Executive Summary

Corporate social responsibility is one of the most discussed topics. The following report helps in understanding CSR in a better way. It gives a brief about what is CSR, its importance in todays world and how it impacted its stakeholders. Mallen Baker theory of CSR have made it very easy to understand the concept. The report also states that how at times abiding by CSR standards causes conflicting objectives between its various stakeholders. The report gives a brief about the two companies i.e CORIO and TATA motors, explaining how the social responsibility undertaken by these two companies have benefited the society along with the company as a whole. The report also talks about the initiative taken by ITC limited to upgrade small villages.

Acknowledgement
I would like to thank my prof. Meena Desai for giving me this wonderful project. It was a great learning experience plus had fun doing this project. And I also learnt the various links about CSR i.e how the CSR matters the stakeholders and affects the company.

Index
SR NO 1. 2. 3. 4. 5. PARTICULARS INTRODCTION CASE STUDY-1 CASE STUDY-2 conclusion bibliography PAGE NOS. 4-5 6-8 9-11 12 13

Introduction
A business doesnt work in isolation, simply as a way of making money. The employees depend on the companys business. Customers, suppliers and all local community depend on the business and what activities the business does. The products made by the company have an intense impact on the environment. So in shot the activities carried on by the business have a impact on various sectors of the society, namely employee, customers, owners, environment, government etc and all these people are collectively called as the STAKEHOLDERS. A business has certain obligations towards their stakeholders, as Stakeholders expect that the business should be conducted in an ethical way and in the interest of the wider community. The company should have a willingness to act ahead of regulatory confrontation and it should also Balance shareholders interest against the interest of the wider community. Corporate social responsibility takes all this into account and helps you create and maintain a better relationship with the stakeholders. Different people have come up with different definitions for CSR. Corporate, social and responsibility in board term means the responsibility that a business has towards the society where it operates. The World Business Council for Sustainable Development defines CSR as, "The continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large. Site- Mallen Bakers theory of csr By Mallen Baker: First published 8 Jun 2004 (http://www.mallenbaker.net/csr/definition.php) According to Mallen Baker, CSR is about how companies manage the business processes to produce an overall positive impact on society. To support his words he came up with a theory and its known as Mallen bakers theory of CSR. As per the theory the Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle i.e what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance. Thus Mallens theory makes it clear that CSR matters for companies but the next question that comes to our mind is Why is CSR so important? So the answer to it is the findings from a scientific research which have made it clear that to how CSR is essential for the longterm sustainability of a firm. Firms that blindly and narrowly pursue the profit motive, without concern for the broad spectrum of Stakeholders that are relevant to the long run, are increasingly shown to lack sustainability. Firms must be able to connect the dots and
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understand how various Stakeholders, and the satisfaction of their needs, represent interrelated challenges. Stakeholders form the basis of success and failure of the business they have interests, rights, or ownership in an organization and its activities. Customers, suppliers, employees, and shareholders each has interest in how an organization performs or interacts with them. These stakeholder groups can benefit from a companys success and can be harmed by its mistakes and therefore they are known as primary stakeholder. Secondary stakeholders are also important because they can take action that can damage or assist the organization. Secondary stakeholders include governments (especially through regulatory agencies), unions, nongovernmental organizations (NGOs), activities, political action groups, and the media. Businesses should also not forget that do not have an unquestioned right to operate in society. They should recognize that they depend on society and without the support of the society they cannot flourish further. Therefore CSR became more like an obligation for the business that a responsibility. Abiding by CSR rules will not only help a company to sustain in the business for a longer period of time as compared to those who dont have an inclination towards their social responsibility but also will build a good corporate image. Site- Itc Rural development philosophy (http://www.itcportal.com/ruraldevp_philosophy/echoupal.htm) For example the step taken by the project 'e-Choupal' initiated by the ITC Ltd which has covered more than 11,000 villages across 18 states through more than 3000 choupals, have helped the villagers to upgrade their knowledge and their quality of life improved. Looking at companys dedication towards the community as a whole will not only motivate its stakeholder to invest in that company, but also help the company to build a good name in the society. . It is also to keep in mind that CSR not only helps the society but also the business. CSR aids the attraction and retention of staff it also attracts green and ethical investment, It can lead to a reduction in costs through re-cycling and it differentiates the firm from its competitor and can be a source of competitive advantage. All these benefits lead to increased profitability of the business in the long run. At times companies faces conflicting objectives with some of their stakeholders while abiding to CSR objectives. Suppose a certain company abides by the guidelines of CSR (i.e being socially responsible ) and in turn is not able to meet the yearly normal profit benchmark it had set for itself then it will in turn affect the interest of its stakeholders as profit and returns on their investment is the primary motive for a shareholder. For eg. its employees who need bonuses and a raise and also a security that the company that they work so hard for is earning enough profit to keep itself afloat in todays competetive market is not able to meet up to their expectation they shareholder may not like it which may in turn result into conflicts between the shareholders and the company. This proves that even though if a company wants to follows the principals to CSR it faces certain oppositions from its stakeholders.The above explanation of CSR can be explained via a case study which will help us to understand CSR in a practical way.
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Case study-1
Corios annual report 2011 (http://www.corio-eu.com/other-news-reader/items/coriopublishes-annual-report-and-csr-report-2011.html)

Corio is one of the largest listed retail property investors and managers in Europe. Corios portfolio of 7.5 billion consists for 97% of shopping centers in The Netherlands, France, Italy, Spain, Germany and Turkey. Corio manages its own shopping centers. Corio is closely involved in the daily lives of people in the local communities in which it operates. It seeks to use its contacts with consumers to understand what matters to them and then to take these interests into account in its activities. Establishing a responsible relationship with consumers also means taking social and environmental issues into account alongside economic issues. Corio has consequently made corporate social responsibility an integral part of its long-term strategy and is seeking to promote transparency and a dialogue with its various stakeholders as a means of improving the standards of their activities from an economic, social and environmental perspective. And this in turn will increase the trust in and reputation of the Corio business activities. Corios contribution towards its stakeholder have been scientific. For the welfare of the SOCIETY it entered into partnership with Save the Children organization in which it guarantees to pay a fixed donation every year. Corio has also decided to open a Leadership Academy in Istanbul, Turkey. In case of (LOCAL) GOVERNMENT, plans for the future are planned by both i.e Corio and the government. Plans like improving and maintaining public areas, various facilities that needs to be measured like traffic situation, signposting and taxes etc. The municipality provides the land for development and it grants any licenses and permits required by corio. Corio then designs its CSR strategy in a way that it ensures the group makes a sustainable contribution to the built environment and the local community. When it comes to CUSTOMERS (safety) corio in Cooperation with the police and re service. They have adopted a pro-active approach by establishing clear consultative structures for discussing and dealing with possible emergencies and difficulties before they happen. When it comes to FINANCIAL STAKEHOLDERS Corio is in constant touch with its nancial stakeholders, primarily its shareholders, who provide equity, and its lenders, who provide loan capital. Corio is continually seeking to improve its communications with the international investment world by ensuring that all new information is correct and made available immediately and simultaneously. Information is disseminated in press releases and on their website, as well as at meetings with shareholders and analysts. Corios Investor Relations department at the head
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ofce is responsible for maintaining contacts with and providing relevant information to nancial stakeholders. EMPLOYEES form another important part of Corios stakeholders list. Retaining highquality staff and developing their knowledge and expertise is primary objective of the corio. It is done by providing training opportunities and internal promotions, as well as providing attractive terms of employment and fringe benets. Corio encourages employees to take pride in their work and to work together to optimize results. They do this by, for example, organizing business days, lectures and knowledge-sharing sessions. All these contribution of the corio towards its stakeholder makes it very evident that corio not only believes in its Corporate Social Responsibility but also follows them. Because of corios such an wonderful contribution towards its stakeholders it got an title named THE BEST PLACE FOR WORKING. Over the last few years, Corio has received several awards. They show that the effort of Corio's active local management pays off. Some of the awards are listed below. 2010 2009 AECC AWARD Gran Turia Shopping Centre located in Xirivella, Valencia - Best Marketing Promotion Award ICSC SOLAL MARKETING AWARD Shopville le Gru, Turin Category Alternative Revenue for the campaign New Horizons Besides The Budget Shopville Gran Reno, Bologna Category Sales Promotion for the campaign "Reality In Car" IPD EUROPROPERTY AWARD Corio Italia Srl - Category Specialist Fund Italy IPD EUROPROPERTY AWARD Corio Italia Srl - Category Specialist Fund Italy .

2008

The list has a no end to it. Corios social responsibility has immensely affected the company. From the employees point of view, they feel contented and are motivated to work for the organization. The dedication levels of the employee have now increased which in turn affects the companys growth. Government and customers have developed a trust in the company which helps the company in number of ways. The financial stakeholder has developed a sense of security. All this have really affected the company in number of ways which lead to a BBB+ credit ratings from S&Ps.

Credit rating Company Corio N.V. Corio N.V. Agency S&P's Moody's Rating BBB+ Baa1 long term issuer Outlook Stable Stable

The above case of corio clearly proves that if a company is seriously following the CSR principals then it not only benefits the stakeholder but also affects the company as a whole as a good image f the company is developed in the society and people tend to trust that company. This not only helps the company to build its name in the market but also affects its sustainability the way it affected Corio.

CASE STUDY-2
Tata motors- CSR Forum(http://www.csrworld.net/tata-motors.html) If corios are internationally known for its CSR then TATAS are known globally for the same. Even before the concept of Corporate Social Responsibility came into existence, the Tata Group has been working towards social welfare & community development activities right from the time of J. N. Tata. Tata Motors have had a philosophy of contributing towards society for over 60 years. In TATAS the two Tata Group firms Tata Motors and Tata Steel have emerged as the country's most admired companies for their corporate social responsibility (CSR) initiatives, says a survey. According to a survey by global consultancy firm The Nielsen, RIL is on top followed by Tata Motors and Tata Steel as the most admired companies by stakeholders for their CSR initiatives. Over 1,700 respondents, consisting of stakeholders such as policy makers, influence groups, the financial community, investors, top level management across corporates, and the general consumer, were consulted for the survey. Tata Motors emerged as the most reputed company in India followed by Aditya Birla Nuvo and Bharti Airtel. The survey that tracked the reputation of 32 companies in India based on what they offered in terms of service levels, product quality, financial performance and talent pool. Tata Motors Limited is India's largest automobile company. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. In Tata Motors Group over 55,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Tata motors have given all its stakeholders equal importance. Like for the community it plays an active role in community development, serving rural communities adjacent to its manufacturing locations. The company's focus areas in CSR include health, education, environment protection and employability. They ensure that their products are environmentally sound in a variety of ways. These include reducing hazardous materials in vehicle components, developing extended life lubricants, fluids and using ozone-friendly refrigerants. The Company uses some of the world's most advanced equipment for emission check and control. Tata Motors concern is manifested.

by a dual approach 1. Reduction of environmental pollution and regular pollution control drives 2. Restoration of ecological balance The endeavors towards environment protection are soil and water conservation programmes and extensive tree plantation drives. Tata Motors is committed to restoring and preserving environmental balance, by reducing waste and pollutants, conserving resources and recycling materials. But when it comes to employees and society as a whole Tata Motors encourages selfsufficiency with the aim to improving the confidence, morale and lives of its employees and their dependents. For eg : Employees' relatives at Pune have been encouraged to form various industrial co-operatives engaged in activities such as re-cycling of scrap wood into crates and furniture, welding, steel scrap baling, battery cable assembly etc. Mobile health service staff provide preventive and curative health services under the "Health For All" programme. They train village health workers in conducting the same. Safe drinking water facilities are provided to ensure health of the villagers. Providing aids to ngo is another step taken by Tatas. The Donations Committee reviewed several applications from NGOs and institutions and after determining their need and merit, approved donations. A sum of Rs. 1.17 million was disbursed in the last year towards donation of Tata vehicles to organisations working in the field of health, education and road safety. The list of Tata motors contribution towards the society as a whole has no end. But because to Tatas continues contribution and its full dedication towards the CSR made Tatas win one of the prestigious award i.e Tata Motors wins Golden Peacock Award for Corporate Social Responsibility. Along with it Tatas have won around 100 more awards of its contribution. Tatas were also given an A1+ ratings by CRISIL.

Rating Current* Prior

Short-Term CRISIL A1+ CRISIL A1+

Long-Term CRISIL AACRISIL AA-

Outlook Positive Stable

CSR investments have realized a 32% return to Tatas brand equity, creating value for each Tata Group company. tatas have now become a firm PEOPLE WANT TO WORK FOR with Low interference.
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Tatas contribution being so great have got them in top 5. The reason that made Tatas acquire top 5 position was its corporate reputation i.e what it offers to the customers- the service level and its product quality. Across all stakeholder segments, these parameters are seen to have a strong influence in the assessment of an organizations reputation. Stakeholders perception of a company, is a critical factor for its sustained growth. And Nielsens survey finds that companies do create a strategy that enhances their business needs, and their corporate image to continue to garner stakeholder confidence. Therefore above evidence makes it clear enough that CSR helps the company and the society as a whole.

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Conclusion
CSR as stated earlier is one of the most important topics. It hampers a companys growth and reputation. As seen in the above report a company like Corio and TATA is able to build a goodwill amongst the stakeholder because their contribution towards the society was really great. So it will be not wrong if I say CSR not only helps the society and the stakeholders but also the company. A company doesnt aim to build a good image via CSR. CSR automatically builds a companys image.

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Bibliography
1-http://www.mallenbaker.net/csr/definition.php 2-http://articles.timesofindia.indiatimes.com/2003-07-18/indiabusiness/27185307_1_corporate-social-responsibility-practices-sections 3-http://www.corio-eu.com/integrating-overall-strategy-and-csr-strategy.html 4-http://www.corio-eu.com/tl_files/content_resources/pdf/Annual%20results%202011/CorioCSR-Annual-2011.pdf 5-http://www.corio-eu.com/other-news-reader/items/corio-enters-into-partnership-with-savethe-children.html 6-http://www.indiacsr.in/en/?p=5674 7-http://www.businessdictionary.com/definition/stakeholder.html#ixzz1wXBKqWkB 8-http://pdf.usaid.gov/pdf_docs/Pnada498.pdf 9-http://www.asocio.org/policy/Corporate%20Social%20Responsibility.pdf 10-http://www.tatamotors.com/sustainability/CSR-10/pdf/csr-milestones.pdf 11-http://tata.com/article.aspx?artid=Rmjp4NJztqU 12-http://www.triplepundit.com/2012/03/technology-be-driver-social-good/ 13-http://www.corio-eu.com/other-news.html 14http://www.corioeu.com/tl_files/content_resources/pdf/CSR%202012/CSR%20feedback%20 form.pdf 15-http://www.tatamotors.com/media/awards.php
16-http://www.tatamotors.com/sustainability/CSR-10/pdf/employee-engagement.pdf 17-http://www.tatamotors.com/media/awards/awards26.php 18-http://www.tatamotors.com/sustainability/CSR-09/pdf/education.pdf 13

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The reality is that CSR is not a tactic for brand building; however, it creates an internal brand among its employees. Indulging into activities that help society in one way or the other only adds to the goodwill of a company

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Ranking Countries On Their Commitments To Corporate Social Responsibility Country Rank

Simon Zadek, Alex MacGillivray, Editors, The State of Responsible Competitiveness 2007: making sustainable development count in global markets, AccountAbility, July 2007 Sweden Denmark Finland Iceland United Kingdom Norway New Zealand Ireland Australia Canada Germany Netherlands Switzerland Belgium Singapore 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

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Austria France United States Japan Hong Kong, China Responsible Competitiveness Index, 2007, top 20

16 17 18 19 20

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Bibliography
http://www.mallenbaker.net/csr/definition.php http://articles.timesofindia.indiatimes.com/2003-07-18/india-business/27185307_1_corporate-socialresponsibility-practices-sections http://www.corio-eu.com/integrating-overall-strategy-and-csr-strategy.html http://www.corio-eu.com/tl_files/content_resources/pdf/Annual%20results%202011/Corio-CSRAnnual-2011.pdf http://www.corio-eu.com/other-news-reader/items/corio-enters-into-partnership-with-save-thechildren.html http://www.indiacsr.in/en/?p=5674
http://www.businessdictionary.com/definition/stakeholder.html#ixzz1wXBKqWkB

http://pdf.usaid.gov/pdf_docs/Pnada498.pdf http://www.asocio.org/policy/Corporate%20Social%20Responsibility.pdf http://www.tatamotors.com/sustainability/CSR-10/pdf/csr-milestones.pdf http://tata.com/article.aspx?artid=Rmjp4NJztqU

http://www.triplepundit.com/2012/03/technology-be-driver-social-good/ http://www.corio-eu.com/other-news.html http://www.corioeu.com/tl_files/content_resources/pdf/CSR%202012/CSR%20feedback%20fo rm.pdf http://www.tatamotors.com/media/awards.php http://www.tatamotors.com/sustainability/CSR-10/pdf/employee-engagement.pdf http://www.tatamotors.com/media/awards/awards26.php http://www.tatamotors.com/sustainability/CSR-09/pdf/education.pdf

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