05 An Empirical Study On Corporate Social Responsibility - Rajesh Kumar Shastri - GM023

ISBN - 978-93-81583-46-3
An Empirical Study on Corporate Social Responsibility Practices of Indian Public Sector Companies
Dr. Rajesh Kumar Shastri1, Anushree Singh2 1 Assistant Professor, 2Research Fellow 1,2 Department of Humanities and Social Sciences, Motilal Nehru National Institute of Technology, Allahabad 1 rkshastri@mnnit.ac.in; rajeshkumarshastri@gmail.com; 2anushree.mnnit@gmail.com

National Conference on Emerging Challenges for Sustainable Business 2012 440
Dr. Rajesh Kumar Shastri1, Anushree Singh2
Abstract
Purpose The purpose of this paper is to attempt to identify and investigate CSR initiatives of selected Indian Companies and to analyze the contribution made by these organizations towards the socioeconomic development of the country. Design/Methodology/Approach The CSR practices and policies of selected industries will be examined through the information collected from the questionnaire filled by CSR Representatives of the company. An extensive literature was done in order to identify the existing scale on the construct of present studies. From this review of previous tested and validated scale it was observed that no directly validated measure was available, which could be useful and borrowed for study. When no validated measure is available, new scale was developed through review of relevant conceptual literature and theoretical definitions of each construct. The Questionnaires were administered on 8 companies and was filled by the CSR representatives of the respective companies. The questionnaires filled will reveal the facts about the policy formulation for CSR, implementation, pattern of allocation of budget for CSR, and rationale for adopting CSR practices in Public sector organizations. Hence, the quantitative and qualitative methodology will be used to explore the facts. Research limitations/implications The limitation of the research is that companies are not very open to researchers and often would like to present themselves in a public relations manner and not reveal the true condition of the company. Practical Implications The paper will identify and classify major CSR initiatives and activities of the companies in the terms of social cost contribution of the companies towards the society and this will be helpful in identifying the approaches that are being adopted by government sector organizations. Originality/Value In this study several original findings identified by analyzing the different range of CSR policies, practices and activities of the companies will provide a valuable insight into how the organizations are practicing CSR. The study provides an evaluation of what is presently being done, and proposes ways through which the business contribution could be enhanced in order to help more people in need. Keywords: Corporate Social Responsibility, Public Sector Organizations, Government, Socio economic development. Paper Type: Empirical Paper Subtheme General Management CodeNo.GM023
1.0 Introduction:
The public sector has been playing a vital role in the economic development of the country. In fact the public sector has come to occupy such an important place in our economy, that on its effective performance depends largely the achievement of the country's economic and social goals. The importance of Public Sector Units (PSUs) in the Indian economy can never be over emphasized. They account for over 22% of the countrys GDP, around 6% of the total employment in the organized sector and over 20% of direct and indirect tax collections. A number of PSUs also serve critical functions of furthering the socio-economic objectives of the Government and ensuring stability in prices of key product and commodities. The public sector in India was set up with the objective of achieving inclusive growth aimed at ensuring equity and justice to the overall community/society. Consequently, CPSEs have been pioneers in implementing Corporate Social Responsibility (CSR) initiatives towards community growth and development while achieving their commercial mandate. Over the past few years, as a consequence of rising globalization and pressing ecological issues, the perception of the role of corporates in the broader societal context within which it operates, has been altered. Companies are now realizing thatin order to stay productive, competitive, and relevant in arapidly changing business world, they have to becomesocially responsible. With growing public awareness and demand for socially responsible businesses, companies are taking corporate social responsibility into account when planning future socially responsible business operations. They use the term to define organizations commitment to the society and environment in which it operates. For discharging their social responsibilities companies are using CSR Codes, .i.e. self regulatory instruments. In the absence of statutory regulations the large companies are increasingly declaring their principles to monitor CSR programs and in result the small enterprises are also adopting these principles as a standard guideline to show that they are doing CSR. In recent past, certain guidelines and indicators have been developed nationally and internationally such as Voluntary Guidelines, UN Global Compact, etc. But all these initiatives are advisory not mandatory for companies. The idea that CSR is important to profitability and can prevent the loss of customers, shareholders, and even employees is gaining increasing acceptance.And in the absence of proper legislative guideline, companies are widely
adopting CSR approach for making their brand image, increasing profitability etc. Hence adoption of such regulatory practices invites us to examine the reasons that why the large companies do so and what role should government play in controlling such practices. This paper discusses about the reasons behind adoption of self-regulatory CSR codes and role government should play in making CSR a statutory obligation. The Objectives of this study are: 1. To identify the major trends of CSR practices among the participating companies. 2. To identify if there are any differences/uniqueness in practicing CSR. 3. To identify the role of government in facilitating CSR. 4. To identify the main areas of interventions of CSR practices. 5. To identify the budgeting pattern for CSR among the participating companies.
2.0 Corporate Social Responsibility:

2.1. Literature Review The concept of CSR captures the dynamics of the relationship between business and society (Davis et al., 1988). The core theme of CSR is to deal, interact and relate with stakeholders with an ethical approach (Hopkins, 2003) that is not harming or hurting any stakeholder (Sethi, 1979; Carroll, 1979; Waddock, 2004; Andrews, 1971; Buchholz and Rosenthal, 2002; Wood, 1991; Jones, 2005). While there is no universal definition of corporate social responsibility, it
generally refers to transparent business practices that are based on ethical values, compliance with legal requirements, and respect for people, communities, and the environment. Thus, beyond making profits, companies are responsible for the totality of their impact on people and the planet. The totality of CSR can be best understood by three words: corporate, social, and responsibility. In broad terms, CSR relates to responsibilities corporations have towards society within which they are based and operate. CSR is comprehended differently by different people. Friedman believed that There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits (Friedman, 1970). He famously argued that the business of business is business, reasoning that the sole responsibility of the organization was its shareholders, providing profits for them. He acknowledged legal and ethical constraints on business activity, emphasizing that the organization should not harm society, but he denied that it should assume any wider social responsibility for its maintenance
and improvement. The ideology of CSR in the 1950s was primarily based on an assumption of the obligation of business to society. This obligation arose because some scholars and practitioners saw business as an instrument of society and managers as public trustees whose main job was to balance often competing demands of employees, customers, suppliers, com munities and shareholders (Banerjee, 2007). Carroll (1991) has sharpened the definition of CSR by stating that businesses have four basic responsibilities to society: economic, legal, ethical, and discretionary. Wood (1991) suggests that the public responsibility of business is divided into areas of social involvement directly related to their business activities and competencies, with secondary areas of involvement relating to its primary activities. Others have offered several distinct definitions of Corporate Social Responsibility. One from the World Business Council for Sustainable Development reflects the councils focus on economic development in describing CSR as business commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life (WBCSD). The core idea of the CSR concept is that the business sector should play a deeper (noneconomic) role in society than only producing goods and making pro fits. This includes society and environmentally driven actions, meaning that the business sector is supposed to go beyond its profit-oriented commercial activities and increase the well-being of the community, thereby making the world a better place (Robins, 2005). The concept of CSR is not new in India and has occupied a prominent place in the business world. A lot of organizations today are trying to forge a strategic link between their business endeavors and their social responsibility. They are trying to develop a model which will help them to serve the community at large, while still remaining profitable (Bansal and Srivastava, 2008 ). Corporations are actively involved in CSR practices through education, healthcare, rural development, environment protection, protection of artistic and cultural heritage and disaster management, etc., They are not only devoting their financial resources but also, expertise, manpower, products and services for the successful implementation of such schemes. However, expectations of business behavior are growing all over the world - and therefore, an another trend is a growing debate about what responsibility businesses have for sustaining the developments made by them. According to CII President K V Kamath CSR must become part of the DNA of corporate to ensure sustained, inclusive growth. Prime Minister has also called upon corporate by introducing Ten Point Social Charter to get
involve in Inclusive Growth of the country (Confederation of Indian Industry (CII) annual session, May 2007).
2.2. Corporate Social Responsibility in India:

CSR has become increasingly prominent in the Indian corporate scenario because organizations have realized that besides growing their businesses it is also essential to build trustworthy and sustainable relationships with the community at large. This is one of the key drivers of CSR programs. Another reason stimulating this rapid adoption of CSR is the state of the Indian society. Though India is one of the fastest growing economies, socio-economic problems like poverty, illiteracy, lack of healthcare etc. are still ever-present and the government has limited resources to tackle these challenges. This situation has opened up several areas for businesses to contribute towards social development. CSR is not a new concept in India. Corporates like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, etc, have been involved in serving the community since decades. Many other organizations have been doing their part for the society through donations and charity events. Today, CSR in India has gone beyond merely charity and donations, and is approached in a more organized fashion. It has become an integral part of the corporate strategy. Companies have CSR teams that formulate specific policies, strategies and goals for their CSR programs and set aside budgets to support them. 2.2.1. Government initiatives in CSR: Several major CSR initiatives have been launched in India since the mid-1990s. Among these is the first voluntary code of corporate governance, Desirable Corporate Governance: A Code, established in April 1998. This was an initiative by the Confederation of Indian Industry (CII), Indias largest industry and business association. A National Foundation for Corporate Governance (NFCG) has been established by the Ministry of Corporate Affairs. This is a partnership with the Confederation of Indian Industry (CII), the Institute of Company Secretaries of India (ICSI) and the Institute of Chartered Accountants of India (ICAI). The purpose of the National Foundation for Corporate Governanceis to promote better corporate governance practices and raise the standard of corporate governance in India towards achieving stability and growth.
Legislation authority in India is shared between the Central Government and the State Governments. Some laws, such as those regulating minimum wages, differ from state to state. Likewise, the implementation and supervision mechanisms may vary between states. Indias Ministry of Corporate Affairs has launched voluntary guidelines for responsible business which aim to add value to the operations and contribute towards the long term sustainability of the business. These guidelines also aim to enable business to focus as well as contribute towards the interests of the stakeholders and the society.The new CSR guidelines state that the CSR initiatives of Indian companies should become integral part of overall business policy and aligned with business goals. 2.1.2.Approach adopted by Corporations in practicing CSR: As there are no standard mandatory guidelines to follow CSR, corporations themselves develop different approaches for practicing CSR. However government has incorporated some voluntary guidelines but since these are voluntary in nature, companies adopt those which suits appropriate their criterion. Following are the some approaches which they generally follow for practicing CSR:
1. An approach for CSR that is becoming more widely accepted is community-based

development approach. In this approach, corporations work with local communities to better themselves. 2. A more common approach of CSR is philanthropy. This includes monetary donations and aid given to local organizations and impoverished communities in developing countries. 3. Another approach to CSR is to incorporate the CSR strategy directly into the business strategy of an organization. 4. Another one is collaborating with civil societies, NGOs, etc for discharging social responsibilities.
3.0. Research Methods and Analysis:

Every research needs a design and structure before data collection and analysis. The Research Design is made to ensure that the evidences obtained can enables us to answer initial questions as clearly as possible. With reference to my study my research work, I shall be focus on following research methods.
3.1. SETTING UP OF OBJECTIVE AND DEFINING RESEARCH PROBLEM: Corporate social responsibility is represented by the contributions undertaken by the companiestowards society through its core business activities, social investment,
philanthropyprogrammes and engagement in public policy. Although CSR is not new in Indiabut during recent years CSR has become a fundamental voluntary business practice and has gained much attention from core management teams of larger internationalcompanies. They understand that a strong CSR program is an essential element in achieving high rate of return and icon building of the company. Companies are determinedthat their impact on the economic, social and environmental through CSR, directly affects theirrelationships with stakeholders,
investors.employees, customers, businesspartners, governments and communities.Special emphasis will be given to understand the role of government in facilitating CSR practices. This work is primarily aims at studying and analyzing the various CSR practices in select Indian companies. The research problem covered broadly in this study related to economic, social, and ethical effects of CSR. An exploratory Research will be conducted in order to understand the varying nature of CSR practices in different types of organization.
Sample Selection: As we have discussed earlier, that this study aims to explore the CSR practices and policies of Public Sector Undertakings, hence we selected 8 companies randomly from the universe of public sector undertakings. The selected companies belong to different categories of PSUs: Maharatna, Navratna, Miniratna.
Questionnaire:There are total 12 different sections in the questionnaire and each sections contains different numbers of statements which are asked to rate on 5 Point scale (Likert-Scale), ranging from strongly agree to strongly disagree.
Data Collection:The Questionnaires were administered on 8 companies and was filled by the CSR representatives of the respective companies. Out of which 4 companies were personally visited and to other 4 companies the questionnaire was mailed. Data Analysis: The objective of the study is not to rank the companies against each other, but to provide a portrait of the means expanded by PSUs for their CSR Policies. Since it was an
exploratory study, we chose an open coding. Then, we analyzed each question of the questionnaires with the following procedure: 1. What are the major trends for CSR among the participating companies? 2. Are there unusual cases? 3. What is the role of government in facilitating CSR practices? 4.0. Study Findings: 4.1.CSR initiatives and policies in the organization: After analyzing the responses of all the companies and annual reports it was found that all 8 companies have integrated CSR policies into their general business practices. The major findings in this section are All companies have well established CSR policies and they also have a different cell for CSR to look over the formation, implementation and monitoring of CSR practices. Almost all companies have their own system of developing CSR policies; they dont involve consultation of any third party while forming their policies. Senior Management Decisions play main role in finalizing CSR policies, while only 3 companies have said that they involve employees including worker while forming CSR policies.
The organization follows the CSR policies. Cumulative Frequency Valid Strongly Agree 8 Percent 100.0 Valid Percent 100.0 Percent 100.0
Table 1:The organization follows the CSR policies
The organization has its own system for developing CSR policies. Cumulative Frequency Valid Strongly Agree Somewhat Agree Neither Agree Nor Disagree Total 4 3 1 8 Percent 50.0 37.5 12.5 100.0 Valid Percent 50.0 37.5 12.5 100.0 Percent 50.0 87.5 100.0
Table 2: The organization has its own system for developing CSR policies
Organization always follows the senior management decisions in CSR issues Cumulative Frequency Valid Strongly Agree Somewhat Agree Total 5 3 8 Percent 62.5 37.5 100.0 Valid Percent 62.5 37.5 100.0 Percent 62.5 100.0
Table 3: Organization involves third party in formulation of CSR policies.
Organization involves third party in formulation of CSR policies. Cumulative Frequency Valid Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree Total 1 1 1 1 4 8 Percent 12.5 12.5 12.5 12.5 50.0 100.0 Valid Percent 12.5 12.5 12.5 12.5 50.0 100.0 Percent 12.5 25.0 37.5 50.0 100.0
Table 4: Organization always follows the senior management decisions in CSR issues
Organization always follows the CSR practices of other reputed companies. Cumulative Frequency Valid Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Strongly Disagree Total 2 2 3 1 8 Percent 25.0 25.0 37.5 12.5 100.0 Valid Percent 25.0 25.0 37.5 12.5 100.0 Percent 25.0 50.0 87.5 100.0
Table 5: Organization always follows the CSR practices of other reputed companies.
Management provides training on CSR issues to employees engaged in implementation of CSR. Cumulative Frequency Valid Strongly Agree Somewhat Agree Somewhat Disagree Total 5 2 1 8 Percent 62.5 25.0 12.5 100.0 Valid Percent 62.5 25.0 12.5 100.0 Percent 62.5 87.5 100.0
Table 6: Management provides training on CSR issues to employees engaged in implementation of CSR.
CSR practices may be more effective instead of commercial advertisement in building image. Cumulative Frequency Valid Strongly Agree Somewhat Agree Neither Agree Nor Disagree Strongly Disagree Total 5 1 1 1 8 Percent 62.5 12.5 12.5 12.5 100.0 Valid Percent 62.5 12.5 12.5 12.5 100.0 Percent 62.5 75.0 87.5 100.0
Table 7: CSR practices may be more effective instead of commercial advertisement in building
4.2. CSR Implementation Strategies/PoliciesThis section contains 4 parts in which companies have been asked about how they implement CSR strategies, what are the target groups selected by them for practicing CSR and how they identify the areas of intervention for their CSR practices: 4.2.1. Company Implement CSR strategies through Direct Intervention, Registered Society, Partner NGOs or charity/donations The finding of this section shows the mix response from all of the companies, some companies told that they implement CSR strategies through direct intervention, while some companies implement through registered society and partner NGOs and none of the company supports the charity and donation aspect of CSR.
Company implement CSR Strategies through direct intervention. Cumulative Frequency Valid Very High High Moderate Very Low Total 2 1 4 1 8 Percent 25.0 12.5 50.0 12.5 100.0 Valid Percent 25.0 12.5 50.0 12.5 100.0 Percent 25.0 37.5 87.5 100.0
Table: 8 Company implement CSR Strategies through direct intervention.
Company implement CSR Strategies with Registered Society Cumulative Frequency Valid Very High High Moderate Total 2 5 1 8 Percent 25.0 62.5 12.5 100.0 Valid Percent 25.0 62.5 12.5 100.0 Percent 25.0 87.5 100.0
Table 9: Company implement CSR Strategies with Registered Society
Company implement CSR Strategies with Partner NGOs Cumulative Frequency Valid Very High High Low Total 5 2 1 8 Percent 62.5 25.0 12.5 100.0 Valid Percent 62.5 25.0 12.5 100.0 Percent 62.5 87.5 100.0
Table 10: Company implement CSR Strategies with Partner NGOs

Company implement CSR Strategies by Organizing charitable events every year. Cumulative Frequency Valid Moderate Low Very Low Total 4 1 3 8 Percent 50.0 12.5 37.5 100.0 Valid Percent 50.0 12.5 37.5 100.0 Percent 50.0 62.5 100.0
Table 11: Company implement CSR Strategies by Organizing charitable events every year.
4.2.2. Target Groups undertaken by company: It has been found that the target groups for practicing CSR selected by the companies are mostly the communities that come under operating areas of particular company and the groups identified in consultation with NGOs.
Target groups undertaken by company are Communities that come under operating area. Cumulative Frequency Valid Very High High Very Low Total 6 1 1 8 Percent 75.0 12.5 12.5 100.0 Valid Percent 75.0 12.5 12.5 100.0 Percent 75.0 87.5 100.0
Table 12: Target groups undertaken by company are Communities that come under operating
Target groups undertaken by company are Groups selected in consultation with NGOs. Frequency Valid Very High High Low Very Low Total 1 4 2 1 8 Percent 12.5 50.0 25.0 12.5 100.0 Valid Percent 12.5 50.0 25.0 12.5 100.0 Cumulative Percent 12.5 62.5 87.5 100.0
Table 13: Target groups undertaken by company are Groups selected in consultation with NGOs.
Target groups undertaken by company are areas/communities selected randomly Frequency Percent Valid Percent Cumulative Percent
Valid
High Low Total
1 3 8
12.5 25.0 37.5 25.0 100.0
12.5 25.0 37.5 25.0 100.0
12.5 37.5 75.0 100.0
Moderate 2 VeryLow 2
Table 14: Target groups undertaken by company are areas/communities selected randomly
4.2.3. Companies identify the areas of intervention by Company Policies, Senior Management Decisions or through interaction among management and employeesCompany Policies and senior management decisions were rated high for identifying the area of intervention for CSR, while interaction among management, employees and local community got very low rating in the questionnaire.
Company identifies the areas of intervention for CSR by Company's Policies Cumulative Frequency Valid Very High Moderate Total 7 1 8 Percent 87.5 12.5 100.0 Valid Percent 87.5 12.5 100.0 Percent 87.5 100.0
Table: 15: Company identifies the areas of intervention for CSR by Company's Policies
Company identifies the areas of intervention for CSR by decisions made by Senior Management. Cumulative Frequency Valid Very High High Moderate Total 5 1 2 8 Percent 62.5 12.5 25.0 100.0 Valid Percent 62.5 12.5 25.0 100.0 Percent 62.5 75.0 100.0
Table: 16 Company identifies the areas of intervention for CSR by decisions made by Senior Management.
4.3. Role of Government in facilitating CSR practices: While analyzing the role of government in CSR it was found that companies expect a huge amount support from government in facilitating the implementation of CSR practices, in collaborating with government in social development projects, government initiatives in formulation and implementation of practices, the companies also expect resources for capacity building for doing CSR from government. While when asked about the role of government in regulating the activities of CSR with a legal framework there was a mixed response from all the companies, some supports this view while others dont want government monitoring.
The government should facilitate to companies in implementation of CSR practices. Frequency Valid Strongly Agree Somewhat Agree Total 6 2 8 Percent 75.0 25.0 100.0 Valid Percent 75.0 25.0 100.0 Cumulative Percent 75.0 100.0
Table 17: The government should facilitate to companies in implementation of CSR practices.
Government should offers collaboration in social development projects with the company.
Frequency Valid Strongly Agree Somewhat Agree Total 5 3 8 Percent 62.5 37.5 100.0 Valid Percent 62.5 37.5 100.0 Cumulative Percent 62.5 100.0
Table 18: Government should offers collaboration in social development projects with the company.
Government should take initiatives in formulation and implementation of CSR practices. Cumulative Frequency Valid Strongly Agree Somewhat Agree Total 5 3 8 Percent 62.5 37.5 100.0 Valid Percent 62.5 37.5 100.0 Percent 62.5 100.0
Table 19: Government should take initiatives in formulation and implementation of CSR practices.
Government should provide resources to companies for building their capacity to do CSR. Cumulative Frequency Valid Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Total 5 1 1 1 8 Percent 62.5 12.5 12.5 12.5 100.0 Valid Percent 62.5 12.5 12.5 12.5 100.0 Percent 62.5 75.0 87.5 100.0
Table 20: Government should provide resources to companies for building their capacity to do CSR.
Government should monitor with legal network to CSR practices of companies. Cumulative Frequency Valid Strongly Agree Somewhat Agree Neither Agree Nor Disagree Somewhat Disagree Total 2 2 3 1 8 Percent 25.0 25.0 37.5 12.5 100.0 Valid Percent 25.0 25.0 37.5 12.5 100.0 Percent 25.0 50.0 87.5 100.0
Table 21: Government should monitor with legal network to CSR practices of companies.
4.4. Activities Covered for Practicing CSR: The companies were asked to tick on the activities that they cover while doing practices of CSR. These activities are: Education Healthcare Community Welfare Women Empowerment Rural Development Environment protection Children welfare Disaster management Charity/Donations Supporting Civil Society
It was found through the questionnaires and companys website that all the companies targeted are involved in almost all types of CSR activities among which Education, Healthcare, Community Welfare, Environment Protection are the major activities covered while Disaster Management, Charity/donations are the least covered activities.The responses
from companies are showed infollowing table, which shows the activities covered by each company for practicing CSR. Table showing activities covered by selected companies for practicing CSR
Company Name Activities Covered Education Healthcare Community Welfare Women Empowerment Rural Development Environment Protection Children Welfare Disaster Management Charity/Donations Supporting Civil Society X X X X X X X X X X X X X X X X X X HPCL BPCL IOCL Power Grid GAIL EIL BHEL BPC Limited X X X
Table 22: Activities covered by selected companies for practicing CSR
Except two companies all other companies have also evaluated above activities proportionally in percentage, which has been showed in following graph: Graph showing activities (in %) covered by selected companies for practicing CSR
35 30 25 20 GAIL 15 10 5 0 IOCL BHEL BPCL BPC EIL
Graph: 1 Activities (in %) covered by selected companies for practicing CSR
5.0. Discussion and Conclusions:

To argue in the favour of CSR practices of PSUs we can say that they are actively involved in CSR practices and are highly motivated for adopting better practices that can lead the country towards a more better social and economic development. From the above findings we are able to observe that the selected PSUs are trying to manage their CSR department in a very good manner. As discussed above PSUs are expecting huge amount of support from government for implementing CSR policies and in return government is also trying to facilitate them by launching various Guidelines, norms and procedures. The government demands that the CPSEs should invest a part of their profit on social and environment issues, thereby focusing profitability on the triple bottom linesocial, environmental and economicwith an integrated approach. The guideline makes it mandatory for the profit-making PSUs to create a CSR budget by allocating 0.5% to 5% of the net profit of the previous year. Loss-making PSUs are not mandated to earmark a CSR budget but advised to integrate business processes with social processes. Through this, it is estimated that a total annual CSR budget of Rs 5,000 crore will be created with the potential to make a tremendous impact on the development of the country. From the empirical findings discussed above it is observed that these PSUs have an approach of community-based development while also considering the environmental impacts of the company.In the case of initiatives they adopt for CSR activities Education, Healthcare and Community Welfare are the most prioritized activities that these companies prefer to follow. One main limitation that arises in data analysis is the no response for the question of budgeting pattern; most of the companies dont want to reveal their financial data for CSR. Hence, we were unable to analyze the budgeting pattern of selected companies. Employee involvement in taking decisions have been seen in some companies and this will help in motivating them to voluntarily participate in CSR practices. The people centric approach of Indian PSUs makes their CSR practices unique. A strong focus on people and community including fostering inclusive growth, workforce development, diversity at workplace, training and a better community environment beyond money and fringe benefits has brought some positive signals of high retention rates and greater employee commitment.
Government is playing a very significant role in facilitating the formulation and implementation of CSR policies and practices, but when it comes to monitor the activities of CSR by government the companies are highly against. They think that the role of government in regulating their CSR activities should be limited. But proper monitoring and evaluation of such practices can give better results as it will help in finding out the loopholes where the companies are lacking. CSR holds a very important place in the development scenario of the world today and can pose as an alternative tool for sustainable development. As companies have shown great concerns for their immediate community and the stakeholders, it can be safely concluded that much of the fate of society lies in the hands of the corporate. A successfully implemented CSR strategy calls for aligning these initiatives with business objectives and corporate responsibility across the business principles to make CSR sharper, smarter, and focused on what really matters.With increasing and widespread commitment of corporate resources to CSR, attention is now shifting to the strategic formulation, implementation, and measurement of the market returns to CSR initiatives. But still a concern to companies is whether their focus on doing good, will provide positive returns to their CSR actions. This emphasize the need for better measurement models of CSR that capture and estimate clearly the effects of a companys CSR actions on its stakeholders as well as the nations in which they are operating.
References:
Andrews, K.R. (1971), The Concept of Corporate Strategy, Irwin, Burr Ridge, IL. Banerjee, S.B., 2007. Corporate Social Responsibility: The Good, the Bad and theUgly. Edward Elgar Publishing Limited. Bansal, I. and J. Srivastava, 2008.Creating sociallyresponsible systems for holistic development. Social Responsibility Journal, 4(4): 464-473. Buchholz, R.A. and Rosenthal, S.B. (2002), Social responsibility and business ethics, in Frederick, R.E. (Ed.), A Companion to Business Ethics, Blackwell, Oxford, pp. 303-21. Carroll, A.B. (1979), A three-dimensional conceptual model of corporate performance, Academy of Management Review, Vol. 4 No. 4, pp. 497-505 Carroll, A.B ., 1991. The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4): 39-48.
Das, S.C., 2009. Status and direction of corporate social in Indian perspective: An exploratory study. Social ResponsibilityJounal, 5(1): 34-47. Davis, K., Frederick, W.C. and Post, J.E. (1988), Business and Society, The McGraw-Hill Series in Management, McGraw-Hill, New York, NY. Friedman, M., 1970. The social responsibility of business is to increase its profits. New York Times Mag., 13 September. Hopkins, M., 2008. Corporate social responsibility and international development: Is business the solution? 1st South Indian Edn., Earth Scan Publication, ISBN: 13:978 1 84407356 6. Jones, M.T. (2005), The transnational corporation, corporate social responsibility and the Outsourcing debate, The Journal of American Academy of Business, Vol. 2, March, pp. 91-7. Robins, F., 2005. Why corporate social responsibility should be popularized but not imposed. Proceedings of the European Academy of Management Conference, 2005, Munich. Sethi, S.P. (1979), A conceptual framework for environmental analysis of social issues and evaluation of business response pattern, Academy of Management Review, Vol. 4 No. 1, pp. 63-74. Waddock, S. (2004), Parallel universes: companies, academics, and the progress of corporate citizenship, Business and Society Review, Vol. 109 No. 1, pp. 5-42. Wood, D., 1991. Corporate social performance revisited.Academy of Manage. Review, 16(4): 691-618.

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ISBN - 978-93-81583-46-3

National Conference on Emerging Challenges for Sustainable Business 2012 440

National Conference on Emerging Challenges for Sustainable Business 2012 441

2.0 Corporate Social Responsibility:

2.2. Corporate Social Responsibility in India:

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1. An approach for CSR that is becoming more widely accepted is community-based

3.0. Research Methods and Analysis:

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Table 1:The organization follows the CSR policies

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Table 3: Organization involves third party in formulation of CSR policies.

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Table: 8 Company implement CSR Strategies through direct intervention.

Table 9: Company implement CSR Strategies with Registered Society

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Table 10: Company implement CSR Strategies with Partner NGOs

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High Low Total

12.5 25.0 37.5 25.0 100.0

12.5 25.0 37.5 25.0 100.0

12.5 37.5 75.0 100.0

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Table 22: Activities covered by selected companies for practicing CSR

Graph: 1 Activities (in %) covered by selected companies for practicing CSR

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5.0. Discussion and Conclusions:

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