glory. The garden provides visual relief in this crowded and traffic congested circle. The
third garden is located at the junction of Madame Cama Road, to the south of Oval Maidan. This
is a brand new garden, developed by the group from scratch, at a cost of Rs. 1.5 Lakhs.

Reducing CO2 Emissions:

The

Bijlee

The Bijlee is an innovative, home grown, first-of-its-kind electric three wheeler, Indias tried and
tested battery operated vehicle. The Bijlee is an innovative Kind to Man technology initiative
from Mahindra & Mahindras alternate fuel programme. It is a zero emission electrically
powered vehicle that runs on a 72 volts DC motor. The Bijlees 12 batteries allow the customer
to do 80 km at a speed of 35 km/hour. With a replacement battery on board the vehicle can easily
give 120 kms. The electric vehicle has spacious interiors, with ample space for an entire family.
It has no engine, gearbox radiator and no silencer, which makes it a virtually noise free vehicle.
Bijlee gives quality output without choking the environment and is favoured by governments and
institutions, which lay focus on conserving the environment. 10 Mahindra Bijlees were handed
over to customers in 2006 by the Chief Minister of Pondicherry.

Nanhi Kali:
Nanhi Kali is a program that supports education for the girl child and is being run by the K C
Mahindra Education Trust (KCMET). The project currently (2007) supports the education of
over 32,000 underprivileged girl children.

Environmental Initiatives:
The environmental Performance enhancement is achieved through setting and reviewing EMS
Objectives and Targets, management programmes at plant level and at relevant functional levels.
These are in line with the Environmental Policy approved by the sector president.

27

Some of the key Environmental initiatives and areas of achievement in Nashik site are as
follows.

Air Pollution:
Exhaust provided for all stacks in paint shops.
Incinerators for ensuring complete combustion of flue gases
Scrubber for removing Suspended Particulate Matter
Pollution levels monitored every six months using external professional Lab.
Ambiant Air, Ambiant noise
Combustion Stacks
Process Stacks
Work Place Air, noise
Use of Ear Muffs, Ear plugs ensured in all high noise areas.
Water Pollution:
State of the Art combined STP (Sewage Treatment Plant) and ETP (Effluent Treatment Plant)
installed in Plant
Operation and Maintenance of ETP/STP closely monitored.
Effluent pollution parameters monitored.

Mahindra Pride schools:


It has decided to start two schools called Mahindra Pride schools for the SC/ST youth. From the
first Pride school, over 2000 students have been placed with a starting salary of Rs. 9000.

Hariyali:
It is a mass tree plantation & target was to plant 1 million trees.

28

10. ESOP:
It enables Mahindra workforce to collectively donate thousands of human hours for various
social projects, in the three focused areas of Education, Health and Environment.

Aanganwadi: Centre to serve educational & recreational needs of local children.

Schools adopted by M&M:


With an aim to improve the learning level of children in government schools, the Mahindra
Group has entrusted K. C. Mahindra Education Trust to support 6 government schools in the city
of Mumbai, which have drop out rates as high as 15% by Std V and 22% by Std VII. A survey
conducted in 60 schools in Mumbai revealed that 60% of students studying in Std III would not
read even simple paragraphs, 40% in Std IV could not write and 32% were not able to do simple
arithmetic. K. C. Mahindra Education Trust has identified Naandi Foundation as our
implementation partner to help us support these schools through their Ensuring Children Learn
programme. The schools identified are needy government schools and 5 of them located close to
the factories and offices were selected to allow the employees an opportunity to easily volunteer
at these field sites.

No.
School Name
No.
School Name
1
Akurli Schools Marathi 1
6
Dalvi Plot School Marathi 1
2
Akurli Schools Marathi 2

29

3
Akurli Schools Marathi Hindi medium

(Kandivili)

4
Bajaj Road Marathi
7
G K Kadam Marg School, Hindi
5
Bajaj Road Marathi Kandivali

Medium

Mahindra Search for Talent Scholarship:


This was initiated in 1983. This has been set up in 35 educational institutions across the country
with an objective to enthuse and reward excellence in academics. This scholarship is awarded to
students obtaining the highest aggregate marks, based on the year-end examination. Further a
student who receives the Mahindra Search for Talent scholarship more than once, is awarded the
Honour scholarship which includes a cash prize of Rs. 5000/- and a citation from the Trust.

Mahindra Pride Schools:

30

As part of the 60th year celebrations, Mahindra & Mahindra through its K C Mahindra Education
Trust set up 2 Mahindra Pride Schools, with the prime objective of empowering youth from
socially disadvantaged sections of society by extending livelihood training, to enable them to
gain employment based on their skills. The schools offer equal opportunity for men and women,
with a focus on rural youth. These schools are non-residential and offer various alternative
livelihood options.
To effectively run the Mahindra Pride schools, KCMET decided to partner with Naandi
Foundation, a not for profit trust with a proven track record in the field of education and
livelihood creation.

Health:
Blood Donation Totally 14 camps conducted with 797 donors
Eye Camps 7 Eye Camps conducted in which one was on Eye Donation Awareness (18 donors)
and others focused on eye testing and about 64 cataract operations were recommended.
Surgical Camp in association with Rotary Club for about 300 tribals in which 175 surgeries took
place
Health Check Up A unique initiative through which 115 Railway Porters at CST Mumbai were
given health cards after check up, similarly a camp benefited 170 policemen in Mumbai.
HIV/ Aids Awareness 2 Camps were conducted in both urban & rural areas.
Toilet Construction for school children
Typhoid Vaccinations for 200 children
Pulse Polio Awareness Drive
Dental Check up Camp

COMMITMENT FOR CSR INITIATIVES:


Commitment
Reducing energy
consumption
Reducing resource
consumption
Reducing GHG/C02
emissions

2011-13 (3 years)
2%

2013-14 (5 years)
5%

2%

5%

2%

5%
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Green IT/ Green


Procurement
Earning green
certifications
Spreading sustainability
awareness to
stakeholders
Increasing employee
engagement with Esops

Draft, release and


implement
10

Review and update

50%

100%

10%

20%

15

REVIEW OF LITERATURE
The main focus of every business organization is how to create economic value in order to
achieve profitable business activity. By doing so companies fulfill the financial satisfaction of
their shareholders and the profit is seen as compensation for the shareholders risk to invest their
capital in business enterprise. In recent decades, an increasing number of companies across the
world have voluntarily issued their corporate social responsibility (CSR) reports. CSR reporting
has become more important along the increase of interest in CSR which calls for companies to
become more responsible for their social, environmental, and economic impacts. It is
acknowledged that social problems that companies create, such as pollution, resource depletion,
violations of workers rights, and excessive power of large corporations, have significantly
influenced society.

Harish Kumar (2012) stated that Corporate Social Responsibility means putting something
back into the society. CSR can be viewed as responsibility on the part of the business &
industrial organizations to be accountable to their stakeholders including society. Business
organizations have an active interplay with the society. They are independent on each other. If we
create wealth from society, we will have to plough it back for the welfare of the society. It is
general principle requires to be followed. It is advocated that the companies should make CSR
not only their strategy but also a way of life. In his research paper, the researcher has given the
experts opinion that is Mr. K.A Chaukar who is Managing Director of Tata Industries Ltd.
Quotes, CSR today is building a perspective on responsible behavior in the companies to
32

innovative ways in which businesses reach to the lower segment of markets & include the poor
of the poorest in the main stream of development. Researcher has given the opinion of Prime
Minister Dr. Manmohan Singh, Corporate Social Responsibility must not be defined by tax
planning strategies alone. Rather than it should be defined within the framework of a corporate
philosophy, which factors the needs of the community & the regions in which a corporate entity
functions.

Lastly he concluded that the Government & legal pressures through rule & regulations cannot
motivate business organizations to feel responsible towards society rather than the voluntary
measures evolving out of intrinsic motivation & sense of social service can inspire them to be
sharing their profits with society in the name of welfare. According to the researcher the
following lines of poetry can better represent the CSR.

Jo Baithen Hai Andhere Main Tavazzo Unpe Dijiye, Ujale Apne Diyon Se Gharon Main
Unke Kijiye

Pulidindi Venugopal (May, 2012) focused the importance of corporate social responsibility and
the way it is being addressed in the current market driven Economy. She has given the example
of STRIVE which means Skills, Training and research in Vocational Education Services Pvt.
Ltd., which focused on providing Skills and training in Vocational Education to youth from
under served and unreached segments of population both geographically and economically.
STRIVE aims to bridge the gap between available human resources to the needs of corporate
India by embarking on customized training interventions. According to her the rural India is
fascinating as ever and has tremendous growth potential. But the Flowers needs to bloom to their
full potential then their fragrance can be smelt.

As Dr. Manmohan Singh said, the weaknesses are the PROCESS BLOCKS in the supply and if
removed they become our great strength and inspiration.

In June 2008, a survey was carried out by TNS India (a research organization) and the Times
Foundation with the aim of providing an understanding of the role of corporations in CSR. The
findings revealed that over 90% of all major Indian organizations surveyed were involved in
CSR initiatives. In fact, the private sector was more involved in CSR activities than the public
and government sectors. The leading areas that corporations were involved in were livelihood
promotion, education, health, environment, and women's empowerment. Most of CSR ventures
33

were done as internal projects while a small proportion were as direct financial support to
voluntary organizations or communities.

OBJECTIVES:
To know the concept of CSR & the benefits of CSR.
To study the CSR status in India.
To understand the innovative activities under CSR by Mahindra & Mahindra.

34

RESEARCH METHODOLOGY

To analyze the extent of Corporate Social Responsibility practices of Mahindra & Mahindra
organizations, the primary data is collected from HR Manager of the companies & secondary
data is collected from the annual reports of the companies, company website, journals,
magazines, books, etc.

Limitations:
The study does not consider each and every plant.
The primary data is collected from HR Manager & because of time constraint researcher couldnt
go in detail.
The data collected is only from the HR manager of the company & employees, beneficiaries are
not interviewed.

Company Profile:
Mahindra: The Indian Multinational the US$ 7.1 billion Mahindra Group is among the top 10
industrial houses in India. The Mahindra Group originated out of J.C. and K.C. Mahindras
desire to open a franchise to produce the celebrated Willy's Jeep. Mahindra & Mahindra is the
only Indian company among the top three tractor manufacturers in the world. The company was
35

incorporated as Mahindra & Trade 1)Systems and Automotive Technologies 2)Engineering


Services 3) Automotive 4) Farm Equipment.. Over the next 50 years the company gradually
diversified its operations, engaging in numerous joint ventures and building expertise across a
number of sectors. With over 62 years of manufacturing experience, the Mahindra Group has
built a strong base in technology, engineering, marketing and distribution which are the key to its
evolution as a customer-centric organization. The Group employs over 1,00,000 people and has
several state-of-the art facilities in India and overseas, with operations on every continent except
Antarctica. Company enjoys a leadership position in utility vehicles, tractors and information
technology, with a significant and growing presence in financial services, tourism, infrastructure
development, trade and logistics. The Mahindra Group today is an embodiment of global
excellence and enjoys a strong corporate brand image. Mahindra is the only Indian company
among the top tractor brands in the world. It is today a full-range player with a presence in
almost every segment of the automobile industry, from two-wheelers to CVs, UVs, SUVs and
sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (Now called
Mahindra REVA), strengthening its position in the Electric Vehicles domain. The Mahindra
Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and
information technology services company, Satyam Computer Services. The company is now
known as Mahindra Satyam. Mahindra is also one of the few Indian companies to receive an A+
GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received
the A+ GRI rating for the year 2008- 09. The Mahindra Group defines Corporate Social
Responsibility as making socially responsible products, engaging in socially responsible
employee relations and making a commitment to the community around it. At the Mahindra
Group, Corporate Social Responsibility is not just a duty; it's a way of life.
Equipment Sector has recently won the Japan Quality Medal, the only tractor company
worldwide to be bestowed this honour. It also holds the distinction of being the only tractor
company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility
vehicles in India. It made a milestone entry into the passenger car segment with Logan. The
Group has a leading presence in key sectors of the Indian economy, including & Infrastructure
Development The beauty we see in the nature will not be here forever. What matters most is
what you leave behind and that is what Mahindra Information Technology Financial
Services Logistics & Mahindra (M&M) wants to do. We are not only leading at the CNG
initiative. We have already demonstrated this with our electric vehicles as well. Vivek Nayar,
VP (Marketing) of M&M. We will discuss some of the initiatives taken up by Mahindra as a part
36

of their Corporate Social Responsibility. These initiatives are spread across a variety of sectors as
Mahindra group deals with them. Project work also tries to identify and analyze business.

CONCLUSIONS

With businesses focusing on generating profits, CSR was not a popular concern among
companies up until recently. With increased media attention, pressure from non-governmental
organizations, and rapid global information sharing, there is a surging demand to involve into
CSR at various level like conducting sustainable business practices and doing social welfare
activities.

Mahindra & Mahindra group plays major role, in fulfilling its duties towards the societal
orientation segment. Its Kisan-Mitra Initiative helps farmers generating wealth by getting
education on latest argi-trends and this way company also generates good revenues from the
wealthier and more loyal customers, and also increase their customer base.

In Conclusion, we can say that Social responsibility can go hand in hand with great business
profits and therefore, can generate win-win situations.

37

REFERENCES
Wikipedia
www.google.com
A. M. Sarma (2006) Aspects of Labour Welfare & Social Securities
Azar Kazmi (2007) Strategic Management & Business Policy
Harish Kumar (2012) Corporate Social Responsibility Revisited IJTD, Vol.-XXXXII No.-1
Harish N. (2012) Corporate Social Responsibility Practices In Indian Companies A Study,
IJMIE Volume 2, Issue 5, ISSN: 2249-0558 (Pgs. 519-536)
Harminder Kaur, Gazal Aggarwal (2012), A Paradox on Corporate Social Responsibility - Case
Study on Coca Cola, IJPSS Volume 2, Issue 9, ISSN: 2249-5894 (Pgs. 264-274)
Parul Khanna, Mrs. Gitika Gupta (2011) STATUS OF CORPORATE SOCIAL
RESPONSIBILITY: IN INDIAN CONTEXT Asia Pacific Journal of Research in Business
Management, Vol.-2, Issue 1 ISSN 2229-4104
Pulidindi Venugopal (2012) CORPORATE SOCIAL RESPONSIBILITY: A SURE PATH FOR
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R. S. Ramesh, Prof. Puneeta Goel (2012) STUDY AND MEASUREMENT OF CORPORATE


SOCIAL RESPONSIBILITY - AN INDIAN PRESPECTIVE, ZENITH International Journal of
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