Procedure Tobe Followed While Reporting on Integrity

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CORPORATE SOCIAL

RESPONSIBILITY

SUBMITTED BY

AJIT KUMAR JENA

DEBASWINEE PATTANAIK

MADHUSMITA KANUNGODEBASHRITA RATH

RANJAN PATRO


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Introduction of corporate social responsibilityCorporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social

performance, orsustainable responsible business/ Responsible Business)[1]

is a form ofcorporateself-regulation integrated into a business model. The concept of social responsibility linked to corporate is a

phenomenon from the beginning of industrialization for around 200 years.CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the

spirit of the law, ethical standards, and international norms. Corporate Social Responsibility is the conceptwhereby companies act to balance their own economic growth with the sustainable social andenvironmental development of the country. A company performing highly in CSR is one that goes

beyond compliance with the legal framework to actively pursue positive impacts on local communitiesand the environment.CSR is a process with the aim to embrace responsibility for the company's actionsand encourage a positive impact through its activities on the environment, consumers, employees,

communities, stakeholders and all other members of the public sphere who may also be considered asstakeholders.

The term "corporate social responsibility" came into common use in the late 1960s and early 1970s aftermany multinational corporations formed the term stakeholder, meaning those on whom an organization'sactivities have an impact.As from 1 January 2012, every profitable company is required annually to set up

a CSR Fund equivalent to 2% of its profits chargeable to income tax, derived during the preceding year.However, for accounting periods prior to this date the CSR Fund is calculated on the adjusted book

profit1 after tax.

Corporate social responsibility is all about involving all societal actors. The concept of CSR is describedas the continuing commitment by businesses to behave ethically and contribute to economic developmentwhile improving the quality of life of the workforce and their families as wellas of the local community

and society at large.it is about what people choose to take into account because they feel strongly aboutcertain issues, or because they feel their action might have an impact that will affect them too. Together

with the economic growth seen in most sectors, management quality is required to meet the needs ofcorporate stakeholders including consumers,employees,shareholders, and community. The implicationhave received more attention from firm managers in order to get best returns on business performance.

CSR has also different meaning for different organisations, for some it means that they integrated socialand environmental concerns in their business operations and in their interaction with their stakeholders on

a voluntary basis.

ROLE OF HR IN CORPORATE SOCIAL RESPONSIBILITY

Most countries have policies and guidelines to address social issues of the country. There are primary andsecondary concerns and issues of the society, which become the primary roles and tasks of the various

constituents.Health ,hygiene ,education are the key and primary issues of society and the country. Theseconcerns ought to be the primary concerns of the government. However these primary concerns are now

partly held by the NGOs. Corporates are getting more and more involved in the sharing of the primaryresponsibility of the society.
http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-1http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-1http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-1http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-1


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GOVERNMENT CITIZENS HYGIENE, HEALTH,

EDUCATION

NGOS sectoral Employability, orphanages,

income generation, women,water, hygiene, health

CORPORATES Wider social concerns bothprimary and secondary

Employment education-supportto NGOS, craft, performingarts,income generation, health

INDIVIDUAL PERSONALCHOICES AND

PREFERENCES

Culture, societal-both primaryand secondary

Donations to socio- culturalissues, children education,

hospitals- water, poverty, charity,philanthropy

CORPORATES

To focus on heath and hygiene means that besides the internal physical work environment, theenvironment around the corporate premises needs to be clean and free of debris and garbage. The roadsaround the organizations need to be free of potholes and pavements are needed for pedestrians and

people. Each organizations can create a geographical limit and educate and align with the municipalitiesto focus on cleanliness and clutter free roads.

HUMAN RESOURCE

As of now HR is focused on the language of employability of students as soon as they enter the workplaces, rather than the responsive students who can adapt and respond to any challenges and opportunitiesoffered by the organization. All that HR needs to do is build a bridge in the induction orientation program

at the time of entry where the young recruit absorbs the work culture and task requirements of theorganization.

ROLE OF HR IN CORPORATE SOCIAL RESPONSIBILITY

External environment HR to align the corporate with the regulatory policies of thegovernment.

CSR in partnering with the social sector to contribute to thedevelopmental issues of the country, the state, the city, andthe village.

There are the health, hygiene and education issues in andaround the organization.

Academia-industry interface- hr and academia can worktogether to design education with values for life.

Contribute to encourage original and fundamental research.


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Internal environment the employees of the organization and their life space. Induction process so that generation entering the work

places grow into wholesome and intelligent contributingnumber.

Individual and organization renewal. HR can address issues of the various thresholds of worklife which help the employees from entry into the

organization to transition from organization into their

social roles and communities with dignity and grace.

Objective of Corporate Social Responsibility

All profitable companies are required to use their CSR Fund that contribute to the social andenvironmental development of the country/Society.

Corporate Social Responsibility Objectives are:

Actively promote our CSR strategy to ensure it is embedded within the business Enhance the intellectual capital of the business through training and development of employees Improve employee satisfaction Continue to encourage employees to generate ideas that that will add value to our business and

that of our clients

Maintain our quality accreditations Work to minimise our impact on the environment Actively contribute to a variety of national and local charities To ensure the health, safety and well being of all our employees and visitors to our offices

Needs and importance of corporate social responsibility

The Importance of Social Responsibility Solving Social Problems: -For example, is the protestagainst aerosol sprays. Resource given by the organizations to solve the social problem. -

Organization should be, for example, give due consideration to the design of work organizationand job satisfaction, make very reasonable effort to give security of employment, and provide

employment opportunities for minority groups.

Improves Public Image of the Fi rm: -Social initiatives taken by organizations tend to promotegoodwill, public favour, corporate trust, profit.-for example: giving recognition to the needs ofdeveloping countries; limiting the extent of political involvement or campaigning; donations to,

or sponsorship of, the arts, educational or educational or research institutions, sporting

organizations or charities. Best Interest of Business to Promote and Improve the Communities: Assist to Government: - to solve social, economical and political problems of the country.

Pressure of Consumer Movement: - to protect consumers against business malpractices likeadulteration, black marketing, unfair pricing, shortage in weight, measures, etc. Pressure of TradeUnion: - relations between management and labour.

Attracts and retains staf f: Customers are attracted to social ly responsible companies:CorporateSocial Responsibility attracts investors: Corporate Social Responsibility helps to cut your

business costs .


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For corporate sustainabili ty goals. Interdependency between a corporation and community. ACSR program can be seen as an aid to alleviate poverty

CLASSIFICATION OF SOCIAL RESPONSIBILITY

1. Responsibil ity Towards I tself It is the responsibility of each corporate entity run business andto work towards growth, expansion and stability and thus earn profits. If the corporation is toachieve social and economic ends, organizational efficiency should be boosted up.

2. Responsibil ity towards EmployeesEmployees are the most important part of an organization.Following are some of the responsibilities which a business entity has towards its employees-

Timely payment Hygienic environment Good and impartial behavior Health care through yoga Recreational activities Encouraging them to take part in managerial decisions

3.Responsibil ity towards shareholders

It is the responsibility of corporate entity to safeguard the shareholders investment and make efforts toprovide a reasonable return on their investment.

4. Responsibil ity towards stateOut of the profit available, the state is entitled to a certain share as per the income tax laws. Utmost

transparency has to be exerted regarding the profit &loss account and the balance sheet.

5. Responsibil ity towards consumersThe Company should maintain high quality standards at reasonable prices. It should not resort tomalpractices such as hoarding and blackmarketing.

6. Responsibil ity towards envir onmentIt is the responsibility of the organization to contribute to the protection of environment. It should produce

eco -friendly products. Moreover, industrial waste management must be taken care of.

So why CSR?

1. SATISFIED EMPLOYEES.

Employees want to feel proud of the organization they work for. An employee with a positive attitude

towards the company, is less likely to look for a job elsewhere. It is also likely that you will receive more

job applications because people want to work for you.

More choice means a better workforce. Because of the high positive impact of CSR on employee

wellbeing and motivation, the role of HR in managing CSR projects is significant.


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2. SATISFIED CUSTOMERS

Research shows that a strong record of CSR improves customers attitude towards the company. If a

customer likes the company, he or she will buy more products or services and will be less willing to

change to another brand.

Relevant research: IBM study Attaining Sustainable Growth through Corporate Social Responsibility: The majority of

business executives believes that CSR activities are giving their firms competitive advantage,

primarily due to favorable responses from consumers.

Better Business Journey, UK Small Business Consortium: 88% of consumers said they were morelikely to buy from a company that supports and engages in activities to improve society.

3. COSTS REDUCTIONS

Yes, you read this correctly. A CSR program doesnt have to cost money. On the contrary. If conducted

properly a company can reduce costs through CSR.

Companies reduce costs by: More efficient staff hire and retention Implementing energy savings programs Managing potential risks and liabilities more effectively Less investment in traditional advertising4. MORE BUSINESS OPPORTUNITIES

A CSR program requires an open, outside oriented approach. The business must be in a constant dialogue

with customers, suppliers and other parties that affect the organization. Because of continuous interaction

with other parties, your business will be the first to know about new business opportunities.

5. LONG TERM FUTURE FOR YOUR BUSINESS

CSR is not something for the short term. Its all about achieving long term results and business continuity.

Large businesses refer to: shaping a more sustainable society (Vodafone 2010 report):

REASONS WHY BUSINESS SHOULD BE SOCIALLY RESPONSIBLE

The era of the social enterprises is upon us. More so than ever before, the most successful, respected, anddesirable businesses exist to do much more than make money; they exist to use the power of business to

solve social and environmental problems.

Study after study has shown that socially responsible businesses (aka social enterprises) not only provide

sustainable business models, but also have improved marketing, employee recruitment, employeesatisfaction, legal treatment, customer loyalty, brand perception, and richer partnerships.


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The top five reasons to have (and/or work for) a socially responsible business are:

1. Employees want demand their company to be socially responsible

Five years ago, it was considered good if a company simply did not harm the environment. However,

times have changed, and now employees demand that their company do more than simply not be bad.They need to do good, too. According to Forbes:

32% of employees would seriously consider leaving their job if their company gave no / little moneyto charity;

65% would seriously consider leaving their job if their company harmed the environment; 83% would seriously consider leaving their job if their employer used child labor in sweatshop

factories.

Furthermore, a landmark international Corporate Social Responsibility (CSR) study of human resourcepractitioners conducted by the Society for Human Resource Management (SHRM), reveals that CSRpractices are seen as important to employee morale (50%), loyalty (41%), retention (29%), recruitment of

top employees (25%) and productivity (12%).

2. Consumers expect better business practices (and will pay for it)

Just under a year ago, a study was published showing that the average consumer will drive en extra 11minutes to buy a product that supported a cause. Since then, more data has been released supporting the

fact that consumers will adjust buying behavior from average companies to socially responsiblecompanies. According to the same article by Forbes:

More than 88% of consumers think companies should try to achieve their business goals whileimproving society and the environment;

83% of consumers think companies should support charities and nonprofits with financial donations.The important consideration is that consumers know that the corporation is making donations out of itsown pocketbook, not asking for donations by its consumers. In fact, 35% of consumers dislike being

asked to donate money at the checkout counter.

3. It creates competitive immunity (and makes your business more sustainable in the long-term)

According to the Harvard Business Review, Strategy is about choosing a unique position doingthings differently from competitors These principles apply to a companys relationship to society as

readily as to its relationship to its customers and rivals. Furthermore CSR can be mu ch more than a

cost, a constraint, or a charitable deedit can be a source of opportunity, innovation, and competitive

advantage.

In addition to helping companies differentiate themselves in an already crowded marketplace, social

responsibility also inspires innovation within corporations thereby developing longer-term immunity andbusiness sustainability.

4. Capitalism is evolving, and society is, too
http://www.forbes.com/sites/csr/2010/12/15/new-study-consumers-demand-companies-implement-csr-programs/http://www.forbes.com/sites/csr/2010/12/15/new-study-consumers-demand-companies-implement-csr-programs/http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1http://www.forbes.com/sites/csr/2010/12/15/new-study-consumers-demand-companies-implement-csr-programs/http://www.forbes.com/sites/csr/2010/12/15/new-study-consumers-demand-companies-implement-csr-programs/


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Even investors are pulling away from companies that dont do go. This was recently evidenced wheninvestment firms and stockbrokers pulled money away from BP due to its operations in Alaska. In

addition to market reactions, society as a whole is also evolving. In the article titled The For-BenefitEnterprise, HareedSabetti notes that new trends are supporting these businesses, including Publ ic policy,financial markets, accounting standards, and professional services. As a result, Hareed predicts that

We will see the emergence of a fourth sector of the economy, interacting with but separate from

governments, nonprofits, and for-profit businesses. The rise of that sector is likely to reshape thefuture of capitalism.

As the market evolves to support these for-benefit enterprises, early-movers and leaders have the most togain from this shifting system. In other words, the sooner companies shift to being socially responsible,

the more successful they will be in the future.

5. It is a moral imperative

Nobody is better positions to create long-term, sustainable change than businesses. According to MichaelE. Porterand Mark R. Kramer at the Harvard Business Review, When a well-run business applies itsvast resources, expertise, and management talent to problems that it understands and in which it has astake, it can have a greater impact on social good than any other institution or philanthropicorganization.

No matter the lens that you view a social enterprise through, they are becoming increasingly popular andbeneficial. Whether it is a new or existing business, the future success of it will be increasingly tied to itsability to do good through its day-to-day operations.

Since businesses have the greatest potential to improve the health of our planet and citizens, as they

become prosperous, they have a moral obligation to improve the conditions of a system that has helpedthem succeed.
http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PNID=458http://hbr.org/2011/11/the-for-benefit-enterprise/ar/1http://hbr.org/2011/11/the-for-benefit-enterprise/ar/1http://hbr.org/2011/11/the-for-benefit-enterprise/ar/1http://hbr.org/search/Michael+E.+Porter/0/authorhttp://hbr.org/search/Michael+E.+Porter/0/authorhttp://hbr.org/search/Mark+R.+Kramer/0/authorhttp://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1http://hbr.org/search/Mark+R.+Kramer/0/authorhttp://hbr.org/search/Michael+E.+Porter/0/authorhttp://hbr.org/search/Michael+E.+Porter/0/authorhttp://hbr.org/2011/11/the-for-benefit-enterprise/ar/1http://hbr.org/2011/11/the-for-benefit-enterprise/ar/1http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PNID=458


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CONCLUSION

For bringing back and maintaining the general balance in the economic and social arena it is evident to

think deeply and act wisely about CSR. Every business house owe some responsibility towards thesociety, nation and world in general which provide it with all human , material and natural resources.Considering the long run growth and sustainable development following the norms of CSR , devising new

policies and effective implementation is inevitable to bring and sustain a balance between corporate world

and society, present generation and upcoming generation, man and nature .As far as the Tata group is concerned , it has gone a long way in fulfilling its duty and responsibilitytowards the society and the nation. It has reached the masses to elevate their lives, to nurture their dreamsand to hone their skills justifying the statement of the founder We do not claim to be more unselfish,more generous and more philanthropic than other people. But we think we started on sound andstraightforward businessprinciples, considering the interests of the shareholder, our own, and the health

and welfare of the employees, the sure foundation of our prosperity.


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FINDINGS

it has to care for varied needs of the society

societyand business seeking mutual benefit for the both.

becomesinstrumental in attracting customers, efficient personnel and investors.


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Case: Lifebuoy SwasthyaChetna

Hindustan Lever Limited (HLL) is a premier fast-moving consumer goods (FMCG) company operating in

India. Its various products have been categorised into three broad groups- home and personal care, food

and beverages , and industrial and agricultural . Lifebuoy is the brand name of toilet soap manufactured

and marketed by HLL. This soap is positioned as a means for improving health and hygiene.

In order to increase awareness of health and hygiene in rural India, HLL launched a five-year

Lifebuoy SwasthyaChetna(LSC) programme in 2002 in eight states across India. The objective of this

programme was to educate around 200 million people in rural areas about the importance of health and

hygiene practices. The programme aimed to debunk the misconception that visibly clean is safe clean.

It spreads awareness about germs and their adverse impact on health, and how proper health and

hygiene practices, such as bathing and washing hands with soap could prevent diseases like diarrhea,

the second largest cause of death among children in India.

The LSC programme was implemented in various phases, HLL executives interacted with school

children and other influencers like medical practitioners and panchayat members. People were

educated about health and hygiene practices through lectures, demonstrations, use of visual aids, and

quizzes. The programme used media vehicles like cinema vans, wall paintings , weekly markets, fairs and

festivals. The programme was later extended to parents and other adults. The messages on health and

hygiene were reinforced through regular contact programmes. Finally. Children and parents were

recruited as volunteers to start health clubs that would help sustain the health and hygiene awareness.

At each stage, LSC this as their own programme and felt a sense of ownership.

For making LSC programme successful, HLL had committed Rs. 240 million to be spent over a

period of five years. By the end of 2006, HLL had covered around 27,000 villages across the country.

According to the company, LSC programme was not a philanthropic activity, but a marketing programmewith a social benefit. HLL sought to grow the Lifebuoy brand in India by attracting those consumers who

never used soap. In the company, the company sought to bring about a behavioural change by

convincing people to use soaps more frequently, thus creating more users for its brands.

On April 7, 2006, on the occasion of World Health Day, the Department of Posts of Govt. Of India

released a special Lifebuoy SwasthyaChetna Postal Cover. The special cover was released in recognition

of the Work done by HLL to increase awareness of health and hygiene in rural India.


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Question with Answers

1) Comment on the social responsiveness of HLL that is reflected in LSC.The social responsiveness of HLL is clearly reflected in LSC Programme. Because, it has given

emphasis on improving health & hygiene. It has spread awareness about germs & their adverse

impact on health & hygiene practices, such as bathing and washing hands with soap . It couldprevent diseases like diarrhea ,the second largest cause of death among children in India. For

making more success to the programme, to the programme, the HLL executives interacted from

grass route level e.g. School children. The HLL executives not only involved school children but

also medical &panchayat members.

HLL not only made this policy but also implemented it very well. The bright example

of this is people were educated about health & hygiene practices.

2) In what way, will this programme benefit to the society?People can become more aware about their health programme . If the people will aware thenthe diarrhea and different type of skin diseases etc can be eradicated. Dangerous epidemic can

be illuminated. As we know prevention is better than cures. If the people will first take all

preventative measures than they can overcome from this situation. So , children , parents every

member of the society can become more aware.

3) How can the HLL get the good social & commercial benefit through LSC?HLL can get the social as well as commercial benefit through the LSC Programme.

The organization can get social benefit in following way:

Through this programme, the people of the society can be aware. Then the different diseases

can be protected. The health condition of the society can be developed.

The organization also gets the commercial benefit in this way:

When people will influence through the LSC Programme, then they will more concuss about

their health. As a result, consumers will become more loyal to the Lifebuoy company. It will

affect the corporate image of the company positively. The consumers will give more emphasis

on the company rather than the other company.

4) Give the appropriate suggestions through which the LSC Programme can be more successful?The organization should try to motivate the people more about the necessecity of good

health , because health is wealth. Then the huge number of people can become aware , if theywill become aware then they can encourage more people ,then the number can be gradually

increase.

Many places, there is a dangerous problem. That is scarcity of water .So

people may be hesitate to use soap always for washing & bath. If the organization will motivate

to the people to save the water (to prevent the people for unnecessary use of water) & for


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preservation of rain water, then the water resource can be saved to a great extent. In this way ,

the scarcity of water can be reduced.

In this way the LSC programme can become more success.

Procedure Tobe Followed While Reporting on Integrity

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