Certificate This is to certify that this is a bonafide work carried out by Miss. Seema Agarwal of B.Com IIIP (Finance) bearing Roll No. 088361 in the SEMESTER VI during the academic year 2009-10. This is the own work of the student and has been done under my supervision and guidance.
Date: Place:
Miss. (Project Supervisor) Department of Commerce. St. Francis College for Women. Begumpet,Hyderabad-16.
Acknowledgement I would like to take this opportunity to thank all those who have helped me through the course of this study. First of all, I express my gratitude to the Commerce department of St. Francis Degree College for women for giving me this opportunity to work on such an interesting project. It has been a rewarding experience for me. I am very grateful to Mrs. Vijaylaxmi Ma‘am, my project supervisor for her guidance, suggestions and assistance, right from the conception of the idea till the completion of the project. Truly the opportunity to work on this project has enriched my knowledge and confidence beyond limit. Date:
Seema Agarwal Bcomp. IIIP(F) St. Francis College for Women. Begumpet, Hyderabad-16.
INDEX TOPIC: CHAPTER-1: INTRODUCTION 1.1 Introduction 1.2 Objectives 1.3 Scope 1.4 Methodology 1.5 Limitations
CHAPTER-2: REVIEW OF LITRETURE 2.1 Introduction 2.2 features of CSR 2.3 why corporate social responsibility occurs 2.4 what some companies consider CSR as 2.5 why should business be socially responsible 2.6 corporate social responsibility towards different interest groups 2.7 CSR and its advantages 2.8 examples of companies and their CSR activities 2.9 how can a organization act socially responsible 2.10 approaches for measuring social responsibility 2.11 social audit 2.12 Arguments for and against social responsibility: 2.12(1) Arguments against social responsibility 2.12(2) Arguments for social responsibility 2.13 Making social responsibility operational.
CHAPTER-3:COMPANY PROFILE 3.1 Reliance Industries Limited (RIL) 3.2 Infosys
PAGE NO.
CHAPTER-4: ANALYSIS AND INTERPRETATION OF DATA CHAPTER-5: CONCLUSIONS AND SUGGESTIONS BIBLIOGRAPHY
CHAPTER-1 INTRODUCTION
1.1 INTRODUCTION: CSR is defined as‖ operating a business that meets or exceeds the ethical, legal, commercial and public expectation that society has of business‖. CSR is also called as corporate responsibility, corporate responsibility opportunity etc., it is a concept whereby a company is responsible for providing more benefits than just profits for shareholders. It has a role to play in treating its employees well, preserving the environment, developing sound corporate governance, supporting philanthropy, fostering human rights, respecting cultural differences and helping to promote fair trade, among others. All are meant to have a positive impact on the communities, cultures, societies and environments in which companies operate. These efforts should also benefit a company‘s various stakeholders, who comprise all or some of the following: customers, employees, executives, non-executive board members, investors, lenders, vendors, suppliers, governments, NGOs, local communities, environmentalists, charities, indigenous people, foundations, religious groups and cultural organisations. And in this context CSR report is used by most of the companies i.e., CSR reports is a strategic document that offers a balanced, objective and reasonable assessment of almost every aspect of a firm's performance. There are clear benefits for organisations that undertake quality CSR reporting they are: 1. it allows them to demonstrate their interest in the environment, their employees and communities; 2. it builds trust and promotes transparency; and 3. solicits feedback on their performance from a growing number of stakeholders. "CR reporting is now an expectation of business and large organisations really have no choice," CR reporting helps the management to track year on year progress of an organizations.One of the main challenges of CR reporting is determining what issues to report on and what issues to exclude, as well as prioritising those issues that are included. And this project is covering the four pillars of any organization i.e.,environment, community, marketplace and workplace to focus on the activities taken up by them i.e., this project covers the complete report on Infosys and Reliance industries limited. And the process of globalisation have raised concerns that multinational companies (MNCs) might be pursuing profit at the expense of vulnerable workforces, the environment and so on. In response to such concerns, MNCs have increasingly taken steps aimed at demonstrating their social responsibility as business organisations. One prominent development has been the elaboration and adoption of a Code of Conduct concerning corporate social responsibility (CSR),
which sums up as the approach ‗by firms that voluntarily takes account of the externalities produced by their market behaviour‘ . Some observers stress the role of CSR codes in guiding employee behavior in ways that are compatible with the image of the firm that senior managers want to convey , while others stress the way that codes help MNCs to achieve a degree of legitimacy in the eyes of those outside the organisation . Thus CSR codes appear to be a principal way in which MNCs seek to achieve a degree of consistency across their operations and/or a degree of legitimacy in their external environment.
1.2 OBJECTIVES: 1. To study the social responsibilities taken up by Infosys and Reliance industries limited . 2. To understand the various social responsibility programmes undertaken by these companies towards employees, consumers, society and environment. 3. To study the contribution of these companies towards fulfilling their social responsibility. 4. To know the policy framework adopted by these companies in fulfilling their social responsibility.
1.3 SCOPE: The study is confined to analyzing the social responsibility undertaken by Infosys and Reliance industries limited through their corporate offices branches and subsidiaries.
1.4 METHODOLOGY: As the project is based upon a case study of these two companies the data is collected indirectly i.e., secondary data is used for collecting information. Secondary data: secondary data is collecting and processing of data gathered by others for research purpose. It can be used to get a new perspective on the current study, to supplement or compare the work or to use parts of it. Secondary data can further be divided into two parts. Qualitative data includes biographies, records, documents, published material, computer databases, policy statements, etc. Quantitative data would have market research and economic documents. The sources through which the data is collected includes Journal Articles, data bases, organizational records, books, internet, the media, and other archival records.
1.5 LIMITATIONS:
1.
Unable to obtain the financial information regarding companies annual budget towards corporate social responsibility.
CHAPTER-2 REVIEW OF LITRETURE
2.1 Introduction: CSR is becoming an investment differentiator, benefiting companies that have clear ethical and sustainable mission complemented by tangible and transparent reporting. Company‘s brands, customers retention levels, and intellectual capital are of intense interest to investors. Companies that report more comprehensively on these important non-financial assets can often improve their valuation in the capital markets. Corporate social responsibility disclosure is considered to be a part of social accounting. Corporate social reporting generally includes disclosure in annual report or disclosure through other medium like website, separate communiqué to stakeholders, advertisements etc. through such reporting, a company discloses about its performance in the areas like employees relations, environment and other issues of sustainability, community involvement, product, energy, etc.
The role of business in society has undergone a sea change. From the exhortation that there are no social obligations for business to the understanding that being socially responsible is critical, corporate social responsibility(CSR) has come a long way. The more traditional business perspective is now giving way to a realization that corporate responsibility touches not only economic issues but also the social community, including employees and customers. The inspiring and important development of CSR has started to gain legitimacy and is now being recognized as a strategic element of many leading companies of all types and sizes.
However different organizations have framed different definitions of CSR. Although no universally accepted definition of CSR exists, the world business council for sustainable development(WBCSD) defines CSR as ―the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life‖.
Corporate social responsibility means the obligation, which a corporation owes to the society. It is no longer considered a tripartite venture, i.e. owners, workers and consumers, but it has become a multiparty system. It includes government, financial institutions, banks, owners , workers, consumers and society. All these classes have their own objectives to be achieved from the business. Thus the meaning of CSR is two fold. On one hand, it exhibits the ethical behavior that an organization exhibits towards its internal and external stakeholders. On the other hand, it denotes the responsibility of an organization towards the environment and society in which it operates.
2.2 Features of CSR: 1. CSR contains three types of behaviour- positive, neutral and negative. the negative and neutral aspects of behavior are as important as positive. 2. Every person in the society has a social obligation to fulfill. However the emphasis is on social responsibility of management as a group because it is in a position to use the resources of the society in the way it likes. Therefore it must be conscious about its SR.
3. SR involves fulfilling obligations to various parties concerned with the functioning of an organization. Some of these parties are concerned directly, others may be concerned indirectly. 4. The standards fixed for fulfilling obligations to various parties are to be decided according to social norms and expectations, therefore these obligations may vary from society to society.
2.3 Why Corporate Social Responsibility occurs: - for economic, social, and environmental bottom lines - community pressure to do so - to enhance reputation - as a branding exercise - to improve community relations and public image - to enable employees to enjoy new levels of responsibility and leadership skills - to improve employee satisfaction, morale and loyalty - to get a sense of fulfillment as a result of contributing to the community
2.4 What some companies consider CSR as: - education for employee families - plant trees to offset own pollution - labour welfare - training courses - supporting nearby hospital, school, etc.
- donating through own Charitable Trust - minimizing garbage creation
2.5 Why should business be socially responsible:Social responsibility is a voluntary effort on the part of business to take various steps to satisfy the expectation of the different interest groups. the various interest groups may be owners, investors, employees, consumers, government and society or community. But the question arises, why should the business come forward and be responsible towards these interest groups. Let us consider the following points:
i.
Public Image - The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of its activities. People prefer to buy products of a company that engages itself in various social welfare programmes. Again, good public image also attracts honest and competent employees to work with such employers.
ii.
Government Regulation - To avoid government regulations businessmen should discharge their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business. Instead, the business firm should engage itself in maintaining a pollution free environment.
iii.
Survival and Growth -Every business is a part of the society. So for its survival and growth, support from the society is very much essential. Business utilizes the available resources like power, water, land, roads, etc. of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of the society.
iv.
Employee satisfaction - Besides getting good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education and training. The employers should try to fulfill all the expectation of the employees because employee satisfaction is directly related to productivity and it is also required for the long-term prosperity of the organisation. For example, if business spends money on training of the employees, it will have more efficient people to work and thus, earn more profit.
v.
Consumer Awareness - Now-a-days consumers have become very conscious about their rights. They protest against the supply of inferior and harmful products by forming different groups. This has made it obligatory for the business to protect the interest of the consumers by providing quality products at the most competitive price.
2.6 Corporate social Responsibility Towards Different Interest Groups:-
The various responsibilities that a business has towards different groups with whom it interacts. The business generally interacts with owners, investors, employees, suppliers, customers, competitors, government and society. They are called as interest groups because by each and every activity of business, the interest of these groups is affected directly or indirectly.
i. Responsibility towards owners Owners are the persons who own the business. They contribute capital and bear the business risks. The primary responsibilities of business towards its owners are to: a. Run the business efficiently. b. Proper utilisation of capital and other resources. c. Growth and appreciation of capital. d. Regular and fair return on capital invested.
ii. Responsibility towards investors Investors are those who provide finance by way of investment in debentures, bonds, deposits etc. Banks, financial institutions, and investing public are all included in this category. The responsibilities of business towards its investors are : a.Ensuring safety of their investment, b. Regular payment of interest, c. Timely repayment of principal amount.
iii. Responsibility towards employees Business needs employees or workers to work for it. These employees put their best effort for the benefit of the business. So it is the prime responsibility of every business to take care of the interest of their employees. If the employees are satisfied and efficient, then the only business can be successful. The responsibilities of business towards its employees include:
a.Timely and regular payment of wages and salaries. b. Proper working conditions and welfare amenities. d. Opportunity for better career prospects. e. Job security as well as social security like facilities of provident fund, group insurance, pension, retirement benefits, etc. f. Better living conditions like housing, transport, canteen, crèches etc. g. Timely training and development.
iv. Responsibility towards suppliers Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders. Certain suppliers, called distributors, supply finished products to the consumers. The responsibilities of business towards these suppliers are: a.Giving regular orders for purchase of goods. b. Dealing on fair terms and conditions. c. Availing reasonable credit period. d. Timely payment of dues.
v. Responsibility towards customers No business can survive without the support of customers. As a part of the responsibility of business towards them the business should provide the following facilities: a. Products and services must be able to take care of the needs of the customers. b. Products and services must be qualitative c. There must be regularity in supply of goods and services d. Price of the goods and services should be reasonable and affordable. e. All the advantages and disadvantages of the product as well as procedure to use the products must be informed do the customers. f. There must be proper after-sales service. g. Grievances of the consumers, if any, must be settled quickly. h. Unfair means like under weighing the product, adulteration, etc. must be avoided.
vi. Responsibility towards competitors Competitors are the other businessmen or organizations involved in a similar type of business. Existence of competition helps the business in becoming more dynamic and innovative so as to make itself better than its competitors. It also sometimes encourages the business to indulge in
negative activities like resorting to unfair trade practices. The responsibilities of business towards its competitors are i.not to offer exceptionally high sales commission to distributers, agents etc. ii. not to offer to customers heavy discounts and /or free products in every sale. iii. not to defame competitors through false or ambiguous advertisements.
vii. Responsibility towards government Business activities are governed by the rules and regulations framed by the government. The various responsibilities of business towards government are: a. Setting up units as per guidelines of government b. Payment of fees, duties and taxes regularly as well as honestly. c. Not to indulge in monopolistic and restrictive trade practices. d. Conforming to pollution control norms set up by government. e. Not to indulge in corruption through bribing and other unlawful activities.
viii. Responsibility towards society A society consists of individuals, groups, organizations, families etc. They all are the members of the society. They interact with each other and are also dependent on each other in almost all activities. There exists a relationship among them, which may be direct or indirect. Business, being a part of the society, also maintains its relationship with all other members of the society. Thus, it has certain responsibilities towards society, which may be as follows: a.to help the weaker and backward sections of the society b. to preserve and promote social and cultural values c. to generate employment d. to protect the environment e. to conserve natural resources and wildlife f. to promote sports and culture g. to provide assistance in the field of developmental research on education, medical science, technology etc.
2.7 CSR and its advantages: - capacity to attract new customers, - a greater value for the shareholders, - an increased profitability, - better capacity to manage the risks, - products and processes of better quality and, - capacity to recruit first choice employees. But still there are other advantages like:
Purchases : Better access to the resources, reinforcements of the relations with the suppliers, pride of collaboration.
Commercial activities : Better access to capitals, profitability, control of management, pride of customers.
Operations : Reduction of the social and environmental impact of the activities, relation between good vicinity and local associations, better comprehension of the activities of company.
Credit : Safety of the credits, valorization of company and profit-sharing of the shareholders present and/or future.
Marketing : Development of the markets, existing and new, reinforcement of the image of the brands, competitive advantage, better comprehension of new customer‘s needs by a reinforced proximity, information on the markets.
Corporate : This term is unfortunately not well translated in the French denomination ―RSE‖ (CSR in English stands for ―Corporate Social Responsibility‖), but corporate identity is only improved by it. Institutions : Influence and recognition, better social and citizen investments, development of new networks and channels of communication, reputation.
Management : Better risk managements, put in legal conformity (mandatory) and even more (the RSE being voluntary), strategic development and organizational training (the quicker you are there, the less delay you will have to catch up ), innovation.
Human resources : Resourcing, management of the questions on hygiene and on safety, development of the human capital, staff safety (when you have what you need…), pride of this one, which will not want to leave any more or will want to come to work for you.
Shareholders : Fidelity since the intangible asset of company will increase, pride. On a graph:
In are represented part of the interactions between the various departments in the company.
2.8 Example of companies and their CSR activities: Company
CSR Focus
Aditya Birla Group
Sustainable livelihood, Education, Infrastructure Development, Social Causes
Air Sahara
Happy Day albums for their kid passengers.
Amway
Helping people live better lives
Bajaj Auto Ltd.
A Trust to oversee development of 24 villages adjoining the locations of BAL factories
BASF
Fighting Corruption in Public Life
BBC
Counter the growing threats of AIDS in India
Bombay Chamber
Advises corporates about CSR
Bombay Stock Exchange
The bourse has a separate wing for community activities
British Gas India Pvt. Ltd
Involved in a number of educational and charitable development projects
Cafe Coffee Day
Can raise funds for you or help you spread the word
Cadbury
Gurikha Project: Targeting women's empowerment and female infanticide
Canara Bank
Employees donates three rupees per month to a social cause of their choice
CavinKare
Backward integration efforts to be self sufficient
ColgatePalmolive
Partners NGOs for the upliftment of society
Dr. Batras' Positive Health Clinic
"Patient-Support-Patient" - donors to sponsor treatment for other underprivileged patients
Gujarat Ambuja Cements
Various projects
HDFC
Specific micro-finance initiatives
Hinduja Group
Health, Education, Social Welfare, Art and Culture, Sports
HINDUSTAN PENCILS LIMITED
Sponsor of children projects
HLL
Supports Asha Daan run in Mumbai by the Missionaries of Charity
ICICI
Elementary Education, Health at Birth, and Micro-Financial Services
Indian Oil Corporation
Protect, preserve and promote our national heritage and culture
Infosys
Education, women's projects, healthcare, community development, and preservation of art and culture
ITC
Women empowerment and education
Jet Airways
Inflight charity — ‗magic box‘
LG Electronics
Hiked its budget for community development activities
Nestle
Community projects in education, health and welfare and infrastructure
Nokia
International programme of employee volunteering called 'Helping Hands'
Novartis
Free treatment to leprosy patients worldwide
Orchid Hotel
Environment Awareness with Schools and Colleges
Philips India
Rural healthcare
Price Waterhouse Coopers
Undertaking activities to improve facilities at the government schools in Carterpuri and Choma villages in Haryana
Reliance Energy Ltd
Audiometry room to a school for the deaf and dumb children of Dahanu
Sony
Environment
Standard Chartered Bank (SCB)
Stanchart Bank has been involving its employees in most of its community initiatives.
Star News Radio City
www.startv.com/eng/abus_starcare_messaging.cfm
Tata Tele
Tata Tele to donate to CHILDLINE
Tata Power
Project Life Line Express
Tisco
Tisco To Deal With Only Those Who Show Social Responsibility
Voltas
Any activity near their offices / factories
Wipro
Applying Thought in Schools Project
2.9 How can a organization act socially responsible:-
Social responsibility, in the corporate world, involves doing business in a way that takes into account the impact of a actions on the environment and on the global community. Social responsibility is voluntary, and ideally it is written into company policy. It is self- monitored and self- reported. The benefits of corporate social responsibility are real: there are obvious benefits to the environment and to the community, and less tangible benefits to the company itself: a company that practices real social responsibility may ultimately benefit from lower operating costs, enhanced brand image, greater productivity, increased customer loyalty, better access to capital and ultimately to improved financial performance. Business organizations, if they are to be truly socially responsible, should consider the impact of their trading on all their stakeholders: employees, customers, suppliers, investors, the local community in which they are based, and the global community. Let's have a look at how an organization can behave in a responsible way to each of these groups.
1.Employees:
Depending on the size of the organization and on its operations, socially responsible organizations can do a number of things to make their company a better place to work in. From the most obvious principle of paying a fair wage to every employee, irrespective of geographical location; to ensuring that employees have reasonable working hours, paid break times and adequate holidays, a socially responsible organization may then go further: possibly with a policy on diversity, provision of health benefits, flexible working arrangements, promotion from within policies, and supported study opportunities. It may even offer stock options to its employees.
2.Suppliers: A socially responsible business should have a policy on how it sources and does business with its suppliers. It should pay a fair price to suppliers, irrespective of location or circumstance. Larger companies could support its suppliers in other ways, particularly if those suppliers are in developing countries.
3.Local Community: A social responsibly company must be aware in which it does business. Ideally it should be an active member of that community, supporting local initiatives either financially, or by volunteering. Given that most of the organization's employees and customers will live in this community, involvements of this nature are seen as an acknowledgement of the support that a business gets from the people around it.
4.Global Community: Socially responsible businesses also consider the big picture: the impact of their operations on the citizens of the planet. This is where the element of philanthropy is most often seen at work in social responsibility: some companies will support charities whose work is connected in some way with the nature of the corporation's business. For example, Better World Books collects and sells secondhand books. They have committed huge amounts of financial resources to the fight against global illiteracy. TOMS Shoes make and sell shoes. For every pair they sell, they donate a pair to a child who does not have any shoes.
5.Consumers and Investors:
Socially responsible organizations have a responsibility to their investors, and to their consumers. Increasingly, both of these groups are choosing to deal with organizations who act responsibly. This allows the socially responsible organization the benefit of increased access to capital, and to high levels of customer loyalty. It is important for the organization to do its best to live up to this loyalty by constantly seeking out the most ethical and most responsible ways of doing business. It is particularly important that a socially responsible organization should never over- emphasize the impact of any of its measures in order to offset or conceal bad practice in other areas.
6.Social Responsibility and the Environment: In these days of global warming, it is now more important than ever that businesses should consider the impact they are having on the planet's natural resources. A socially responsible company should have policies on everything relating to sustainability. Energy saving, using renewable sources, reducing fuel consumption, recycling, water usage, waste disposal, sourcing of raw materials: these are all areas where an organization can make a difference. If possible, sustainability policies and procedures should be written and implemented from the outset. If an organization is genuinely putting its resources into each of these areas, to the best of its ability, then it can be said to be a socially responsible organization.
2.10 Approaches for measuring social responsibility:
If a business organization undertakes social responsibility work, it should measure its social performance in order to evaluate whether it is progressing in right direction. However measurement of social performance is quite fluid because of its qualitative nature. In order to overcome the problem of fluidity a separate branch of accounting, known as social accounting has been developed.robert Elliot has defined social accounting as ―systematic assessment and reporting on those parts of a company‘s activities that have a social impact-the impact of corporate decisions on environmental pollution, consumption of non-renewable resources, and ecological factors: -the rights of individual and groups -maintenance of public services -health,safety,education and many other social concerns‖. In social accounting three approaches are used for measuring social performance: 1. social cost benefit analysis:
Social cost benefit analysis is based on evaluating benefits that accrue to the society and the cost through which these benefits accrue. While costs can be measured in terms of money, same is not the case with benefits.cost benefit analysis may be undertaken either on existing price system or discounted rate of costs and benefits.social cost benefit analysis though suffers from the limitation of precise measurement is useful in evaluating the alternative social programmes that an organization can undertake.
2. social indicators: Social indicators approach of social performance measurement consist of developing social indicators and measuring an organization‘s performance on these indicators.five broad indicators which contribute to organization are:
1.net income contribution-earning enough to provide for the present and future costs of the organization continued existence but limited to legitimate socially desirable profit.
2. human resources contribution –development of system of human resource accounting to measure the impact of the organizational decisions on human asset value.
3. public creation of jobs and providing employment opportunities to backward and socially handicapped population , contributing towards educational development , relief of people in distress caused by natural calamities, rural upliftment,etc.
4. environmental contribution –environmental improvement through pollution abatement , conservation of scarce natural resources , maintenance of ecological balance and so on .
5.product or service contribution –ensuring quality, durability, safety, and serviceability of products , customers satisfaction, truthfulness in advertising etc.
3. social goal setting: Social goal setting approach emphasizes incorporating social concern in the objective of an organization which may be on a perpetual basis or on periodic basis . a combination of both can
also be followed in which some social concerns can be undertaken on perpetual basis while others can br taken on project basis for specific period. This approach is better in terms of providing areas of social concerns on which the organization can focus in terms of the needs of the ares and its own capability to satisfy those needs.
2.11 Social audit: When an organization undertakes social activities it must also evaluate the extent to which these activities are performed effectively.social auditis primarily aimed to measure the effectiveness of these activities. ―social audit is a commitment to a systematic assessment of and reporting on some meaningful, definable domain of the company‘s activities that have social impact‖
2.12 Arguments for and against social responsibility: ―why should business be concerned about social responsibilities?‖ is a question that has attracted the attention of many thinkers, both from academics as well as from practitioners. There have been arguments and counter- arguments in favour of and against social responsibility of business.in an effort to present a balanced view of social responsibility of business and its role as an objective of business, it is worthwhile to present briefly the arguments against and for it that have surfaced overtime.
2.12(1) Arguments against social responsibility: The core of arguments against business assumption of any responsibilities other than to produse goods and services efficiently and to make as much money as possible is that business is an economic institution and economic values should be the sole determinant of its performance . in this context arguments against are:
1. contrary to basic functions of business: Milton friedman a respected economist holds the classical view that the only responsibility of business is to earn profit. He says that:
―there is one and only one responsibility of business- to use its resources and engage in activities designed to increase its profit so long as it says within the rules of the game which is to say, engages in open and free competition without deception or fraud. Few trends could so thoroughly undermine the very traditions of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible. This is fundamentally subversive doctrine.‖
The basic contention of friedman is that social responsibility is contrary to basic business functions. The basic argument is that if price of a product in the market does not truly reflect costs of producing it but indicates costs for social action the allocative mechanism of the marketplace is distorted. Either the customer pays price greater than the necessary to call the goods into maeket or the firm‘s product mix provides less consumer satisfaction. Moreover the doctrine of social responsibility means acceptance of the socialistic view that political mechanisms rather than market mechanisms are the appropriate ways to allocate scarce resources to alternative uses. Furthermore, the business should not try to determine what is public interest because the economic system is not a playground on which business mean may exercise their peculiar preferences . closely associated with this argument is the view that businessmen have no special skills to deal with social matters.
2. domination of business values: Business should not be socially responsible otherwise business values will dominate the social values. Harold Leavitt, the famous psychologist holds the view that:
― the danger is that all these things will turn the corporation into 20th century equivalent of the medieval church. The corporation would eventually invest itself with all embracing duties , obligatyions, and finally powers ministering the whole man and moulding him and society in the image of the corporation narrow ambitions and its essentially unsocial needs.‖
His fear is true because in the past, the results were noy so good when the values of a society were dominated by one major institution, whether it was the church, the military, business, or something else.
3. inefficiency in the system:
There is no substitute for the power of self interest to get people to act. Any replacement of altruism for self interest will, therefore be fatal to the effiency of the system. The rigor of the market mechanism will place in jeopardy the competitive position of that system which adds to its costs by assuming social responsibilities. Therefore managers should manage only in a interst of the shareholders and shareholders should be put in a position to decide how their property will be used. In this context heyne says:
―taken seriously the doctrine of social responsibility fosters megalomania in its adherence. It places upon the businessmen conscience intolerable burdens that tempt him continually to arrogance and pharisarism.‖
2.12(2) Arguments for social responsibility: Though there is no core idea in the argument that business has no social responsibility there are several ideas about social responsibility of the business. Over the period of time, the things have changed too much giving new thoughts and replacing the classical view of business objectives:
1. Business: A part of the society. Business organization are creatures of society and must respond to social demands. A business operates within a set of cultural norms and restraints. These are certainly not only economic but also legal, political, social, and technical. They are powerful and business should know instinctively that as they change they must be incorporated in the decision making process. There is another point in this. Since business is a subsystem of society, its functioning should contribute to the welfare of the system as a whole and not only to the subsystem alone. Therefore, organizational decisions should be made in a way which not only provide welfare to the organization but also to other subsystems of the society that total welfare of the system is maximum. When a particular subsystem becomes more powerful and efficient , other subsystems look for the support from it.
2. avoidance of government regulations:
when business is unable to fulfill its social responsibility it invites more government intervention in the business system. Therefore in order to avoid government regulations of business, it is preferable to go for social responsibility programmes. In any case government regulation is costlier than the cost of social responsibility programmes. Government regulations cuts flexibility and freedom of doing business, concentrates power in government which may be against the basic features of the free and democratic country.
a. Long run self- interest of business: Discharge of social responsibility ensure long run self interest of business. It is possible that at the initial stage, the cost of discharging social responsibility may be high but in the long run the business can do better by creating better public image among the various interest groups. In fact many managers have realized that taking welfare measures for workers have paid rich dividends to the business in the form of improved productivity.
b. Traditional values: In any country economic growth is not possible without the active cooperation of people. People cannot be enthused to participate for the development unless they have a reasonable assurance that they will share the fruits of growth. Thus , the urge for social justice is widespread and universally accepted. The need for our society is to convert this urge into programme of action which would be in tune with our culture and way of life. Our way of life can be well described by the following verse(translated from Sanskrit) which teachers and the taught used to chant every day before starting their studies in the ashram. The verse reads as ―may we prosper together and enjoy our prosperity in common. Let our exploits be joint adventures. May our studies be full of light. May we not quarrel each other . let there be peace, peace, peace.‖ Similarly, the first verse of ishavashya Upanishad describes that‖ all that exists in this universe is the abode of the almighty. Therefore enjoy the good things in life by sharing them with others. Do not covet the possession of others.‖ These traditional thoughts holds good today to guide the economic activities of the country.
2.13 Making social responsibility operational:
Once the managers accept that they are socially responsible the basic question comes: which social programmes their organization should take, how mush to do, and how to inject the social view into the organization decision making process. Once they settle these questions they can
perform better on the front of their social responsibility. Given below are some guidelines for making the concept of social responsibility operational in business:
1. Commitment from top management: There should be commitment from top management for programmes of social responsibility. In any organization top management generally decides the board course of action, including the SR programmes. Top management must accept the idea of SR , if the organization is to become seriously concerned about social programmes on an organization- wide basis . once top management commits, however the implementation of the social point of view is by no means simple or automatic. For, most organizations the transition from top management social concern to institutionalization of social programmes takes place step by step and on the basis of a number of different methods.
1. Formulating SR policies: An organization operates on the basis of a set of established policies, procedures, customs, precedents, values, and managerial styles. Policies can be developed to undertake SR programmes. Such policies can be formulated in general as well as in various functional areas.
2. Institutionalization of SR in decision making process: Once an SR policy is developed its implementation becomes a part of the day to day routine decision making process throughout the organization. Managers consider it in the decision making without continuous surveillance of higher level managers. It is always not necessary that some specific programmes of SR are taken by the organization. But the SR can reflect in all types of decisions. Decisions criterion in this respect will not be purely profit oriented but its orientation about how it affects the organization ‗s social concerns.
3. Performance measurement system: Managers respond well when specific goals are set for their performance and when their rewards are determined by how well they perform in meeting these goals. If managers are to be made responsible for social programmes to meet new expectations and are expected to inject the social point of view in their decision making process, they should be evaluated accordingly. However this presents a problem. The new measurement may not be as quantitative as the old measurements based on profit performance which is mostly quantitative. Therefore some qualitative aspects have also to be measured. Measurement may be in terms of different activities so that a manager can know how well he has performed on various activities.
CHAPTER-3 COMPANY PROFILE 3.1RELIANCE INDUSTRIES LIMITED(RIL) INTRODUCTION: The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance Retail Limited) and Reliance Industrial Infrastructure Limited Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals. Board of Directors of Reliance Industries Limited:
1. 2. 3. 4. 5.
Shri Mukesh D. Ambani (Chairman & Managing Director) Shri Nikhil R. Meswani (Executive Director) Shri Hital R. Meswani(Executive Director) Shri PMS Prasad (Executive Director) Others
General principals of how industry started: 1. Corporate governance: Growth through corporate governance: Reliance is in the forefront of implementation of Corporate Governance best practices Corporate Governance at Reliance is based on the following main principles:
Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its responsibilities and duties.
Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively.
Independent verification and safeguarding integrity of the Company‘s financial reporting.
A sound system of risk management and internal control.
Timely and balanced disclosure of all material information concerning the Company to all stakeholders.
Transparency and accountability.
Compliance with all the applicable rules and regulations.
Fair and equitable treatment of all its stakeholders including employees, customers, shareholders and investors.
2. Commitments: Growth through Commitments: They care about: Quality,Research & Development,Health, Safety & Environment,Human Resource Development,Energy Conservation ,Corporate Citizenship. Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.
The essence of these commitments is that each employee conducts the company's business with integrity, in compliance with applicable laws, and in a manner that excludes considerations of personal advantage.
They do not lose sight of these values under any circumstances, regardless of the goals they have to achieve. To them, the means are as important as the ends.
For Reliance
Growth is care for good health Reliance's occupational health centers carry out pre-employment and periodic medical checkups as well as other routine preventive services. Specialised tests like biological monitoring, health risk assessment studies and audits for exposure to various materials are also performed. Health education and awareness form an integral part of the health care programme at Reliance
Growth is care for safety Reliance believe that the safety of each employee is the responsibility of the individual as well as of the whole community of employees
Growth is care for the environment Reliance believes that a clean environment in and around the workplace fosters health and prosperity for the individual, the group and the larger community to which they belong. Environmental protection is an integral part of the planning, design, construction, operation and maintenance of all projects.
Growth is betting on people Reliance builds with care a workplace that proactively fosters professional as well as personal growth. There is freedom to explore and learn; and there are opportunities that inspire initiative and intrinsic motivation. They believe that people must dream to achieve, that these dreams will drive the company's excellence in all its businesses. Reliance thinks, behaves, lives and thrives with a global mindset, encouraging every employee to reach his / her full potential by availing opportunities that arise across the group.
Growth is thinking beyond business As corporate citizens, they invest in social infrastructure, believing strongly that their business strength fuels social contributions. To this end, Reliance encourages, funds and develops numerous education, health, human capital and infrastructure initiatives. These initiatives are undertaken through partnerships with non-governmental organizations, corporates and trusts.
3. Research & Development, Technology Development and Innovation Research & Development (R&D), Technology Development and Innovation continues to be an integral part of RIL's agenda for achieving growth, business profitability, sustainability and rural transformation. The Reliance Technology Group (RTG), created by consolidating various research and technology functions is helping create enhanced value delivery by leveraging all the skills and competencies, and creating new opportunities at the interfaces. RTG continues to get external perspectives from members of the Reliance Innovation Council (RIC). Key objectives of RTG are as follows:
Develop fit-for-purpose and sustainable technology and its application. Provide effective project support and assurance to manufacturing plants and businesses. Provide technical assurance to projects including technology selection and absorption. Proactively identify and support technical opportunities to add value across RIL's businesses. Develop technology strategies suited to create business growth and offset threats. RTG is also working on the development/commercialisation of new products e.g., oxygen barrier polyester resin for packaging, material for fruits/vegetables preservation and low cost Antimicrobial Polyester. In addition, RTG is working on emerging technologies such as fuel cells, carbon fibres, bio-fuels and gasification of various feedstocks. As per RIL‘s mission, the Company will continue to create business value and competitive advantage by applying (buying, customizing, developing) the right technology, at the right cost, and at the right time to meet the current and future needs of RIL through the following initiatives: An integrated, central technology organisation to support RIL businesses and manufacturing facilities.
A sustained high performance work culture which fosters innovation, entrepreneurship, inclusiveness, teamwork and continuous improvement. A process centric organization that maximizes synergies across all interfaces, leverages core competencies of various disciplines to maximize value from current assets and creates new growth opportunities, while allowing people to develop and contribute to their full capabilities.
4. Innovation
In a challenging year of demand destruction and the global financial crisis, RIL was resilient and continued to innovate to convert the adversity into an opportunity. RIL launched an innovative initiative called "Mission Kurukshetra" aimed at galvanising and energising the entire organization to rise to the occasion and help RIL emerge stronger.
The focus of this initiative was on extreme efficiency, value maximisation to serve the new market conditions and safety and reliability of assets. The employees responded overwhelmingly by pouring in a record number of ideas over a specially built business excellence tool which operated on the Information Technology (IT) backbone.
This initiative not only helped in surmounting the challenges with a will to win, but also identified serial ideators, who were recognized and rewarded by the leadership of RIL. The Leading Expert Access Programme (LEAP) which gives access to global thought leaders continued to inspire the people of RIL
Here are few innovations which were impossible but reliance made it possible: For those who study innovative organizations Reliance Industries will be a shining example of how innovation is practised in almost everything that they do. Here are few things that set them apart:
"Impossible is an inspiring word" - Nothing turns on the leadership at Reliance Industries than this magical word. Again to quote the Jamnagar example, it was considered impossible to turn a barren land into a greenbelt. Today mangoes grown in Jamnagar are sold in Harrods London.
"Hands on thinking, hands off execution." - It is characteristic of Reliance leadership. They think everything through and meticulous planning is their hall mark. When it comes to execution empowerment delegation down to the last employee in the chain is clearly demonstrated.
"Hard work, timely decisions, speed and ingenuity" says one of the senior managers of Reliance Industries to sum up what Reliance is all about.
It is evident that Reliance Industries is where it is today because of Innovation in thinking and execution. Given its ambition for India and its own organization Reliance leadership has now taken on a major initiative in the innovation domain. The leadership of RIL recognizes that its biggest competitive advantage and differentiator in the future would be innovation. Innovation has to become the language, the behaviour definer, the culture and the soul of Reliance, even more explicitly than ever before.
Corporate Social Responsibility
RIL has a long and strong tradition of supporting the larger communities that it connects with - from education, health, drinking water, large-scale development of employable skills, to assistance during natural calamities such as earthquakes and cyclones
The Reliance Foundation would address social development imperatives of India, specifically quality, formal and vocational eduation, affordable high-quality health care, meaningful rural development and urban renewal, and protection and promotion of India's priceless heritage of arts and culture.
Education
Education continues to be one of the major thrust areas of RIL's CSR interventions. A network of 10 schools caters to over 14,000 students spread across geographies in India. RIL's CSR cells of its manufacturing divisions, round the year to support the educational requirement of the surrounding community and schools in the neighbouring region benefiting thousands of students from the underprivileged section of the society. RIL's project for physically challenged children at Surat, near the Hazira Manufacturing Division, is fast emerging as a global model of public-private partnership, supporting physically
challenged children's education with a local NGO. A hostel for physically challenged female students from the underpriviledged segment of the society has also been constructed "Reliance Dhirubhai Ambani Protsaham" programme continues to support poor and brilliant students in pursuing higher studies. Continuous monitoring is being done to improve the performance of the students by conducting special classes in English and other subjects. Regular counselling sessions are also being arranged with experts in personality development and psychologists for motivating the children to achieve better results. Further, RIL supplied notebooks, uniforms and bags to students from Gadimoga and Bhairavapalem panchayats and provided furniture to many schools to enable the children to have a better learning environment Further, RIL plays a pivotal role in the education of the girl child especially in rural regions. At many locations near its manufacturing divisions, the Company sponsors female students from the economically underpriviledged segment of the society.
Community Health Care
RIL has developed Community Medical Centres (CMCs) near most of its manufacturing divisions. These CMCs provide comprehensive health services covering preventive, promotive and curative health care to the communities from neighbouring villages. Manufacturing divisions conduct regular health checkups for children in schools of their respective neighbouring regions. Doctors advise children and their parents on various health care issues and personal hygiene. Further, RIL has also donated wheel-chairs and stretchers to a government-run hospital in Jamnagar. Annually, RIL employees organise and participate in blood donation camps across manufacturing divisions and offices. 'The initiative to combat TB, HIV/AIDS' is a unique publicprivate partnership programme between the Government, NGOs, several agencies and RIL. It extends from creating awareness to providing care, support and treatment including free of cost treatment to those who cannot afford the same.
Community's Safety
The Road Safety System is the most advanced, cost effective and easy to use tool for improving public safety and reducing operating economic costs. RIL has institutionalised road safety training across its numerous manufacturing divisions. The Company reaches out to over a lakh tanker and truck drivers annually, who visit the premises for receipt and dispatch of feedstock and finished goods. Further, road shows and training sessions for tanker drivers transporting chemicals and hazardous goods are organised at truckers' plazas
Rural Infrastructure Development
RIL continues to develop rural infrastructure facilities and temples near the surrounding villages of many of its manufacturing divisions. RIL completed the Mandal Development Road of 10 kms length connecting Tallarevu to Bairopalem improving transport infrastructure
Livelihood Support Programmes
RIL sponsored Self-Help Groups (SHGs) continue to empower women and youth from the underpriviledged segment through various employment oriented training and skill development programmes. These include dress making, health care, helpers for hospitals, nursing, jewellery making, mobile phone repairing, electrician training, bamboo article making, light motor vehicle driving training etc.
Relief Operations
RIL's time tested disaster management and calamity relief operations were put to use yet again in FY 2009-10. In addition to extending donations, the RIL team from Jamnagar and Andhra Pradesh worked zealously in flood affected areas of Krishna, Andhra Pradesh, in October 2009.
Wildlife and Animal Care
Parapets were constructed on open wells in the forest in Gujarat, through FY 2009-10, considerably reducing deaths amongst lion cubs.
Heritage Conservation
Keeping in view the plurality of our society with multiple cultures, traditions and backgrounds, RIL has initiated various activities to consolidate the Indian ethos of unity in multiplicity.
Promoting Sports and Sportspersons
Besides promoting cricket on the global front, RIL actively nurtures young and talented cricketers and sports bodies The Indian Premier League (IPL) offered yet another opportunity to support and sponsor cricket. Mumbai Indians (MI), the IPL franchise for the city of Mumbai, is amongst the most followed cricket teams in the IPL. This is yet another step to help India achieve world class excellence in sports.
Dhirubhai Ambani Foundation
Dhirubhai Ambani Foundation (DAF) has Education and Public Healthcare as its focus areas. Under its SSC Merit Reward and Undergraduate Scholarship Schemes instituted in 1996, DAF recognises and assists students who top the merit lists of Std X and Std XII
Board exams. The schemes also take care of the physically challenged meritorious students of the State Education Boards.
Dhirubhai Ambani International School (DAIS)
Dhirubhai Ambani International School (DAIS), founded in 2003, is the fruition of a dream to offer educational opportunities to children that make learning a joy and help bring out the best in them. The academic accomplishments and the all-round development of children from class LKG to 12 is a fitting tribute to this noble aspiration. Achievements: The following are the achievements under different fields:
Training and development:
The Dahej Manufacturing Division received the ‗American Society for Training & Development (ASTD) BEST Award-2008‘ in 2009.
Quality
The Allahabad Manufacturing Division‘s three Quality Circle (QC) projects received ‗excellent‘, ‗distinguished‘ and ‗meritorious‘ category certifications from the National Centre for Quality Control‘s (NCQC) Kanpur Chapter; while the fourth QC project was awarded ‗distinguished‘ category certification by NCQC‘s Bangalore chapter in 2009. At both the ‗National and Regional Quality Control Circle Events‘, The Hazira Manufacturing Division‘s Quality Circles have won recognition, in 2009, for showcasing its total employee involvement initiatives in shopfloor improvement case studies.
Energy conservation/efficiency:
The Dahej Manufacturing Division received the India Chemical Council Award for ‗Excellence in Energy Conservation & Management 2008-09‘ in 2009. The Dahej Manufacturing Division was certified as an ‗Excellent Water Efficient Unit‘ under the National Award for Excellence in Water Management-2009 by the Confederation of Indian Industries (CII) in 2009.
Techonolgy,patent,R&D,and innovation:
The Jamnagar Manufacturing Division received the ‗National Award for the Most Innovative Project in Energy Conservation -2009‘ from CII in 2009.
Corporate ranking and rating:
RIL continues to be featured, for the fifth consecutive year, in the Fortune Global 500 list of the ―World‘s Largest Corporations‖; ranking for 2009 is as follows:
Ranked 264th in terms of sales Ranked 117th in terms of profits
RIL is ranked 75th in 2009, in the FT Global 500 (up from previous year‘s 80th rank).
RIL has been ranked as the 5th sustainable value creator globally by the Boston Consulting Group (BCG) in their report on the Top 25 sustainable value creators that have been most successful at attaining superior value creation over a longer period of time.
3.2 INFOSYS 1) INTRODUCTION
Infosys Technologies Limited (BSE: 500209, NASDAQ: INFY) is a multinational information technology services company headquartered in Bangalore, India. Infosys is the second-largest IT company in India with 105,453 professionals (including subsidiaries) as of Nov 9, 2009.It has offices in 22 countries and development centers in India,China, Australia, UK, Canada and Japan.
2)HISTORY
Infosys was founded on July 2, 1981 in Pune by N R Narayana Murthy and seven others: Nandan Nilekani
N. S. Raghavan Gopalakrishnan S. D. Shibulal K. Dinesh Ashok Arora,with N. S. Raghavan officially being the first employee of the company. Murthy started the company by borrowing INR 10,000 from his wife Sudha Murthy. The company was incorporated as "Infosys Consultants Pvt Ltd.", with Raghavan's house in Model Colony, north-central Bengaluru as the registered office.
Corporate social responsibility(CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance is a form of corporate self-regulation integrated into a business model .
3)MISSION: With employees from over 70 nationalities Infosys has built an enduring value system based on openness, honesty, fairness and transparency. Infosys strives to employ people representing the widest possible variety of nationalities, cultures, genders and gender identities, employment histories, and levels of physical ability. In doing so, the company is able to recruit new employees from all available global talent pools and provide paths to employment to all members of world societies, including talented individuals from groups who may have in the past been underrepresented within the IT industry. Within such a diverse company, people bring to the workplace contrasting opinions and worldviews. As these people interact, they develop new ideas, methods, and perspectives. Infosys recognizes and promotes this power of diversity to drive innovation.
Infosys actively fosters inclusivity across all of its business units and in every one of its company offices. It encourages all employees to focus on the commonalities they share and leverage their differences towards productive teamwork. Inclusivity ultimately makes for a more informed and sensitive employee base that is better able to serve clients.
Infosys was the first Indian IT company to establish a company office to manage and drive all company initiatives dealing with diversity and inclusion. Today they have employees from over 70 countries. Women constitute more than 32% of workforce.
Infosys Women Inclusivity Network (IWIN) promotes a gender-sensitive work environment. IWIN recognizes the unique aspirations and needs of women. It provides avenues for vocational, personal and psychological counsel to enable professional and personal development 4)ACTIVE PARTICIPATION OF EMPLOYEES: Infosys employees actively participate in the welfare of the local community. Development Centers (DCs) in India make a difference through several Corporate Social Responsibility (CSR) initiatives. Employees organize and contribute to welfare programs, especially for underprivileged children and support the activities of institutes and Non-Government Organizations (NGOs) dedicated to healthcare and education, and campaigns for skills development and community welfare. As a corporate citizen with a conscience, Infosys strives to cultivate a sustainable approach to conducting business. In interactions with stakeholders within and beyond the sphere of business, they recognize that they shoulder a larger responsibility. They do business with an open eye continuously measuring and evaluating the consequences and impact of the actions. Ingrained in the soul of Infosys is a drive to awaken in employees, customers, investors and other stakeholders, as well as the larger society, a spirit of responsibility - to the environment, civic systems, the governments in the regions where they work and contribute, and to the future of the generations to come.
5)CSR IN INFOSYS:
1) In 1996, Infosys created the Infosys Foundation in the state of Karnataka, operating in the areas of health care, social rehabilitation and rural uplift, education, arts and culture. Since then, this foundation has spread to the Indian states of Tamil Nadu, Andhra Pradesh,Maharashtra,Kerala, Orissa and Punjab. The Infosys Foundation is headed by Mrs. Sudha Murthy, wife of Chairman Narayana Murthy. Since 2004, Infosys has embarked on a series of initiatives to consolidate and formalize its academic relationships worldwide under the umbrella of a program called AcE – Academic
Entente. Through case study writing, participation in academic conferences and university events, research collaborations, hosting study trips to Infosys Development Centers and running the In Step Global Internship Program, the company communicates with important stakeholders in the academia. 2) Infosys actively participates in activities for the welfare of the communities it operates in. The employees across Development Centers (DCs) in India make a difference through several Corporate Social Responsibility (CSR) initiatives 3) Arts and Culture: While globalization certainly brings its benefits, it is not without its share of threats, most prominently to indigenous cultures and art forms. Many of these are central to the livelihood of communities. Here the Infosys Foundation is preserving the heritage of India. India has a rich heritage of arts and culture. The Infosys Foundation is committed to preserve the millennia-old heritage of India by supporting art forms that are threatened with extinction. The Infosys Foundation honors artisans and provides financial assistance. In Andhra Pradesh, the Foundation is sustaining the tradition of handloom weaving in Pochampalli village. Pochampalli sarees are tied, dyed and woven by hand. Automation has rendered hundreds of weaver-families unemployed. 4) Environment: Global warming and climate change are more than buzzwords - they are realities to be addressed immediately. Infosys is engaging with global thought leaders and decision-makers. Globalization continues to unleash far-reaching changes. The biggest benefit of globalization has been the rise of companies and economies and the consequent creation of jobs. However, the most telling consequence of development has been the deterioration of the environment. As a responsible corporate citizen, Infosys believes that the environment can be a participant and a beneficiary of progress. Infosys wishes to be recognized by all stakeholders, including customers, employees, vendors, share owners and community at large, as a company committed to high standards of environmental management and to providing its employees, consultants and contractors with a safe and healthy environment, free of occupational injury and illness.
To achieve this, they strive toward: • Conservation of resources • Prevention of pollution • Adherence to all applicable legislations
•
Eliminating accidents, occupational illnesses and injuries at work
Infosys seek to change attitudes and influence actions toward the environment at the grassroots level. Their 'Project Ozone' campaign spreads environmental awareness and implements ecofriendly practices across development centers worldwide. Further, this vision is supported by voluntary groups of employees organized into eco-clubs. Infosys' vision is to become "carbon and water neutral". They undertake several initiatives to neutralize environmental impact: a) Water Management Potable water is a depleting resource. They harvest rainwater and consistently reduce the use of fresh water. In addition, they also recycle waste water to be reused for primary and secondary purposes. b)Energy Conservation Infosys uses energy responsibly. They measure the utilization of energy through energy audits. The data collected is used to achieve increasing levels of energy conservation. c) Waste Management Waste is recycled scientifically. They reduce waste, segregate it at the source and dispose it at dedicated waste segregation and processing plants at each development center. d)Healthcare & Education Around the world, "lifestyle diseases" are invading the province of the youth. Students with promise but without the economic resources to pursue it are challenged . The Infosys Foundation is committed to the well being of people living in remote areas of India. A healing touch for the underprivileged: World-class healthcare is high on the agenda of the Infosys Foundation. The Foundation constructs hospital wards, donates advanced equipment, organizes health camps and distributes medicines to the underprivileged sections of society. The Foundation constructed the Infosys Super-specialty Hospital at the Sassoon hospital, Pune. The government-run hospital caters to poor patients who have no access to treatment in private hospitals.
Infosys‘ expertise in software enabled the Foundation to install office management software at the KEM Hospital in Mumbai. Their software manages store requirements, maintains accounts and publishes hospital papers and other information on the Internet. 5) Infosys Leadership Institute: The Infosys Leadership Institute is the hub of Infosys‘ talent development program. The Institute trains new recruits and grooms the next generation of leaders. At Infosys, the people are always learning, irrespective of age or work experience. Primary education The Akshaya Patra Foundation is a public-private partnership that provides daily meals to more than 825,000 underprivileged children in 14 locations across India. For many children in the program, the Akshaya Patra meal is the only complete meal to which they have access during the entire day. By satisfying this basic need, the Foundation has produced dramatic results in terms of enrollment, attendance and attention spans in the classroom and boosted children's overall health and well-being. Secondary education The Infosys Foundation is upgrading education infrastructure through several initiatives. They donate books to 15,000 libraries, construct hostels for underprivileged children, renovate schools, donate computing facilities and provide scholarships to meritorious students. In addition, the Foundation is collaborating with an organization that shelters prisoners‘ children in the age group of 5-15 years and provides them with food and education. The Foundation is also assisting a non-governmental organization working for the rehabilitation of street children in Bangalore and Delhi as well as the rehabilitation of devadasis and their children in North Karnataka, by ensuring training and education. Tertiary education Infosys investments in the education system have qualitatively enhanced the talent pool in educational institutions to meet future demand. Campus Connect, an industry-academia partnership that covers over 100 universities, reaches out to faculty and students to bridge the gap between academic curricula and industry-readiness. Project Genesis is a part of the Infosys Affirmative Action Program (IAAP) initiated by Infosys BPO. It aims to enhance the skills of graduate students in B and C towns and improve their employability in the IT-enabled Services (ITeS) industry 6) Achievements :
In accordance with the Global Reporting Initiative (GRI) framework, Infosys‘ sustainability report encapsulates the progress made and future plans for the company's economic performance, innovation in offerings, people engagement, and corporate social responsibility initiatives. Sustainability Report 2009-10 Infosys' sustainability policy achieves business and sustainability goals while maximizing value for stakeholders. The policy aims to realize a 'sustainable tomorrow' by focusing on social contract, resource efficiency and green innovation. "At Infosys, sustainability is a way of being. It is not something we do beyond business; it is about our business. The urgency to build and carry forth a sustainable business model at Infosys is here to stay," says S. Gopalakrishnan, CEO and Managing Director, Infosys Technologies Ltd. Infosys' Sustainability Report 2009-10 follows the Global Reporting Initiatives (GRI) framework and takes into account the proactive engagements with global stakeholders to nurture local communities, conserve natural resources and reduce the environmental impact of operations. The report maps sustainability initiatives with GRI parameters and the principles of the United Nations Global Compact (UNGC).
CSR activities at Infosys DCs(development centers) in 2009: BANGALORE DC: Rakum School for the visually challenged: Mitr, the local CSR team, visited the Rakum School for the visually challenged. Mobility, an exercise in which team members walked blindfolded using canes, helped them empathize with the children. The team organized games and distributed chocolates and stationery. Notebook distribution: The Infynite Smiles CSR team has been distributing books and stationery to underprivileged children across Karnataka since 2001. In 2009, the team touched more than 45,000 lives, including the tribal community. Donations collected amounting to Rs. 10,00,000. The drive has been actively supported by the Dream School Foundation, Ramana Clinic, Sri Vivekananda Youth Movement, Chrysalis and other NGOs. BHUWANESHWAR DC: Project Genesis: This initiative of the Infosys Affirmative Action Program (IAAP) prepares students for a career in the Business Process Outsourcing industry. The project was launched in
Orissa in 2007 along with the state government to enhance the skills of academicians. Till date, 515 professors have been trained to make learning more focused by combining traditional teaching methods with modern education. In 2009, 70 professors underwent a 12-day training program. CHANDIGARH DC: Behavior and social skills development: Prayaas, the local CSR team, organized a program where 60 children from the Panchkula slum showcased their creativity in group activities. The children were imparted training in social etiquette. Medical camp and cleanliness drive: Prayaas has adopted Tanda village to drive social transformation in the region. The volunteers engaged residents in a cleanliness drive to prevent malaria. A free camp for eye and general medical check up was organized. Medicines and spectacles prescribed by doctors at the camp were distributed free of cost. The team collected data on health and sanitation related issues to address them. CHENNAI DC: Educare: Sneham, the local CSR team, manages a dedicated intranet portal to help employees support education of the children of our housekeeping and security staff. In 2009, 1,500 members contributed approximately Rs. 14,00,000 to support more than 370 students. Meritorious students were awarded for their performance. A special award was presented to a girl child with exceptional recitation skills. Helping the visually challenged: Infoscions partner with Nethrodaya, an NGO that works with visually challenged children. The volunteers regularly conduct weekend reading sessions. In 2009, organized a South India inter-state sports festival with modified versions of cricket, volleyball and chess. Facilities for rural schools: Volunteers constructed a water tank to supply drinking water to 1,000 students of the Avanippoor Government Higher Secondary School and have been donating notebooks to the Anoor School since 2005. In 2009, they also donated a water tank to the school and also distributed notebooks to the children of Infosys‘ support staff. HYDERABAD DC: PC donation drive: Mamata, the local CSR team, donated more than 105 PCs to institutions that undertake non-commercial and public activities and have already invited requests for the next list of beneficiaries. Day of Change: Every Wednesday, drop boxes are placed at the campus entrance and exit points, food courts and parking area to collect coins from Infoscions for social welfare activities. MYSORE DC:
Notebook distribution: Soften, the local CSR team, distributed 57,000 books, 36,000 pencils and 3,600 erasers in the Notebook Distribution Drive 2009. Underprivileged students from various schools have been benefiting from this drive since 2002. Language and computer education: Basic computer education was imparted to the security and housekeeping staff of the DC. Team also helped 10 guards improve their English language skills. Summer camp: A month-long workshop was conducted in May 2009 at Karunya Mane, a child rehabilitation center. 30 children were taught art and craft, dance, Math, English, environment awareness, traffic rules, health and fitness, and social etiquette. Quiz contests helped the children assess their general knowledge. Blood donation: More than 80 Infoscions donated blood in a special camp conducted in collaboration with the Mysore Rotary and Chandrakala Hospital. School for dropouts: Team works with Kaliyuva Mane, an informal school for dropouts run by the Divya Deepa Trust and interact with children in open classrooms through painting competitions and games. PUNE DC: Sparsh - A Healing Touch, local CSR team, is a registered NGO. In 2009, they conducted several programs. Eye donation camp: More than 330 Infoscions pledged to donate their eyes in a special camp organized with the Ruby Hall Clinic and Eye Bank Association of India.
Play and Live (PAL): sports were used to boost the confidence of underprivileged children, teach them various skills and change their outlook and they also donated sports equipment including carom and chess boards, and prizes such as watches, perfumes and chocolates. Blood donation camp: 700 volunteers donated blood during a two-day camp in June 2009. Three blood banks - ISIS Blood Bank, KEM and Janakalyan - participated. Doctors highlighted the need for safe blood donation at the camp. THIRUVANANTHAPURAM DC: Notebook distribution: Infosys CEO and Managing Director Gopalakrishnan inaugurated a notebook distribution drive, which benefited 4,000 students in 2009.
CHAPTER-4 ANALYSIS AND INTERPRETATION
ANALSIS AND INTERPRETATION OF DATA Introduction: Collective data means adequate analyzing and interpreting the data collected from Infosys and Reliance Industries Limited(RIL) , in order to provide a support system for accurate and proper analysis. And this entire project is based upon the case study of this companies the information is collected through secondary data i.e., through books, websites, journals, newspapers etc.
Table-1 CSR TOWARDS EMPLOYEES:
Responsibilities
No. of respondents
1)education of employees children
Infosys and RIL
2)literacy programme
Infosys and RIL
3)train the trainee programme for employees
Infosys and RIL
4)education and research group programme for employees children
Infosys and RIL
5)provides avenues for vocational, personal and psychological counsel to employees
Infosys and RIL
6)provides freedom to explore and learn
RIL
7)encourages every employees to reach his/her full potential
RIL
8)develop and recruit staff with skill and motivation to meet current and future business needs
RIL
9)medical facilities
Infosys and RIL
10)loan schemes
Infosys and RIL
11)employment of family members of deceased employee
Infosys and RIL
12)special scheme for handicapped family member of employees
Infosys and RIL
13)transport facilities to family member of employees
Infosys and RIL
14)priority for women employment
RIL
By referring to the above table the information can be grouped into two parts i.e., the table can be presented in the form of two diagrams where the first one shows the responsibilities taken over by both the companies and the second one shows the responsibilities exclusively taken over by RIL. Diagram 4.1: CSR undertaken by both the companies:
no. of respondents
Infosys RIL
1
2
3
4
5
9
10
11
12
13
From the above graph it can be seen that the horizontal axis represents the various responsibilities taken over by the companies and the vertical axis show the no. of respondents i.e., Infosys and RIL whether they are fulfilling this responsibilities or not. It can be inferred from the above graph that both the companies are providing education to employees children, training to employees, transport facilities etc., to the employees for the purpose of fulfilling their CSR objectives.
Diagram 4.2: responsibilities taken up only by RIL:
provides freedom to explore and learn(6) encourages every employees to reach his/her full potential(7) develop and recruit staff with skill and motivation (8) priority for women employment(14)
From the above diagram it can be seen that this are the additional responsibilities which is taken over by RIL but not Infosys i.e., freedom to explore and learn, encouraging every employee to reach their potential , developing and recruiting the staff with proper skill, and the most important is providing priority for women employment which is not generally taken by the companies but RIL has considered. So in terms of CSR towards employees RIL ranks in a first position as it undertakes all the responsibilities and Infosys ranks second as it is fulfilling some of the responsibilities when compared to RIL.
Table 2: CSR TOWARDS CUSTOMERS:
Responsibilities
No. of respondents
a)production of cheap and better quality of goods and services
Infosys and reliance industries limited
b)preventing the creation of monopolies
Infosys and RIL
c)providing after sale services
Infosys and RIL
d)following honest trade practices
Infosys and RIL
Diagram 4.3: responsibilities taken up by both the companies:
CSR towards customers production of cheap and better quality of goods and services preventing the creation of monopolies providing after sale services following honest trade practices
It can be inferred from the above diagram that both the companies i.e., RIL and Infosys follow all the responsibilities for achieving their objectives. It can be clearly seen that both the companies conduct their responsibilities correctly and accurately and provide quality services to its customers. Thus in terms of CSR towards customers they both ranked in a same position.
Table-3: CSR TOWARDS ENVIRONMENT:
Responsibilities a)conservation of resources b)prevention of pollution c)adherence to all applicable legislations d)eliminating accidents, occupational illnesses and injuries at work
No. of respondents Infosys and RIL Infosys and RIL Infosys and RIL Infosys and RIL
e)water management f)energy conservation g)waste management h)aforestration i)use of ecofriendly materials j)power generation from industrial by products
Infosys and RIL Infosys and RIL Infosys and RIL RIL RIL RIL
Diagram 4.4: corporate social responsibilities towards environment carried on by each company:
Infosys RIL
a
b
c
d
e
f
g
h
i
j
It can be noticed from the above graph that corporate are becoming more and more responsible towards environment. As noticed almost all the responsibilities are taken over by both the companies but RIL has fulfilled all the responsibilities when compared to Infosys so RIL stands in a better position than Infosys in terms of CSR towards environment. Table-4: CSR TOWARDS SOCIETY:
Responsibilities 1)world class healthcare for underprivileged 2)constructing hospital wards 3)donation of advanced equipments 4)organizing health camps and distributing medicines to underprivileged sections of society
No. of respondents Infosys and RIL Infosys and RIL Infosys and RIL Infosys and RIL
5)contruction of super speciality hospital for poor patients
Infosys and RIL
6)donating ambulances and high- tech surgical equipment to medical centers and hospitals
Infosys and RIL
7)educational programmes 8)rural reach programmes 9)catch them young program 10)promotes a gender- sensitive work environment for women
Infosys and RIL Infosys and RIL Infosys and RIL Infosys and RIL
11)providing daily meals to underprivileged children
RIL
12)conduct of blood donation camp 13)hostel for physically challenged female students
Infosys and RIL RIL
14)a project to tackle dyslexia for mentally underprivileged children
RIL
15)education programme for girl child in rural regions
RIL
16)development of CMC‘S 17)provides community safety and rural infrastructure facilities
RIL RIL
18)livelihood support programmes RIL 19)relief operations RIL 20)wild life and animal care RIL 21)heritage conservation RIL 22)supporting Indian culture RIL 23)promoting sports and sports person RIL 24)programme for abolition of child labour nil By referring to the above table the information collected for CSR towards society can be presented in two forms i.e., first it can be presented in a graphical manner where the responsibilities taken over by both the companies are shown and in the second form it is
presented in the form of a diagram which shows the responsibilities taken over by RIL but not Infosys and in table the last responsibility is not fulfilled by both the companies it is shown with different colour.
Diagram 4.5: responsibilities taken over by both the companies:
Infosys RIL
1
2
3
4
5
6
7
8
9
10
12
24
It can be inferred from the above graph that both the companies fulfill the responsibilities ranging from 1-10 and 12 but both of them does not fulfill the responsibility for abolition of child labour which is very important for every corporate society so both the companies stand in a same position in terms of responsibilities towards society by referring to the above graph.
Diagram 4.6: responsibilities exclusively taken over by RIL:
Reliance industries limited 11 23
11
22
13 14
13
15 21
14
16 17
20
15
18 19
19
16 18
17
20 21 22
From the above diagram it can be seen that this are the additional responsibilities which is taken over by RIL but not Infosys i.e hostel for physically challenged female students, providing community safety and rural infrastructure facilities , relief operations and etc.,and the most important is providing education programme for girl child in rural regions which is not generally taken by the companies but RIL has considered. So in terms of CSR towards society RIL ranks in a first position as it undertakes all the responsibilities and Infosys ranks second as it is fulfilling some of the responsibilities when compared to RIL.
Table-5: CSR TOWARDS SOCIAL ADVERTISEMENTS:
Responsibilities a)medical camp and cleanliness drive programme b)play and live(PAL) to boost confidence of underprivileged children. c)creating awareness about TB, HIV/AID‘S and its prevention. d)literacy programmes e)child labour f)consumer awareness g)health and hygeine h)safety on road and safe driving
No. of respondents Infosys and RIL Infosys RIL Infosys and RIL --Infosys and RIL Infosys and RIL RIL
Diagram 4.7: responsibilities taken up each company:
RIL Infosys a
b
c
d
e
f
g
h
Social advertisements generally means the social activities which is to be taken by every corporate world to achieve its objectives. So from the above graph it can be inferred that responsibilities towards medical camp and cleanliness programme, literacy programmes, consumer awareness programmes, and health and hygiene programme are undertaken by both the companies and RIL in addition to these also under takes awareness programme about TB, HIV/AID‘S and safety on road and safe driving. But both the companies does not take into consideration about the abolition of child labour which is very important for every corporate world. Diagram 4.8: it shows which company fulfills corporate responsibility effectively and efficiently: POLICY ON CSR:
39%
RIL 61%
INFOSYS
It can be inferred from the above diagram that out of the total corporate social responsibilities towards society, social advertisement, employees, environment and customers. RIL fulfills 61% of the responsibilities and Infosys fulfills 39% of the responsibilities. But both of them does not fulfill the responsibility towards abolition of child labour. so from the above diagram it can be known that RIL fulfills the majority of the responsibilities when compared with Infosys.
CHAPTER-5 CONCLUSIONS AND SUGGESTIONS
CONCLUSIONS: In conclusion it can be said that social consciousness of the companies today with respect to customer, employees, creditors, investors, owners, suppliers, interest groups, trade associations, local community, local government, state government, and foreign government is on a rise. This
project helped in covering a large number of aspects relating to these two companies to the field of corporate social responsibility (CSR) The following are the conclusions drawn from referring to these project:
Both the companies care about quality, research and development, health, safety and environment, energy conservation, corporate citizenship which is very essential for every organization to carry on its activities smoothly and effectively and there by accomplish its goals.
Generally CSR activities at Infosys is carried on the basis of DC‘s(development centers) where as RIL covers each and every aspect of the corporate world as a whole.
Both the companies provides world class health care to the people of the society there by constructing hospital wards, donating advanced equipments, organizes health camp for the people, and distributes medicines to the underprivileged sections of the society so in these way these two companies fulfill their responsibilities towards society effectively and efficiently.
When compared to Infosys RIL trains new recruits and grooms the next generations of leaders where as Infosys only educate and provide certain training to employees. At RIL people are always learning , irrespective of their age and work experience.
RIL mainly focuses its attention on providing education to physically challenged female students of the underprivileged segment of the society when compared to Infosys.
So these project covers the details of both the companies with regard to their growth, profitability, sustainability and responsibilities carried on by them towards various groups.
To conclude one may finally say that both the companies are doing well both on corporate governance and CSR(corporate social responsibility) although Reliance Industries(RIL) seems to be carrying on corporate responsibility more effectively and efficiently.
SUGGESTIONS:
The following are the few suggestions to both the companies which will enable them to fulfill corporate social responsibility more efficiently. 1. Corporate social audit should be conducted more often and periodically to evaluate correct actions and measures to improve performance withstanding the time and expense evolved. 2. The areas which requires special attention should be taken care of like abolition of child labour is not fulfilled by both the companies so measures should be taken to accomplish this task. 3. Corporations must communicate their CSR initiatives to promote a positive image about the company in people‘s mind. 4. Emphasize the need for better measurement of CSR that capture and estimate clearly the effects of a companies CSR actions on its companies stakeholders as well as the nation in which they are operating.
5. It is important for corporations to take CSR priorites seriously, bearing in mind the triple bottom –line of ‗people, planet and profit‘. This will not only help in the overall betterment of the country but will also help corporations to gain valuable mind space in stakeholders community as well.
BIBLIOGRAPHY
REFERENCES: Websites:
1. www.karmayog.org 2. www.ril.com 3. www.google.com
Books: 1. Principles and practice of management-L.M Prasad 2. Management theory and practice-C.B Gupta 3. Management –stephen P Robbins Mary coulter 4. Management-Ricky W. Griffin 5. Fundamentals of management –Donnelly Gibson and Iran Cevich
Journal: 1. THE CHARTERED ACCOUNTANT- volume 59 no.6 december 2010 Editor-CA. Amarjit Chopra
