TABLE TABLE OF O F CONTENT Sr. No. 1. 2. . %. ). ,. -. /. 0.
TOPIC Introduction Objectives Sco!e o" t#e Stud$ &esearc# 'et#odo(og$ *ata Ana($sis + Inter!retation Findings Liitations o" t#e Stud$ Conc(usion &e"erence
Page No.
INT&O*CTION
The role of corporates by and large has been understood in terms of a commercial business thinking that focuses purely on economic parameters of success. Their market position has traditionally been a function of financial performance and profitability. However, over the past few years, as a consequence of rising globalisation and pressing ecological and social issues, the perception of the role of corporates in the broader social context within which it operate operates, s, has been been altered altered.. Corpor Corporate ate social social respon responsib sibility ility is a form form of corpor corporate ate selfselfregulation integrated into a business model. ssentially, C!" is the deliberate inclusion of public interest into corporate decision-making, and the honouring of a triple bottom line# people, planet, profit. $ more common approach of C!" is philanthropy. philanthropy. The concept of C!" has been evolving for decades. C!" is a multidimensional concept. %hile some take C!" as an obligation, others consider it as a strategic tool. C!" focuses on the social, environmental and financial success of the company. The The increasing relevance of C!" in &ndia has increased incr eased from the fact that a business cannot succeed by ignoring the human and social needs of society. This paper talks about the definitions of C!", regulations and laws for public sector and private sector companies, case studies of selected companies having a C!" initiatives and finally the report attempts to map out the issues faced by the private sector over the proposed C!" regulations.
The &ndian economy is the second fastest growing economy in the world. 'a(ority of the population in &ndia resides in rural areas. Thus development of rural &ndia is a key step towards economic development for a country like ours. Credit is one of the very important inputs of economic development. )roper access to finance by the rural people is a key requisite requisite to employment, employment, economic economic growth and poverty reduction which is primary tools of economic development.*+ of the &ndian population lives in rural areas. This segment, commo commonly nly referred referred to as the botto bottom m of the pyram pyramid, id, presents presents a huge huge opport opportuni unity ty for companies. nilevers &ndian subsidiary, Hindustan /ever /td 0H//1, considered one of the best-managed companies in &ndia, understands the importance of rural marketing. The trigger point came when a local firm 2irma, through its new product formulation, pricing and distribution challenged H//s detergent business. 2irmas attack from below made H// reali3e its vulnerability as well as identify a new opportunity. !ince then, H// has launched various.
*EFININ CO&PO&ATE SOCIAL &ESPONSIBILIT3
C!" relates to responsibilities corporations have towards society within which they are based and operate, not denying the fact that the purview of C!" goes much beyond this. C!" is comprehended differently by different people. !ome perceive it to be a commitment of a company to manage its various roles in society, as producer, employer, customer and citi3en in a responsible manner while for others it is synonymous to Corporate "esponsibility 0C"1 or Corporate Citi3enship.
4efinition 5 6# )hilip 7otler and 2ancy /ee in 8++9 defined C!" as :a commitment to improve community well being through discretionary business practices and contributions of corporate resources;.
4efinition 5 8# $ccording to %orld
4efinition 5 =# $rchie Carroll in 6>>6 describes C!" as a multi layered concept that can be differentiated into four interrelated aspects ? economic, legal, ethical and philanthropic responsibilities.
'anageent + Tec#no(og$ &nitiatives to reach out to the rural consumers. &t has changed its product formulations and deliveries. &t has begun a number of initiatives in terms of widening distribution reach through traditional as well as unconventional channels. H// has also empowered rural women by assisting them in obtaining financial assistance through its pro(ect !hakti. H/ has initiated a pilot pro(ect with &ndia@s largest bank, !<& in 'aharashtra and 7arnataka.
OB4ECTI5ES
ST*3 ON T6E CO&PO&ATE SOCIAL &ESPONSIBILIT3 OF 6L
OB4ECTI5ES OF T6E ST*3 The study is made with the following ob(ectives in mind
To find out how C!" activities can help in earning profits To understand the relationship between C!" and )rofit. To study the functions of H/ in promoting C!". To understand the concept of C!". To study the C!" practices adopted by the business houses specially in rural areas. To understand the implementation of C!" activities carried out by the organisations in rural areas. To knows the challenges of C!" initiaives in &ndia. To understand the motivation causes for practising C!" activities
SCOPE OF T6E ST*3
T6E SCOPE OF T6E ST*3 IS LI'ITE* TO SACON*A&3 *ATA ONL3
LI'ITATION OF T6E ST*3 The study is confined to profit mobili3ation only and not other impacts of C!" initiatives.
Cor!orate Socia( &es!onsibi(it$ 7CS&8 Princi!(es9 H/@s C!" )olicy is supported by the following principles# 6. %e are committed to conducting our operations with integrity and respect, in the interest of our stakeholders, and in line with our Code of
&n accordance with !ection 6=9091 of the Companies $ct, 8+6= 0the $ct1, H/ is committed to spend at least 8 of its average net profits made during the three immediately preceding financial years in some of the identified activities that are listed in !chedule D&& 0as amended1 to the $ct. This will include the spends through activities undertaken by Hindustan nilever Aoundation 0HA1, our not for profit subsidiary Company, aimed at building capacities to conserve water and to further community development initiatives.
overnance ec#anis %e follow structured governance procedures to monitor C!" activities. ur C!" )olicy is governed by the
&ESEA&C6 'ET6O*OLO3 )rimary data is collected through respondents of H/ Company "epresentatives. !econdary data is being collected through various sources such as books, maga3ines, (ournals, newspapers and websites.
E.6 Have you heard about Corporate !ocial "esponsibilityF T$
"!)2!!
A"E2CG
G!
=9
*+
2
69
=+
TT$/
FREQUENCY
YES NO TOTAL
=9 out of the 9+ respondents representing *+ have heard about C!"
E.8. 4o you use A'CB productsF T$
"!)2!!
A"E2CG
G!
9+
6++
2
+
+
TT$/
FREQUENCY
YES NO TOTAL
9+ out of the 9+ representing 6++ use various types of 4abur and Hl products such as Aair lovely, 4abur honey, 4abur Ha3mola.
E.=. %hich A'CB Companys product do you buy alwaysF T$
"!)2!!
A"E2CG
H/
I+
J+
4$<"
6+
8+
TT$/
FREQUENCY
HUL DABUR TOTAL
I+0J+1 of the respondents always prefer H/ product compared to other products from competitors. This means out of the 9+ respondents >K are loyal to H/ and H/ 'arket is large in comparison of other A'CB company.
E.I 4o you 7now A'CB companies are &nvolved in Corporate !ocial "esponsibilityF T$
"!)2!!
A"E2CG
G!
=9
*+
2
69
=+
TT$/
FREQUENCY
YES NO TOTAL
The table reveals =9 0*+1 are aware about A'CB company are following C!" practices.
E.9 %hat impact of the C!" programme had on the CommunityF T$
"!)2!!
A"E2CG
)!&T&D
I+
J+
2B$T&D
6+
8+
TT$/
FREQUENCY
POSITIVE NEGATIVE TOTAL
I+ 0J+1 of the respondents says that C!" having positive impact on Community development.
E.K 4o you think that sale has increased due to Corporate !ocial "esponsibility of A'CB companiesF T$
"!)2!!
A"E2CG
G!
=9
*+
2
69
=+
TT$/
FREQUENCY
YES NO TOTAL
=90*+1 said that sales are increasing due to C!" of A'CB companies
E.*$re there other benefits of A'CB stands to gain aside profitability from the execution of C!" pro(ectsF T$
"!)2!!
A"E2CG
/arge Customer
89
9+
Customer Confidence
6+
8+
Bood Corporate &mage
6+
8+
ther
9
6+
TT$/
FREQUENCY Large Customer Base Customer Confdene Good Cor!orate Image Ot"er Benefts
9+ of the respondent believes A'CB also benefit /arge Customer
E.J. Corporate !ocial "esponsibility has a significant impact on the profitability of A'CB sector. T$
"!)242T
!T"2B/G
A"E2CG
)"C2T$B
9
6++
$B"
+
+
24C&44
+
+
4&!$B"
+
+
!T"2B/G
+
+
$B"
4&!$B"
TT$/
FREQUENCY STRONGLY AGREE AGREE UNDECIDED DISAGREE STRONGLY DISAGREE TOTAL
The responses above shows that 6++ of the respondent strongly agreed, + of the respondent agreed, + of the respondent was undecided, + of the respondents disagreed while + of the respondent strongly disagreed that Corporate !ocial "esponsibility has a significant impact on the profitability.
FIN*INS
=9 out of the 9+ respondents representing *+ have heard about C!"
9+ out of the 9+ representing 6++ use various types of 4abur and hul products such as Aair lovely, 4abur honey, 4abur Ha3mola.
=.I+ of the respondents always prefer H/ product compared to other products from competitors. This means out of the 9+ respondents >K are loyal to H/ and H/ 'arket is large in comparison of other A'CB company.
=9 0*+1 are aware about A'CB company are following C!" practices.
I+ of the respondents says that C!" having positive impact on Community development.
=90*+1 said that sales are increasing due to C!" of A'CB companies .
9+ of the respondent believes A'CB also benefit /arge Customer
The responses above shows that 6++ of the respondent strongly agreed, + of the respondent agreed, + of the respondent was undecided, + of the respondents disagreed while + of the respondent strongly disagreed that Corporate !ocial "esponsibility has a significant impact on the profitability of H/and 4abur.
The Correlation confirms that there is a positive relationship between Corporate !ocial "esponsibility and profitability.
&E5IE: OF LITE&AT&E The term Lcorporate social responsibilityL is often used interchangeably with corporate responsibility,
corporate
citi3enship,
social
enterprise,
sustainability,
sustainable
development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all point in the same direction# throughout the industriali3ed world and in many developing countries there has been a sharp escalation in the social roles corporations are expected to play. Companies are facing new demands to engage in public-private partnerships and are under growing pressure to be accountable not only to shareholders, but also to stakeholders such as employees, consumers, suppliers, local communities, policymakers, and society-at-large. $n conomic summit was conducted in the month of 2ovember 8+6+ in foreign delegates representing ! participated and opined that inclusive growth can be achieved by &ndia within a span of 9 years.
CONCLSION The concept of C!" has become more and more common in business practices and customers today almost expect companies to be socially responsible. ven though C!" is very important for companies, it has historically not been a very lucrative approach for them to involve in these activities. The business of the 86-st century will have no choice but to implement C!". /ike any successful management strategy, a C!" process needs both high level management vision and support, and buy-in at all levels of the company. C!" does not give immediate results. The same C!" initiative will also not work for all types
of organi3ations.
4esigning
C!"
initiative requires careful
planning and
implementation mechanism. Corporate organi3ations should integrate the innovative C!" strategies into different marketing communication strategies to build and sustain a competitive advantage. Corporate social responsibility has a significant impact on the profitability of '2Cs, and it is a positive impact, which includes good business relationship, good will among other benefits. &n todays competitive market, C!" offer an opportunity for companies to explore other areas of improving profitability.
&EFE&ENCES
6.
8.
)rabakaran !. :
=.
Main, D.k.,
I.
Bhate, )rabhu. :Consumer )rotection in &ndia 'icrofinance# /essons from $ndhra )radesh and the 'icrofinance
9.
'athur, .C. 0 8++J1 :"ural 'arketing# Text and Cases@@ by xcel
K.
2C$" "ural &nfrastructure "eport. 08++*1. 2ew 4elhi # 2C$"
*.
)radeep 7ashyap, !iddhartha "aut 08++91 :The "ural 'arketing
