seminar report iv sem
TRANSCRIPT
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Seminar Report
ON
TOPIC: - Social responsibility of the business
(2011-2013)
Submitted To :
Prof. AMANPREET SINGH Submitted by:
DIMPLE KUMAR
MBAII SEC D
Roll No.: 6350
SCHOOL OF MANAGEMENT STUDIES
P U N J A B I U N I V E R S I T Y P A T I A L A
http://mba-lectures.com/finance/introduction-to-finance/1183/factors-affecting-capital-structure-decisions.htmlhttp://mba-lectures.com/finance/introduction-to-finance/1183/factors-affecting-capital-structure-decisions.html -
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ACKNOWLEDGEMENT
I would like to take this opportunity to thank Dr. Amanpreet Singh, lecturer, MBA
Department, SMS, Punjabi University, Patiala who has been guiding force for my
Report on Corporate Social Responsibility.
I am also thankful to my friends, for their support and encouragement in finding out
the appropriate material for this Report, without them making this report would have
been impossible. Moreover I would be thankful to the MBA department for granting
us with such good books which help us with our project preparations and also helpful
in enhancing our knowledge and overall outlook regarding the subject.
Dimple Kumar
MBA2 (D)
Roll No. 6350
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1.Introduction
The recent economic meltdown reminds us of the damage caused by the uncontrolled
private economic independence blended along with irresponsible behaviour of the corporate
world. Through the years, the corporate entities have redefined their role in this multifarious
society. From a raw idea of profit maximization, its objective was changed to profit
optimization. This change canmainly be attributed to the identification of challenges posed
by the various social and economic concerns. The viability and sustainability of such
enterprises were questioned. The ongoing debate mainly draws the attention towards the
success and effectiveness of the voluntary compliance towards the environmental laws, legal
requirements, honest financial accounting shown by the companies and the boundaries
defined by it. Major debates exist over a number of key issues related to achieving efficient
and fair mechanisms at a global level. This cynicism could be marked as the beginning of the
theory of Social Responsibilityof business.Theoperations of business enterprises affect
a wide spectrum.The resources they make use of are not limited to those of the proprietors
and the impact of their operations is felt also by many people who are in no way connected
with the enterprises..The shareholders ,the suppliers of resources, the consumers , the local
community and society at large are affected by the way an enterprise functions . Hence ,a
business enterprise has to be socially very responsive so that a social balance may be struck
between the opposing interests of these groups. According to most analysts , industry in this
era can no longer be regarded as a private arrangement for enriching shareholders. It has
become a joint enterprise in which workers, management, consumers, the locality ,the
government and trade union officials all play a part. If the system of corporate environment
has to work properly and effectively , it has to be accountable to the public at large. It is from
here that the concept of SOCIAL RESPONSIBILY OF BUSINESS comes into
existence.
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2. Social Responsibility of business
There is no unanimity as to what constitutes corporate social responsibility. The
important generally accepted responsibilities of the corporate is world is towards
Shareholders, employees, consumersand community
2.1. Definitions
Social responsibility of business refers to what the business does ,over and above the
statutory requirement ,for the benefit of the society. The word responsibility connotes that the
business has some moral obligations to the society.
According to Lord Holme and Richard WattsSocial Responsibility is the continuing
commitment by business to behave ethically and contribute to economic development
while improving the quality of life of the workforce and their families as well as of the
local community and society at large
According to the European commission Corporate Social Responsibility is a concept
whereby companies decide voluntarily to contribute to a better society and a cleaner
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environment. Moreover a concept whereby companies integrate social and
environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis.
According to Archie B. Carroll ,Corporate Social Responsibility can be defined as theentire range of obligations business has to society.
2.3. HistoryThe term " social responsibility of business" came into common use in the late 1960s
and early 1970s after many multinational corporations formed the term stakeholder,
meaning those on whom an organization's activities have an impact. Before, for every
business organisation, the main objective was profit maximization. As the time passed, and
with the advent of globalization and technological advancement ,with the help of automation
and reduced workforce, it was felt that besides thinking only about enriching the shareholders
,would not do for the business firms. People were more alert ,employees working were more
concerned and Governments were more strict. It was felt that businesses could directly or
indirectly affect the interests of Local community, Shareholders, Employees,
Government, Societyand consumers .Such communities which could, directly or indirectly
get affected by the working of business were termed as Stakeholders. In this way the concept
of CORPORATE SOCIAL RESPONSIBILITY came into existence,whereby it became
important for the business firms to work according to the interests of their stakeholders. This
led to the concept of DOING BUSINESS WITH RESPONSIBILITY
http://en.wikipedia.org/wiki/Stakeholder_%28corporate%29http://en.wikipedia.org/wiki/Stakeholder_%28corporate%29 -
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3. Concept Of Social Responsibility of business
The concept of Corporate social responsibility is very wide and it has been defined
differently by different kinds of analysts. There are two most famous approaches used by the
business analysts :
3.1. ThreeDimensional conceptual Model Of Corporate
Performance
Archie B. Carroll defined corporate social responsibility as the entire range of
obligations business has to society, has proposed a three dimensional conceptual model of
corporate performance. According to Carroll, a firm has the following four categories of
obligations of corporate performance;
ECONOMIC: The firm being an economic entity, its primary responsibility iseconomic, that is, efficient operations to satisfy economic needs of the society and
generation of surplus for rewarding the investors and further development.
LEGAL: Legal responsibilities are also fundamental in nature because a company isbound to obey the law of the land.
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ETHICAL: Ethical responsibilities are certain norms which the society expects thebusiness to observe though they are not mandated by Law.For Example, a company
shall not resort to bribing or unethical practices ,unfair competitive practices etc.
DISCRETIONARY: Discretionary responsibilities refer to the voluntarycontribution of the business to the social cause, like involvement in community
development or other social programmes
In this way Carroll presented a pyramid of corporate social responsibility in
which economic responsibilities are at the base of pyramid, succeeded by legal
responsibilities , ethical responsibilities and finally Discretionary responsibilities.
3.2. Modern Approach Of Social Responsibility of businessAccording to todays approach, company is responsible for its work to its
stakeholders, that is people who directly or indirectly get affected by the working of
business .It must take responsibility to such class of people.
The above mentioned diagram represents the responsibility of company to various
class of people. These can be regarded as stakeholders
CONSUMERS LOCAL COMMUNITY SHAREHOLDERS EMPLOYEES
GOVERNMENT SOCIETY
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3.2.1. Responsibility To Consumers
According to Peter Drucker, there is only one valid definition of business
purpose; tocreate a customer. Drucker observes: The customer is the foundation of a
business and keeps it in existence. He alone gives employment. To supply the wants and
needs of a customer , society entrusts wealth-producing resources to the business
enterprise
It has been widely recognised that customer satisfaction shall be the key to
satisfying the organisational goals. Important responsibilities of the business to customers
are:
To improve the efficiency of the functioning of the business so as to increaseproductivity and reduce prices, improve quality and smoothen the distribution system
to make goods easily available
To do research and development , to improve quality and introduce better and newproducts.
To take appropriate steps to remove the imperfections in the distribution system ,including black marketing or profiteering by middlemen or anti social elements.
To supply goods at reasonable prices even when there is a sellers market.
To provide the required after-sales services.
To ensure that the product supplied has no adverse effect on the customer.
To provide sufficient information about the products ,including their adverse effects,risks, and care to be taken while using the products.
To avoid misleading the customers by improper advertisements or otherwise.
To provide an opportunity for being heard and to redress genuine grievances.
To understand customer needs and to take necessary measures to satisfy theses needs
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3.2.1.1. Need
The need for responsibility to customers is to its utmost, in present era. A
business organisation cannot surpass its interests over the interests of consumers ,in
this era of competition .A customer of this century is more alert and knows his/her
priorities. Moreover the intervention of consumer oriented regulations and consumer
acts ,make sure that corporate profit making does not take place ,via compromising
the interests of consumers .Hence the prime objective of companies has shifted from
profit making to profit optimization. Moreover it has been seen from recent times
that an organisation which works ,keeping in view the interests of consumers, are
more profitable in their business ventures and profit making
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3.2.1.2. Case Study
Tyson Foods, Inc. is amultinational corporationbased inSpringdale, Arkansas,USA,
that operates in the food industry.Thecompany is the world's second largest processor and
marketer of chicken, beef, and pork and annually exports the largest percentage of beef out of
United States. Recently, Tyson made a great effort towards consumer satisfaction ,by
launching a campaign in Austin in which it agreed to donate 100 pounds of chicken to the
Capital Area Food Bank of Texas for every comment posted on its blog. The step was taken
to make sure the company makes an impression of consumer oriented corporation. Most of
the times, the eatables are found to be of reasonable price range, offered by this company.In
return ,it has been found that the company is strongly benefitted from such policy opted.
Toyota Motor Corporation, abbreviated TMC, is a multinational automaker headquartered in
Toyota, Aichi, Japan. It is one of the largest automobile manufacturers of the world.
Recently, in India ,the two models of this company, being best sellers in the Indian market
were found to have a defect in the inlet pipe to fuel tank. These models were Sedan Etios and
small car Liva.The company immediately decided to call back 41000 units of both the car
models and also decided to replace the defective parts of the sold cars in free. Sandeep Singh,
Deputy MD of Toyota Motors said about replacing the defective parts in just 45 minutes ,free
of cost,making it sure that the consumers have no problem regarding their product sold to
them. This step taken by Toyota has led to increase in their sales in recent times and people have
drifted their interests from companies like Maruti, Hyundai etc to Toyota, creating a positive
impression.
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Springdale,_Arkansashttp://en.wikipedia.org/wiki/Food_industryhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Food_industryhttp://en.wikipedia.org/wiki/Springdale,_Arkansashttp://en.wikipedia.org/wiki/Multinational_corporation -
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3.2.2. Responsibility To The Community
A business has a lot of responsibility to the community around its location and to the society
at large. These responsibilities include:
Taking appropriate steps to prevent environmental pollution and to preserve theecological balance.
Rehabilitating the population displaced by the operation of the business, if any.
Assisting in the overall development of the locality. Taking steps to conserve scarce resources and developing alternatives ,whereby
possible.
Improving the efficiency of the business operation .
Contributing to research and development . Development of backward areas.
Promotion of ancillarisation and small scale industries .
Making possible contribution to furthering social causes like the promotion ofeducation and population control.
Contributing to the national effort to build up a better society.
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3.2.2.1. Need
In terms of a simple meaning, a community basically means a group of people
living in a particular area. The social responsibility of companies to such people is
very important, not only with regard to the locality, but it also makes an impression
towards the people. It has been said that COMMUNITY FORMS A
CONSUMER .The company must also take the responsibility to education and
appraisal of the society. Moreover the working of the company might result into
pollution, hence it must make itself responsible for such activities. Government
regulations, moreover can hinder the working of the company, if its found to have
gone negative with the concept of responsibility to Locality. In addition to it, such
activities relating to education appraisal and environmental pollution control canimprove brand image of that company. This creates trust in the mind of a consumer,
towards a company, regarding its products and services offered.
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3.2.2.2. Case Study
Infosys Limited, formerly Infosys Technologies Limited, is a global technology services
company headquartered in Bangalore, India. It has offices in 29 countries and development
centres in India, US, China, Australia, UK, Canada, Japan and many other countries. Infosys
has over 145,088 employees of 85 nationalities. Infosys provides business consulting,
technology, engineering and outsourcing services to help clients in over 30 countries. Infosys
is actively involved in various community development programs. Infosys promoted, in 1996,
the Infosys Foundation as a not-for-profit trust to which it contributes up to 1%PAT every
year. Additionally, the Education and Research Department (E&R) at Infosys also works with
employee volunteers on community development projects. Infosys leadership has set
examples in the area of corporate citizenship and has involved itself actively in key national
bodies. They have taken initiatives to work in the areas of Research and Education,
Community Service ,Rural Reach Programme, Employment, Welfare activities undertaken by
the Infosys Foundation, Healthcare for the poor, Education and Arts & Culture. Moreover it
contributes in charity too. In October 2009, the northern districts of Karnataka were severely
affected by floods after torrential rainfall. It claimed hundreds of lives and rendered millions
of villagers homeless. The employees of Infosys joined hands to rebuild villages and
undertake a mass housing project. Infoscions, together with the Board of Directors and the
Infosys Foundation, contributed US$ 6.8 million towards relief, rehabilitation and
reconstruction. In one more such case, Infosys donated 10 million (about $226,000) to help
with the effects of the 2005 Kashmir earthquakein Pakistan.
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3.2.3. Responsibility to employees
The responsibility of the organisation to the workers include:
The payment of fair wages .
The provision of labour welfare facilities to the extent possible and desirable
The provision of best possible working conditions
The establishment of fair work standards and norms
Arrangements for proper training and education of the workers.
Reasonable chances and proper system for accomplishment and promotion
Proper recognition ,appreciation and encouragement of special skills and capabilitiesof the workers .
The installation of an efficient grievance handling system.
An opportunity for participating in managerial decisions to the extent desirable
The incorporation of good managers with skilful techniques to handle the employees
Installation of recreational activities and other motivational programmes so as tocreate the work friendly environment and prevent stress in the organisation.
Promotion of formal communication system within the organisation, between theemployees and superiors.
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3.2.3.1. NEED
The success of an organisation depends to a very large extent on the morale of the
employees and their whole hearted co operation. Employee morale depends to a large
extent on the discharge of the companys responsibilities to them and the employer-
employee relationship .It is very important, in fact most important to the business
organisation to impart its responsibility to employees, if its main objective is to earn
profit. It is due to the fact that business is run by its employees and not the owners.
The employees must be satisfied with their job and this can only be possible if the
business organisation is concerned about its employees .Hence ,most of the times its
found that every business organisation ,of any sort, always gives priority to its
responsibility towards its employees. It is usually found in most cases that thecompany with satisfied employees usually gives better business performance.
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3.2.3.2. Case Study
Google Inc. is an American multinational Internet and software corporation
specialized in Internet search ,cloud computing, and advertising technologies. It hosts
and develops a number of Internet-based services and products, and generates profit
primarily from advertising programs. Google very early realised thatan innovative
workforce is very important to technology-driven companies. The company is very
famous for creating an informal, playful atmosphere in its offices to stimulate
creativity. Google spends millions of dollars offering employees on-site laundry
services, hair stylists, saunas, free car washes and more, its shareholders can't
complain. The stock has delivered a 80% return over the past five years. Hence the
company knows that business is done by employees and not by shareholders. Google,
thereby, manages to reward both shareholders and employees. It has been found out
that employees of Google are most satisfied by their job and most of them enjoy
working in such environment granted by Google management. According to a survey
conducted by an anonymous institution, Google is found to have ,one of the very few
companies with maximum number of satisfied employees, in the world. Moreover the
remuneration schemes opted and employee welfare criteria followed by them is
immensely liked by the business analysts. There is an effective conflict management
and stress management techniques used by Google. The environment granted by
Google to its employees is said to have friendly and stress free, thereby letting the
employees to impart maximum performance.
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3.2.4. Responsibility To Shareholders
The responsibility of a company to its share holders, who are the owners , is
indeed a primary one. The fact that the shareholders have taken a great risk in making
investment in the business should be adequately recognised.To protect the interests of the shareholders and employees, THE PRIMARY
BUSINESS OF A BUSINESS IS TO STAY IN BUSINESS. To safeguard the
capital of shareholders and to provide a reasonable dividend, the company has to
strengthen and consolidate its position .Hence , it should develop and improve its
business and build up its financial independence.
Needless to say, to provide dividend ,the company should earn sufficient
profit . Adequate reserves should be built up so that it will be able to declare a
reasonable dividend during a lean period as well.
If a company fails to cope with changes in a changing and dynamic world , its
position will be shaken , and the shareholders interests will be affected . By
innovation and growth the company should consolidate and improve its position and
help strengthen the share prices .
The shareholders are interested not only in the protection of their investment
and the return on it but also in the image of the company. It shall therefore e fully
satisfied by the management.
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3.2.5. Responsibility to Government
The responsibility to Government is indirect. The government is meant to
safeguard the interests of the people, the society , within which the government is
elected. HENCE satisfying the government with regard to responsibility means
satisfying the people of that country. There are certain rules and regulations relating to
safeguard the interests of the people . Its the responsibility of the company to follow
those rules and regulations. Certain laws of the government directly clash with the
profit making interests of the company. With no choice, the company has to follow
them, thinking with regard to future. With such rules followed, the companies get
good support from the government and it helps in expanding business and profit
optimization in long term prospective. Such companies are helped with partnerships
and loans from government bodies , hence creating a mutual interdependence between
them. The best example of such mutual interdependence is GM MOTORS, the
American automobile company, which filed Chapter 11 bankruptcy protection in a
New York court on June 1, 2009.The government immediately took an action and
bought 60 percent shares of the company. Most analysts believe that this was due to
the fact that GM has a reputation of a responsible company for almost 100 years
towards the government and towards the society , within which the company works.
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4. The Indian scenario
The Indian business sector presents a mixed picture as far as social responsibility is
concerned. This has started to occupy a prominent place in greater national discourse in the
pre-independence era. Until the 1990s, CSR were purely conducted for charity. Companies
like Tatas and Birlas were involved in CSR activities like financial grants for needy. The
corporate sector seems to have picked CSR activities after 1991 reforms of economic
liberalization, which provided a pathway for transformation of Indian businesses into large
global enterprises. Though industrial groups have resorted to a large scale welfare programs
before 1991, the beginning of economic liberalization and the free market economy in India
has major impact on increased focus on the social role of the private enterprises by both the
proponents and opponents of liberalization in India.
4.1. Legal framework
Corporate Social Responsibility has been making an increasingly prominent impact in
the Indian social psyche by supplementing development projects towards betterment of the
standard of life. But it is not a novel concept in India as its historical roots goes till the Vedic
age. In the past it was seen as a tool to organise the society together with strong community
ethos. Indian system of Corporate Social Responsibility can be divided into three:
(1) Gandhi an model: It is based on a voluntary agreement by the donor and the societybased on its commitment to public welfare based on ethical awareness of broad socialneeds.
(2) Nehru model: It is State-driven policy as it takes over the industry and imposes strict
regulations on them.
(3) Milton Friedman model: The interaction is limited to investors objectives opposed tocompanys overall image and direct and indirect stakeholder interests .
Such a legal framework provides for companies to work with responsibility. Hence, numberof leading companies have shown recognition of the corporate sector. The businesscommunities has been instrumental in setting up hundreds of institutions of public services inIndia and expended welfare measures like health and medical facilities to people of
surrounding villages, due to the fact that government supports the concept.
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4.2. CASE STUDY
TATA
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai,
Maharashtra, India. Right from its origin at 1968, the company is known to have worked for
the people, its employees and according to government regulation. The many companies of
Tata are involved in a wide variety of community development projects and programmes,
principally in India but also, increasingly, in different parts of the world. In fact, TATA was
responsible for the beginning of corporate social responsibility in India. J.R.D TATA was
instrumental in conducting the first social audit in India. It was noticed there was a great deal
of improvement in the effectiveness of the workers and employees after such an audit. There
are many companies and department which are devoted to CORPORATE SOCIAL
RESPONSIBILITY ,WHICH ARE AS FOLLOWING:
Tata Institute of Fundamental Research Tata Institute of Social Sciences Indian Institute of Science National Centre for Performing Arts Tata Management Training Centre Tata Memorial Hospital Tata Football Academy Tata Cricket Academy The JRD Tata Eco technology Centre
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5. Social Audit ,THE TECHNIQUE TO MEASURE
CORPORATE SOCIAL RESPONSIBILITY.
One important issue related to social responsibility of business is how to evaluate the
social performance .
Bauer and Fenn Jr. define social audit as a commitment to systematic assessment
of and activities on some meaningful , definable domain of the companys
activities that have social impact .
According to Ahmed Belkauoui ,social audit much like the financial audit is an
identification and examination of the activities of the firm in order to assess ,
evaluate , measure and report their impact on the immediate social
environment.
In simple words , social audit involves :
Identification of the firms activities having potential social impact.
Assessment and evaluation of the social costs and social benefits of suchactivities .
Measurement of the social costs and benefits .
Reporting , that is presenting in a proper format and manner , the socialperformance of the firm
5.1. Methods of Social Audit
Some of the important methods of social audit developed by different people or
organisation are as:
Social Process Audit: The aim of the social process audit , also called asProgramme management audit , is to develop an internal management
information system that will allow management to create and administer the
social programmes in a better way . This involves the determination of the
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objectives of the social programmes and the social cost benefit analysis of the
programmes with a view to determining whether these objectives have been
met.
Financial Statement Format Audit: Under the financial statement format audit, the social information is presented in the conventional financial statement
format, i.e. , balance sheet and income statement.
Macro-Micro Social Indicator Audit: The macro- micro social indicator auditattempts to evaluate the micro indicators against a set of macro indicators such
as national policies.
Constituency Group Audit: Under this audit, the preference and attitudes ofvarious constituencies are identified and measured and the firms performance
is evaluated against the criteria developed for each group.
Partial Social Audit : Partial Social Audit evaluates any particular aspects ofsocial performance like energy conservation or ecological preservation.
Comprehensive Audit: Comprehensive audit attempts to evaluate the totalperformance of the organisation including social performance.
Corporate Rating Approach: In contradistinction to the audits mentionedabove, this an external evaluation of the companys performance by public
groups like customer organisations , social welfare organisations or media
5.2. Obstacles to Social Audit
Social audit encounters a number of problems:
Being a relatively new concept, social audit is yet to gain wideappreciation and acceptance.
Being a relatively new concept, a clear and generally well acceptedmethodology for conducting the social audits is not available.
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5.4. Illustration Of social Accounts [CEMENT
CORPORATION OF INDIA LTD.]
1. Social Benefits and Costs to StaffA. Social Benefits to staff1. Medical and hospital facilities.2. Educational facilities.3. Canteen facilities.4. Recreation, entertainment and cultural activities.5. Housing and township facilities.6. Water supply, concessional electricity and transport .7. Training and career development.8. Provident fund, gratuity , bonus and insurance benefits.9. Holiday, leave encashment and leave travel benefits.10.Other benefits.
TOTAL BENEFITS TO STAFF
B. Social costs to staff1. Lay off and involuntary termination.2. Extra hours put in by officers voluntarily.
TOTAL COST TO STAFF
SOCIAL INCOME TO STAFF [A-B]
11.Social Benefits and costs to CommunityA. Social Benefits to Community1. Local taxes paid to panchayat / municipality.2. Environmental improvements.3. Generation of job potential4. Generation of business
TOTAL SOCIAL BENEFITS TO COMMUNITY.
B. Social Costs to Community1. Increase in cost of living in the vicinity on account of cement plans.
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6. Arguments Against Social Involvement
Business should confine to its own business. There are government and socialorganisations to carry out social activities.
Involvement in social activities could adversely affect the economic health of abusiness enterprise. It may be noted that the expenditures on social welfare has been
improving severe burden on companies following the concept of CSR.
If the cost of the social involvement of the business is ultimately passed on to theconsumers, there is no point in exalting the social involvement of business.
Sometimes there could even be a net loss to the society because of the high cost of the
corporate sector undertaking such activities.
Many companies involve themselves in social activities because of the tax exemptionson the income spent on special social purposes.
If the social involvement of a business enterprise causes an increase in the price of itsproducts, it could affect its competitiveness both in the domestic and international
markets.
Social involvement of business could lead to an increase in the dominance orinfluence of business of business over the society.
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7. Case Study
Emissions, effluents and wastes
Greenhouse Gas (GHG): Of the six Greenhouse Gases, Carbon Dioxide
is of most relevance to the steel industry. Considerable reduction has
been effected by Tata Steel in the Carbon Dioxide emission rate, as is
evident when the credit for slag granulation is taken into account. Other
Greenhouse Gas emissions do not result from Tata Steels activities.
Ozone depleting substances: The Steel Works reduced use of refrigerants to 7.044 tonnes in
2003-04 as against 7.90 tonnes used during the previous year.
Hazardous Waste under Basel Convention: The Company does not import or export any
waste, deemed hazardous under the Basel Convention. All hazardous wastes generated are
handled as per the requirement of the Hazardous Waste Management and Handling Rules
1989/2000.
Emissions
Tata Steel has undertaken several initiatives, which have resulted in
considerable reduction in stack emission. Emissions are well below the
Indian and international standards. The emission load including
particulate matter, Sulphur Dioxide and Oxides of Nitrogen have dropped
as a result of the improvement initiative undertaken at the Steel Works.
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Work area environment
Tata Steel has implemented a variety of mitigative measures to improve the working
environment at the shop floor and work area environment quality at different places.
Water discharges, runoff and the receiving ecosystems
The Company discharges its treated effluent from the works and treated domestic sewage
from township to the rivers Subernarekha and Kharkai. Studies carried out by NEERI in the
year 1993-95 and 2000 to assess impact on ecosystems/ habitats of rivers have found no
significant impact on the aquatic eco-system. Noamundi and Joda Iron Mines as well as West
Bokaro and Jharia Collieries have all achieved zero discharge. The domestic effluent is
discharged through the septic tank - soaking pit route at the Mines & Collieries. Sewage
treatment plants have been provided for the entire township at Jamshedpur. 100% of effluent
water is treated before being discharged upstream.
Waste handling
Most of the solid waste generated from Steel Works
is recycled or reused. 18% of the solid waste
generated, amounting to approximately 5,50,000
tonnes in 2003-04 was used to fill low-lying areas and
for peripheral road construction around Jamshedpur.
About 2,00,000 tonnes of fly ash and bottom ash, generated in the power plants was dumped
in a designated dump area.
Effluent Management
Waste water from the steel making process is being treated with best available physio-
chemical methods as well as being recycled. Waste water from the coke plant is treated
biologically where organic pollutants are oxidised and decomposed by micro organisms. The
Company has reduced the levels of total pollutant discharge in waste water streams from
0.211 in 1999-2000 to 0.178 in 2003-04.
THERE IS AN INTERESTING FACT REGARDING TATA THAT IT SPENDS 65% OF
ITS PROFITS ON CHARITY PURPOSES.
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Mahindra & Mahindra Limited (M&M) is an Indian multinational automaker
headquartered in Mumbai, Maharashtra, India. It is one of the largest automobile
manufacturer by production in India and subsidiary of Mahindra Group conglomerate. The
company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C.
Mahindra and J.C. Mahindra and Malik Ghulam Mohammed.
The company has been working continuously towards the RESPONSIBILITY TOWARS ITS
COMMUNITY, thereby working towards rise of CSR in India. The KC. Mahindra Education
Trust was founded almost over 60 years ago in 1953 to transform the lives of people in India
through education and financial assistance across age groups and income strata. Since then,
the company has provided the disadvantaged students with more than USD 16 million in
grants , scholarships and loans. Moreover:
The company has reached 83,245 beneficiaries through grants, scholarships,and loans.
5,804 Mahindra All India Talent Scholars have pursued vocational diplomacourses at Government polytechnic colleges.
1,023 deserving students have pursued graduate studies overseas with the K.C.Mahindra Scholarship for Post Graduate Studies Abroad.
3,467 top scoring students have received Mahindra Search for Talentscholarships.
75,000 underprivileged girl children have gone to school with Project NanhiKali.
3,000 disadvantaged youth have graduated from Mahindra Pride Schools withemployable skills and good jobs.
The K.C. Mahindra Education Trust is a registered public Charitable Trust
under the Bombay Trusts Act, 1950, and the Mahindra Group is the main
donor to its investment portfolio.
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Conclusion
India in the global level has emerged as a global leader with regards to knowledge and in
creating an intellectually high and socially sound society even on a limited basis. This
development can be mainly attributed to highly qualified research foundations and their deep
commitment towards problems in the system. Preparing corporate sector to tackle those
problems would provide much needed support to the independent organisation functioning
across the world. It would help to replicate success achieved through sustainable
development and disseminate it to the other parts of the world. A concern for social and
environmental development should be made a part of every corporate entity through its
inclusion in the annual agenda backed by strong and genuine programmes. Its up to the
lobbying groups and governmental agencies to convince the corporate power houses to come
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forward and take up the challenge by making them aware of the associated advantages that
these companies stand to gain from Corporate Social Responsibility. The argument that
Corporate Social Responsibility is not the area of concern of business corporations, and that
it is only for individuals and governments reasoning that it is the returns to the shareholders
that matter does not stand in the modern world. This microscopic view needs to be altered as
gone are those days where a sector was depend on a single enterprise limited to the borders
of that country. The holistic objective must be to achieve the macro-economic goals such as
achieving public welfare and sustainability of environment. The theory behind the origin of
CSR is growth oriented. It says that the income is earned only from the society and
therefore it should be given back; thus wealth is meant for use by self and the
public; the basic motive behind all types of business is to quench the hunger of the mankind
as a whole (not specific to a particular geographical area); the fundamental objective of all
business is only to help people.
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BIBLIOGRAPHY
L ibrary resources
Dr Cherunilam , Francis. Business environment. Eighth addition: HimalayanPublishing House, 2008.
I nternet sources
http://www.tatasteel.com/corporatesustainability/emissions.asp http://www.thestreet.com/story/10785007/1/10-best-companies-for-employees-and-
shareholders.html
http://www.tata.com/ourcommitment/sub_index.aspx?sectid=8UaXnU/ejSw= http://en.wikipedia.org/wiki/Corporate_social_responsibility www.asocio.org/policy/Corporate%20Social%20Responsibility http://timesfoundation.indiatimes.com/articleshow/4662536.cms http://economictimes.indiatimes.com http://www.mightylaws.in/ http://www.karmayog.org/newspaperarticles/newspaperarticles_9994.htm http://prince-csr.blogspot.in/2010/07/indian-companies-lead-by-example-in-csr.html http://www.socialbrite.org/2010/04/22/4-examples-of-corporate-social-responsibility-
done-right/
http://www.mightylaws.in/605/corporate-social-responsibility-enforceability http://www.mightylaws.in/773/corporate-social-responsibility-lessons-corporate-
world
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