3) Final Project Work

A STUDY ON EFFECT OF CSR ON ORGANIZATIONAL SUSTAINIBILITY
CHAPTER 1
INTRODUCTION
1.1 EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY
The evolution of corporate social responsibility in India refers to changes over time in India
of the cultural norms of corporations engagement of corporate social responsibility (CSR), with
CSR referring to way that businesses are managed to bring about an overall positive impact on the
communities, cultures, societies and environments in which they operate.
Social responsibility of organizations has become the most important elements of Philosophy,
it is important to abide by organizations within the social identity theory. There has been an
explosion of interests in the company's social responsibilities in the recent years, and the phrase
"Being a responsible corporate citizen" has already become a core value. The very impact of the
corporate sector in terms of finance and employment shows that the well-being of the corporate
sector is of considerable significance to the society.
In the environment of modern economic development, corporate sector no longer functions in

isolation. The company must behave and function as a responsible member of the society just like
any other individual.
Every business has an overriding responsibility to make the fullest possible use of its
resources both human and material in the era of globalization. An enterprise is a corporate citizen.
Like a corporate citizen it is esteemed and judged by its actions in relation to the community of
which it is a member as well as by its economic performance.
The fundamentals of CSR rest on the fact that not only public policy but even corporates
should be responsible enough to address social issues. Thus companies should deal with the
challenges and issues looked after to a certain extent by the states.
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Among other countries India has one of the oldest traditions of CSR. But CSR practices are
regularly not practiced or done only in namesake especially by MNCs with no cultural and
emotional attachments to India. Much has been done in recent years to make Indian Entrepreneurs
aware of social responsibility as an important segment of their business activity but CSR in India
has yet to receive widespread recognition. If this goal has to be realised then the CSR approach of
corporates has to be in line with their attitudes towards mainstream business companies setting
clear objectives, undertaking potential investments, measuring and reporting performance
publicly.
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.
In recent years the concept of corporate social responsibility has gained prominence to such
an extent that the concept seems ubiquitous in the media and is gaining increasing attention among
academics from a wide range of disciplines.
There are three major dimensions for social responsibility, being the social, environmental,
economic, stakeholders and voluntariness. CSR is often described as the corporate triple bottom
line the totality of the corporations financial, social, and environmental performance in
conducting its business.
The phrase Corporate Social Responsibility was coined in 1953 with the publication of
Bowen's 'Social Responsibility of Businessmen', which posed the question 'what responsibilities to
society can business people be reasonably expected to assume?' Writing on the subject in the
1960s expanded the definition, suggesting that beyond legal obligations companies had certain
responsibilities to society. In 1984, the celebrated management consultant Peter Drucker wrote
about the imperative to turn social problems into economic opportunities.
The Four Phases of CSR Development in India
The history of CSR in India has its four phases which run parallel to India's historical
development and has resulted in different approaches towards CSR. However the phases are not
static and the features of each phase may overlap other phases.
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1. The First Phase
In the first phase charity and philanthropy were the main drivers of CSR. Culture, religion,
family values and tradition and industrialization had an influential effect on CSR. In the pre-
industrialization period, which lasted till 1850, wealthy merchants shared a part of their wealth
with the wider society by way of setting up temples for a religious cause. Moreover, these
merchants helped the society in getting over phases of famine and epidemics by providing food
from their godown and money and thus securing an integral position in the society. With the
arrival of colonial rule in India from the 1850s onwards, the approach towards CSR changed.
The industrial families of the 19th century such as Tata, Godrej, Bajaj, Modi, Birla,
Singhania were strongly inclined towards economic as well as social considerations. However it
has been observed that their efforts towards social as well as industrial development were not only
driven by selfless and religious motives but also influenced by caste groups and political
objectives.
2. The Second Phase
In the second phase, during the independence movement, there was increased stress on Indian
Industrialists to demonstrate their dedication towards the progress of the society. This was when
Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders
had to manage their wealth so as to benefit the common man. "I desire to end capitalism almost, if
not quite, as much as the most advanced socialist. But our methods differ. My theory of
trusteeship is no make-shift, certainly no camouflage. I am confident that it will survive all other
theories." This was Gandhi's words which highlights his argument towards his concept of
"trusteeship". Gandhi's influence put pressure on various Industrialists to act towards building the
nation and its socio-economic development. According to Gandhi, Indian companies were
supposed to be the "temples of modern India".
Under his influence businesses established trusts for schools and colleges and also helped in
setting up training and scientific institutions. The operations of the trusts were largely in line with
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Gandhi's reforms which sought to abolish untouchability encourage empowerment of women and
rural development.
3. The Third Phase
The third phase of CSR (196080) had its relation to the element of "mixed economy",
emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental
standards. During this period the private sector was forced to take a backseat. The public sector
was seen as the prime mover of development. Because of the stringent legal rules and regulations
surrounding the activities of the private sector, the period was described as an "era of command
and control".
The policy of industrial licensing, high taxes and restrictions on the private sector led to
corporate malpractices. This led to enactment of legislation regarding corporate governance,
labour and environmental issues. PSUs were set up by the state to ensure suitable distribution of
resources (wealth, food etc.) to the needy. However the public sector was effective only to a
certain limited extent. This led to shift of expectation from the public to the private sector and
their active involvement in the socio-economic development of the country became absolutely
necessary. In 1965 Indian academicians, politicians and businessmen set up a national workshop
on CSR aimed at reconciliation. They emphasized upon transparency, social accountability and
regular stakeholder dialogues. In spite of such attempts the CSR failed to catch steam.
4. The Fourth Phase
In the fourth phase (1980 - 2013) Indian companies started abandoning their traditional
engagement with CSR and integrated it into a sustainable business strategy. In the 1990s the first
initiation towards globalization and economic liberalization were undertaken. Controls and
licensing system were partly done away with which gave a boost to the economy the signs of
which are very evident today. Increased growth momentum of the economy helped Indian
companies grow rapidly and this made them more willing. Globalization has transformed India
into an important destination in terms of production and manufacturing bases of TNCs are
concerned.
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1.2 MEANING OF CSR
Corporate Social responsibility is the idea that businesses should balance profit-making
activities with activities that benefit society it involves developing businesses with a positive
relationship to the society in which they operate.
Social responsibility means that individuals and companies have a duty to act in the best
interests of their environments and society as a whole. Social responsibility as it applies to
business is known as corporate social responsibility (CSR).
1.3 DEFINITION OF CSR
While there is no universal definition of corporate social responsibility, it generally refers to

transparent business practices that are based on ethical values, compliance with legal
requirements, and respect for people, communities, and the environment.
The World Business Council on Sustainable Development (WBCSD) defines CSR as

The continuing commitment by business to contribute to economic development while improving
the quality of life of the workforce and their families as well as of the community and society at
large.
The European Commission (EC) defines CSR as The responsibility of enterprises for
their impacts on society. To completely meet their social responsibility, enterprises should have
in place a process to integrate social, environmental, ethical human rights and consumer concerns
into their business operations and core strategy in close collaboration with their stakeholders.
The United Nations Industrial Development Organization (UNIDO) defines CSR as

Corporate social responsibility is a management concept whereby companies integrate social and
environmental concerns in their business operations and interactions with their stakeholders. CSR
is generally understood as being the way through which a company
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achieves a balance of economic, environmental and social imperatives (Triple- Bottom-Line

Approach), while at the same time addressing the expectations of shareholders and stakeholders.
In this sense it is important to draw a distinction between CSR, which can be a strategic business
management concept, and charity, sponsorships or philanthropy. Even though the latter can also
make a valuable contribution to poverty reduction, will directly enhance the reputation of a
company and strengthen its brand, the concept of CSR clearly goes beyond that.
1.4 CSR IN INDIA
CSR in India has traditionally been seen as a philanthropic activity. And in keeping with
the Indian tradition, it was an activity that was performed but not deliberated. As a result, there is
limited documentation on specific activities related to this concept.
However, what was clearly evident that much of this had a national character encapsulated
within it, whether it was endowing institutions to actively participating in Indias freedom
movement, and embedded in the idea of trusteeship.
The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its
disclose-or-explain mandate, is promoting greater transparency and disclosure. Schedule VII of
the Act, which lists out the CSR activities, suggests communities to be the focal point.
On the other hand, by discussing a companys relationship to its stakeholders and integrating
CSR into its core operations, the draft rules suggest that CSR needs to go beyond communities
and beyond the concept of philanthropy. It will be interesting to observe the ways in which this
will translate into action at the ground level, and how the understanding of CSR is set to undergo a
change.
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1.5 PRINCIPLES OF CORPORATE SOCIAL RESPONSIBILITY
The Corporate Social Responsibility is based on the following principles:
Legal Compliance Principle:

The enterprise shall comply with and understand all applicable, local, international,
written, declared, and effected laws and regulations, in accordance with fixed, specific
procedures.
Adherence to Customary International Laws Principle:

The enterprise shall adhere to international and governmental agreements, executive
regulations, declarations, covenants, decisions, and guidelines, when setting its policies and
practices pertinent to Social Responsibility.
Respecting Related Stakeholders lefts Principle:

The enterprise shall acknowledge and accept the diversity of related stakeholders lefts
and interests, and the diversity of the major and minor enterprises' activities and products,
among other elements, which may affect such related stakeholders.
Transparency Principle:
The enterprise shall clearly, accurately, and comprehensively declare its policy,
decisions, and activities, including known and potential effects on environment and society.
Moreover, such information shall be available to affected persons, or those who are likely to
be affected materially by the enterprise.
Respect for Human lefts Principle:

The enterprise shall execute policies and practices which shall result in respecting
existent human lefts in the Universal Declaration of Human lefts.
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1.6 SCOPE OF CSR
Market forces:
Responding to the demands of the market. Managerial decisions that involve business
responding to the economics of the market place by efficiently and effectively using resources.
The greatest impact of business on society comes from normal operations, therefore, shows
greatest social responsibility.
Mandated actions:
Government mandates or negotiated agreements (regulatory requirements and guidelines,
contracts/agreements with stakeholders). Managerial decisions that reflect business responses to
government mandated requirements and/or pressure group stakeholders (e.g. unions).
Voluntary actions:
Managerial decisions that are undertaken without outside pressure: voluntary social
programmes.
Legal plus:
go beyond status and regulatory requirements
1.7 NEED OF CSR
CSR is required for the organisation because for the following reason,
Solving social problem. Resource given by the organisation to solve the social problem.
Improve public image of the firm & improving stock price.
Best interest of business to promote & improve communities.
To solve social, economic & political problem of country.
To protect consumer against business malpractices like adulteration, black marketing,
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Shortage in weight, unfair pricing, measures etc
It helps to attract & retain customers and investor.
It helps to cut business cost.
Corporate Social Responsibility makes for eminent business sense as well when one
considers the knock-on effect that social and environmental responsibility brings to the
businesses.
There is a tendency to treat CSR as yet another cost of business and hence be business like
about the practice.
1.8 BENEFITS OF CSR
Corporate social responsibility allows organizations to do their bit for the society,
environment, and customers or for those matter stake holders.
The term corporate social responsibility gives a chance to all the employees of an organization
to contribute towards the society, environment, and country and so on. We all live for ourselves
but trust me living for others and doing something for them is a different feeling altogether.
Bringing a smile to peoples life just because your organization has pledged to educate the poor
children of a particular village not only gives a sense of inner satisfaction but also pride and
contentment.
Corporate social responsibility goes a long way in creating a positive word of mouth for the
organization on the whole. Doing something for your society, stake holders, customers would not
only take your business to a higher level but also ensure long term growth and success. Corporate
social responsibility plays a crucial role in making your brand popular not only among your
competitors but also media, other organizations and most importantly people who are your direct
customers.
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Corporate social responsibility also gives employees a feeling of unparalleled happiness.

Believe me, employees take pride in educating poor people or children who cannot afford to go to
regular schools and receive formal education. CSR activities strengthen the bond among
employees. People develop a habit of working together as a single unit to help others. In fact they
start enjoying work together and also become good friends in due course of time. They also
develop a sense of loyalty and attachment towards their organization which is at least thinking for
the society.
1.9 COMPANIES ACT 2013 REGARDING CSR
Corporate Social Responsibility is not a new concept in India, however, the Ministry of
Corporate Affairs, Government of India has recently notified the Section 135 of the Companies
Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014
"hereinafter CSR Rules" and other notifications related thereto which makes it mandatory (with
effect from 1st April, 2014) for certain companies who fulfil the criteria as mentioned under Sub
Section 1 of Section 135 to comply with the provisions relevant to Corporate Social
Responsibility.
Moreover, while proposing the Corporate Social Responsibility Rules under Section 135 of
the Companies Act, 2013, the Chairman of the CSR Committee mentioned the Guiding Principle
as follows: "CSR is the process by which an organization thinks about and evolves its
relationships with stakeholders for the common good, and demonstrates its commitment in this
regard by adoption of appropriate business processes and strategies. Thus CSR is not charity or
mere donations. CSR is a way of conducting business, by which corporate entities visibly
contribute to the social good. Socially responsible companies do not limit themselves to using
resources to engage in activities that increase only their profits. They use CSR to integrate
economic, environmental and social objectives with the company's operations and growths."
Recently notified Companies (Corporate Social Responsibility Policy) Rules, 2014 has
defined the term "Corporate Social Responsibility (CSR)" as follows: "Corporate Social
Responsibility (CSR)" means and includes but is not limited to Projects or programs relating to
activities specified in Schedule VII to the Act or Projects or programs relating to activities
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undertaken by the board of directors of a company (Board) in pursuance of recommendations of

the CSR Committee of the Board as per declared CSR Policy of the company subject to the
condition that such policy will cover subjects enumerated in Schedule VII of the Act.
Meaning thereby, conducting all those activities which are either specified under Schedule
VII to the Companies Act, 2013 or those which are recommended by the CSR Committee of the
Board as per the CSR Policy and are undertaken by the Board of directors of
the Company will be covered under the scope of activities of Corporate Social Responsibility.
1.10 CSR & BUSINESS PERFORMANCE
In last few decades the concept of Corporate Social Responsibility has grown exponentially.
In the 21st century larger firms face large number of changes and challenges including the
corporate social responsibility as being one of the key problems. It suggests the importance of
understanding of the CSR by the organization towards the society which also impacts the financial
performance of the firm.
The CSR activities are treated as an investment not as a cost or expense where it shows the
relationship between corporation and the stakeholders such as the customers, investors, employees
and society as a whole. The businesss purpose is not only to earn profit but the welfare of the
society as well. Some studies have shown the positive correlation between the CSR and financial
performance while other studies show the negative relationship between them. Each company
performs differently for the implementation of CSR depending on different factors like the culture
of the organization, size or the stakeholder demand.
Its now recognized that sustainable development and reduction of poverty are the key issues
that need to be addressed by the governments, mostly in the developing world. However, the
government cannot meet this alone without the help of the private sector. Policy makers are
paying much attention to the potential contribution of the private sector to such policy objectives.
As the issue of sustainable development becomes more important, CSR becomes an element that
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addresses these issues and therefore it becomes more vital in the daily operations of financial
institutions.
Corporate social responsibility is generally defined as while company is performing its core
business operations, it considers and handles the influence of these operations on society,
economy and atmosphere.
CSR is predominantly considered a Western phenomenon due to the strong institutions,

standards and appeal systems of the developed nations, which are weak in the developing
countries of Asia. Such weak standards pose a considerable challenge to companies practising
CSR in developing countries. The relation between CSR and CP has provoked much interest
among researchers.
Corporate Social Responsibility is how business organization activities influences the

stakeholder interest. CSR plays a very important role in organizational performance. Most
organizations have embraced corporate social responsibility without substantial increase in
organization performance
1.11 CSR & SUSTAINIBILITY
Sustainability (corporate sustainability) is derived from the concept of sustainable

development which is defined by the Brundtland Commission as development that meets the
needs of the present without compromising the ability of future generations to meet their own
needs.
Corporate sustainability essentially refers to the role that companies can play in meeting the
agenda of sustainable development and entails a balanced approach to economic progress, social
progress and environmental stewardship.
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CSR in India tends to focus on what is done with profits after they are made. On the other
hand, sustainability is about factoring the social and environmental impacts of conducting
business, that is, how profits are made. Hence, much of the Indian practice of CSR is an important
component of sustainability or responsible business, which is a larger idea, a fact that is evident
from various sustainability frameworks. An interesting case in point is the NVGs for social,
environmental and economic responsibilities of business issued by the Ministry of Corporate
Affairs in June 2011. Principle eight relating to inclusive development encompasses most of the
aspects covered by the CSR clause of the Companies Act, 2013. However, the remaining eight
principles relate to other aspects of the business.
The UN Global Compact, a widely used sustainability framework has 10 principles covering
social, environmental, human rights and governance issues, and what is described as CSR is
implicit rather than explicit in these principles. Globally, the notion of CSR and sustainability
seems to be converging, as is evident from the various definitions of CSR put forth by global
organizations. The genesis of this convergence can be observed from the preamble to the recently
released draft rules relating to the CSR clause within the Companies Act, 2013 which talks about
stakeholders and integrating it with the social, environmental and economic objectives, all of
which constitute the idea of a triple bottom line approach.
It is also acknowledged in the Guidelines on Corporate Social Responsibility and

Sustainability for Central Public Sector Enterprises issued by the DPE in April 20135. The new
guidelines, which have replaced two existing separate guidelines on CSR and sustainable
development, issued in 2010 and 2011 respectively, mentions the following:
Since corporate social responsibility and sustainability are so closely entwined, it can be
said that corporate social responsibility and sustainability is a companys commitment to its
stakeholders to conduct business in an economically, socially and environmentally sustainable
manner that is transparent and ethical.
Sustainability reporting is a vital step towards achieving a sustainable global economy.

Reporting enhances companies accountability for their impacts and therefore enhances trust,
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facilitating the sharing of values on which to build a more cohesive society. The availability of
sustainability information can be used by governments to assess the impact and contribution of
businesses to the economy and to understand which issues are being tackled by which players.
Widespread sustainability reporting practices, creating transparency, can help markets function
more efficiently and indicate the health of the economy; and help drive progress by all
organizations towards a smart, sustainable and inclusive growth.
Organizations can use reporting to inform their risk analysis strategies and boost their
business. A growing number of companies see sustainability reporting as a means to drive greater
innovation through their businesses and products to create a competitive advantage in the market.
Governments, businesses and stakeholders all directly benefit from it, and the positive impact on
social, environmental and human rights issues is evident. Sustainability reports are released by
companies and organizations of all types, sizes and sectors, from every corner of the world.
1.12 DIMENSIONS OF CSR
There are four main dimensions of CSR (Corporate Social Responsibility) i.e. Economic
Dimension, Social Dimension, Environmental Dimension and Stakeholder Dimension.
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(i) ECONOMIC DIMENSION
The economic dimension refers to the effect the corporate social responsibility has on the
finances of the company. Within the framework of this Guide, the term of economic dimension
respective to social responsibility does not refer to profitability, as one of the commercial
operations aspects.
Alternatively, it refers to commitment to ethical practices inside enterprises, like corporate

governance, preventing bribery and corruption, protecting consumer's lefts, and ethical
investment.
a. Corporate Governance
The Organization for Economic Cooperation and Development (OECD) defines

Corporate Governance as a set of relationships between a companys management, its board,
its shareholders and other stakeholders. Corporate governance also provides the structure through
which the objectives of the company are set, and the means of attaining those objectives and
PAGE 15
monitoring performance are determined. Corporate governance should provide proper incentives
for the board and management to pursue objectives that are in the interests of the company and its
shareholders and should facilitate effective monitoring, and so help the company to utilize its
resources efficiently.
Corporate Governance contributes to the following:
Creating and promoting an environment within which the principles of accountability,

transparency, ethical behaviour, respect for relevant parties interests and the rule of law are
applied.
Establishing a system of economic and non-economic incentives that is connected with

performance in social responsibility.
Utilizing financial, natural, and humanitarian resources efficiently.
Promoting justice in representing under-represented categories (including women) in higher

positions at the enterprise.
Realizing balance between the enterprises needs, concerned parties, including urgent needs,
and the needs of coming generations.
Establishing bilateral communications with related parties, which take into consideration such
parties interests, and assisting in defining agreement and disagreement areas, and in negotiation
for the resolution of potential conflicts.
Promoting effective involvement of male and female employees in decision making, pertaining
social responsibility concerns.
Achieving balance at the authority and responsibility level, besides the ability of persons who
take decisions on behalf of the enterprise.
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b. Protection Of Consumer Interest
As per the social responsibility, it is connected with fair marketing practices, protection of
health and ensuring safety, sustainable consumption, settlement of conflicts and Indemnities,
protection of information and privacy, and attainment of basic services and products.
Enterprises which introduce products, or render services for customers of consumers are
deemed liable against those customers or consumers. Their liability includes providing accurate
information, using integral and transparent means which are helpful in marketing, contractual
dealings, and strengthening consumption. It also requires mitigating work risks which may result
from such operations through developing, distributing, supporting, and providing sufficient
information on such operations. Whenever enterprises tend to collect private information, they
shall be obliged to preserve the confidentiality of such information.
It ensures that goods or services provided by the enterprise meet all legal standards required for
maintaining the consumer's health and safety, including health precautions and product safety
regulations, in addition to providing informative labels on the products. All reasonable
precautions should be employed or taken to ensure the quality and safety of its services and
goods', taking into consideration the entire life cycle for each product, as the objective is to
ensure safe utilization, good possibilities for repair, treatment, recycling or safe disposal of
excess or damaged goods.
Providing effective and transparent procedures when examining consumer complaints, so as to

contribute in finding fair and timely solutions for consumer disputes, without any further or
unnecessary costs.
Avoiding engagement in any other practices that are deemed deceiving, misleading, forged, or
unfair.
Respecting the consumers privacy, providing security, and maintaining its confidential
information.
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Complete and transparent cooperation with public authorities to avoid and/or combat any
serious threats that may affect consumers health or public safety due to using or consuming its
products.
Setting terms and conditions in case the consumer files a complaint for a warranted product,
making sure that such terms remain effective even of the relevant company is affected to the
extent that it becomes incapable of settling its obligations.
c. Ethical Investment
Ethical investment is the type of investment which takes into consideration the enterprises
ethical values and their effects on making the investment decision. There are several and various
types of ethical investment, yet the following are the most common:
The investment which is based on Negative Screening: this type of ethical investment considers
all investment opportunities, yet prohibits the involvement in certain investments.
The investment which is based on Positive Screening: this type of ethical investment considers
all available investment opportunities, to find socially and ethically responsible investment
opportunities.
The investment which is based on Corporate Engagement: this type of ethical investment aims
at changing corporate practices in which it is involved, through promoting dialogue and
conducting meetings to encourage such enterprises to be committed to social responsibility.
Combination Investment: despite the fact that it is uncommon, some enterprises combine the
above three types of investment
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(ii) SOCIAL DIMENSION
The social dimension of corporate social responsibility involves the relationship between
business and society as a whole. When addressing the social dimension, the business should
benefit society as a whole. This could involve sourcing fair trade products, for example, or
agreeing to pay the employees a liveable wages. It could also involve taking on endeavours that
benefit society, for instance using resources to organise charitable fund raisers.
The enterprise should participate in achieving the welfare of the society, and in improving
and caring for the affairs of its employees. This should positively reflect on increasing their
productivity, developing their technical abilities, and providing them with professional and
employment security, besides health and social care. The open administrative approach which the
enterprise adopts is considered conclusive, as the effect of its social conduct exceeds the
enterprises own limits.
a. Fair Employment & Work Practice
Enterprises recognize individuals as their competitive privilege, and treat their employees
equally as assets and factors for change. As such, they need to win the support of employees, not
only to determine the success of their operations from a commercial point of view, but also in
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terms of the enterprises commitment towards social and environmental issues, in order to realize
the three pillars of sustainability.
This can be achieved through strengthening the enterprises values, besides the economic,
social, and environmental dimensions of sustainability, and through investing in the quality of
professional life, through proper organization of workplace, practices adopted within the
workplace, recruitment conditions, and developing and managing human resources. This stems
from the fact that socially responsible employment practices are considered essential to achieve
social justice and institutional stability.
There is a basic relation between work conditions and productivity. Studies repeatedly
highlight the fact that the success of the enterprise which operates within increasingly competitive
environments is no longer measured with plain numbers. To the contrary, enterprises which are
socially responsible will be the entities which will also take into account other factors like
achieving the ideal limit of work relationships inside the enterprise, ability to innovate, and focus
on flexible organizational structures, since the quality of work significantly affects productivity
and profitability.
As for good conducts concept within the workplace, it is far-reaching, and comprises several
characteristics. However, the main organizational factors which are related to the work
environment, and which contribute to establishing an effective and productive workplace, include
Leadership that appreciates employees based on merit.
Safe and healthy work environment.
Mutual trust between employers and employees.
Openness culture in respect to the involvement in decision making.
Promotion of initiative taking and innovation.
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b. Contribution To Local Community
Social responsibility cares for the manner in which the enterprise runs the effects of its
operations on communities, and the groups which operate under its scope. It is possible that the
effects might be positive or negative. Consequently, the manner in which the enterprise runs such
effects shall definitely affect the welfare of the local community, and at the end, affect its
business.
Classifying areas which the enterprise shall contribute to, according to priority, depends on
the characteristics of the community itself on the one hand, and on the quality of resources and
capabilities which the enterprise enjoys on the other. It is important for the enterprise to be totally
aware of the local community, to be able to direct its effort in a straight forward manner towards
the communitys own priorities and needs.
The contribution of the enterprise should be represented in a manner that shows respect to the
rights of community members, in taking decisions which relate to the life of their communities.
Within this framework, it is certain that the enterprise which contributes to the development of its
local community receives best results when it executes its programs after consulting with local
communities. This way, it will guarantee taking the priorities of the community into consideration,
since the development of the local community is more than a charity effort. It is indeed a
continuous relation between the enterprise and the community it operates within.
The main areas for developing the local communities which the enterprise may contribute to
include creating employment opportunities, and local economic development initiatives through
expanding educational programs, skill development, provisions of health services, caring for the
youth through cultural and sports clubs, and commitment to deduct specific percentages from
profits before taxes for donations which are allocated to serve societal concerns.
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(iii) ENVIRONMENTAL DIMENSION
The environmental dimension for socially responsible enterprises is defined as the

enterprises obligation towards covering the environmental effects which result from its operations
and products, eliminating emissions and wastes, achieving maximum efficiency and productivity
depending on available resources, and decreasing practices which may negatively affect the
country and next generations enjoyment of resources.
The enterprise should be aware of all the direct and indirect environmental aspects which are
related to its performance of business, rendering of services, and manufacturing of products. It
should also employ certain standards to learn about the environmental aspects which result in
distinguished effects to be able to effectively enhance its environmental performance. Such certain
standards which are set by the enterprise itself should be comprehensive and fixed. They should
also be documented through writing reports to enhance the functional performance of the
environment.
a. Reduce Emission
The activities, operations and services provided by enterprises, result in direct and indirect
emissions in the atmosphere. Such emissions result from using the enterprises products, or from
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its purchasing habits and electricity consumption. Such emissions may include various pollutants,
like lead, mercury, changeable organic compounds, sulphur dioxide, nitric-oxides, and other
materials which may lead to environmental deterioration, and effects on human health.
b. Reduce Waste
The enterprises whose business activities result in liquid and solid wastes should depend on
programs to reduce such wastes. These programs must be based on reducing sources, reutilization,
recycling, waste treatment and disposal.
c. Effective Use Of Power
Enterprises consume power in their running of operations and services. Programs which
focus on effective power consumption may reduce the demand for power in buildings, in areas
like heating, cooling, lightening, effective fuel use, and reliance on alternative fuel resources.
d. Prevention Of Water
Clean water is considered a global wealth. Attaining pure drinking water is considered a
basic humanitarian need, and so is listed as one of an individual's major rights. The developmental
objectives for the new millennium include the provision of safe drinking water and health services
for all individuals. The effective management for preserving water is achieved through allocating
water, and controlling its flow to realize a just and sustainable saving of water resources.
1.13 EFFECT OF CSR ON ORGANISATIONAL SUSTAINIBILITY
CSR is the social responsibility of the company towards the society. Social responsibility of
organizations has become the most important elements of Philosophy. Business main focus should
PAGE 23
not be on making profit, but should be on contributing something towards society. So CRS plays a
vital role in sustainability of business. CSR plays a major role in performance of the business and
sustainability of the business. It helps in stability of organisation, improved business performance &
certain benefits to organisation & society as well.
Corporate social responsibility is essential for every business. CSR plays a major role in
performance of the business and sustainability of the business. When the main motto of the business
is to contribute something to the society then it can sustain for the long run & improvement in the
performance can be achieved. When companies objective is to make profit it cannot survive for a
long run, its sustainability for the long run becomes difficult. Protecting the environment is one
aspect of social responsibility another is making an effort to address social problems such as
poverty and hunger. A business social responsibility also is expressed through its ethical standards
how it treats its various stakeholders, including vendors, employees and customers.
PAGE 24
CHAPTER 2
RESEARCH DESIGN
2.1 TITLE OF THE STUDY
A STUDY ON EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON

ORGANISATIONAL SUSTAINABILITY IN PRIVATE SECTOR COMPANIES
2.2 REVIEW OF LITERATURE
1) Responsibilities of Corporate towards Society Ashish Pant (Assistant Professor D.A.V

Degree College, BBA dept, kharkhauda, Meerut, India) have explained CSR is an important
issue in todays business environment and it should be viewed as a process not as a
destination. Basically CSR is the relation between the society and the business without which
the mutual understanding between the society and the business not possible and it will affect
the business environment.
2) Windsor (2001), article examined the future of Corporate Social Responsibility or the
relationship between business and society in long run. The researcher tried to find out that
whether the organization and society will come closer to each other in future or not and what
will be the changing phase of CSR. With the help of history or past trend of CSR, Carrolls
model analysis and in global context, the researcher found three emerging alternatives of CSR
i.e. conception of responsibility, global corporate citizenship, stakeholder management
practices.
3) A speech delivered by Mr. Fredrick Ma, secretary for financial services, based on
Corporate Social Responsibility (2004) organized by the British consulate. The
PAGE 25
speaker explored the concept of CSR on the basis of survey of 1500 business leader attending
the world economic forum in Bevos. In which 5% leaders said that CSR is important for the
success of business, while 24% said CSR is not important but the shareholders interest is most
important for the businesses. But for the speaker, CSR and corporate governance are
complementary to each other. Corporate governance is a medium of driving CSR among
corporate.
4) The economic Times (2012)news highlighted the views of former president Dr. APJ Abdul
Kalam in a CSR award function organized by industry body Assocham. Kalam said that
companies should devote some part of its goal to corporate services. It should make mandatory
for all the companies to spend a percentage of its profit on corporate social responsibility.
5) International Journal of Research in IT & Management, Volume 2, Issue 12, December

2012 published a thesis on A study on Corporate Social Responsibility in India
Corporate Social Responsibility has transformed a lot from the conventional philanthropic
doings by big corporate houses and came a long way from just fulfilling the responsibility
restricted to paltry welfare of its immediate employees and their families. Indian businesses
have a long tradition of engaging in philanthropic and community programmes and
entrepreneurs today are effectively using these principles of social-business. They have
imbibed the advantage of ethical behavior of their company towards society. As a result,
businesses now enjoy benefits like lower tax rates, reduced regulatory interventions, faster
approvals, highly motivated workforce, customer loyalty, risk mitigation, enhanced brand
image, value-based supplier network and favorable public opinion about company. This paper
analyses these business benefits and more in the context of cases from Indian businesses.
6) Gyves, O.Higgins, (2008) have said that the relationship between CSR and financial
performance really depends on how CSR is managed. According to the results of their paper,
internally initiated CSR by the firm can simultaneously provide the most sustainable benefits
for the firm itself, its particular stakeholders and society at large, to increase the chances of
creating a win-win situation.
PAGE 26
7) Agunis, glovas (2012), Paper entitled what we know and dont know about corporate
social responsibility: A review and research agenda in Journal of management, based on
588 journal articles and 102 books. The study provided a framework of CSR actions which
affects external as well as internal stakeholders and outcomes of such actions. The paper also
enhanced the knowledge regarding levels, forms of CSR; need to understand CSR with
outcomes etc. further the researcher also suggested a framework of research design, data
analysis and measurement for future research of CSR.
8) Bettina Hodi Hernadi, a thesis on - Corporate Sustainability: This paper articulates that
companies have a key role in achieving sustainability. Their current activities not only have an
effect on todays world but on the future, too. Now, companies themselves are slowly
beginning to understand this; however, relatively few know how to achieve corporate
sustainability, and through this to contribute to total, global sustainability. For this reason,
sustainability accounting, going beyond green accounting, must be emphasized by companies,
so that decisions based on the information provided by sustainability accounting contribute to
economic, social and environmental, sustainability, and make it possible for the company to
survive in the long term.
9) An article published in a journal of research in management and technology on Corporate

social responsibility an analysis of impact and challenges in India, by Nitin Kumar CS,
M.Com, JRF (Commerce) has found that there is a need for creation of awareness about CSR
amongst the general public to make CSR initiatives more effective.
10) Responsibilities of Corporate towards Society Ashish Pant (Assistant Professor D.A.V
Degree College, BBA dept, kharkhauda, Meerut, India) have explained CSR is an important
issue in todays business environment and it should be viewed as a process not as a destination.
Basically CSR is the relation between the society and the business without which the mutual
understanding between the society and the business not possible and it will affect the business
environment.
PAGE 27
2.3 STATEMENT OF THE PROBLEM
CSR has emerged in recent years. Organisation must realise that government alone is not
responsible towards the society, but also the organisation are responsible towards the well-being
of the society. It must undertake certain activities such as education, training, health etc towards
the society. This is a concept that must be concerned more than a profit.
Some of the companies used to do CSR activities to contribute to the society even before the act
was passed. The company act 2013 encourages company to undertake CSR activities. The
organisations undertake various social activities while performing the Corporate Social
responsibility. It can improve business performance & sustainability of the organization can be
achieved.
In this regard, This study mainly focus on top 4 private sector companys (TCS, Tech Mahindra,
Wipro, Infosys) CSR activities, their sustainability through the study of CSR dimension & its
outcomes on organisational sustainability.
2.4 OBJECTIVE OF THE STUDY
To study the CSR dimensions in selected private sector companies.
To know the amount spent on CSR activities in 2015-16.
To know the outcomes of CSR on organisational sustainability.
2.5 SCOPE OF THE STUDY
The scope of the study is limited to the 4 private sector companies (TCS, Tech Mahindra, Wipro,
Infosys). As per Company act 2013, four private sector company having a net worth of 500crores
PAGE 28
or more / a turnover of 1,000crores or more / net profit of 5crores or more during any financial
year have been selected.
Further the study is completely based on secondary data where the information is gathered through
articles, journals, magazines, books, websites and social networking sites related to particular
company. Further the study is restricted to only three years corporate sustainability reports (2013-
2016).
2.6 RESEARCH METHODOLOGY
The study is completely based on secondary data i.e. various journals, magazines, Companys
annual reports, sustainability reports, newspapers, articles, websites of each and every company.
This study is descriptive and theoretical in nature and the study will be on 4 private companies
(TCS, Tech Mahindra, Wipro and Infosys). According to the requirement of the objective the
information have been collected.
2.7 PLAN OF ANALYSIS
This study uses simple mathematical and statistical tools to know amount spent on corporate
social responsibility of selected private companies. The study also uses tables and graphs to make
valid inferences.
2.8 LIMITATIONS OF THE STUDY
The CSR concept is very vast & wider so it requires in-depth study but this research is based
on the guidelines of Company act 2013 & the dimension covered in it is used for the purpose of
study.
Limited time because the CSR concept is very vast & wider in scope.
PAGE 29
The research is restricted to only four companies (TCS, Tech Mahindra, Wipro, Infosys) and the
perception of other companies may differ according to geographic location.
2.9 CHAPTER SCHEME
CHAPTER-1: Introduction
This chapter includes CSR- Evolution, Meaning and Definition of CSR, CSR in India, Principles of
CSR, Scope of CSR, Need of CSR, Benefits of CSR, Companies act 2013 regarding CSR, CSR and
Business Performance, CSR and Sustainability, Dimensions of CSR, Effect of CSR on
organisational sustainability.
CHAPTER-2: Research design and Research Methodology
This chapter includes- Title of the study, Review of Literature, Statement of the Problem,
Objectives of the study, Scope of the study, Research methodology, Plan of analysis, Limitation of
the study and Chapter scheme.
CHAPTER-3: Profile of the company
This chapter includes the profiles of the four selected Private sector company (TCS, Tech
Mahindra, Wipro, Infosys) consisting of history, vision, mission, CSR activities etc..
CHAPTER-4: Data analysis and interpretation
This chapter includes the tabulation of data collected, presentation using graphs, charts and
Analysis & interpretation.
CHAPTER-5: Findings and Conclusion
This chapter includes the brief information on the findings, the conclusions drawn from the study &
Suggestion.
PAGE 30
Bibliography and Annexure
This part provides details of the sources and references used for this study.
PAGE 31
CHAPTER 3
COMPANY PROFILE
3.1 TATA CONSULTANCY SERVICES
Tata Consultancy Services Limited (TCS) is an Indian multinational information technology

(IT) service, consulting and business solutions company Headquartered in Mumbai, Maharashtra. It
is a subsidiary of the Tata Group and operates in 46 countries. TCS is one of the largest Indian
companies by market capitalization ($80 billion). TCS is now placed among the Big 4 most
valuable IT services brands worldwide. TCS alone generates 70% revenues of its parent company,
Tata Sons.
In 2015, TCS is ranked 64th overall in the Forbes World's Most Innovative Companies
ranking, making it both the highest-ranked IT services company and the top Indian company. It is
the world's 10th largest IT services provider by revenue. As of December 2015, it is ranked 10th on
the Fortune India 500 list. On 12 January 2017, N.Chandrashekaran was elevated as the chairman
for Tata Sons. Rajesh Gopinathan was appointed as the new MD and CEO for TCS.
PAGE 32
Tata Consultancy Services Limited was founded in 1968 by a division of Tata Sons Limited.
Its early contracts included punched card services to sister company TISCO (now Tata Steel),
working on an Inter-Branch Reconciliation System for the Central Bank of India and providing
bureau services to Unit Trust of India.
In 1975, TCS delivered an electronic depository and trading system called SECOM for the
Swiss company SIS SegaInterSettle (deutsch); it also developed System X for the Canadian
Depository System and automated the Johannesburg Stock Exchange. It associated with a Swiss
partner, TKS Teknosoft, which it later acquired.
In 1980, TCS established India's first dedicated software research and development centre, the
Tata Research Development and Design Centre (TRDDC) in Pune. In 1981, it established India's
first client-dedicated offshore development centre, set up for clients Tandem. TCS later (1993)
partnered with Canada-based software factory Integrity Software Corp, which TCS later acquired.
In anticipation of the Y2K bug and the launch of a unified European currency (Euro), Tata
Consultancy Services created the factory model for Y2K conversion and developed software tools
which automated the conversion process and enabled third-party developer and client
implementation.
On 25 August 2004, TCS became a Publicly Listed Company. In 2005, TCS became the first
India-based IT services company to enter the bioinformatics market. In 2006, it designed an ERP
system for the Indian Railway Catering and Tourism Corporation. By 2008, its e-business activities
were generating over US$500 million in annual revenues. TCS entered the small and medium
enterprises market for the first time in 2011, with cloud-based offerings. On the last trading day of
2011, it overtook RIL to achieve the highest market capitalisation of any India-based company. In
the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first time.In
May 2013, TCS was awarded a six-year contract worth over 1100 crores to provide services to the
Indian Department of Posts. In 2013, the firm moved from the 13th position to 10th position in the
League of top 10 global IT services companies and in July 2014, it became the first Indian company
with over Rs 5 lakh crore market capitalization.
PAGE 33
ABOUT US
Type: Public
Traded as: BSE: 532540, NSE: TCS, BSE SENSEX Constituent,
CNX Nifty Constituent
Industry: IT services, IT consulting
Founded: 1968
Founder: J.R.D. Tata, F.C. Kohli
Headquarters: Mumbai, Maharashtra, India
Area served: Worldwide
Key people: Natarajan Chandrasekaran(Chairman)
Rajesh Gopinathan(CEO & MD)
Services: IT, business consulting and outsourcing services
Revenue: Increase US$16.54 billion (2016)
PRODUCTS
TCS and its 67 subsidiaries provide a wide range of information technology-related products
and services including application development, business process outsourcing, capacity planning,
consulting, enterprise software, hardware sizing, payment processing, software management and
technology education services. Rgwfirm's established software products are TCS BaNCS and TCS
MasterCraft.
CHROMA
Customer Intelligence & Insights
Ignio
PAGE 34
Intelligent Urban Exchange

Ion
Optumera
TAP
TCS BaNCS
TCS MasterCraft
SERVICES
Assurance Services
Business Operations
Consulting & Systems Integration
Product Engineering
Technology Operations
VISION:
Delivering Beyond Customer Expectations.
MISSION:
"To direct all our organizational efforts at building upon the existing organizational strengths and
brand recognition to achieve enhanced levels of profitable growth in the core business, and
diversify into new areas that complement and supplement the core business, with the diversification
aimed at achieving excellence and industry leader status in the new areas. The TCS People will
however be encouraged to be open to unconventional ideas and services and recognize new trends
at very early stages".
PAGE 35
SWOT ANALYSIS
1) High command on local domestic market

(India)
STRENGTH 2) Strong brand backing (TATA)
3) Strong ethics
4) Brand image is quite strong in markets it serves
5) Employee strength of over 300000
WEEKNESS 1) Not very strong in product segment
1) Emerging markets
OPPORTUNITIES 2) Product market e.g. domain targeted offerings
3) Repeated business from existing clients
1) Attrition & employee loyalty

2) Bigger MNCs entering India & competing for
THREATS global clients
3) Focussing on organic growth
PAGE 36
3.2 TECH MAHINDRA
Tech Mahindra Limited is an Indian multinational provider of information technology (IT),

networking technology solutions and Business Process Outsourcing (BPO) to the
telecommunications industry. Anand Mahindra is the founder of Tech Mahindra, which is
headquartered at Pune, India.
Part of the Mahindra Group, Tech Mahindra is a US$4.2 billion company with over 117,000
employees across 90 countries. It provides services to customers which include Fortune 500
companies. It is also one of the Fab 50 companies in Asia, a list compiled by Forbes. Tech
Mahindra was ranked #5 in India's software services (IT) firms and overall in Fortune India 500 list
for 2012. Tech Mahindra, on 25 June 2013, announced the completion of a merger with Mahindra
Satyam.
Mahindra & Mahindra started a joint venture with British Telecom in 1986 as a technology
outsourcing firm. British Telecom initially had around 30 percent stake in the Tech Mahindra
company. In December 2010, British Telecom sold 5.5 per cent of its stake in Tech Mahindra to
Mahindra & Mahindra for Rs 451 crore.
PAGE 37
After the Satyam scandal of 2008-09 Tech Mahindra bid for Satyam Computer Services, and
emerged as a top bidder with an offer of Rs 58.90 a share for a 31 per cent stake in the company,
beating a strong rival Larsen & Toubro. After evaluating the bids, the government-appointed board
of Satyam Computer announced on 13 April 2009: "its Board of Directors has selected Venturbay
Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited as the highest
bidder to acquire a controlling stake in the Company, subject to the approval of the Hon'ble
Company Law Board." Through a subsidiary, it has emerged victorious in Satyam sell-off, a
company probably two times its size in number of people. This was one of the largest merger deals
in India's tech industry.
Tech Mahindra announced its merger with Mahindra Satyam on March 21, 2012, after the
boards of the two companies gave their approval, to create a 2.5 billion $ IT Company. The two
firms had received the go-ahead for the merger from the Bombay Stock Exchange and the National
Stock Exchange. On June 11, 2013, Andhra Pradesh High Court gave its approval for the merger of
Mahindra Satyam with Tech Mahindra, after the Bombay high court had already given its approval.
Vineet Nayyar said that technical approvals from the Registrar of Companies in Andhra Pradesh
and Maharashtra are required which will be done in two to four weeks, and within eight weeks, the
new merged entity would be in place. The new organisation would be led by Anand Mahindra as
Chairman, Vineet Nayyar as Vice Chairman and C. P. Gurnani as the CEO and Managing Director.
On June 25, 2013. Tech Mahindra announced the completion of its merger with Mahindra Satyam
to create the nation's fifth largest software services company with aturnover of USD 2.7 billion.
Tech Mahindra got the approval from the registrar of companies for the merger at 11:45 pm on
June 24, 2013. July 5, 2013 has been determined as record date on which the Satyam Computer
Services ('Mahindra Satyam') shares will be swapped for Tech Mahindra shares under the approved
scheme. Mahindra Satyam (Satyam Computer Services), was suspended from trading with effect
from July 4, 2013, following the merger. Tech Mahindra completed share swap and allocated its
shares to the shareholders of Satyam Computer Services on July 12, 2013. The stock exchanges
have accorded their approval for trading the new shares effective July 12, 2013. Tech Mahindra
posted net profit of Rs 686 crore for the first quarter ended June 30, 2013, up 27% compared to the
corresponding quarter last year. By March 2016, Tech Mahindra's post-tax earnings had surged past
that of M&M.
PAGE 38
ABOUT US
Type: Public
Traded as: BSE: 532755, NSE: TECHM
Founded: 1986
Headquarters: Pune, India
Key people: Anand Mahindra (Chairman & Founder)
Vineet Nayyar (VC), CP Gurnani (CEO & MD)
Services: IT, Business Consulting and Outsourcing
Revenue: Increase $4.1 billion (March 2016)
VISION
The vision of the company is to be the Leading independent player in the global Gears &
Transmissions Space.
MISSION
This we wish to achieve through a two pronged approach of developing a portfolio of products
thereby being able to provide a differentiated product offering to our customers and extensive focus
on operational excellence thereby improving internal efficiencies in the system.
PAGE 39
SWOT ANALYSIS
1) Reduced dependence on British telecom

2) Deals with Etisalat & Bharti Zain steady revenue
is assured
3) Reduced dependence on European market
4) Has a strong workforce of over 40000 employees
STRENGTH working on over 30 countries
5) High brand recell & visibility being one of the top
IT companies in India.
WEEKNESS 1) Increased interest costs due tp borrowings for

satyam acquisition
2) High retention
1) Increased in demand for IT solution in telecom

OPPORTUNITIES service provider
2) Acquisition of Satyam telecom gives visibility in
more verticals
1) Economic slowdown & uncertainty in USA &

Europe respectively
THREATS 2) Increasing presence of foreign IT player in that
domain
3) Potential negative impact of Satyam related
litigation
PAGE 40
3.3 WIPRO
The company was incorporated on 29 December 1945, in Amalner a small town in Jalgaon
district by Mohamed Premji as 'Western India Palm Refined Oil Limited', later abbreviated to
'Wipro'. It was initially set up as a manufacturer of vegetable and refined oils in Amalner,
Maharashtra, India under the trade names of Kisan, Sunflower and Camel. The company logo still
contains a sunflower to reflect products of the original business.
In 1966, after Mohamed Premjis death, his son Azim Premji returned home from Stanford
University and took over Wipro as its chairman at the age of 21. During the 1970s and 1980s, the
company shifted its focus to new business opportunities in the IT and computing industry, which
was at a nascent stage in India.at the time. On 7 June 1977, the name of the company changed from
Western India Vegetable Products Limited, to Wipro Products Limited.
In 1988, Wipro diversified its product line into heavy-duty industrial cylinders and mobile
hydraulic cylinders. A joint venture company with the United States' General Electric in the name
of Wipro GE Medical Systems Pvt. Ltd. was set up in 1989 for the manufacture, sales, and service
PAGE 41
of diagnostic and imaging products. Later, in 1991, tipping systems and Eaton hydraulic products
were launched. The Wipro Fluid Power division, in 1992, developed expertise to offer standard
hydraulic cylinders for construction equipment and truck tipping systems. The market saw the
launch of the "Santoor" talcum powder and "Wipro Baby Soft" range of baby toiletries in 1990.
In February 2002, Wipro became the first software technology and services company in India
to be certified for ISO 14001 certification. Wipro also achieved ISO 9000 certification to become
the first software company to get SEI CMM Level 5 in 2002. Wipro Consumer Care and Lighting
Group entered the market of compact fluorescent lamps, with the launch of a range of CFL, under
the brand name of Wipro Smartlite. As the company grew, a study revealed that Wipro was the
fastest wealth creator for 5 years (19972002). The same year witnessed the launch of Wipros own
laptops with Intel's Centrino mobile processor.
Wipro also entered into an exclusive agreement with the owners of Chandrika for marketing of
their soap in select states in India. It set up a wholly owned subsidiary company viz. Wipro
Consumer Care Limited to manufacture consumer care and lighting products. In 2004 Wipro joined
the billion dollar club. It also partnered with Intel for i-shiksha. The year 2006 saw Wipro acquire
cMango Inc., a US-based technology infrastructure Consulting firm Enabler, and a Europe-based
retail solutions provider. In 2007, Wipro signed a large deal with Lockheed Martin. It also entered
into a definitive agreement to acquire Oki Techno Centre Singapore Pte Ltd (OTCS) and signed an
R&D partnership contract with Nokia Siemens Networks in Germany. In 2008 Wipros entered the
clean energy business with Wipro Eco Energy. In April 2011, Wipro signed an agreement with
Science Applications International Corporation (SAIC) for the acquisition of their global oil and gas
information technology practice of the commercial business services business unit. In 2012 Wipro
acquired Australian Trade Promotions Management firm Promax Applications Group (PAG) for
$35 million. In 2012 Wipro employed more than 70,000 H-1B visa professional temporary workers
in the United States.
AWARDS AND RECOGNITIONS
In March 2017, Wipro was recognized as one of the worlds most ethical Companies by US-
based Ethisphere Institute for the sixth consecutive year.
PAGE 42
In May 2016, it was ranked 755th on the Forbes Global 2000 list.
Wipro won Gold Award for Integrated Security Assurance Service (iSAS) under the
Vulnerability Assessment, Remediation and Management category of the 11th Annual 2015
Info Security PGs Global Excellence Awards.
Wipro won 7 awards, including Best Managed IT Services and Best System Integrator in the
CIO Choice Awards 2015, India
In 2014, Wipro was ranked 52nd among India's most trusted brands according to the Brand Trust
Report, a study conducted by Trust Research Advisory.
Wipro was ranked 2nd in the Newsweek 2012 Global 500 Green companies.
Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity and Inclusion,
2012', in the category 'Most Effective Implementation of Practices & Technology for Persons
with Disabilities'.
In 2012, it was awarded the highest rating of Stakeholder Value and Corporate Rating 1 (SVG 1)
by ICRA Limited.
It received National award for excellence in Corporate Governance from the Institute of
Company Secretaries of India during the year 2004.
ABOUT US
Type: Public
Traded as: BSE: 507685, NSE: WIPRO, NYSE: WIT, BSE SENSEX Constituent,
CNX Nifty Constituent
PAGE 43
Founded: 29 December 1945 (Bengaluru, Karnataka)
Founder: Mohamed Hasham Premji
Headquarters: Bengaluru, Karnataka, India
Key people: Azim Premji (Chairman), Abidali Neemuchwala (CEO)
Services: Digital Strategy, Business Consulting and IT Services
VISION
Contribute for global e-society, where a wide range of information is being exchanged beyond
time and space over global networks. which breaks down the boundaries among countries, regions
and cultures, allowing individuals to take part in various social activities in an impartial, secure
way. Continuous effort to enhance people's lifestyle and quality by means of developing new
technology in wireless communication.
MISSION
Mission is to be a RF System Solution Provider, through its innovative research and design works
for a new world of broadband wireless communications. Our Goals is to support customers who
rely on our ability as an advanced RF System Solution Provider. To build up core competencies
through collaboration with technological partners. To contribute to the Ubiquitous Networking
Society by providing chip level RF system solutions.
PAGE 44
SWOT ANALYSIS
1) Low cost advantage & high quality standards

2) Broad range of research & development services
3) Wipro has impressive list of clientele & mega
STRENGTH partnership with Cisco, Oracle, EMC,
Microsoft & SAP
4) One of the top IT companies in India employing
over 130000 employees
1) Low operating margin of other group of

WEEKNESS companies
2) Free floating stock is very less for the investor
1) The company has good opportunity since the

sector is growing
OPPORTUNITIES 2) Can diversify in brand product category &
consulting services
3) Huge potential in domestic market
1) Slowdown in US economy as major client base is

THREATS from US
2) Attrition & employee loyalty
3) Increasing cost of human capital
PAGE 45
3.4 INFOSYS
Co-founded in 1981 by 7 Engineers N. R. Narayana Murthy, Nandan Nilekani, N. S.

Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora after they resigned from
Patni Computer Systems. The company was incorporated as "Infosys Consultants Pvt Ltd." with a
capital of 10,000 or US$250 (equivalent to about $659 in 2016) in Model Colony, Pune as the
registered office. It signed its first client, Data Basics Corporation, in New York City. In 1983, the
company's corporate headquarters was relocated from Pune to Bengaluru.
PRODUCT:
It provides software development, maintenance and independent validation services to

companies in banking, finance, insurance, manufacturing and other domains. One of its known
products is Finacle which is a universal banking solution with various modules for retail &
corporate banking.
Its key products are:
Mana - Knowledge based AI platform
Infosys Information Platform (IIP) - Analytics platform
EdgeVerve Systems
PAGE 46
Finacle- Global banking platform by EdgeVerve Systems
Panaya Cloud Suite
Skava
ABOUT US
Type: Public
Traded as: BSE: 500209, NSE: INFY, NYSE: INFY, BSE SENSEX
Constituent CNX Nifty Constituent
Founded: 7 July 1981; 35 years ago
Founder: N. R. Narayana Murthy, Nandan Nilekani, N. S. Raghavan
S. Gopalakrishnan, S. D. Shibulal, K. Dinesh, Ashok Arora
Headquarters: Electronic City, Bengaluru, Karnataka, India
Key people: Vishal Sikka (CEO & MD)
Services: IT, business consulting and outsourcing services
VISION
To help our clients meet their goals through our people, services and solutions.
PAGE 47
MISSION
Infosys International Inc. is dedicated to providing the people, services and solutions our clients
need to meet their information technology challenges and business goals. This we wish to achieve
through a two pronged approach of developing a portfolio of products thereby being able to provide
a differentiated product offering to our customers and extensive focus on operational excellence
thereby improving internal efficiencies in the system.
SWOT ANALYSIS
1) Pioneers of global delivery model

STRENGHT 2) High cash reserve
3) Corporate governance
WEEKNESS 1) Doesnt tap the Indian domestic market

2) High attrition rate
OPPORTUNITIES 1) Focus on emerging markets

2) Shifting to business transformation services
THREATS 1) Attrition & employee loyalty

2) Bigger MNCs entering
PAGE 48
CHAPTER 4
DATA ANALYSIS & INTERPRETATION
4.1 DIMENSIONS OF CSR
PAGE 49
1. TATA CUNSULTANCY SERVICE
A. ECONOMIC DIMENSION
Effective corporate governance practices constitute the strong foundation on which successful
commercial enterprises are built to last. The Companys philosophy on corporate governance
oversees business strategies and ensures scal accountability, ethical corporate behaviour and
fairness to all stakeholders comprising regulators, employees, customers, vendors, investors and
the society at large. Strong leadership and effective corporate governance practices have been the
Companys hallmark inherited from the Tata culture and ethos.
Eight Board Meetings were held during the year and the gap between two meetings did not
exceed one hundred and twenty days. The dates on which the said meetings were held: April 16,
2015; June 30, 2015; July 9, 2015; September 3, 2015; October 13, 2015; January 11, 2016;
January 12, 2016 and March 10, 2016.
During the year, two meetings of the Independent Directors were held on October 13, 2015 and
March 11, 2016. The Independent Direcors, inter-alia, reviewed the performance of non-
independent directors, Chairman of the Company and the Board as a whole.
Five audit committee meetings were held during the year and the gap between two meetings did
not exceed one hundred and twenty days. The dates on which the said meetings were held are as
follows: April 16, 2015; July 9, 2015; September 3, 2015; October 13, 2015 and January 12,
2016.
Three meetings of the CSR committee were held during the year on April 7, 2015, January 11,
2016 and March 11, 2016.
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b. Protection of Consumer Interest
Customer satisfaction surveys are carried out on a half yearly basis. The survey is done at an
account- level and measures TCS performance on various parameters across multiple
dimensions.
Businesses should engage with and provide value to their customers and consumers in a
responsible manner.
Consumers are increasingly choosing Digital channels including mobile to buy and consume the
products and services they need.
TCS has changed the way consumers use mobile payment systems with its mWallet offering
implemented with major telecom providers in India.
mWallet provides customers with a new form of currency powered from their mobile phones.
With millions of customers and a network of over 1,00,000 agents, spread across urban and rural
India, mWallet platforms have successfully exploited mobile penetration to provide basic
banking services on the mobile.
Distribution of wages, government benefits, enabling e-commerce and many more new
transactions on mWallet are truly making mobile the new bank account.
TCS has created a Robo Advisory solution that offers automated, sophisticated, personalized and
adaptive investment advice. Based on the risk preferences and the performance of the
recommended portfolio, the Robo Advisor would adapt the advice. This solution has helped
banks in attracting new customers to their fold.
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Long-term investments and current maturities of long-term investments are stated at cost, less
provision for other than temporary diminution in value. Current investments, except for current
maturities of long-term investments, comprising investments in mutual funds, government
securities and bonds are stated at the lower of cost and fair value.
B. SOCIAL DIMENSION
a. Fair employment & work practice
Till date, TCS has trained 176 individuals of which 127 candidates have found employment.
Since inception, the programme has trained 697 youths and 559 got offers of employment. 370
of these youths have joined TCS.
Promoting Employability, Employment, Education and Entrepreneurship among marginalised

groups.
Contributions to dened contribution retirement benet schemes are recognised as expense when
employees have rendered services entitling them to such benets. For dened benet schemes,
the cost of providing benets is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are
recognised in full in the statement of prot and loss for the period in which they occur.
Past service cost is recognised immediately to the extent that the benets are already vested or
amortised on a straight-line basis over the average period until the benets become vested.
The retirement benet obligation recognised in the balance sheet represents the present value of
the dened benet obligation as adjusted for unrecognised past service cost, and as reduced by
the fair value of scheme assets. Any asset resulting from this calculation is limited to the
present value of available refunds and reductions in future contributions to the scheme.
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b. Contribution to Local Community
TCS CSR policy is aimed at demonstrating care for the community through its focus on
education & skill development, health & wellness and environmental sustainability including
biodiversity, energy & water conservation. Also embedded in this objective is support to the
marginalised cross section of the society by providing opportunities to improve their quality of
life.
The projects undertaken will be within the broad framework of Schedule VII of the Companies
Act, 2013. In India, the CSR projects carried out in FY 2015-16 such as training of J&K youth to
promote employability, providing functional literacy to adults, technology support to cancer
research institutes and hospitals, training of women to encourage entrepreneurship, education of
underprivileged children, construction of sanitation facilities in rural schools, support to disaster
relief efforts, maintenance of Chinnappanahalli lake, etc. have benetted the target communities
across the country.
In other countries of operation, the Companys CSR projects are designed and implemented to
address the needs of the local community.
It is imperative to not only provide high quality education to all sections of the society, but also
ensure that learning happens in a clean and healthy environment. The Swachh Bharat, Swachh
Vidyalaya Abhiyan, launched by the Government of India, aims to improve hygiene across
schools through improved water and sanitation facilities. TCS supports this vision and has
continued to provide dedicated sanitation.
Business Responsibility Report 141 facilities for girl students in government schools, through
Swachh Bharat Abhiyaan programme. The programme is committed to providing the girl child
the surety of safety, dignity, and equality. A special task force was formed October 2014 to
implement this programme within a short timeframe. Implementation commenced in March,
2015 and was completed in the selected schools by July 31, 2015.
PAGE 53
C. ENVIRONMENT DIMENSION
a. Reduce Emission
All emissions/waste generated at various ofces of TCS are within permissible limits. These are
continuously monitored, reviewed internally and reported to the CPCB/SPCB as per the
requirement.
The nature of the Companys business is such that there are no signicant emissions or process
wastes.
b. Reduce Waste
The waste generation is fairly limited and restricted primarily to e-waste, lube oil waste, waste
from lead-acid batteries and municipal solid waste. The Companys waste management practices
seek to reduce the environmental impact by reduction in generation, segregation at source,
maximisation of recycling and reuse to achieve the target of <5% waste to landll.
Waste Lube Oil, UPS batteries, e-waste disposed through government authorised
recyclers (100% recycling).
Waste ofce paper sent for recycling (100% recycling).
Printer and toner cartridges sent back to the manufacturer under product take-back arrangement
(100% recycling).
Bio-degradable garden waste and food waste - vermi-composting and bio-digestion respectively
(30% recycling).
c. Effective use of Power
Focussing on enhancing the component of renewable power in our power sourcing strategy
(through on-site solar power generation and third party purchase as feasible) extending green
PAGE 54
data center initiative to 28 data centers which contributes to energy efciency (power utilisation
efciency) of these data centers.
d. Prevention of Water
The architectural restoration of the tower involved structural services (stoning, restoring
woodwork, water-proong, electrical work and re alarms) interior works along with ensuring
the longevity of the building for future generations.
TCS CSR policy is aimed at demonstrating care for the community through its focus on
education & skill development, health & wellness and environmental sustainability including
biodiversity, energy & water conservation. Also embedded in this objective is support to the
marginalised cross section of the society by providing opportunities to improve their quality of
life.
D. STAKEHOLDER DIMENSION
The Company has always valued its customer relationships. This philosophy has been extended
to investor relationship and an Investor Relations Department (IRD) was set up in June 2004,
prior to the Companys Initial Public Offer of shares. The IRD focuses on servicing the needs of
various stakeholders viz. investors, analysts, brokers and the general public
TCS has several programmes designed to benet marginalised stakeholders such as (a) illiterate
adults, (b) scheduled caste, scheduled tribes and other tribal communities, (c) rural unskilled
youth, (d) visually impaired and (e) inmates in jail.
External stakeholders can access the policy through the Companys website. For internal
stakeholders, the policy has been posted on the intranet and at ofce receptions. Training on this
policy is periodically conducted for all associates.
PAGE 55
2. TECH MAHINDRA
Tech Mahindras philosophy on Corporate Governance is embedded in its rich legacy of ethical
governance practices, most of which were implemented before they were mandatorily
prescribed. Your Company believes that Corporate Governance is a set of guidelines to help
fulfill its responsibilities to all its stakeholders. It is a reflection of the Companys culture,
policies, relationship with stakeholders, commitment to values and ethical business conduct. In
the same spirit, timely and accurate disclosure of information regarding the financial position,
performance, ownership and governance of the Company is an important part of your
Companys corporate governance.
During the year 2015-16, four meetings of the Board of Directors were held on May 26, 2015,
July 27, 2015, November 03, 2015 and February 1, 2016.
During the year, two CSR meetings were held on May 25, 2015 & November 02, 2015 which
were attended by all the Committee members. The Company Secretary acts as the Secretary to
the Committee. The Chief Executive Officer of Tech Mahindra Foundation and Chief Financial
Officer of the Company are the permanent invitees to the Committee meeting.
For Financial Year 2015 - 16, we have addressed all customer complaints and there are no major
customer grievances pending. Our customer centric culture spans across the organization
ensuring better services, experience and a better value for money for our customers.
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Customer escalations and complaints are treated with utmost importance in the organization. The
Customer Centricity Office tracks all critical customer escalations and expedites the necessary
actions required to close these complaints quickly. We have a Chief Customer Officer who
proactively manages all customer escalations.
our customer-centric initiatives include meeting customers pro-actively to understand the pulse
on the ground, monitoring customer concerns and measuring customer satisfaction through a
customer survey known as NPS (Net Promoter Score) or CaPS (Customer as Promoter Score)
via a third party. We also run the P-Sat (Project Satisfaction Survey) for all our projects.
In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans,
making investments and providing guarantees and securities, as applicable.
Where the Company, as a lessor, leases assets under finance lease, such amounts are recognised
as receivables at an amount equal to the net investment in the lease and the finance income is
based on constant rate of return on the outstanding net investment.
Investments which are readily realisable and intended to be held for not more than one year from
the date on which such investments are made, are classified as current investments.
All other investments are classified as long-term investments. On initial recognition, all
investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly
acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the
securities issued.
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Current investments are carried at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution
in value is made to recognize a decline other than temporary in the value of the investments.
B. SOCIAL DIMENSIO
Company believes that while Technology can enable processes but it is People who actually
make things happen. In a journey of delivering tangible business value to stakeholders,
Associates are envisioned as a strategic differentiator for the Company. Tech Mahindras
Employee Value Proposition - Freedom to Explore: Connect, Co-Create and Celebrate is at the
core of its people practices and policies.
Company is committed to providing a holistic employment experience to Associates with the

flexibility to balance both professional and personal commitments. The comprehensive Wealth
of Wellness (WoW) offerings enhance physical, mental, emotional and spiritual wellbeing of the
Associates.
Company promotes an empowered and collaborative work environment where leaders stay
engaged with the Associates and encourage them to challenge conventional thinking. Through
the Entrepreneurship Program, Associates have the opportunity to pursue their business ideas
and commercialize them with support from mentors and resources from the Company.
Tech Mahindra was also recognized as one amongst the Top 3 in the country for its People
Practices at the Business World HR Excellence Awards 2015 apart from being awarded the
Change Champion Award.
These awards and recognitions have positioned Tech Mahindra as an organization that puts
people first, delivers future focused excellence in the field of People Management and
recognizes the importance of human capital as a key driver of business growth.
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b. Contribution to Local Community
Companys direct contribution to community development project spent during Financial Year
2015-16 is 29.74 Crores on its Education and Employability programme. They spent on
Technical Education by Mahindra Educational Institutions is 17 Crores.
The CSR vision of the Company is Empowerment through Education. Prescribed CSR
expenditure is 41.40 Crores (that is, 2% of 2,070.1 Crores) (Two per cent of the average profit
before tax of the immediately preceding three years).
CSR projects have been taken on employability, education, school education, technical
education.
Tech Mahindra operated with a budget of 48.50 Crores, and spent 46.91 Crores over the
financial year, through three agencies Tech Mahindra Foundation (TMF) and Mahindra
Educational Institutions (MEI) and K. C. Mahindra Education Trust A/c Nanhi Kali. Against
the mandated spend of 41.40 Crores, Tech Mahindra spent 46.91 Crores.
As can be seen, Tech Mahindras spending in Corporate Social Responsibility comes out to be
substantially higher than the amount prescribed/mandated under Companies Act, 2013.
C. ENVIRONMENTAL DIMENSION
a. Reducing Emission
The supplier analysis also take into account the sourcing strategy of the supplier and proximity
of the supplier to the location where the order request has been raised so as to improve logistics
and save time, cost & emissions from unwanted transportation through longer routes.
They do have a roadmap to reduce emissions through various initiatives which addresses energy
PAGE 59
efficiency and renewable energy.
The emissions/Waste generated by the Company within the permissible limits given by
CpCB/SpCB for the financial year being reported.
The Companys responsibilities and emphasis on its green eco-system is seen through the
various energy, water and waste reduction initiatives that have helped cut down the carbon
emissions.
b. Reduce Waste
The emissions/Waste generated by the Company within the permissible limits given by
CpCB/SpCB for the financial year being reported.
The Companys responsibilities and emphasis on its green eco-system is seen through the
various energy, water and waste reduction initiatives that have helped cut down the carbon
emissions.
Recycling of wet waste through Vermi- compost yielded 53.7 tons of manure which was used for
landscaping.
Scrap waste comprising of plastic, office waste, packaging and paper is given to vendors for
recycling. Vermicomposting of wet waste has yielded 53.7 tons of manure that was used for
landscaping. The food waste generated in cafeterias is given to the vendors to generate fertilizers
and animal feed.
The E-waste generated includes defunct computers, monitors, servers, electronic and electrical
items. For India operations, management of E-waste is as per E-waste Management policy which
complies with the Government of Indias E-waste (Hazardous Waste Handling and
Management) Rules, 2011. The E-waste is disposed off for recycling through government
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authorized certified vendors. Financial Year 2015-16 saw 121.35 ton of E-waste sent for
recycling through an authorized vendor.
121348 Kg of E-waste disposed through government authorized certified vendors for recycling.
c. Prevention Of Water
Sewage Treatment Plants are set up at 8 major facilities to recycle and treat waste water. The
campuses that have STP installed are Zero Discharge Facilities and recycle the sewage generated
completely. The total volume of water recycled in Financial Year 2015-16 is 405139.2 KL and
this was reused for non-operational purposes like landscaping.
Treated 405,139.2 KL grey water across Pune, Hyderabad, Chennai, Bangalore and Vizag which
is used for landscaping.
Tech Mahindra procure construction materials and equipment that meet the required
environmental norms and standards in Energy and Water Efficiency, Waste Management and
Impact on Biodiversity.
d. Effective Use Of Power
Successful commissioning of solar plants with a capacity of 1928 kWp at Chennai and
Hyderabad. The overall capacity of Solar plants is now 2442kWp and the plants generated
2232875 units of Green power and Carbon Emission Savings of 1830.95 MTCO2.
Power savings of 1.9% per associate achieved in 2015-16 as compared to 2014- 15, through
effective operational controls and close monitoring of utilization.
Generated 22,32,875 units of green power through solar power at Pune, Chennai and Hyderabad,
which lead to reduction of GHG emissions.
PAGE 61
For Tech Mahindra Limited, Corporate Social Responsibility means responsible business
practices through the involvement of all stakeholders in the decision making process and in
operations. It entails having business policies that are ethical, equitable, environmentally
conscious, gender sensitive, and sensitive towards the differently abled.
The key areas of evaluation of individual directors, including Independent Directors are
Knowledge of business, Diligence and preparedness, Effective interaction with others,
Constructive contribution to discussion and strategy, Concern for stakeholders, attentive to the
internal controls mechanism and ethical conduct issues.
3. WIPRO
Wipro was awarded The ICSI National Award for excellence in Corporate Governance for
2015 by the Institute of Company Secretaries of India (ICSI).
We believe in adopting best practices of corporate governance and focus on enhancement of long
term stakeholder value without compromising on ethical standards and corporate social
responsibilities. Corporate governance philosophy of Wipro is put into practice through robust
board governance processes, internal control systems and processes, and strong audit
mechanisms
Corporate governance principles are enshrined in the Spirit of Wipro, which form the core values
PAGE 62
of Wipro. These guiding principles are also articulated through the Companys code of business
conduct, corporate governance guidelines, charter of various sub-committees and disclosure
policy.
To conduct our business on sound ethical principles and widely accepted tenets of good
corporate governance. This includes compliance in letter and spirit with laws and regulations
everywhere we operate.
Key Dimensions of Wipro Corporate Governance is Independence, Accountability &

Transparency.
We are seeing pervasive change all around us. Consumer expectations and experiences, business
models, consumptions models and at times, entire industries are getting fundamentally
transformed.
Information Technology, in its early days, used to be a mechanism for processing data efficiently
at large scale and was used as a system of record. Over time, this led to improved process
orchestration with seamless flow of information to drive back-office enterprise applications,
ultimately leading to the internet being central to consumer engagement.
Wipros investments in innovation have resulted in many solution enhancements and new
capabilities, which are unique and differentiated in the market. They have also led to multiple
patents being applied and granted.
Your Company has invested in these advanced technologies to strengthen existing capabilities
and enhance its platforms for rich customer experience. For example, Wipro Sight solution uses
advanced computer vision based algorithms to analyze customer behavior in stores for delivering
enhanced in-store retail experience. These investments have resulted in many solution
PAGE 63
Enhancements and new capabilities, which are unique and differentiated in the market. They
have also led to multiple patents being applied and granted.
Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the
extent of Foreign Direct Investment and Overseas Direct Investment. There was no External
Commercial Borrowing.
Non-current investments are stated at cost less other than temporary diminution in the value of
such investments, if any. Current investments are valued at lower of cost and fair value
determined by category of investment.
The fair value is determined using quoted market price/market observable information adjusted
for cost of disposal. On disposal of the investment, the difference between its carrying amount
and net disposal proceeds is charged or credited to the statement of profit and loss.
B. SOCIAL DIMENSION
a. Fair employment & Work Practice
Under the Companies Act, 2013, our shareholders must approve the salary, bonus and benefits of
all Executive Directors. Each of our Executive Directors has signed an agreement containing the
terms and conditions of employment, including a monthly salary, performance bonus and
benefits including vacation, medical reimbursement and pension fund contributions. These
agreements have varying terms ranging from one to five year periods, but either we or the
Executive Director may generally terminate the agreement upon six months notice to the other
party.
The employees of the Company are entitled to compensated absences. The employees can carry
forward a portion of the unutilized accumulating compensated absences and utilize it in future
periods or receive cash at retirement or termination of employment.
PAGE 64
In accordance with the Payment of Gratuity Act, 1972 applicable to Indian Companies, the
Company provides for a lump sum payment to eligible employees, at retirement or termination
of employment based on the last drawn salary and years of employment with the Company.
The Company assesses these assumptions with its projected long-term plans of growth and
prevalent industry standards. The estimates of future salary increase, considered in actuarial
valuation, take account of inflation, seniority, promotion and other relevant factors such as
supply and demand factors in the employment market.
The employees of the Company are entitled to compensated absences. The employees can carry
forward a portion of the unutilized accumulating compensated absences and utilize it in future
periods or receive cash at retirement or termination of employment.
Your Company is at the forefront of Corporate Social Responsibility (CSR) and sustainability
initiatives and practices. Your Company believes in making lasting impact towards creating a
just, equitable, humane and sustainable society. Your Company has been involved with social
initiatives for more than decade and a half and engages in various activities in the field of
education, primary healthcare and communities, ecology and environment, etc. Your Company
has won several awards and accolades for its CSR and sustainability efforts.
A primary tenet of our CSR strategy is that we must engage with communities proximate to
wherever we have significant operational presence in the world. In particular, we choose to work
with underprivileged communities. This is organized through Wipro Cares, a unique trust that is
based on the operating model of employee contributions matched by Wipro Ltd. Our work spans
primary healthcare, education, and ecology and disaster rehabilitation.
PAGE 65
Prescribed CSR Expenditure (two percent of the amount as in the point 3 above): 2% of the
average PBT for the financial years 2013-14, 2014-15 and 2015-16 amounts to 1,560 Million;
against this, our CSR spending for 2015-16 was 1,598.22 Million.
A significant feature of our engagement is how we align our community or CSR (Corporate
Social Responsibility) programs with supplier engagement wherever it is possible. This can
address some of the fundamental issues at hand our bridge program in education for children of
migrant laborers for our new infrastructure projects and city municipal solid waste workers are
some examples of areas of engagement in Bengaluru.
C. ENVIRONMENTAL DIMENSION
a. Reduce Emission
The emissions / waste generated by the company within the permissible limits given by CPCB /
SPCB for the financial year being reported.
Absolute emissions reduction of around 35000 tons. Our five year GHG mitigation consists of
three key elements Energy Efficiency, Renewable Energy (RE) Purchase and Captive RE; of
this, RE procurement will contribute the maximum, 80% share to GHG emission mitigation
strategy.
b. Reduce Waste
In collaboration with InfoActiv, we helped create a platform in the Electronic City Industrial area
in Bangalore, India. This zone hosts a significant majority of IT companies and is therefore a
source of sizable amounts of e-Waste. The platform will help align common focus areas,
opportunities and streamline the processes involved in the management of e-Waste from bulk
consumers.
PAGE 66
A common e-waste collection center has been commissioned and regular end of life electronic
material is being collected. Apart from this, we continued to be part of the sub-committee on
Waste in the CII National Environment Committee. We supported the Reimagine Waste
hackathon conducted at Indian Institute of Science, Bengaluru in association with Waste
Ventures and other partners.
Pollution of air and water poses one of the most serious threats to community health and welfare.
Our waste management strategies are centered on either (i) recycling the waste for further use or
(ii) arranging for safe disposal. To operationalize our strategy, we follow robust processes of
segregating waste into organic, inorganic, e-waste, hazardous, packaging, and biomedical and
other categories, which is then either recycled in-house or through outsourced vendor
arrangements.
92% of the total solid waste (up from 90% in 2014-15) of 6,368 tons generated from our IT
India operations is reused or recycled through both, in-house recycling units and through
authorized vendor tie-ups. The balance, which is largely mixed solid waste, construction debris
and some categories of inorganic waste is landfilled. Our plan is to reduce Mixed Solid Waste
(MSW) generation at source and further drive segregation into recyclable organic-inorganic to
increase diversion from landfills.
c. Prevention Of Water
These projects support and enable children to stay in school through remedial education,
nutrition, drinking water facility, health check-ups and solar heating-lighting facilities. We also
expanded into the North-East specifically targeting children of migrant labourers through non-
formal education and thereby mainstreaming these children into formal education.
Ecological sustainability is a cornerstone of our charter on natural capital stewardship. Our

approach is built on the pillars of Energy and Green House Gases (GHG) mitigation, Water 58
PAGE 67
Annual Report 2015-16 efficiency and Responsible Water management, Pollution and Waste
management and Biodiversity
Water Efficiency - Improve water efficiency (fresh water use per employee) by 5% year on year.
Water Responsibility - To ensure responsible water management in proximate communities,

especially in locations that are prone to water scarcity.
Water Security - Recognizing water availability as a business risk, to proactively assess and plan
for the water security of the organization in a manner that is congruent with other two goals.
we are supporting a long term program Design and development of smart micro-grid
technologies for large scale decentralized solar power applications in Indian villages - The Zero
Energy Village concept.
Each state in India has its own mechanism on effecting access to open access- either due to
distribution companys finances or infrastructure not being in place to enable large scale
evacuation and storage of renewable power. This has led to a gap in meeting our renewables
targets.
It can be said that it will take a few years before the market matures. In order to avoid double
accounting, we have taken adequate steps by including non-tradability of Renewable Energy
Certificate (REC) for contracted power through contracts and including verification of
generation in the regulators national REC registry.
D. STAKEHOLDERS DIMENSION
We have always strived to enhance stakeholder value for investors. The Companys philosophy
is to provide regular, stable and consistent payouts.
PAGE 68
We are investing in building digital advisory, design, technology and engineering capabilities
with business and IT stakeholders leveraging our investments in Designit and Digital Pods.
Earlier this year, we integrated our Consulting practive under our Digital practice. We engage
with our client stakeholders in transforming their business.
Having a robust whistleblower policy that employees and other stakeholders can use without fear
or apprehension is a sine non qua for a transparent and ethical company.
4. INFOSYS
Corporate governance is about maximizing shareholder value legally, ethically and sustainably.
At Infosys, the goal of corporate governance is to ensure fairness for every stakeholder.
We believe sound corporate governance is critical to enhance and retain investor trust. We
always seek to ensure that our performance is driven by integrity. Our Board exercises its
fiduciary responsibilities in the widest sense of the term.
Our disclosures seek to attain the best practices in international corporate governance. We also
endeavour to enhance long-term shareholder value and respect minority rights in all our business
decisions.
Our Corporate governance report for fiscal 2016 forms part of this Annual Report. We wish to
state that your Company has complied with all norms of corporate governance applicable to
Unlisted Public Companies as envisaged under the Companies Act, 2013.
PAGE 69
Consumer Protection Act sought to be safer, more stable financial system to set the foundation
for sound economic growth & job safety.
As we cater to client organisation from diverse industries such as, banking, retail, telecom &
healthcare, the scope of privacy & data protection for special data of individual consumer is
often limited to contractual requirement agreed upon with our clients & subsequently developed
during project execution.
Our clients translate applicable data protection laws into contractual requirement, wherever
appropriate and Infosys implements necessary and sufficient measures to comply with these
requirements.
In fiscal 2016, there incidents relating to breach of customer data privacy were reported. All
incidents have been addressed & closed.
c. Ethical investment
Trade Investment is the investment made to enhance the companys business interests.
Investments are either classified as current or long term based on the management intention.
The board constituted the finance & investment committee to assist it in overseeing acquisition
& investment made by the company & provide oversight on key investment policies of the
company.
The finance & investment committee comprises independent members of the board & has a
minimum of three members.
B.SOCIAL DIMENSION
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Infosys is committed to providing a work environment that is free from discrimination &
harassment for all our employees.
The company is an equal opportunity employer & makes employment decisions based on merit
& business needs.
The company policies prohibits harassment of any kind, including harassment based on
pregnancy, childbirth or related medical conditions, race, religious creed, colour, sex, gender
identity, national origin or ancestry, physical or mental ability, medical condition, marital status,
age, sexual orientation, or any other basis protected law.
During fiscal year 2016, we received 11,15,745 employment applications, interviewed 1,21,670
applicants and extended offers of employment to 55,056 applicants.
Infosys has always given high importance to community development through four major
dimensions of community engagement- monetary support, organisation-led projects, employee-
driven initiatives and community sabbaticals.
The Infosys foundation was established in 1996 to encourage and support programs &
organisations devoted to uplifting the economically disadvantaged sections of the society.
Infosys has been an early adopter of CSR initiatives.
The company works primarily through its CSR trust, the Infosys Foundation, towards supporting
projects in eradication of hunger & malnutrition, promoting education, art & culture, healthcare,
destitute care & rehabilitation, environmental suatainability, disaster relief & rural development
projects.
PAGE 71
C.ENVIRONMENTAL DIMENSION
a. Reduce Emission
Although recycle of products is not directly applicable to us, Infosys has a robust Environment
Policy focusing on energy, emissions, water & waste.
We strive to reduce our carbon emissions through specific initiatives & taking this further, we
have made a voluntary commitment to become carbon neutral.
To offset our scope 1 & 3 emissions, we made a conscious choice to source our offsets from
community project that create real & lasting socio economic benefit.
By supporting such projects throughout its lifecycle, we are not only catalysing these projects,
but also creating socio-economic value.
b. Reduce waste
Our initiatives are spread across three dimensions influencing social behavior, process
optimization & the implementation of technology.
We have installed biogas plants to convert food waste into biogas, organic waste converters to
convert food & garden waste into rich manure & a vermin-composting system for paper waste,
among other initiatives.
This year, we have installed biogas plants of 55 tons per day capacity in different campuses to
convert food waste into biogas that was then used in the kitchen of our food courts.
This has a potential to save about 300 kilograms of cooking gas per day.
PAGE 72
c. Prevention Of water
All of our new buildings are designed with the most optimal standard of fresh water requirement
16 litres per capita per day, which is nearly 65% lower compared to the requirement of the
National Building Code.
This has been achieved with our strategy to reduce consumption with water efficient
technologies & equipment, recycle 100% of waste water & reuse treated waste water for
flushing, landscaping & cooling purpose with in the campus.
We have worked towards measures to sequester rainwater to maximum possible levels & today,
we have 149 recharge wells & 25lakes that enable recharging ground water across our campus.
We ensure that the efficiency is maintained by continuous monitoring of water consumption

through smart water metering.
With high efficient building designs, smart building automation & deep green retrofits, we are on
our way to achieving our goal of reducing 50% of our per capita electricity use by 2018 against
the baseline established in 2008.
One of our greatest achievements this year has been the addition of solar capacity at our 450 acre
Hyderabad SEZ campus making the campus 100% powered by solar energy.
We have installed a 6.6 MW solar photovoltaic plant capable of generating 12 million units
annually on this campus, which currently seats about 15,000 employees.
We have implemented one of the worlds largest energy efficiency retrofit programs in our
buildings across different locations in India.
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Taking responsibility for the action of committee while also encouraging positive impact through
supporting causes concerning the environment, committee, & our stakeholder.We have strong
ecosystem for employee attraction caree development, engagement retention through a trusted
partnership with our stakeholder.
PAGE 74
4.2 AMOUNT SPENT TOWARDS CSR ACTIVITY
4.2(i) Table showing the different activities of CSR under taken by selected
Private sector companies
INDICATORS TCS TECH WIPRO INFOSYS

MAHINDRA
EDUCATION & YES YES YES YES

SKILL BUILDING
ART & CULTURE NO NO NO YES
HEALTH CARE YES YES YES YES
ENVIRONMENTAL YES YES YES YES

SUSTAINABILITY
DISASTER RELIEF YES NO YES YES
RURAL NO NO YES YES

DEVELOPMENT
GLOBAL YES NO NO NO
INITIATIVES
EMPLOYABILITY NO YES NO NO
PAGE 75
4.2(ii) Table showing CSR activities adopted by selected companies
INDICATORS YES NO % OF YES % OF NO
EDUCATION & 4 0 100% 0%

SKILL BUILDING
ART & CULTURE 1 3 25% 75%
HEALTH CARE 4 0 100% 0%
ENVIRONMENTAL 4 0 100% 0%
SUSTAINABILITY
DISASTER RELIEF 3 1 75% 25%
RURAL 2 2 50% 50%

DEVELOPMENT
GLOBAL 1 3 25% 75%

INITIATIVES
EMPLOYABILITY 1 3 25% 75%
PAGE 76
Graph: 1 Graph showing CSR activities adopted by selected companies
120%
100%
80%
60%
40%
20%
0%
% OF NO
% OF YES
PAGE 77
ANALYSIS AND INTERPRETATION
From the above Graph & Table it can interpreted that all 4 private company i.e. Infosys, Wipro,
TCS & Tech Mahindra have undertaken the activity of education & skill building, Health care &
Environmental sustainability.
It is found that 3 companies such as Infosys, Wipro & TCS have undertaken the activity of
Disaster relief except Tech Mahindra.
Among 4 companies only Infosys & Wipro have undertaken the initiative of rural development,
but TCS & Tech Mahindra have not undertaken the activity of rural development.
Only Infosys have undertaken the activity of Art & Culture and other 3 companies have not been
undertaken.
Activities of Global initiatives have been undertaken only by TCS.
Tech Mahindra has undertaken the initiative of Employability as a part of CSR.
PAGE 78
To calculate the amount spent towards CSR activities for the year 2015-16.
4.2(iii) Table showing the spent towards CSR activities for the year 2015-16
PARTICULARS TCS TECH WIPRO INFOSYS

(Rs. In Crores) MAHINDRA (Rs. In Millon) (Rs. In Crores)
(Rs. In Crores)
Average net profit

of the Company for
last three financial 17,994 31,180 90,089 12,800
years
CSR
EXPENDITURE 2% 2% 2% 2%
(%)
CSR
EXPENDITURE 359.88 623.6 1801.78 256
(RS)
CSR AMOUNT 293.88 623.6 1801.78 202.30

SPENT
CSR AMOUNT 66 - - 53.7

UNSPENT
PAGE 79
4.2(iv) Table showing the overall CSR spending of the selected 4 companies
Average
net profit
of the CSR CSR CSR CSR AMT ACTUAL ACTUAL
COMPANIES
Company EXP EXP AMT UNSPENT % OF % OF CSR
for last (%) (RS) SPENT CSR UNSPENT
three SPENT
financial
years
TCS
17,994 2% 359.88 293.88 66 82% 18%
TECH
MAHINDRA
31,180 2% 623.6 623.6 - 100% -
WIPRO
90,089 2% 1801.78 1801.78 - 100% -
INFOSYS
12,800 2% 256 202.30 53.7 79% 21%
PAGE 80
Graph: 2 Graph showing actual % of CSR spent
ACTUAL % OF CSR SPENT

120%
100% 100%
100%
82%
79%
80%
60%
40%
20%
0%
TCS TECH WIPRO INFOSYS
MAHINDRA
PAGE 81
Graph: 3 Graph showing actual % of CSR unspent
ACTUAL % OF CSR SPENT
25%
21%
20%
18%
15%
10%
5%
0% 0%
0%
TCS TECH WIPRO INFOSYS
MAHINDRA
PAGE 82
From the above Graph it can be interpreted that, only 79% of CSR expenditure has been spent by
Infosys & remaining 21% of the CSR expenditure have been unspent.
Wipro has spent 100% of its CSR expenditure & 0% being unspent.
Among the CSR expenditure 82% has been spent by TCS & remaining 18% is being unspent by
the company.
100% of CSR expenditure has been spent on CSR activity & 0% being unspent.
PAGE 83
Graph: 4 Graph showing the comparison of the CSR amount spent by Selected private
companies
2000
1801.78 1801.78
1800
CSR EXPENDITURE
1600
CSR AMOUNT SPENT

1400
CSR AMOUNT UNSPENT

1200
1000
800
623.6 623.6
600
400 359.88
293.88 256
202.3
200
66 53.7
0 0
0
TCS TECH MAHINDRA WIPRO INFOSYS
PAGE 84
From the above interpretation, it can be seen that only Wipro & Tech Mahindra have completely
adopted the mandatory rule that is been set up by the Companies Act of 2013.
Whereas the other 2 companies have spent only the part of their profits towards their CSR
activities.
As per the Companies Act of 2013, all the companies are required to spend 2% of their average
net profits towards CSR.
But the 2 companies i.e., Infosys & TCS have failed to fulfil the requirements and hence will
have to provide reasonable facts for not spending. If the reasons are not mentioned in their
respective sustainability reports, the companies are required to pay some amount of penalties.
PAGE 85
4.3 EFFECT OF CSR ON ORGANISATIONAL SUSTAINIBILITY
Corporate sustainability essentially refers to the role that companies can play in meeting the
agenda of sustainable development and entails a balanced approach to economic progress, social
progress and environmental stewardship.
CSR in India tends to focus on what is done with profits after they are made. On the other
hand, sustainability is about factoring the social and environmental impacts of conducting
business, that is, how profits are made. Hence, much of the Indian practice of CSR is an important
component of sustainability or responsible business, which is a larger idea, a fact that is evident
from various sustainability frameworks.
Since corporate social responsibility and sustainability are so closely entwined, it can be
said that corporate social responsibility and sustainability is a companys commitment to its
stakeholders to conduct business in an economically, socially and environmentally sustainable
manner that is transparent and ethical.
NOTE:
(i) ROE is Return On Equity

(ii) RCE is Return On Capital Employed
(iii) ROS is Return On Sales (Return On Revenue From Operation)
PAGE 86
1) TATA CONSULTANCY SERVICE
4.3(i) TABLE SHOWING THE AMOUNT SPENT ON CSR, ROE, RCE AND
ROS OF TCS COMPANY
CSR
YEARS SPENT ROE RCE ROS
(CRORES)
2013-14 93.6 38.90% 37.23% 23.43%
2014-15 219 39.21% 37.22% 20.92%
2015-16 293.88 37.17% 36.04% 20.36%
PAGE 87
ANALYSIS & INTERPRETATION
From the above table it can be analysed that CSR spent by TCS company is increasing from
one year to another.
Return On Equity (ROE) is increased by 0.31% from 2013-14 to 2014-15 & ROE have been
decreased by 2.04% from 2014-15 to 2015-16.
Return On Capital Employed (RCE) is decreased by 0.01% from 2013-14 to 2014-15 & RCE
have been decreased by 1.18% from 2014-15 to 2015-16.
Return On Sales (ROS) is decreased by 2.51% from 2013-14 to 2014-15 & ROS have been
From the above table it can be interpreted that ROE,RCE & ROS is not increasing along with
the CSR spent so, there is no effect of CSR on organisational sustainability (TCS company).
PAGE 88
2) TECH MAHINDRA
4.3(ii) TABLE SHOWING THE AMOUNT SPENT ON CSR, ROE, RCE AND
ROS OF TECH MAHINDRA COMPANY
CSR SPENT
YEARS ROE RCE ROS
(CRORES)
2013-14 454.32 35.27% 28.79% 18.59%
2014-15 525.54 23.35% 20.50% 13.71%
2015-16 623.6 23.01% 20.38% 14.87%
PAGE 89
From the above table it can be analysed that CSR spent by Tech Mahindra company is
increasing from one year to another.
Return On Equity (ROE) is decreased by 11.92% from 2013-14 to 2014-15 & ROE have been
increased by 1.16% from 2014-15 to 2015-16.
the CSR spent so, there is no effect of CSR on organisational sustainability (Tech Mahindra
company).
PAGE 90
3) WIPRO
4.3(iii) TABLE SHOWING THE AMOUNT SPENT ON CSR, ROE, RCE AND
ROS OF WIPRO COMPANY
CSR SPENT
YEARS ROE RCE ROS
(MILLIONS)
2013-14 1598.18 27.22% 25.93% 20.62%
2014-15 1742.8 25.17% 24.18% 19.94%
2015-16 1801.78 22.02% 21.16% 18.98%
PAGE 91
From the above table it can be analysed that CSR spent by Wipro company is increasing from
one year to another.
Return On Equity (ROE) is decreased by 2.05% from 2013-14 to 2014-15 & ROE have been
the CSR spent so, there is no effect of CSR on organisational sustainability (Wipro company).
PAGE 92
4) INFOSYS
4.3(iv) TABLE SHOWING THE AMOUNT SPENT ON CSR, ROE, RCE AND
ROS OF INFOSYS COMPANY
CSR SPENT
YEARS ROE RCE ROS
(CRORES)
2013-14 203.88 24.22% 24.01% 21.73%
2014-15 243.28 25.31% 25.29% 24.02%
2015-16 202.30 22.39% 22.37% 22.46%
PAGE 93
From the above table it can be analysed that CSR spent by Infosys company have increased
from 2013-14 to 2014-15 & CSR spent by Infosys company from 2014-15 to 2015-16 have
been decreased.
Return On Equity (ROE) is increased by 1.09% from 2013-14 to 2014-15 & ROE have been
Return On Sales (ROS) is increased by 2.29% from 2013-14 to 2014-15 & ROS have been
the CSR spent so, there is no effect of CSR on organisational sustainability (Infosys company).
PAGE 94
CHAPTER 5
FINDINGS, SUGESSTIONS & CONCLUSION
5.1 FINDINGS
From the analysis it was found that Tech Mahindra & Wipro is promptly spending 100% of its
CSR expenditure (i.e. 2% of PAT) on CSR activity. TCS is spending 82% & Infosys is spending
79% of its CSR expenditure on CSR activity respectively.
All the companies have undertaken the initiative to contribute towards Education, Skill Building,
Health Care & Environmental Sustainability.
It is found that 3 companies such as Infosys, Wipro & TCS have undertaken the activity of
Disaster relief except Tech Mahindra.
Among 4 companies only Infosys & Wipro have undertaken the initiative of rural development,
but TCS & Tech Mahindra have not undertaken the activity of rural development.
Only Infosys have undertaken the activity of Art & Culture and other 3 companies have not been
undertaken.
Activities of Global initiatives have been undertaken only by TCS.
Tech Mahindra has undertaken the initiative of Employability as a part of CSR.
From the above interpretation, it can be seen that only Wipro & Tech Mahindra have completely
adopted the mandatory rule that is been set up by the Companies Act of 2013.
PAGE 95
Whereas the other 2 companies have spent only the part of their profits towards their CSR
activities.
As per the Companies Act of 2013, all the companies are required to spend 2% of their average
net profits towards CSR.
But the 2 companies i.e., Infosys & TCS have failed to fulfil the requirements and hence will
have to provide reasonable facts for not spending. If the reasons are not mentioned in their
respective sustainability reports, the companies are required to pay some amount of penalties.
CSR spent by TCS, Tech Mahindra, Wipro Company is increasing from one year to another.
CSR spent by Infosys company have increased from 2013-14 to 2014-15 & CSR spent by
Infosys company from 2014-15 to 2015-16 have been decreased.
In TCS Company, Return On Equity (ROE) is increased by 0.31% from 2013-14 to 2014-15 &
ROE have been decreased by 2.04% from 2014-15 to 2015-16. Return On Capital Employed
(RCE) is decreased by 0.01% from 2013-14 to 2014-15 & RCE have been decreased by 1.18%
from 2014-15 to 2015-16. Return On Sales (ROS) is decreased by 2.51% from 2013-14 to 2014-
15 & ROS have been decreased by 0.56% from 2014-15 to 2015-16.
In Tech Mahindra company, Return On Equity (ROE) is decreased by 11.92% from 2013-14 to
2014-15 & ROE have been decreased by 0.34% from 2014-15 to 2015-16. Return On Capital
Employed (RCE) is decreased by 8.29% from 2013-14 to 2014-15 & RCE have been decreased
by 0.12% from 2014-15 to 2015-16. Return On Sales (ROS) is decreased by 4.88% from 2013-
14 to 2014-15 & ROS have been increased by 1.16% from 2014-15 to 2015-16.
In Wipro company, Return On Equity (ROE) is decreased by 2.05% from 2013-14 to 2014-15 &
ROE have been decreased by 3.15% from 2014-15 to 2015-16. Return On Capital Employed
(RCE) is decreased by 1.75% from 2013-14 to 2014-15 & RCE have been decreased by 3.02%
PAGE 96
from 2014-15 to 2015-16. Return On Sales (ROS) is decreased by 0.68% from 2013-14 to 2014-
15 & ROS have been decreased by 0.96% from 2014-15 to 2015-16.
Return On Equity, Return On Capital Employed & Return On Sales (Revenue From Operation)
is not increasing along with the CSR spent by any of the company.
PAGE 97
5.2 SUGESSTIONS
It is suggested that, the main objective of the company should be contributing towards society
rather than making profit.
It is suggested to whole industry to adopt the provision of CSR as per company act of 2013.
It is suggested that, all companies to spend complete 2% of CSR expenditure on CSR activities.
It is suggested to include qualitative and quantitative information both for the disclosure
practices by the companies so that clear information about the CSR activities can be known.
PAGE 98
5.3 CONCLUSION
CSR activity is a part of business which needs to be undertaken by the companies (organisations)
every year. According to companies act of 2013, 2% of PAT should be spent for the CSR
activity by every business irrespective of the profit earned by the company. Even before it have
been made mandatory, many companies used to undertake CSR activity voluntarily.
Even though it is made mandatory for the companies to spend 2% of their PAT on CSR activity,
not every company is spending whole 2% of CSR expenditure on CSR activity, they have their
own reason for not spending whole amount of CSR expenditure which will not disclosed in the
Annual Report of the company under Corporate Social Responsibility.
Return On Equity, Return On Capital Employed & Return On Sales (Revenue From Operation)
is calculated in order to know if there is any effect of CSR on sustainability of the organisation.
If ROE, RCE & ROS is increasing along with the amount of CSR spent it can be said that there
is effect of CSR on organisational sustainability.
In this study ROE, RCE & ROS is not increasing along with the CSR spent in any of the
company. So CSR spent and ROE, RCE & ROS are not the dependent variables, they are
independent variables.
It can be concluded that there will not be any effect of Corporate Social Responsibility on
organisational sustainability, as CSR & Sustainability are the independent variables.
Sustainability of the organisation cannot be measured in terms of CSR activity under taken by
the companies.
PAGE 99

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A STUDY ON EFFECT OF CSR ON ORGANIZATIONAL SUSTAINIBILITY

1.1 EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

In the environment of modern economic development, corporate sector no longer functions in

The Four Phases of CSR Development in India

1. The First Phase

2. The Second Phase

3. The Third Phase

4. The Fourth Phase

1.2 MEANING OF CSR

1.3 DEFINITION OF CSR

While there is no universal definition of corporate social responsibility, it generally refers to

The World Business Council on Sustainable Development (WBCSD) defines CSR as

The United Nations Industrial Development Organization (UNIDO) defines CSR as

achieves a balance of economic, environmental and social imperatives (Triple- Bottom-Line

1.4 CSR IN INDIA

1.5 PRINCIPLES OF CORPORATE SOCIAL RESPONSIBILITY

The Corporate Social Responsibility is based on the following principles:

Legal Compliance Principle:

Adherence to Customary International Laws Principle:

Respecting Related Stakeholders lefts Principle:

Respect for Human lefts Principle:

1.6 SCOPE OF CSR

1.7 NEED OF CSR

Improve public image of the firm & improving stock price.

Best interest of business to promote & improve communities.

To solve social, economic & political problem of country.

To protect consumer against business malpractices like adulteration, black marketing,

Shortage in weight, unfair pricing, measures etc

It helps to attract & retain customers and investor.

It helps to cut business cost.

1.8 BENEFITS OF CSR

Corporate social responsibility also gives employees a feeling of unparalleled happiness.

1.9 COMPANIES ACT 2013 REGARDING CSR

undertaken by the board of directors of a company (Board) in pursuance of recommendations of

1.10 CSR & BUSINESS PERFORMANCE

CSR is predominantly considered a Western phenomenon due to the strong institutions,

Corporate Social Responsibility is how business organization activities influences the

1.11 CSR & SUSTAINIBILITY

Sustainability (corporate sustainability) is derived from the concept of sustainable

It is also acknowledged in the Guidelines on Corporate Social Responsibility and

Sustainability reporting is a vital step towards achieving a sustainable global economy.

1.12 DIMENSIONS OF CSR

(i) ECONOMIC DIMENSION

Alternatively, it refers to commitment to ethical practices inside enterprises, like corporate

The Organization for Economic Cooperation and Development (OECD) defines

Corporate Governance contributes to the following:

Creating and promoting an environment within which the principles of accountability,

Establishing a system of economic and non-economic incentives that is connected with

Utilizing financial, natural, and humanitarian resources efficiently.

Promoting justice in representing under-represented categories (including women) in higher

b. Protection Of Consumer Interest

Providing effective and transparent procedures when examining consumer complaints, so as to

(ii) SOCIAL DIMENSION

a. Fair Employment & Work Practice

Leadership that appreciates employees based on merit.

Safe and healthy work environment.

Mutual trust between employers and employees.

Openness culture in respect to the involvement in decision making.

Promotion of initiative taking and innovation.

b. Contribution To Local Community

(iii) ENVIRONMENTAL DIMENSION

The environmental dimension for socially responsible enterprises is defined as the

c. Effective Use Of Power