RESPONSIBILITY BEYOND CORPORATE SOCIAL

RESPONSIBILITY (CSR): A CASE STUDY OF

SPORTS GOODS MANUFACTURER

DR. SANJEEV ARORA

Assistant Professor
University Business School
GNDU College
Jalandhar-144001 (Punjab, India)
Contact: aroraddm@gmail.com
Mobile no: 8194851170

DR. JASVEEN KAUR

Associate Professor
University Business School (UBS)
Guru Nanak Dev University,
Amritsar-143005 (Punjab, India)
Contact: jasveenkaurgndu@gmail.com
Mobile no: 9356100011

GITIKA ARORA
Research Scholar
University Business School
Guru Nanak Dev University,
Amritsar-143005 (Punjab, India)
Contact: gitika15@hotmail.com
Mobile no: 9501335353

Teaching Notes

RESPONSIBILITY BEYOND CORPORATE SOCIAL

RESPONSIBILITY (CSR): A CASE STUDY OF SPORTS
GOODS MANUFACTURER
Synopsis
This case study is to enable a discussion on the most evolving concept of Corporate Social Responsibility
(CSR). Through discussion on this case study, proper understanding about the concept can be developed.
Readers will be able to know what should be the intention of the company while doing CSR irrespective
of legal obligation i.e. in actual what intention this concept of CSR demands. This case study will also
discuss how and what kind of CSR activities are being implemented by the company under study and how
these activities are contributing towards the welfare of society.

Prerequisite Conceptual Understanding before the Classroom Discussion

The students/participants should be encouraged to read the following suggestive reading to have a
meaningful discussion and adequate analysis of this case study:

Kotler. P, et al., Corporate Social Responsibility: Doing the Most Good for Your Company and
Your Cause -2005(Paperback) by John Wiley & Sons publications

Porter. M. E, et al., Harvard Business Review on Corporate Responsibility- 2003 (Paperback)

by Harvard Business School Publishing Corporation

Case Positioning and Setting

This case study can be used in MBA, for Corporate Governance, Corporate sustainability and Corporate
Social responsibility courses:

Corporate Sustainability course: Corporate Social responsibility Step towards the development
of society- To provide realistic information on the business case for sustainability and to provide
guiding principle on how to design and implement a successful sustainability strategy in your
organization.

Assignment Questions
I.
What do you understand by CSR? Explain various provisions of CSR as per Companies
Act 2013?
II.

What are the various CSR activities as per Schedule VII of Companies Act 2013? Explain
the CSR activities of the Company under study by relating it to activities mentioned in
the Schedule VII.

III.

What do you understand by stakeholders? List various stakeholders covered by the

company under study in its CSR activities and also explain contributions made for them.

IV.

Explain how CSR activities for employees increase their level of motivation. Explain it in
the light of Maslows Hierarchy of Needs Theory.

V.

Justify the title of the case study.

Suggested Solutions
I.

What do you understand by CSR? Explain various provisions of CSR as per Companies Act
2013?

The purpose of this question is to develop the proper understanding about the concept of CSR to the
students/participants.
CSR is the obligation of business towards society due to the impact of its activities and decisions on
society and environment. Hence it is nothing but assessment of impact that organization has on society
and then evaluation of its responsibilities towards society.
Examples of CSR activities by companies (Exhibit (TN)-I):
Exhibit (TN)-I: Examples of CSR activities by companies in India
Name of the Company

CSR Activities

Nanhi Kali Project of Mahindra & Mahindra supports over 11 lakhs underprivileged
girls education in 10 states by providing support in the form of books, bags,
uniforms etc.

Contributing to Swachh Bharat Awachh Vidyalaya project, Mahindra & Mahindra

has constructed 4340 toilets in 1171 location across 11 states & 104 districts in
governmental schools.

Mahindra & Mahindra

Bharat Petroleum

Company is working on Project BOOND to make drought free villages through rain water
harvesting. It was Started with just 4 villages of Maharashtra and now extended to 140
villages of Maharashtra.

Tata Steel

Maternal and Newborn Survival Initiatives (MANI) project to reduce child and infant mortality
implemented in 167 villages of Jharkhand since 2009 and now planning to cover 1500
villages

Source: Utkarsh Majumdar, Namrata Rana and Neeti Sanan, Mahindra & Mahindra tops CSR list in India even as companies
scale up operations http://economictimes.indiatimes.com/news/company/corporate-trends/mahindra-mahindra-tops-csr-listin-india-even-as-companies-scale-up-operations/articleshow/49330470.cms , Oct 26 th 2015 (accessed on Oct 10th 2016)

Provisions regarding CSR as per Companies Act 2013

Provisions regarding CSR are mentioned in Section 135 of the Companies Act, 2013. Teachers can
discuss the provisions as mentioned in Annexure I (a).

II.

What are the various CSR activities as per Schedule VII of Companies Act 2013? Explain
the CSR activities of the Company under study by relating it to activities mentioned in the
Schedule VII.

In this section teacher should discuss with the students various CSR activities as per Companies Act 2013
(Annexure I (b)) and then relate the CSR activities of company discussed in case study with these
activities as mentioned in Exhibit (TN) II
Exhibit (TN)-II: Categorizations of CSR activities of company under study as per Schedule VII of Companies
Act 2013
S. No

CSR Activities of Company under study

Categorization as per Schedule VII of

Companies Act 2013

1.

Providing Scholarships to the needy children

Promotion of education

2.

Gifting plants to employees

Ensuring environmental sustainability

3.

Waste Management Project of Company

Social business projects

4.

Running a Working Executive Skill Enhancement scheme wherein the

company pays for self-education of employees.

Employment enhancing vocational skills

5.

Donating to F. C. Sondhi Charitable Trust which provides Vocational

training scholarships to needy

Employment enhancing vocational skills

6.
And many more as identified by analyzing
Source: Classroom Analysis

III.

What do you understand by stakeholders? List various stakeholders covered by the

company under study in its CSR activities and also explain contributions made for them.

Stakeholders are anyone having any direct or indirect interest in an organization. They can be any
individual, group or business who can influence and can be influenced by Companys activities.
Stakeholders are of two types:
1.
Internal stakeholders: Internal Stakeholders are those who are part of the organization.
Example-Managers, Workers, Directors, Employees, Shareholders, Investors
2.

External stakeholders: External stakeholders are those who are not a part of the business
but are influenced by its activities. Example- Suppliers, Customers, Creditors, Clients,
Government, Competitors, NGOs.

Various Stakeholders covered by company in its CSR Activities are Exhibit (TN) III:
Exhibit (TN)-III: Stakeholders covered by company in its CSR activities
S. No
1.

Stakeholder
Employees

CSR Activity
Various Staff welfare activities mentioned
in case

2.

Community

Serving needy
scholarships.
Serving needy
various NGOs

children
through

by

giving

donations

to

Giving plants to employee to encourage

greenery in environment
3.

Government

Promoting
education
by
giving
scholarships to needy students as a
helping hand to government
Part of many trusts that works for the
social welfare.

4.

NGOs

Members of many NGOs like CRY,

GOONJ etc.

Source: Classroom Analysis.

IV.

Explain how CSR activities for employees increase their level of motivation. Explain it in
the light of Maslows Hierarchy of Needs Theory.

Maslows need hierarchy theory is based on the psychology of people. This theory explains what makes
people motivated. This theory explains five levels of motivation (Exhibit IV and V).
Exhibit (TN)-IV: Maslow's hierarchy of needs

Source: Maslow. A. H(2012) ; A Theory of Human Motivation Start Publishing LLC

Exhibit (TN)-V: Motivation of Employees of Company under study by its CSR activities
S. No.

Needs

Satisfaction of needs of employees of

company by its CSR activities

1.

Physiological needs-food, clothing, shelter

As employees are getting salaries, hence

there basic needs are fulfilled

2.

Safety needs-security and safety

Statutory benefits like Provident funds,

Employee State Insurance
Job security is there for employees
working is organization.

3.

Belongingness and love needs-intimate relationships and friends

Scholarship to their children for education

Birthday Celebrations
Encouragement
employee

4.

Esteem needs-prestige and feeling of accomplishment

5.

Self-actualization: achieving ones full potential including creative activities

of

suggestions

from

Treating everybody equal irrespective of

caste and creed.
Annual functions are organized in which
employees are awarded for their
accomplishments which motivated them to
further work better.
Company is making its employees more
employable by Working Executive Skill
Enhancement scheme wherein the
company pays for self-education of
employees
providing
time.
Hence
employees achieve his/her goal of life.

Source: Classroom analysis

V.

Justify the title of the Case study

1. As the company is socially responsibility since its inception following the footstep of its founder
Mr. F. C. Sondhi, it justifies that it is not doing its CSR activities due to CSR provisions as per
law but due to its self-motivation towards the welfare of society.
2. From the very first paragraph of the case study FCS has always assumed its responsibility
towards the society. Such are the reasons that we indulge in a lot of community and social
work within and outside the company. One reason, which keeps us walking down this lane,
is what we do is not because we should; it is because we want to shows the true intention of
company in its CSR activities.

Teacher can encourage the students to give their own analytical view about the title of the study.

Wrapping Up/Debriefing
In last 5-10 minutes all the important points of the case study should be discussed in brief to clarify the
concept, its relevance and its implications in the practical circumstances by relating it to the Company
discussed in study. Debriefing should be done in such a way that it ends up by building the mind-set of
students/participators towards what actually the concept of Corporate Social Responsibility demands
without considering it as legal burden on the companies.

Big Picture
Though CSR has become compulsory for the companies but companies should perform CSR activities
with true intention which in reality this concept demands irrespective of any legal obligation.