TABLE OF CONTENTS

INTRODUCTION………………………………………………………………..4

OBJECTIVES OF THE STUDY………………………………………………….5

SCOPE OF THE STUDY…………………………………………………………6

METHODOLOGY…………………………………………………………………6

LIMITATIONS OF THE STUDY…………………………………………………6

FACTORS THAT ARE TO BE CONSIDERED BY STARTING CSR AS A

STRATEGY………………..

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ACKNOWLEDGEMENT

I hereby convey my deep acknowledgement to all those who made it possible for me to
complete this project, by extending their support and continuous co-operation.

I would like to acknowledge the consistent encouragement extended by Dr. Kamal Ghosh
Ray, Director and Dr. Ch. S. Durga Prasad, Dean-Academic Planning of Vignana Jyothi
Institute of Management.

My sincere gratitude to Col (Retd.) Saeed Ahmad, Associate Professor whose constant
guidance, efforts, heartfelt support, suggestions and consideration helped me in the
successful completion of this project.

Finally, I would like to thank all my friends, batch mates and staff members without
whom this dissertation work would not have been successfully completed

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EXECUTIVE SUMMARY:

Business organizations have waked up to the need for being committed towards
Corporate Social Responsibility. But still majority have just been taking up some form of
philanthropic activities for its stakeholders. Nurturing a strong corporate culture which
emphasizes Corporate Social Responsibility (CSR) values and competencies is required
to achieve the synergistic benefits. The employees of an organization occupy a central
place in developing such a culture which underlines CSR values and competencies. The
present study, therefore, is an attempt to explore the engagement of human resource
management professionals in undertaking Corporate Social Responsibility. It also
suggests Human Resource Management to take a leading role in encouraging CSR
activities at all levels. The combined impact of CSR and human resource activities,

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which reinforce desirable behavior, can make a major contribution in creating long term
success in organizations.
Successful programmes on social responsibility rely heavily on enlightened
people management practices. In this context HR department is assumed to be the
coordinator of CSR activities in getting the employment relationship right which is a
precondition for establishing effective relationships with external stakeholders and thus can
orient the employees and the organization towards a socially responsible character.. Armed
with a strong and committed organizational culture reinforced by responsible Human
Resource Management practices, the organizations can achieve heights of success by
improved profitability, employee morale, customer satisfaction, legal compliance and
societal approval for its existence. It is high time for all other organizations which have been
paying only lip service to CSR that they must capitalize upon the existing Human Resource
Department in framing such practices, procedures and policies that ensure the internalization
of quality, ethics and excellence in the whole system.

INTRODUCTION:

Corporate social responsibility is a powerful way of making sustainable competitive

profit and achieving lasting value for the share holder as well as for stake holders. CSR
and the reporting there of is a win-win opportunity ,not just for companies and for
financial investors but for society at large. Corporate social responsibility (CSR), also
known as corporate responsibility, corporate citizenship, responsible business,
sustainable responsible business (SRB), or corporate social performance,[1] is a form of
corporate self-regulation integrated into a business model. Ideally, CSR policy would
function as a built-in, self-regulating mechanism whereby business would monitor and
ensure its support to law, ethical standards, and international norms. Consequently,
business would embrace responsibility for the impact of its activities on the environment,

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consumers, employees, communities, stakeholders and all other members of the public
sphere. Furthermore, CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development, and voluntarily eliminating
practices that harm the public sphere, regardless of legality. Essentially, CSR is the
deliberate inclusion of public interest into corporate decision-making, and the honoring
of a triple bottom line: people, planet, profit.

CSR is about how companies manage the business process to produce an over all
positive impact on society. Increasingly, corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them. Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(i.e. more loyalty, improved recruitment, increased retention, higher productivity, and so
on). Key external stakeholders include customers, consumers, investors (particularly
institutional investors), communities in the areas where the corporation operates its
facilities, regulators, academics, and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment. Corporate social responsibility involves a commitment by a
company to manage its role I the society – as producer, employer, marketer, customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives, promoting dialogue with key stake holders and responding to
customer needs. Now a days company’s are paying more attention on CSR activities .
Reason can be , because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment.

Every organization is trying to work on different aspects so that they can

differentiate themselves CSR activities with the other companies. CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients. CSR implies that it is the duty of the corporate to ensure the safety

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of all the share holders. CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society , environment etc.

OBJECTIVES OF THE STUDY:

To understand HR Department role in promoting CSR.

To understand the role of CSR in gaining competitive advantage to the Organization.

To understand different CSR activities in Indian corporates.

SCOPE OF THE STUDY

Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates.

METHODOLOGY:
The study was conducted using both primary and secondary data.

Secondary data

It was collected from various books, articles, journals and blogs on CSR

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.

LIMITATIONS OF THE STUDY:

• The study does not consider each and every company i.e. only few company’s

are taken as examples.

• The study deals more in terms of Indian corporates i.e. more focus is laid on how

CSR acitivities are carried out in Indian corporates.

.

Factors that are to be considered when starting a CSR strategy

CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business. Clarify organization
core values and principles. Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them. Get the top
team on board and know how to sell benefits of CSR to different stake holders. Under
stand how CSR strategy is aligned to your business and HR practices.

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Building strategic relationship with customers, suppliers, employees, stake holders and
particularly the community at large, has become central to the sustainability of an
organization. Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society.

Following principles play an active role in spreading the CSR movement:

• Motivating companies to contribute to society by organizing seminars and

conferences on subjects of social concern and the role of corporate sector.
• Intergrating and synergizing the work done by various organizations , NGOs,
corporate sector , government and international agencies.
• Participating in the developmental programmes by conceiving, implementing or
monitoring various projects and programmes.
• Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution.

• Empowering regional chapters of CSR to take up similar activities at the regional

level

• A CSR strategy provides the opportunity to demonstrate the human face of

business. Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels , IGOs, NGOs, other elements
of civil society and in particular local communities.

• In implementing their CSR strategies ,companies should recognize and respect

local and cultural differences ,whilst maintaining high and consistent global
standards and policies.

• Finally,being responsive to local differences means taking specific initiatives.

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CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES

Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations, along with their shareholder-wealth maximisation goal.

Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education, health, livelihood creation, skill development,
and empowerment of weaker sections of the society. Notable efforts have come from the
Tata Group, Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil Corporation
among others.

The 2010 list of Forbes Asia’s ‘48 Heroes of Philanthropy’ contains four Indians. The
2009 list also featured four Indians. India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms. India was ranked fourth in the list, according to social enterprise CSR
Asia's Asian Sustainability Ranking (ASR), released in October 2009.

According to a study undertaken by an industry body in June 2009, which studied the
CSR activities of 300 corporate houses, corporate India has spread its CSR activities
across 20 states and Union territories, with Maharashtra gaining the most from them.
About 36 per cent of the CSR activities are concentrated in the state, followed by about
12 per cent in Gujarat, 10 per cent in Delhi and 9 per cent in Tamil Nadu.

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The companies have on an aggregate, identified 26 different themes for their CSR
initiatives. Of these 26 schemes, community welfare tops the list, followed by education,
the environment, health, as well as rural development.

Further, according to a study by financial paper, The Economic Times, donations by

listed companies grew 8 per cent during the fiscal ended March 2009. The study of
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09, up from US$ 156 million in the year-ago period. As many as 108 companies
donated over US$ 216,199, up 20 per cent over the previous year.

Although corporate India is involved in CSR activities, the central government is

working on a framework for quantifying the CSR initiatives of companies to promote
them further. According to Minister for Corporate Affairs, Mr Salman Khurshid, one of
the ways to attract companies towards CSR work is to develop a system of CSR credits,
similar to the system of carbon credits which are given to companies for green initiatives.

Moreover, in 2009, the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility.

Besides the private sector, the government is also ensuring that the public sector
companies participate actively in CSR initiatives. The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the company's net
profits.

As per the guidelines, companies with net profit of less than US$ 22.5 million will
earmark 3-5 per cent of profit for CSR, companies with net profit of between US$ 22.5
million - US$ 112.5 million, will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 112.5 million will spend 0.5-2 per cent of net profits for CSR.

• India Inc has joined hands to fine-tune all its activities falling under CSR. For
this, it has set up a global platform to showcase all the work done by Indian firms.
Confederation of Indian Industry (CII) and the TVS Group collaborated to form

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 the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007.
It provides consultancy services and technical assistance on social development
and CSR.
• According to a National Geographic survey which studied 17,000 consumers in
17 countries, Indians are the most eco-friendly consumers in the world. India
topped the Consumer Greendex, where consumers were asked about energy use
and conservation, transportation choices, food sources, the relative use of green
products versus traditional products, attitudes towards the environment and
sustainability and knowledge of environmental issues.

• Reliance Industries and two Tata Group firms—Tata Motors and Tata Steel—are
the country's most admired companies for their corporate social responsibility
initiatives, according to a Nielsen survey released in May 2009.

• As part of its Corporate Service Corps (CSC) programme, IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest.

• As part of CSR Wipro, for example, inculcates CSR values amongst its workforce
right at the beginning during the induction process
• Corporate presentations, keeping employees updated through mails, regular
newsletters are the instruments used to keep employees energized about the
organization’s socially responsible initiatives.
• The training of employees through “CSR Living Our Values Learning Tool” at
Cadbury Schweppes (Young, 2006), the major global beverage and confectionary
organization, has been a good example of partnership between HR and CSR. The
company has also included social responsibility in the latest management
development initiatives like the global “Passion for People” management skills
programme.

• Best Buy, a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada, has initiated ethics training for its
employees. Electronic Data Systems (EDS) has a global CSR strategy which is well

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 supported by HR function and the employees (Redington, 2005). The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry, CSR Competency
framework.

• The financial services sector is going green in a steady manner. With an eye on
preserving energy, companies have started easing the carbon footprint in their
offices. The year 2009 witnessed initiatives including application of renewable
energy technologies, moving to paperless operations and recognition of
environmental standards. Efforts by companies such as HSBC India, Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts.
• State-owned Navratna company, Coal India Ltd (CIL) will invest US$ 67.5
million in 2010-11 on social and environmental causes.
• Companies like Wipro, Infosys, Dabur, and ICICI have even framed whistle blowing
policy, providing protection to the employees who come to know about any unethical
practice going on within the organization, covering a whole gamut of subjects and
showing their positive approach towards unethical practices
• Public sector aluminium company NALCO has contributed US$ 3.23 million for
development work in Orissa's Koraput district as part of its Corporate Social
Responsibility (CSR).

HR’s Role in Promoting Corporate Social Responsibility

With the growing importance of CSR in companies , HR professionals play a key role in
initiating,developing and sustaining CSR activities in the organization. While some
companies have separate CSR executives who are responsible for coordinating and
managing events ,most companies expect HR personnel and other employees to invest

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their time and participate in such activities. In todays corporate scenario ,employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work. Given this hectic pace of work,it’s a challenge for any organization to
sustain CSR initiatives. Therefore , HR professionals have an indispensable role to play
in the areas of creating strong organizational culture aligning with core company
values ,fostering relation ship that is sensitive to the community culture,engaging every
employee in active community activities,and assessing the environment inorder to
identify threats to the community.

The world is a smaller place thanks to the Internet, global trading and new
communication and technology advances. More U.S. companies are expanding overseas,
and now manage a global workforce that has unique benefits, rules/laws, and different
languages and currencies. With this global expansion comes a “responsibility.”

When companies are global, an important challenge in garnering success is to respect

other cultures and workforce environments and start forming a global profile or social
consciousness. Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value, boost employee
engagement and increase employer brand recognition.

Hr professionals need to co-ordinate the CSR activities and demonstrate company’s

commitment to CSR. Effective CSR depends on being seen as important through out an
organization. HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success. HR should communicate ,implement ideas, policies, cultural and
behavioural change across organization. HR is also responsible for the key systems and
processes underpinning effective delivery .

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The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities. Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for. HR manager should should instill individual
social responsibility in every employee in the organization . He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job ,class ,caste or gender. HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so, one can lead a
complacent life in the society. HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth. Even one can
start with helping the needy in their neighbourhood.

Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs. Furthermore, HR can manage the CSR plan
implementation and monitor its adoption proactively, while documenting (and
celebrating) its success throughout the company. Human Resources technology can help
with a Corporate Social Responsibility program, including reducing the company’s
carbon footprint to benefit the planet. Start with these areas:

• Implement and encourage green practices.

• Foster a culture of social responsibility.
• Celebrate successes.
• Share and communicate the value of corporate social responsibility to employees
and the community.

Implement and Encourage Green Practices for Corporate Social Responsibility

Implement green practices to assist in environmental waste reduction, while

promoting and encouraging stewardship growth, better corporate ethics and long-lasting
practices that promote both personal and corporate accountability. The value inherent in
embracing green aspects of corporate responsibility is clearly understood, given the
direct impact that rising energy and utility costs has on employees’ pocketbooks.

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Conservation has become an accepted means of making our planet healthier. Reducing
each employee’s carbon footprint is a great way of getting energy conservation and
recycling waste initiatives off the ground. Here are suggestions to start:

• Recycle paper, cans and bottles in the office; recognize departmental efforts.
• Collect food and donations for victims of floods, hurricanes and other natural
disasters around the globe.
• Encourage reduced energy consumption; subsidize transit passes, make it easy
for employees to car pool, encourage staggered staffing to allow after rush hour
transit, and permit telecommuting to the degree possible.
• Encourage shutting off lights, computers and printers after work hours and on
weekends for further energy reductions.
• Work with IT to switch to laptops over desktop computers. (Laptops consume
up to 90% less power.)
• Increase the use of teleconferencing, rather than on-site meetings and trips.
• Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste, too.

Foster a Culture of Corporate Social Responsibility

Creating a culture of change and responsibility starts with HR. Getting the younger
employees, who are already environmentally conscious, excited about fresh Corporate
Social Responsibility initiatives is a great way to begin. A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs.

Over the past few years, major news organizations have reported on large, trusted
companies that have failed employees, shareholders and the public (i.e. Enron, Lehman,
WaMu). These failures created a culture of mistrust in the corporate world. All too often,
employees and employers at all levels, who competed for advancement and recognition

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in harsh workplaces, were forced to accept corporate misconduct and waste as “business
as usual.”

Employer brands are being eroded and the once sacred trust that employees had with
stable pensions, defined benefits and lifelong jobs, are being replaced with pay for
performance and adjustment to new learning goals. In this environment, Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
hires and society at large. It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment.

Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community.
Employers can connect with their employees and the community through:

• Company matches to employee charitable contributions;

• Community programs and volunteer days;
• Corporate sponsorship of community events; and
• Encouraging employees to participate in walkathons, food banks, and so forth.

Celebrate Corporate Social Responsibility Successes

Celebrating success is important to sustain the momentum of any CSR program.

Involving company leaders, and praising the success of these initiatives, gives the
program real meaning. In the rapidly expanding global workplace, the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives, but also allows sound corporate HR practices to enable them.

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Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves. The local population knows that, in
addition to providing jobs, the company takes an active interest in, and participates in,
local issues.

Three Key Areas of Corporate Social Responsibility

Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future:

• Community Relations,
• Training and Development, and
• A Cohesive Global Corporate Social Responsibility Platform

Encouraging Community Relations through your HR team includes implementing reward

programs, charitable contributions and encouraging community involvement and
practices. Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company.

Training and Development programs that explain the connection between the company’s
core products or services and the society at large, their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives.

Global Corporate Social Responsibility policy, centrally managed, is important to

acknowledge successes and measurements according to accepted standards. Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser. In order to encourage and maintain a clear and cohesive global
workplace, it is critical for the entire global workforce of a company to be on a single,

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multi-functioning HR platform, which allows for distributing a sound corporate
responsibility plan.

Having a global HR solution that offers companies flexibility, ease of use and the right
mix of tools is essential to the success of both employees and employers alike, as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility. The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan, control and manage your goals, achieve efficiency and quality, and improve
employee and manager communications.

The flexibility of your HRIS system is critical to tracking and pursuing a sound
Corporate Social Responsibility plan and a Web-based system provides an unparalleled
level of both scalability and accessibility to implement your Corporate Social
Responsibility plan at a global level. This is an increasingly important endeavor, as
companies, societies and people coexist productively and in harmony, across the planet
we all inhabit.

HR strategic focus:

• As a HR professional , the most important responsibility is to make the

employees aware of the companys commitment to CSR and the array of activities
that they could involve themselves in. The employee has to be clearly informed
about their roles and whether they are expected to involve in the activities during
the work hours or spend their personal time towards this.. such clarity and
direction is the first step towards institutionalizing and integrating CSR in the
fabric of organization.

• To motivate the employees to participate in such activities ,HR professionals

could publish success stories of employees who have made a difference through

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 their participation and come up with a periodic CSR newsletter. This would create
visibility and nudge others towards constructive action.

• The management should constantly be committed to promote and motivate

employees towards CSR by ‘ walking the talk’. The top management needs to
model this behaviour for other employees to emulate.
• HR professionals can identify high impact projects ,orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own.

• CSR initiatives can be integrated in the philosophy of the organization and

assimilating it in the core values and mission statement of the company .

• HR practices should include CSR as one of the strategic imperative of the

company’s annual goals and therefore make CSR every body’s business and not
relegate it to any specific group of employees.

• HR professionals need to play a more proactive role in defining, implementing

,adding value to and monitoring CSR policies and practices, if they are to involve
and meet the expectations of the key stake holders is that employees.

• Organizations need to create structure and policies to provide assistance ,financial

and in kind, as well as contribution of time and expertise ,emphasizing on
engaging employees in community program.

• The performance appraisal process can also measure the contribution of an

employee towards the community development and adequate weightage can be
given for providing rewards and promotions.

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 • HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful.

• A part from employees ,CSR activities should also involve business partners
,stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching.

• COMPANIES NEED to have better corporate social responsibility (CSR)

programs in place if they want to attract and engage quality staff, a global report
has found.

• In addition to demonstrated high levels of corporate social responsibility,

Australian companies must also offer employees good career and development
opportunities to retain and engage staff.
• “Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for .
• “This includes concern for employees’ wellbeing as well as a concern for the
environment.”

Risks in HR involvement with CSR

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• HR has to understand how CSR strategy is aligned to business and HR practices .
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently.

• Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization

• HR needs to be an active business partner working with other functions like

finance, public relations, marketing etc.

• Hr has to implement CSR as a strategic opportunity which should be market-led

and I should be restrained by bureaucracy. Because trust build through successful
CSR is hard to regain if lost.

• HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders.

• HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent.

• HR has to look for ways to leverage social responsibility initiatives internally.

Communicate the contributions company is making in the community and get
employees involved.
• The separation of employees during mergers, acquisitions, downsizing etc. should be
strategically aligned with the business strategy as well as Corporate Social
responsibility. Retraining, retention, redeployment of people can be worked out with
aggressive communication, information campaigns and outplacement services in
place to assist the transition of people from the organization.

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 • The Human Resource department should effectively measure and evaluate CSR
activities. The value added by CSR in the form of direct results, such as, economic
savings and indirect results like increase in employee satisfaction, less employee
turnover, measured by staff attitude surveys, shall indicate contribution to improved
business performance. There is also a need to conduct periodic review of the CSR
activities

CSR as a key to retain

Corporate social responsibility programs are linked to how committed an employee is to

an employer. This finding holds true across all ages and job levels and is particularly
strong among women workers. The higher an employee rates an organization on its
commitment to good corporate citizenship, the more committed the employee is likely to
be to the organization

COMPANIES NEED to have better corporate social responsibility (CSR) programs in

place if they want to attract and engage quality staff. Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline. Despite budget reductions and layoffs becoming commonplace, employees were
bullish about at least one thing. They believed their employers were committed to acting
responsibly in the community. Though a good social responsibility program won’t reduce
turnover, it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers, shareholders
and community members. There are definitely positive benefits to be had

In addition to demonstrated high levels of corporate social responsibility, companies

must also offer employees good career and development opportunities to retain and
engage staff. “Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees,”.“This includes concern for employees’ wellbeing
as well as a concern for the environment.”

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Corporate Social Performance As a Competitive Advantage in
Attracting a Quality Workforce

Several researchers have suggested that a talented, quality workforce will become a more
important source of competitive advantage for firms in the future. Drawing on social
identity theory and signaling theory, the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants. Specifically,
signaling theory suggests that a firm’s CSP sends signals to prospective job applicants
about what it would be like to work for a firm. Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts. It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations. A CSR programme can be an aid to recruitment and retention, particularly
within the competitive graduate student market. Potential recruits often ask about a firm's
CSR policy during an interview, and having a comprehensive policy can give an
advantage. CSR can also help improve the perception of a company among its staff,
particularly when staff can become involved through payroll giving, fundraising
activities or community volunteering. See also Corporate Social Entrepreneurship,
whereby CSR can also be driven by employees' personal values, in addition to the more
obvious economic and governmental drivers.

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PERFORMANCE MANAGEMENT SYSTEMS

The designing of Performance • Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees. This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised, appreciated as well as rewarded. Otherwise, the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement. The Human
Resource department should effectively measure and evaluate CSR activities. The value
added by CSR in the form of direct results, such as, economic savings and indirect results
like increase in employee satisfaction, less employee turnover, measured by staff attitude
surveys, shall indicate contribution to improved business performance. There is also a need
to conduct periodic review of the CSR activities

CSR can survive Global economic recession:

In the present era of globalization ,the economy is changing because of recent economic
downturn, credit crisis and collapse of big financial institutions. Business confidence around
the world has diluted and pressures on company budgets are rising rapidly. In these tough
times ,business enterprises are most probably thinking about how to survive, rather than how
to concentrate and invest on CSR activities. More closely a social issue is tied to a
company’s business , the greater the opportunity to leverage the firms resources and benefit
the society. Social and environmental benefits are seen as exciting opportunities for business
rather than as responsibilities. Further irrespective of the nature of the organization ,CSR is
considered to be widen the market and narrow the competition .

CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA

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AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation, a children orphanage and St Josephs old age home. In February 2003,
It hosted a fund raising event for the Asharan Hope Foundation, the theme was “ where
there is a life there is a hope” and the evening supported an orphanage that houses 15
children, including one family of five girls. Aviva staff and business partners took an
active part in raising funds. Donations and raffle ticket sales added to the total of $2382
raised during the evening . More than 20 raffle prizes were donated by Aviva business
partners. Donations were also received in the form of clothes and toys for children. The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India . ‘ Diwali’, the festival of lights , is one of the biggest festival in India and is
marker by celebrations across the country. Aviva teams spent time with young children
at an orphanage. A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall: the activities included food
items,decorations, gifts and games. The employees of the designate function contributed
all necessary items required for the activity at their stall. What started off as a small idea
snow balled into a delightful , participative activity that had the entire office involved.
The money collected by selling the products , along with an equal contribution from the
company was donated to Asaran hope Foundation.

Employees were encouraged to actively participate in various activities for social cause
at several locations across the country: each of these activities is assigned a team leader.
Majority of the CSR activity at Aviva Life Insurance, head office at Gurgoan is run on
Voluntary basis by the employees, who normally visit slums on Sundays. They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene. The
level of involvement was from all levels . every one brought some thing or the other for
the children, whether it was clothes , first aid boxes , sweets, food, books, pencils, pens,
erasers. The children were informed about the importance of first aid and advantages of
living in a hygienic environment. The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living.

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 At Asansol Aviva India has tied up with Cheshire Home of Burnpur, amissionary
organization working for spastic and mentally challenged girls. The Home has been
facing financial difficulties and is unable to sustain itself . The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time, with out any outside help.The first step
was initiated by providing them with a sewing machine from the contribution of
employees. The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine.
At Vadodara ,Aviva Life Insurance associated with two NGOs- senior citizen
Association and Baroda citizen council. Senior Citizen association ,which works with
nearly one-third of the people living in the slums of vadodara and Baroda Citizen
Council has 300 members registered under charity commissioners office . Aviva team
has started spending time with the elderly on a weekly basis. The team is also planning
to associate with All India Development(AID), a non-profit organization established in
1996having the specific aim of promoting safe environmental practices and sustainable
development. AID promotes economical, efficient environmentally friendly practices and
sustainable development . AID promotes economical , efficient environmentally friendly
practices, through research ,seminars, publications and awareness drives.

At Banglore, aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home, Banglore which is
patronized by the Red Cross Society. The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children. Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch.
At Patna , The Aviva Life Insurance CSR team decided to start a night school for
working children, so that they can work during the day and study at night. Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week. This way, each employee would be spending just a couple of hours in
a month , with members giving more time as per their inclination , willingness and
ability.

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At Kolkata, Aviva Life Insurance is working for the benefit of te elderly ladies, homeless
children and in association with an NGO called as CINI-“Child In Need Institute”. At
several other places, the Aviva Life Insurance CSR team has donated books and clothes
to families and children. They are also planning on giving them groceries, medicines and
stationery. The team would also be coaching and tutoring them on their basic education.

Analysis:

CSR is about how companies manage the business process to produce an over all positive
impact on society. CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment. It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards. CSR speaking purely in technical terms, is still in
its infancy in India, but the concept as such and its core thinking is not new to the
country. Companies like Tata and Birla for the last many decades , have been promoting
similar causes at their own initiative . They have made approaches of CSR an integral
part of their business model. Long before the concept of CSR gained prominence in
corporate circles, these companies have been intensely involved in social development
activities and movement in places where they have their presence. CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level. HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values, fostering relationship that is sensitive to the community
culture,engaging every employee in active community and assessing the environment in
order to identify threats to the community.

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In HR perspective CSR acts a key factor for the company to retain employees, attract
quality work force which directly influences organizational development and also
motivation levels of the employees. All these factors indirectly increases the efficiency of
the organization by producing Quality work.

RECOMMENDATIONS:

• The HR department should take the responsibility to develop a formal policy on

sustainable practices involving employees.

• The orientation programme of newly recruited candidates should be designed in a

manner that corporate philosophy about CSR gets highlighted. The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization.

• The Training facilities may also be • made available to instill the CSR culture among
employees. This becomes necessary to make employees learn and practice CSR
activities.

• Responsible Human Resource • Management practices on equal opportunities,

diversity management, whistle blowing, redundancy, human rights, harrasment shall
give credibility to the CSR initiatives of the organization. It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR

• The separation of employees during • mergers, acquisitions, downsizing etc. should

be strategically aligned with the business strategy as well as Corporate Social
responsibility. Retraining, retention, redeployment of people can be worked out with

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 aggressive communication, information campaigns and outplacement services in
place to assist the transition of people from the organization.

• The Human Resource department should • effectively measure and evaluate CSR
activities. The value added by CSR in the form of direct results, such as, economic
savings and indirect results like increase in employee satisfaction, less employee
turnover, measured by staff attitude surveys, shall indicate contribution to improved
business performance. There is also a need to conduct periodic review of the CSR
activities.

• CSR activities are generally designed by top management . The HR role is only the
execution of those plans .It is known that HR role in every organization is vital,so
HR role cannot be isolated from any other in organization. So HR should take the job
of CSR activities. Through HR CSR can be given credibility and aligned with how
business run.

• CSR can be integrated in to processes such as employer brand, recruitment, appraisal,

retention, motivation, rewards, internal communication ,diversity ,coaching and
training.

• CSR is a strategic opportunity which is market –led and is restrained by

bureaucracy. It needs dynamism ,creativity, imagination and even oppurtunitism.

• Indian companies has to be sensitized to CSR in the right perpective inorder to

facilitate and create an enabling environment for equitable partnership between
civil society and business.

• HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job ,class ,caste or
gender.

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 • A part from individual efforts , companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care , blood
banks,labs,slum development programs,education endeavors, environment
friendly projects etc.

CONCLUSION:

CSR activities undoubtedly enhance the reputation , respect and the brand image of the
company in the place they operate. This would inevitably improve their profitability ,
attract, and retain talent , increase savings, institute diversity and establish their strong
foothold in their sphere of operation. In a larger sense , they ensure a better world for the
generations to come. Moreover , an individual can significantly grow and learn by
participating and connecting with the society. Individuals gain self- confidence and self-
esteem by helping others. The insights , knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards . It is the HR Professionals who can
instill, nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality. Other wise, like in most
companies, CSR, unfortunately would only remain in the annals of discussions and
presentations.

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BIBILOGRAPHY

HR’s Role in Promoting Corporate Social Responsibility

BY,Shafiq Lokhandwala

Buiding CSR By S Riasudeen

CSR An Elixir for Business or a compulsive concept By Nidhi Sharma

CORPORATE SOCIAL RESPONSIBILITY: THE KEY ROLE OF HUMAN

RESOURCE MANAGEMENT

Suparn Sharma (PhD),Joity Sharma (PhD), Arti Devi

http://www.chrmglobal.com/Topics/46/1/Corporate-Social-Responsibility.html

http://www.ibef.org/india/CSR.aspx

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