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CHAPTER
NO.

TOPIC
PAGE
NO
1 INTRODUCTION TO CSR
1.1 ABSTRACT 4
1.2 RATIONALE OF STUDY & OBJECTIVES 5
1.3 RESEARCH APPROACH METHODOLOGY 6
2 OVERVIEW OF CSR
2.1 INTRODUCTION 8
2.2 CORPORATE SOCIAL RESPONSIBILITY (CSR) 10
2.3 EVOLUTION OF CSR IN INDIA 11
2.4 FOUR TYPES OF CORPORATE SOCIAL RESPONSIBILITY 14
2.5 THE PRINCIPLES OF CSR 16
2.6 CORPORATE SOCIAL RESPONSIBILITY DIMENSIONS 18
2.7 THE IMPORTANCE OF CSR 27
2.8 THE EFFECTS ON BUSINESS PERFORMANCE 29
2.9 CRS & THE COMPANIES ACT, 2013 34
2.10 SOCIAL RESPONSIBILITY STRATEGIES 37
3 CASE STUDY OF MICROSOFT
3.1 ABOUT MICROSOFT 40
3.2 PRODUCTS AT MICROSOFT 41
4 CSR INITIATIVES AT MICROSOFT
4.1 YOUTHSPARK 46
4.2 BILL AND MELINDA GATES FOUNDATION 52
5 RECOMMENDATION , CONCLUSION & BIBLIOGRAPHY 60

2


CHAPTER-1
INTRODUCTION TO CSR


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1.1 Abstract
The last half decade has witnessed a remarkable resurgence of attention among practitioners and
scholars to understanding the ability of corporate social responsibility (CSR) to address environmental
and social problems. While significant advances have been made, assessing the forms, types and impacts
on intended objectives is impeded by the conflation of distinct phenomena, which has created
misunderstandings about why firms support CSR, and the implications of this support, or lack thereof,
for the potential effectiveness of innovative policy options. As a corrective, categories that distinguish
efforts promoting learning and stakeholder engagement from those requiring direct on-the-ground
behavior changes. Better accounting for these differences is critical for promoting a research agenda that
focuses on the evolutionary nature of CSR innovations including whether specific forms are likely to
yield marginal or transformative results.










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1.2 Rationale of study
The theme of my study is corporate social responsibility. I have chosen this theme because it is one of
the main issues of modern business which is developing fast and is widely discussed. Due to the
historical past of our country CSR is a rather new phenomenon for business, but most companies have
already started to run social programs. Still business has a long way to go to become really socially
responsible and the economic situation in the world can now ruin all previous attempts. Thats why, in
my opinion, we should pay great attention to CSR, its problems and future prospective. I am going to
divide my study into several main parts: short history of CSR, arguments for and against it and,
Evolution of CSR in India CSR and advertising market. Also I would try to make some hypothesis about
future prospective and measures that can be taken to develop CSR. I will use material from business
news, articles, official documents, statistics and surveys to make a clear picture of the situation.
Actually nowadays there is no choice. In spite of all disadvantages most companies have started to
develop social responsibility and CSR is necessary to be successful in the market and avoid
contradictions with government, consumers and mass media.
Purpose The concept of corporate social responsibility (CSR) has a long history associated with how
it impacts on organizations behavior. In order to understand CSR's impact on organization behavior,
therefore, it is necessary to comprehend its progression. Subsequently, the purpose of this paper is to
trace the conceptual evolution of CSR.
RESEARCH OBJECTIVES
1. To deepen the conceptual understanding of corporate social responsibility (CSR) and
firms underlying motivations to engage in CSR
2. Importance of Corporate Social Responsibility to the business units.
3. Bill gates and Melinda gates Foundation.




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1.3 RESEARCH APPROACH AND METHODS
Classical approaches to CSR research include the instrumental approach and the ethical approach. The
instrumental approach to CSR holds the position that companies engage in CSR only when their
underlying motivation is the attainment of financial performance, while the ethical approach to CSR
states that companies engage in CSR because it is the right thing to do according to some ethical
pathway.
RESEARCH METHODS
A series of CSR Questions prepared and distributed among Business Units and common
people for analysis.
Datas Collected from Microsofts Executive Reports FY 2013











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CHAPTER-2
OVERVIEW OF CSR








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2.1 INTRODUCTION
Corporate social responsibility (CSR, also called
Corporate conscience, corporate citizenship, social
performance, or sustainable responsible business
Responsible Business) is a form of corporate
self-regulation integrated into a business model.
CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures
its active compliance with the spirit of the law, ethical standards, and international norms. In some
models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to
further some social good, beyond the interests of the firm and that which is required by law. CSR is a
process with the aim to embrace responsibility for the company's actions and encourage a positive
impact through its activities on the environment, consumers, employees, communities, stakeholders and
all other members of the public sphere who may also be considered as stakeholders.
Sensitivity to communities and their rights, public dialogue and enhanced transparency, commitment to
addressing the issues of social justice in the global economy, bringing the dynamic skills of business to
social needs: all of these are increasingly required to address the shifting expectations, opportunities and
challenges brought at the beginning of the 21st century. The private sector has a central role to play, and
individual business leaders can translate this potential into genuinely sustainable growth, coupled with
long-term corporate success
The term "corporate social responsibility" became popular in the 1960s and has remained a term used
indiscriminately by many to cover legal and moral responsibility more narrowly construed.
Corporate Social Responsibility, or CSR, is something that was started by fashionable 'ethical'
businesses. Realizing that promoting a responsible way of doing business actually improved the bottom
line soon received wider interest, and now demonstrating responsibility has become expected when
bidding for major contracts. With now being the time to question your organizations value, see the
benefits of CSR by reading on below.

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In the last 15 years, an array of stakeholders have turned to firms, rather than governments, to address
enduring environmental problems including forest degradation, fisheries depletion, mining destruction,
and even climate change, as well as social problems including workers and human rights. As a result, a
wide range of tactics including boycott campaigns, social and eco-labeling, and environmental
certification, have been used to appeal directly to firms to improve their environmental management
procedures and performance as well as their treatment of workers and impacts of their activities in the
communities in which they operate. These efforts to promote what is generally known as corporate
social responsibility (CSR), have increasingly attracted the interest of a wide range of scholars within
political science, economics, sociology, anthropology and geography.

Several factors have coincided to explain this renewed interest in CSR among both practitioners and
scholars. These include
Ineffectiveness, to date, of many governmental and intergovernmental processes
Accelerating economic globalization that has placed special
Attention on transnational or global firms and general interest in pursuing innovative
smart regulation that, supporters argue, would encourage entrepreneurial innovation.
Corporate social responsibility has been described as a commitment to improve community wellbeing
through discretionary business practices and contributions of corporate business. It is a voluntary
commitment a business makes in choosing and implementing those practices. These practices can be in
monetary or non-monetary form and should concern the well-being of both human conditions as well as
environmental issues.


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2.2 CORPORATE SOCIAL RESPONSIBILITY (CSR)
Definition:
The World Business Council for Sustainable Development has defined corporate social responsibility
(CSR) as
'The commitment of business to contribute to sustainable economic development, working with
employees, their families, the local community and society at large to improve their quality of life'. An
equally valid but more concise definition of CSR in practice is 'companies managing their business
processes to produce an overall positive impact on society'.

Corporate Social 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


CSR suggests that a corporation is not only responsible to the law, its investors, customers and
employees, but also to 'society'.
Business and all industries have a crucial role to play in helping countries to become more sustainable.
As a result, many organizations and industries are responding by reducing their environmental and
social impacts and risks through improved management practices, support for stakeholders (internally
and externally) and efficient use of natural resources.
Corporate Social Responsibility (CSR) is the soul of every business these days. It has also become the
password to not only overcome competition but to ensure sustainable growth. It has been supported not
only by the shareholders but stakeholders by and large encompassing the whole community. CSR in
truth is the alignment of business operations with social values. It takes into account the interests of
stakeholders in the company's business policies and actions. It focuses on the social, environmental, and

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financial success of a company - the so-called triple bottom line - with the aim to achieve social
development while achieving business success. More importantly, CSR is the point of convergence of
various initiatives aimed at ensuring socio-economic development of the community which would be
livelihood oriented as a whole in a credible and sustainable manner. There does seem to be a glimmer of
hope from the rapidly growing field of CSR and from the greater involvement of companies in providing
private funds for relief.

Organisations and industries around the world are recognising the value of demonstrating transparency
and accountability beyond the traditional domain of financial performance. This trend has come about
through increased public expectations for organisations and industries to take responsibility for their
non-financial impacts, including impacts on the environment and the community.
Recognising all key stakeholders, including those outside the walls of the workplace, is one of the first
steps to working towards implementing corporate responsibility.
2.3Evolution of corporate social responsibility in India
The evolution of corporate social responsibility in India refers to changes over time in India of the
cultural norms of corporations' engagement of corporate social responsibility (CSR), with CSR referring
to way that businesses are managed to bring about an overall positive impact on the communities,
cultures, societies and environments in which they operate. The fundamentals of CSR rest on the fact
that not only public policy but even corporates should be responsible enough to address social issues.
Thus companies should deal with the challenges and issues looked after to a certain extent by the states.
India has a long tradition of paternalistic philanthropy. The process, though acclaimed recently, has
been followed since ancient times albeit informally. Philosophers such as Kautilya from India and pre-
Christian era philosophers in the West preached and promoted ethical principles while doing business.
The concept of helping the poor and disadvantaged was cited in several ancient literatures. In the pre-
industrialized period philanthropy, religion and charity were the key drivers of CSR. The industrial
families of the 19th century had a strong inclination toward charity and other social considerations.
However, the donations, either monetary or otherwise, were sporadic activities of charity or
philanthropy that were taken out of personal savings, which neither belonged to the shareholders nor did

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it constitute an integral part of business. During this period, the industrial families also established
temples, schools, higher education institutions and other infrastructure of public use.
Among other countries India has one of the most richest traditions of CSR Much has been done in recent
years to make Indian Entrepreneurs aware of social responsibility as an important segment of their
business activity but CSR in India has yet to receive widespread recognition. If this goal has to be
realized then the CSR approach of corporates has to be in line with their attitudes towards mainstream
business- companies setting clear objectives, undertaking potential investments, measuring and reporting
performance publicly.
The Four Phases of CSR Development in India
The history of CSR in India has its four phases which run parallel to India's historical development and
has resulted in different approaches towards CSR. However the phases are not static and the features of
each phase may overlap other phases.
The First Phase: In the first phase charity and philanthropy were the main drivers of CSR. Culture,
religion, family values and tradition and industrialization had an influential effect on CSR. In the pre-
industrialization period, which lasted till 1850, wealthy merchants shared a part of their wealth with the
wider society by way of setting up temples for a religious cause. Moreover, these merchants helped the
society in getting over phases of famine and epidemics by providing food from their godowns and
money and thus securing an integral position in the society. The industrial families of the 19th century
such as Tata, Godrej, Bajaj, Modi, Birla, and Singhania were strongly inclined towards economic as well
as social considerations.
The Second Phase: In the second phase, during the independence movement, there was increased stress
on Indian Industrialists to demonstrate their dedication towards the progress of the society. This was
when Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders
had to manage their wealth so as to benefit the common man. "I desire to end capitalism almost, if not
quite, as much as the most advanced socialist. Gandhi's influence put pressure on various Industrialists
to act towards building the nation and its socio-economic development. According to Gandhi, Indian
companies were supposed to be the "temples of modern India". Under his influence businesses
established trusts for schools and colleges and also helped in setting up training and scientific
institutions.

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The Third Phase: The third phase of CSR (196080) had its relation to the element of "mixed
economy", emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental
standards. During this period the private sector was forced to take a backseat. The public sector was seen
as the prime mover of development. Because of the stringent legal rules and regulations surrounding the
activities of the private sector, the period was described as an "era of command and control" . The policy
of industrial licensing, high taxes and restrictions on the private sector led to corporate malpractices.
However the public sector was effective only to a certain limited extent. This led to shift of expectation
from the public to the private sector and their active involvement in the socio-economic development of
the country became absolutely necessary. In 1965 Indian academicians, politicians and businessmen set
up a national workshop on CSR aimed at reconciliation.They emphasized upon transparency, social
accountability and regular stakeholder dialogues. In spite of such attempts the CSR failed to catch
steam.
The Fourth Phase: In the fourth phase (1980 until the present) Indian companies started abandoning
their traditional engagement with CSR and integrated it into a sustainable business strategy. In 1990s the
first initiation towards globalization and economic liberalization were undertaken. Controls and
licensing system were partly done away with which gave a boost to the economy the signs of which are
very evident today. Increased growth momentum of the economy helped Indian companies grow rapidly
and this made them more willing able to contribute towards social cause. Globalization has transformed
India into an important destination in terms of production and manufacturing bases of TNCs are
concerned. As Western markets are becoming more and more concerned about and labour and
environmental standards in the developing countries, Indian companies who export and produce goods
for the developed world need to pay a close attention to compliance with the international standards.
Findings:
In the 1950s the primary focus was on businesses' responsibilities to society and doing good deeds for
society.
In the 1960s key events, people and ideas were instrumental in characterizing the social changes ushered
in during this decade.
In the 1970s business managers applied the traditional management functions when dealing with CSR
issues.while,

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in the 1980s, business and social interest came closer and firms became more responsive to their
stakeholders.
During the 1990s the idea of CSR became almost universally approved, also CSR was coupled with
strategy literature and finally, in the 2000s, CSR became definitively an important strategic issue.

2.4 FOUR TYPES OF CORPORATE SOCIAL RESPONSIBILITY
The idea behind corporate social responsibility is that companies have multiple responsibilities to
maintain. These responsibilities can be arranged in a pyramid, with basic responsibilities closer to the
bottom. As a business meets lower-level responsibilities that obligate it to shareholders and the law, it
can move on to the higher level responsibilities that benefit society.

Economic Responsibilities
A company's first responsibility is its economic responsibility -- that is to say, a company needs to be
primarily concerned with turning a profit. This is for the simple fact that if a company does not make
money, it won't last, employees will lose jobs and the company won't even be able to think about taking
care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first
needs to make sure that it can be profitable.
Legal Responsibilities
A company's legal responsibilities are the requirements that are placed on it by the law. Next to ensuring
that company is profitable, ensuring that it obeys all laws is the most important responsibility, according
to the theory of corporate social responsibility. Legal responsibilities can range from securities
regulations to labor law, environmental law and even criminal law.
Ethical Responsibilities
Economic and legal responsibilities are the two big obligations of a company. After a company has met
these basic requirements, a company can concern itself with ethical responsibilities. Ethical

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responsibilities are responsibilities that a company puts on itself because its owners believe it's the right
thing to do -- not because they have an obligation to do so. Ethical responsibilities could include being
environmentally friendly, paying fair wages or refusing to do business with oppressive countries, for
example.

Philanthropic Responsibilities
If a company is able to meet all of its other responsibilities, it can begin meeting philanthropic
responsibilities. Philanthropic responsibilities are responsibilities that go above and beyond what is
simply required or what the company believes is right. They involve making an effort to benefit society -
-for example, by donating services to community organizations, engaging in projects to aid the
environment or donating money to charitable causes.

Common Types of Corporate Social Responsibility Actions
There are many aspects of corporate social responsibility; whether a company decides to develop one
area of CSR, or multiple, the end result is a more profitable company experiencing a higher level of
employee engagement. The following is a list of common ways corporate social responsibility is
implemented by organizations.
1. Environmental Sustainability: Areas include recycling, waste management, water management,
using renewable energy sources, utilizing reusable resources, creating 'greener' supply chains, using
digital technology instead of hard copies, developing buildings according to Leadership in Energy and
Environmental Design (LEED) standards, etc. There is a business sector dedicated to specifically to
environmental sustainability consulting for businesses of any size to utilize. The highest ranked
sustainability consulting firm is Ernst & Young
2. Community Involvement: This can include raising money for local charities, supporting community
volunteerism, sponsoring local events, employing people from a community, supporting a community's
economic growth, engaging in fair trade practices, etc. Starbucks is an example of a company that

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focuses on community involvement and engagement; since these programs began the company has seen
higher profits and greater employee engagement.
3. Ethical Marketing Practices: Companies that ethically market to consumers are placing a higher
value on their customers and respecting them as people who are ends in themselves. They do not try to
manipulate or falsely advertise to potential consumers. This is important for companies that want to be
viewed as ethical.
2.5 THE PRINCIPLES OF CSR
Because of the uncertainty surrounding the nature of CSR activity it is difficult to define CSR and to be
certain about any such activity. It is therefore imperative to be able to identify such activity and we take
the view that there are three basic principles which together comprise all CSR activity. These are:
Sustainability
Accountability
Transparency
Sustainability
Thus raw materials of an extractive nature, such as coal, iron or oil, are finite in quantity and once used
are not available for future use. At some point in the future therefore alternatives will be needed to fulfill
the functions currently provided by these resources. This may be at some point in the relatively distant
future but of more immediate concern is the fact that as resources become depleted then the cost of
acquiring the remaining resources tends to increase, and hence the operational costs of organizations
tend to increase. Sustainability therefore implies that society must use no more of a resource than can be
regenerated. This can be defined in terms of the carrying capacity of the ecosystem and described with
input output models of resource consumption.
Viewing an organization as part of a wider social and economic system implies that these effects must
be taken into account, not just for the measurement of costs and value created in the present but also for
the future of the business itself. Measures of sustainability would consider the rate at which resources
are consumed by the organization in relation to the rate at which resources can be regenerated.

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Unsustainable operations can be accommodated for either by developing sustainable operations or by
planning for a future lacking in resources currently required
Accountability
This is concerned with an organization recognizing that its actions affect the external environment, and
therefore assuming responsibility for the effects of its actions. This concept therefore implies a
quantification of the effects of actions taken, both internal to the organization and externally. More
specifically the concept implies a reporting of those quantifications to all parties affected by those
actions. This implies a reporting to external stakeholders of the effects of actions taken by the
organization and how they are affecting those stakeholders.
Accountability therefore necessitates the development of appropriate measures of environmental
performance and the reporting of the actions of the firm. This necessitates costs on the part of the
organization in developing, recording and reporting such performance and to be of value the benefits
must exceed the costs. Benefits must be determined by the usefulness of the measures selected to the
decision-making process and by the way in which they facilitate resource allocation, both within the
organization and between it and other stakeholders.
Transparency
Transparency, as a principle, means that the external impact of the actions of the organization can be
ascertained from that organizations reporting and pertinent facts are not disguised within that reporting.
Thus all the effects of the actions of the organization, including external impacts, should be apparent to
all from using the information provided by the organizations reporting mechanisms. Transparency is of
particular importance to external users of such information as these users lack the background details
and knowledge available to internal users of such information. Transparency therefore can be seen to
follow from the other two principles and equally can be seen to be a part of the process of recognition of
responsibility on the part of the organization for the external effects of its actions and equally part of the
process of transferring power to external stakeholders.



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2.6 Corporate Social Responsibility Dimensions
There are three major dimensions for social responsibility, being: the social, environmental, and
economic dimensions, as demonstrated by the following diagram:
First: The Economic Dimension
The term of economic dimension respective to social responsibility does not refer to profitability, as one
of the commercial operations aspects. Alternatively, it refers to commitment to ethical practices inside
enterprises, like corporate governance, preventing bribery and corruption, protecting consumer's lefts,
and ethical investment.






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Corporate Governance
The Organization for Economic Cooperation and Development (OECD) defines Corporate Governance
as a set of relationships between a companys management, its board, its shareholders and other
stakeholders. Corporate governance also provides the structure through which the objectives of the
company are set, and the means of attaining those objectives and monitoring performance are
determined. Corporate governance should provide proper incentives for the board and management to
pursue objectives that are in the interests of the company and its shareholders and should facilitate
effective monitoring, and so help the company to utilize its resources efficiently.

Corporate Governance ensures non-centralization of authority in one individual or one group inside the
enterprise. This requires the existence of regulations and measures inside the enterprise, the role of
which is determining the authorities respective to each of its bodies, and creating balance among them,
besides having clear lines for accountability. Governance regulations vary according to the size and type
of enterprise, and the environmental, economic, political, cultural, and social contexts within which it
operates.

Corporate Governance contributes to the following:
Creating and promoting an environment within which the principles of accountability,
transparency, ethical behavior, respect for relevant parties interests and the rule of law are
applied.
Establishing a system of economic and non-economic incentives that is connected with
performance in social responsibility.
Utilizing financial, natural, and humanitarian resources efficiently.
Promoting justice in representing under-represented categories (including women) in higher
positions at the enterprise.
Realizing balance between the enterprises needs, concerned parties, including urgent needs, and
the needs of coming generations.

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Establishing bilateral communications with related parties, which take into consideration such
parties interests, and assisting in defining agreement and disagreement areas, and in negotiation
for the resolution of potential conflicts.
Promoting effective involvement of male and female employees in decision making, pertaining
social responsibility concerns.
Achieving balance at the authority and responsibility level, besides the ability of persons who
take decisions on behalf of the enterprise.

Protection of Consumers Interests
Enterprises which introduce products, or render services for customers of consumers are deemed liable
against those customers or consumers. Their liability includes providing accurate information, using
integral and transparent means which are helpful in marketing, contractual dealings, and strengthening
consumption. It also requires mitigating work risks which may result from such operations through
developing, distributing, supporting, and providing sufficient information on such operations. Whenever
enterprises tend to collect private information, they shall be obliged to preserve the confidentiality of
such information.
As per the social responsibility, it is connected with fair marketing practices, protection of health and
ensuring safety, sustainable consumption, settlement of conflicts and indemnities, protection of
information and privacy, and attainment of basic services and products. Once such enterprises realize
facts, social responsibility will be achieved by using fair trade, practicing marketing, announcing any
dealings with customers, undertaking all reasonable procedures to ensure the soundness and quality of
their goods and services, especially:

Ensuring that such goods or services provided by the enterprise meet all legal standards required
for maintaining the consumer's health and safety, including health precautions and product safety
regulations, in addition to providing informative labels on the products. All reasonable
precautions should be employed or taken to ensure the quality and safety of its services and
goods', taking into consideration the entire life cycle for each product, as the objective is to
ensure safe utilization, good possibilities for repair, treatment, recycling or safe disposal of
excess or damaged goods.

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Providing effective and transparent procedures when examining consumer complaints, so as to
contribute in finding fair and timely solutions for consumer disputes, without any further or
unnecessary costs.
Avoiding engagement in any other practices that are deemed deceiving, misleading, forged, or
unfair.
Respecting the consumers privacy, providing security, and maintaining its confidential
information.
Complete and transparent cooperation with public authorities to avoid and/or combat any serious
threats that may affect consumers health or public safety due to using or consuming its products.

Ethical Investment :
Ethical investment is the type of investment which takes into consideration the enterprises ethical
values, and their effects on making the investment decision. There are several and various types of
ethical investment, yet the following are the most common:
The investment which is based on Negative Screening: this type of ethical investment considers
all investment opportunities, yet prohibits the involvement in certain investments.
The investment which is based on Positive Screening: this type of ethical investment considers
all available investment opportunities, to find socially and ethically responsible investment
opportunities.
The investment which is based on Corporate Engagement: this type of ethical investment aims at
changing corporate practices in which it is involved, through promoting dialogue and conducting
meetings to encourage such enterprises to be committed to social responsibility.
Combination Investment: despite the fact that it is uncommon, some enterprises combine the
above three types of investment.

As such, the ethical investment paves the way for investors to avoid undesirable investments on the one
hand, and provide opportunities to support the investment which follows a similar social and ethical
responsibility policy on the other hand.




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Standards Determining the Ethical Investment

Standards with Negative Effect Standards with Positive Effect
Armament and Nuclear Weapons Protection of Environment
Animal Exploitation and Abuse Controlling Pollution
Breach of Human lefts Recycling
Practices which are Harmful to the Environment Professional Safety
Non-Ethical Work Conduct Ethical Work Conduct

Second: The Social Dimension
The enterprise should participate in achieving the welfare of the society, and in improving and caring for
the affairs of its employees. This should positively reflect on increasing their productivity, developing
their technical abilities, and providing them with professional and employment security, besides health
and social care. The open administrative approach which the enterprise adopts is considered conclusive,
as the effect of its social conduct exceeds the enterprises own limits.
To determine social concerns which are related to priorities which the enterprise seeks to achieve, it
should tackle the basic issues which are demonstrated via the following figure under its plan and set
priorities.

A. Fair Employment and Work Practices:

Enterprises recognize individuals as their competitive privilege, and treat their employees equally as
assets and factors for change. As such, they need to win the support of employees, not only to determine
the success of their operations from a commercial point of view, but also in terms of the enterprises
commitment towards social and environmental issues, in order to realize the three pillars of
sustainability.

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This can be achieved through strengthening the enterprises values, besides the economic, social, and
environmental dimensions of sustainability, and through investing in the quality of professional life,
through proper organization of workplace, practices adopted within the workplace, recruitment
conditions, and developing and managing human resources. This stems from the fact that socially
responsible employment practices are considered essential to achieve social justice and institutional
stability.
As for good conducts concept within the workplace, it is far-reaching, and comprises several
characteristics. However, the main organizational factors which are related to the work environment, and
which contribute to establishing an effective and productive workplace, include the following:
Decent living and economic security levels.
Leadership that appreciates employees based on merit.
Safe and healthy work environment.
Mutual trust between employers and employees.
Openness culture in respect to the involvement in decision making.
Promotion of initiative taking and innovation.
Opportunities for utilizing and developing skills,

Similarly, as investment is connected with people, enhancing education is connected with improving and
caring for decent and productive workplaces through taking care of the humanitarian dimension of
competitiveness and productivity. As such, laws and national practices which are guided by international
labor standards, whenever possible, represent binding covenants to guide corporate policies and
practices.
To achieve some of these objectives, the following areas may be suggested:





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Requirements
Educating and training employees
In this area, providing training opportunities for those
who are not skilled enough (under-skilled, under-
experienced), and for work returners after maternity or
sickness leaves.

Employing the disabled
Employing the physically disabled individuals for certain
positions which do not need physical effort.

Fairness in taking strategic decisions

And such decisions which are related to employees
affairs, without consideration to gender issues.

The status of elder employees in the enterprise
Taking the effort to provide them with proper
workplaces.

Professional safety and health
Providing a system of precautions to maintain
employees' safety and health.

Socially responsible investment policy
Especially concerning pension funds, set plans for
employees pensions, and saving funds

B. Contribution to the Local Community
Social responsibility cares for the manner in which the enterprise runs the effects of its operations on
communities, and the groups which operate under its scope. It is possible that the effects might be
positive or negative. Consequently, the manner in which the enterprise runs such effects shall definitely
affect the welfare of the local community, and at the end, affect its business.
Classifying areas which the enterprise shall contribute to, according to priority, depends on the
characteristics of the community itself on the one hand, and on the quality of resources and capabilities
which the enterprise enjoys on the other. It is important for the enterprise to be totally aware of the local
community, to be able to direct its effort in a straight forward manner towards the communitys own
priorities and needs.

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The main areas for developing the local communities which the enterprise may contribute to include
creating employment opportunities, and local economic development initiatives through expanding
educational programs, skill development, provisions of health services, caring for the youth through
cultural and sports clubs, and commitment to deduct specific percentages from profits before taxes for
donations which are allocated to serve societal concerns.

It is common that enterprises commit themselves to social responsibility, in different degrees, by
focusing on the following areas:
Environment protection, like reducing gas emissions and wastes, recycling materials, and
reforestation programs.
Charity works, like donating to charities and participating in social causes, like raising awareness
on human rights and current concerns.
Urban areas development, through partnership with the government, to revive small commercial
enterprises and enhancing the environment in local towns.
Investment in local business enterprises, through partnership with non-governmental
organizations in areas of decreasing poverty and social development programs.
Employees-oriented projects, like provision of higher standards for professional health and
safety, equal employment opportunities, and flexible work hours.

Third: The Environmental Dimension
The environmental dimension for socially responsible enterprises is defined as the enterprises
obligation towards covering the environmental effects which result from its operations and products,
eliminating emissions and wastes, achieving maximum efficiency and productivity depending on
available resources, and decreasing practices which may negatively affect the country and next
generations enjoyment of resources. The enterprise should be aware of all the direct and indirect
environmental aspects which are related to its performance of business, rendering of services, and
manufacturing of products. It should also employ certain standards to learn about the environmental
aspects which result in distinguished effects to be able to effectively enhance its environmental
performance. Such certain standards which are set by the enterprise itself should be comprehensive and
fixed. They should also be documented through writing reports to enhance the functional performance of
the environment.

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The idea of having an environmental management system assists in guaranteeing the enterprises
commitment to the following:

Managerial commitment to meet the provisions of its policies, objectives and aspirations.
Focus on spreading the preservation culture instead of setting treatment or corrective measures
later on.
The process of continuous improvement.
In return for applying an environmental management system, economic advantages may be realized.
Such advantages must be specified to have them and their values demonstrated before concerned parties,
especially stakeholders (shareholders). This should give the enterprise an opportunity to connect the
environmental objectives with specific financial results, and so guarantee the availability of resources.
The main elements of environmental responsibility include the following:
Adopting environmental performance specifications, rules and measurement standards for
operations and management, which are subjected to maximum environmental protection degrees.
Facilitating the environmental technological development, conversion and conveyance.
Promoting environmental awareness.
Opening negotiation channels with concerned parties, and communicating with such parties on
environmental issues.

The enterprise may be able to improve its environmental performance though dealing with the
following, but not limited to, environmental issues:


1. Reducing emissions: the activities, operations and services provided by enterprises, result in
direct and indirect emissions in the atmosphere. Such emissions result from using the enterprises
products, or from its purchasing habits and electricity consumption. Such emissions may include
various pollutants, like lead, mercury, changeable organic compounds, sulphur dioxide, nitric-
oxides, and other materials which may lead to environmental deterioration, and effects on human
health.

2. Reducing wastes: the enterprises whose business activities result in liquid and solid wastes
should depend on programs to reduce such wastes. These programs must be based on reducing
sources, reutilization, recycling, waste treatment and disposal.


26
3. Effective use of power: enterprises consume power in their running of operations and services.
Programs which focus on effective power consumption may reduce the demand for power in
buildings, in areas like heating, cooling, lightening, effective fuel use, and reliance on alternative
fuel resources.

4. Water Preservation: clean water is considered a global wealth. Attaining pure drinking water is
considered a basic humanitarian need, and so is listed as one of an individual's major rights. The
developmental objectives for the new millennium include the provision of safe drinking water
and health services for all individuals. The effective management for preserving water is
achieved through allocating water, and controlling its flow to realize a just and sustainable
saving of water resources.


2.7 THE IMPORTANCE OF CORPORATE SOCIAL
RESPONSIBILITY AS A BUSINESS GOAL
Corporate social responsibility can be defined as where a business attempts to meet certain ethical, legal
and commercial expectations as set by society. As a business goal, corporate social responsibility has
grown in importance over recent years. The reasons for such growth have been diverse.
Changing social expectations regarding business behavior:
Heightened consumer awareness concerning the activities of business can be attributed to a number of
factors. For example, high-profile cases concerning companies such as Nike and Puma and their use of
cheap labour in production sites in south-east Asia have attracted considerable media attention. In
addition, activist groups, which seek to name and shame and bring to the publics attention bad business
practices, have become increasingly vocal and successful in placing issues of social responsibility high
up on the business agenda.

The reduced role of the state in regulating business actions
As government regulation over business activities has diminished, business has had to take increasing
responsibility for identifying consumer and social concerns and acting upon them. Such concerns, in

27
days when government regulation was more prominent, used to be reflected in government policy
initiatives to constrain business activity.
Today, due to the complex network of suppliers that many businesses deal with, it is increasingly the
case that such suppliers are being subject to the same responsibility codes as the businesses they supply.
A businesss image may be damaged just as much by a supplier conducting irresponsible business
practices as the business itself. There is thus pressure from one firm to another to behave responsibly.
Consumer concerns over business behaviour
The willingness of customers to act on the identification of irresponsible business practices is a big
motivating factor in encouraging businesses to adopt a more socially responsible position. A 1999
survey by Environics and the Prince of Wales Business Leadership Forum surveyed 25 000 citizens in
23 countries. It found 17 per cent of those surveyed have consciously avoided buying products from
firms that had been shown to be socially irresponsible.

Changing patterns of investment and the growth of socially responsible investing
In 1999, the Social Investment Forum found that, since 1995, assets in funds that were classified as
socially responsible rose from $639 billion to $2.16 trillion, an increase of 238 per cent. This clearly
shows the growing attractiveness of socially responsible investment, whether this is motivated by ethical
concerns, or a realisation that a business delivering socially responsible business practices is more likely
to be profitable and to attract investment.





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2.8 THE EFFECTS ON BUSINESS PERFORMANCE
If corporate social responsibility has grown as a business objective, has this in any way impinged upon
business performance? Studies, empirical and otherwise, suggest that rather than detracting from
business performance and harming shareholder value, in fact the opposite appears to be the case.
Corporate social responsibility appears to offer a positive contribution to business performance,
especially over the longer term.
The following factors have been identified as some of the positive economic benefits that businesses
have gained from adopting a more socially responsible position.
Improved economic performance
A large number of studies have attempted to identify and evaluate the economic returns from social
responsibility. Factors that have been considered include business growth rates, stock prices and sales
and revenue.
A 1999 survey by Roman, Hayibor and Agle evaluated the findings of 52 studies that considered the link
between business ethics and enhanced profits. They concluded that 33 studies showed a positive link, 14
suggested neutral effects or were inconclusive, and the remaining 5 suggested that there was in fact a
negative relationship.
Although this evidence would on balance favour an argument that corporate social responsibility is good
business practice, the whole area of linking ethics and responsibility to profit is a contentious one. When
considering ethics and social responsibility, what are we including within this definition? Is the business
merely complying with a business code, either developed within the business or by a third party. Such
codes essentially state. What is not acceptable business behaviour, such as taking bribes or pursuing
anti-competitive behaviour. Or does the understanding of an ethical business go further and entail
positive social actions, ranging from giving money to good causes, to contributing to particular
programmes in which the business has competency. For example, a pharmaceutical company might
develop a drug that might benefit the populations of the worlds poorest countries, with no possibility of
profit. So at what level do we identify an ethical business, and to what degree might this level of
responsibility influence profitability?


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Enhancing the brand
Related to profitability is the issue as to how far corporate social responsibility enhances brand image
and the firms reputation. Not only would this strengthen consumer loyalty but also aid the firm in
raising finance and attracting trading partners. An increasing number of studies have identified that
value-based criteria are becoming increasingly important in consumer buying decisions. A 1997 study
by Walker Research found that, given two products with similar quality and price criteria, 76 per cent of
those surveyed stated they would purchase the product produced by the company most associated with
good causes. Factors such as environmental responsibility and active participation in the community
were most often cited as those factors most likely to affect consumer purchasing behaviour.
Business may be further encouraged to develop the social image of their brand with the increasing
number of awards given to recognise and promote corporate social responsibility. Most Admired
Companies Lists, such as that presented by Management Today in the UK and Fortune in America, are
based around an assessment of corporate social responsibility criteria, such as reputation for ethics and
honesty, use of corporate assets and community and environmental responsibility. The public relations
and marketing potential that might be gained from such awards would go a long way in helping the
business to further strengthen its socially responsible brand image.


Attracting and retaining employees
It increasingly appears to be the case that companies with clear ethical and social positions find it easier,
to not only recruit but to hold on to their employees. In a number of surveys of graduate employment
intentions, students have claimed that they would be prepared to take a lower salary in order to work for
a business with high ethical standards and a commitment to socially responsible business practices.
A survey conducted in June 2000 by Burson Marsteller and the Prince of Wales Business Leaders
Forum found that when employees were asked to rank the reason for admiring certain companies, 24 per
cent identified respect for their employees, and a further 21 per cent identified environmental
responsibility. The survey concluded that the reputation of the employer was crucial in the recruitment
and retention of staff. As John Browne the chairman of BP Amoco has remarked,

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Access to capital
The growth in ethically screened investment funds has grown by over 238 per cent since 1995. This
phenomenal growth is driven not only by the demands from shareholders for ethical funds, but also by a
realization from investors generally, that socially responsible business has the potential to be hugely
profitable. A recent survey by the Ethical Investment Research Service has revealed that 77 per cent of
members of pension schemes wanted their pension funds to adhere to some form of socially responsible
investment, so long as it did not impinge upon their returns.
The likelihood of returns being lower in ethically screened funds has been questioned by the findings of
two recent reports. Innovest Strategic Value Advisors and the Alliance for Environmental Innovations,
both concluded that, in respect to environmental responsibility in particular, those companies that
exhibit superior environmental performance over their peers achieve better financial performance in the
stock market. It is suggested that the reason for this is that environmental performance is a good
indicator of general management quality, which is the main determinant of stock price.
The benefits from being socially responsible appear not only to be diverse, but from an economic
point of view, worth having. Not only is business performance likely to be enhanced, but brand
image will be strengthened, employee turnover minimized and access to stock market funds
readily available. The next step for research is to attempt to quantify the benefits, and try to relate
the economic advantages directly to the level of social responsibility a business adopts.
OTHER POTENTIAL BUSINESS BENEFITS
Triple bottom line : People planet profit, also known as the triple bottom line, are words that
should be used and practiced in every move an organization makes.
I. People relates to fair and beneficial business practices toward labour, the community and region
where corporation conducts its business.
II. Planet refers to sustainable environmental practices. A triple bottom line company does not
produce harmful or destructive products such as weapons, toxic chemicals or batteries containing
dangerous heavy metals for example.
III. Profit is the economic value created by the organization after deducting the cost of all inputs,
including the cost of the capital tied up. It therefore differs from traditional accounting

31
definitions of profit. Despite the fact that adopting this triple measure has helped some
companies be more conscious of their social and moral responsibilities

Human resources : A CSR program can be an aid to recruitment and retention, particularly
within the competitive graduate student market. Potential recruits often ask about a firm's CSR
policy during an interview, and having a comprehensive policy can give an advantage. CSR can
also help improve the perception of a company among its staff, particularly when staff can
become involved through payroll giving, fundraising activities or community volunteering. CSR
has been found to encourage customer orientation among frontline employees.

Risk management: Managing risk is a central part of many corporate strategies. Reputations
that take decades to build up can be ruined in hours through incidents such as corruption scandals
or environmental accidents. These can also draw unwanted attention from regulators, courts,
governments and media. Building a genuine culture of 'doing the right thing' within a corporation
can offset these risks.

Brand differentiation: In crowded marketplaces, companies strive for a unique selling
proposition that can separate them from the competition in the minds of consumers. CSR can
play a role in building customer loyalty based on distinctive ethical values several major brands,
such as The Co-operative Group, The Body Shop and American Apparel are built on ethical
values. Business service organizations can benefit too from building a reputation for integrity
and best practice.

License to operate: Corporations are keen to avoid interference in their business through
taxation or regulations. By taking substantive voluntary steps, they can persuade governments
and the wider public that they are taking issues such as health and safety, diversity, or the
environment seriously as good corporate citizens with respect to labour standards and impacts on
the environment.


32
Satisfied Employees: Employees want to feel proud of the organization they work for. An
employee with a positive attitude towards the company is less likely to look for a job elsewhere.
It is also likely that you will receive more job applications because people want to work for you.
More choice means a better workforce. Because of the high positive impact of CSR on employee
wellbeing and motivation, the role of HR in managing CSR projects is significant.

Positive PR: CSR provides the opportunity to share positive stories online and through
traditional media. Companies no longer have to waste money on expensive advertising
campaigns. Instead they generate free publicity and benefit from worth of mouth marketing.

More Business Opportunities: A CSR program requires an open, outside oriented approach.
The business must be in a constant dialogue with customers, suppliers and other parties that
affect the organization. Because of continuous interaction with other parties, your business will
be the first to know about new business opportunities.

Long term future for your Business : CSR is not something for the short term. Its all about
achieving long term results and business continuity. Large businesses refer to: shaping a more
sustainable society


External benefits Internal benefits
Improved financial performance
Reduced risk exposure
Enhanced brand image
Increased sales and customer loyalty
Creation of new business networks
Improved trust
Enhanced corporate reputations
Improved government relations
Reduced regulatory intervention
Reduced costs through environmental
best practice.
Improved financial performance
Reduced risk exposure
Improved recruitment and staff retention
Increased staff motivation and enhanced
skills
Improved trust.

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2.9 CRS & THE COMPANIES ACT, 2013
In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which was
passed by both Houses of the Parliament, and had received the assent of the President of India on 29
August 2013. The CSR provisions within the Act is applicable to companies with an annual turnover of
1,000 crore INR and more, or a net worth of 500 crore INR and more, or a net profit of five crore INR
and more. The new rules, which will be applicable from the fiscal year 2014-15 onwards, also require
companies to set-up a CSR committee consisting of their board members, including at least one
independent director
The Act encourages companies to spend at least 2% of their average net profit in the previous
three years on CSR activities. The ministrys draft rules, that have been put up for public comment,
define net profit as the profit before tax as per the books of accounts, excluding profits arising from
branches outside India. The Act lists out a set of activities eligible under CSR. Companies may
implement these activities taking into account the local conditions after seeking board approval. The
indicative activities which can be undertaken by a company under CSR have been specified under
Schedule VII of the Act.














34
SOME THE HIGHLIGHTS ARE AS FOLLOWS

1. Surplus arising out of CSR activities will have to be reinvested into CSR initiatives, and this will
be over and above the 2% figure

2. The company can implement its CSR activities through the following methods:
Directly on its own
Through its own non-profit
foundation set- up so as to facilitate this initiative
Through independently registered non-profit organisations that have a record of at least three
years in similar such related activities
Collaborating or pooling their resources with other companies


3. Only CSR activities undertaken in India will be taken into consideration

4. Activities meant exclusively for employees and their families will not Qualify

5. A format for the board report on CSR has been provided which includes amongst others,
activity-wise , reasons for spends under 2% of the average net profits of the previous three years
and a responsibility statement that the CSR policy, implementation and monitoring process is in
compliance with the CSR objectives, in letter and in spirit. This has to be signed by either the
CEO, or the MD or a director of the company











35
CORPORATE SOCIAL RESPONSIBILITY
AS A TOOL IN SALES PROMOTIONS

Cross-Promotion
To understand the advantage of cross-promoting a product alongside corporate social responsibility
efforts, consider the consumer's perspective. Cross-promotion draws attention to corporate social
activities and at least one product. Instead of putting a game on the back of a cereal box, for example, a
cereal maker might print a feature about its rainforest mitigation activities. If the company announces it
will feature more stories about the rainforest, specifically related to its activities, people might buy more
cereal boxes to read them. Or, people might keep buying the cereal brand because they like the
company's cause.

Cause Marketing
A company can sponsor a social cause, plan a promotional event and invite sponsorships from donors
and corporations. At an event such as a charity fundraiser, a company can promote at least one product
by giving it away. In other events, such as a corporate-sponsored, hockey game for charity, sponsors can
set up a booth and distribute promotional items to fans.

Promotional Mix
Marketing agencies can also suggest how to use CSR in a company's promotional mix, or combination
of promotional strategies. If the marketing agency doesn't recommend at least one CSR approach, a
company can create its own promotion. Some companies work with more than one agency to get diverse
perspectives, such as planning promotions across different communication channels.




36
Web Audience
The company website can also promote CSR activities and products. A web marketing agency might
advise how to design the promotion strategy. A company can strategically place a product on Web
videos concerning CSR activities. A web video showing a company's rainforest mitigation team in
action can begin with a short spotlight on a new product.
SOCIAL RESPONSIBILITY STRATEGIES
Voluntary Hazard Elimination
Companies involved with social responsibility often take action to voluntarily eliminate production
practices that could cause harm for the public, regardless of whether they are required by law. For
example, a business could institute a hazard control program that includes steps to protect the public
from exposure to hazardous substances through education and awareness. A plant that uses chemicals
could implement a safety inspection checklist to guide staff in best practices when handling potentially
dangerous substances and materials. A business that makes excessive noise and vibration could analyze
the effects its work has on the environment by surveying local residents. The information received could
be used to adjust activities and develop soundproofing to lessen public exposure to noise pollution.
Community Development
Companies, businesses and corporations concerned with social responsibility align with appropriate
institutions to create a better environment to live and work. For example, a corporation or business may
set up a foundation to assist in learning or education for the public. This action will be viewed as an
asset to all of the communities that it serves, while developing a positive public profile



37
Philanthropy
Businesses involved in philanthropy make monetary contributions that provide aid to local charitable,
educational and health-related organizations to assist under-served or impoverished communities. This
action can assist people in acquiring marketable skills to reduce poverty, provide education and help the
environment. For example, the Bill and Melinda Gates Foundation focuses on global initiatives for
education, agriculture and health issues, donating computers to schools and funding work on vaccines to
prevent polio and HIV/AIDS.
Creating Shared Value
Corporate responsibility interests are often referred to as creating shared value or CSV, which is based
upon the connection between corporate success and social well-being. Since a business needs a
productive workforce to function, health and education are key components to that equation. Profitable
and successful businesses must thrive so that society may develop and survive. An example of how CSV
works could be a company-sponsored contest involving a project to improve the management and access
of water used by a farming community, to foster public health.
Social Education and Awareness
Companies that engage in socially responsible investing use positioning to exert pressure on businesses
to adopt socially responsible behavior themselves. To do this, they use media and Internet distribution to
expose the potentially harmful activities of organizations. This creates an educational dialogue for the
public by developing social community awareness. This kind of collective activism can be affective in
reaching social education and awareness goals. Integrating a social awareness strategy into the business
model can also aid companies in monitoring active compliance with ethical business standards and
applicable laws.

38



CHAPTER-3
CASE STUDY OF
MICROSOFT







39


Microsoft Corporation is an American multinational software corporation headquartered in Redmond,
Washington that develops, manufactures, licenses, and supports a wide range of products and services
related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975.
Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most
valuable companies.
Microsoft was established to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate
the personal computer operating system market with MS-DOS in the mid-1980s, followed by the
Microsoft Windows line of operating systems. The company's 1986 initial public offering, and
subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from
Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market
and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies
for $8.5 billion in its largest acquisition to date.
In the 1990s, critics began to contend that Microsoft used monopolistic business practices and anti-
competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its
software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and
European Commission found the company in violation of antitrust laws.



40
3.2 PRODUCTS AT MICROSOFT


Examples of our cloud-based computing services


Microsoft Office 365, an online suite that enables people to work from virtually anywhere, at any
time, through simple collaboration and commu nication solutions, including Microsoft Office,
Exchange, SharePoint, and Lync.

Year
Product
19821985 Introducing Windows 1.0
19871992 Windows 2.02.11
19901994 Windows 3.0Windows NT
19952001 Windows 95
19982000 Windows 98, Windows 2000, Windows Me
20012005: Windows XP
20062008 Windows Vista
2009 Windows 7
2012 Windows 8

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Xbox LIVE service, which enables online gaming, social networking, and access to a wide range
of video, gaming, and entertainment content.

Microsoft Dynamics CRM Online, which provides solutions for sales, service, and marketing
professionals through a familiar Microsoft Outlook interface.


Bing, our Internet search engine, which finds and organizes the answers people need so they can
make faster, more informed decisions.

Skype, which allows users to connect with friends, family, clients, and colleagues through a
variety of devices.


Yammer, a social network for enterprises, allow users to stay connected to coworkers and
information, and to collaborate more effectively with team members.

The Azure family of platform and database services, which helps developers connect
applications and services in the cloud or onsite. These services include Windows Azure, a
scalable operating system with computing, storage, hosting, and management capabilities, and
Microsoft SQL Azure, a relational database.



42
CORPORATE CITIZENSHIP
As an industry leader and the world's largest software company, Microsoft has a responsibility to act as
a good corporate citizen. Whether it is complying with local laws and regulations, demonstrating ethical
business standards, mitigating risks to the environment, or protecting human rights, Microsoft is
committed to being a global leader in corporate responsibility.
Corporate citizenship is also core to the Microsoft business strategy and the way that we interact with
customers, partners, governments, and employees. It is a way of doing business that recognizes the
effect that Microsoft has on society and the effect that society has on our business.
Microsoft is committed to serving communities and working responsibly. Through our partnerships, our
technology innovations, our people and our resources we are proud to help solve societal challenges and
create economic opportunities.

"Good citizenship is just good business. It's the right thing to do. It's who we are as a company.
It's our commitment to communities around the world. It's really that simple." - Kevin Turner,
Microsoft Chief Operating Officer






43






CHAPTER-4
CSR INITIATIVES








44
Our Commitment to Citizenship
Our commitment to citizenship is brought to life by the work we do in serving
communities, championing the growth of our people, and meeting our commitment to
responsible business policies and practices. Steve Ballmer


ENVIRONMENTAL SUSTAINABILITY
Microsoft is at pole position in the world technology scenario and has been leveraging this opportunity
to address the globally pressing issue of environmental sustainability. This has been on Microsofts
agenda for a long time and some key technological innovations in the recent years have been aimed at
improving the present without negatively impacting the future environment.

Microsoft has devised a three-pronged campaign aimed at revolutionizing technology practices across
the board. The three initiatives within the environmentally sustainable campaign are:
Enabling customers to think green: The end user has always been a focus area for all the initiatives at
Microsoft. The initiatives geared towards customers and businesses are:

Helping customers reduce their energy usage:
PC Challenge: Microsoft makes PCs greener with the help of latest desktop operating systems to
assist with efficient power management. Windows 7 is built with enhanced power management
systems. The software provides tools to troubleshoot power management concerns, thereby
delivering energy saving while also improving performance, battery life and user experience.
Server Side Issues: With the constant technological development of servers, electricity
requirements also increase proportionately. Windows Server 2008 enables power savings of up
to 10 percent over Windows Server 2003 when run on the same hardware at comparable levels of
throughput.

45
Cloud: Microsoft enables organisations to save energy and carbon by shifting to its cloud based
platforms for collaboration and communication thereby enhancing the business service
capabilities.
Identifying Inefficiencies: Microsoft helps companies identify IT inefficiencies, develop an
informed strategy and assess infrastructure for opportunities to improve efficiencies.

4.1YOUTHSPARK
The world stands at a crossroads. While there are younger people on the planet than ever before, youth
unemployment is double that of the adult population. Todays young people face an opportunity divide
a gap between those who have the access, skills and opportunities to be successful and those who do not.
Closing this opportunity divide is one of the most important actions we can all take to secure the future
of our youth. Microsoft YouthSpark is a companywide initiative designed to create opportunities for
youth around the world. Through partnerships with governments, nonprofits and businesses, we aim to
empower youth to imagine and realize their full potential by connecting them with greater education,
employment, and entrepreneurship opportunities. We want to empower youth to change their world.

Empowering Youth Transforming Education & Expanding Digital Inclusion
Partners in Learning is a long-standing program that provides professional development to educators
to help them with new approaches to teaching and learning, using technology to help students develop
21st century skills. Partners in Learning has equipped more than 741,000 government school teachers in
India with IT skills through Project Shiksha.


46
Project Jyoti , provides learning for young adults, especially women, in rural and underserved
communities, through Community Technology Learning Centers (CTLCs). Run in partnership with 14
NGOs currently, Project Jyoti supports 1,425 learning centers, which have trained 462,000 persons in IT
skills till date.

Office365 is free for all students and teachers around the world and provides ready access to technology
tools that power learning and collaboration: email, instant messaging, group video and voice chat, and
online document viewing and editing.
Microsoft Learning is a comprehensive program which is aimed at developing the skill sets and
enhancing the employability of the students and IT professionals through training and certification.
Through this program Microsoft provides a diverse range of offerings including- classroom training, e-
learning, certification, Microsoft Press books, skills assessments and more, to address the need gaps
among the students and professionals. Every year, more than 100,000 people are certified; and in the last
14 years, the program has impacted over 1 million people. There are more than 400 ITAs currently in
the country.

Imagine Unleashing Future Innovations

DreamSpark is a program under which students are provided access to the latest Microsoft software
designer tools at no charge. The program means to equip a new generation of technology leaders with
the knowledge and tools they need to harness the magic of software to improve lives, solve problems

47
and catalyze economic growth. The DreamSpark initiative in India is designed to join the dots between
software access, which means making training and enablement complement simple access to technology
In India, 4.5 million students have already gained access to the latest MS tools.
Imagine Cup is the worlds premier youth technology competition, providing an opportunity for high
school and university students to learn new skills and apply their knowledge and passion to develop
technical solutions for some of the worlds toughest problems. 50,000 students from India participated in
last years contest.

Realise Increasing Employability & Entrepreneurship

Imagine Cup Grants are a direct output of the Imagine Cup competition, these grants are given to a
select number of winning student teams to help them take their project to the next level through a
comprehensive grant of cash, software and mentoring support.
BizSpark gives software startups access to Microsoft software development tools and connections with
key industry players, including investors, help young entrepreneurs starting a new business. In three
years, the program has provided professional software at no charge to 2,000 startups, and 2725 startup
members.




48
SERVING COMMUNITIES
At the heart of Microsoft efforts is the passion of its employees, who generously donate their time and
money to causes around the world. This year, the 30th year of our employee giving campaign, we met
an exciting milestone $1 billion in employee contributions and Microsoft matching gifts to more than
31,000 nonprofits since 1983.
Launched in September 2012, Microsoft Youth Spark initiative is also a major focus of our community
work. Through partnerships with governments, nonprofits, and businesses, they are working to empower
young people to imagine and realize their full potential by connecting them with greater education,
employment, and entre-premiership opportunities.
Furthermore, Microsoft donate, on average, $2 million a day in software to more than 70,000 nonprofits
around the world one of many ways our technology and resources help nonprofit organizations serve
individuals and communities in need.








49
Microsoft Corp. has announced the global availability of Office 365 for Nonprofits for qualifying
nonprofits and nongovernmental organizations (NGOs) through its software donation program.
The donation is available immediately in 41 countries around the world and for up to 90 countries by
July 2014.
Microsoft said that it is donating to nonprofits and NGOs access to Microsofts best-in-class cloud-
based productivity and collaboration tools, enabling them to spend fewer resources and time on IT and
focus on their missions addressing global issues, such as disease eradication, education and literacy, and
environmental sustainability.
Nonprofits operate in the same way as any other organization or business; however, many lack the
resources to implement the latest technology. The donation of Office 365 allows them to be more
effective and efficient in the work they do. said Jean-Philippe Courtois, president, Microsoft
International.
In a study by Microsofts software donation partner TechSoup Global, nonprofits reported that the top
four advantages of cloud computing are easier IT administration (79 percent), cost savings (62 percent),
improved collaboration (61 percent) and data security (54 percent).
Office 365 for Nonprofits provides nonprofits and NGOs with access to Microsofts Microsofts
donation of Office 365 for Nonprofits is part of the companys 30-year history of community support. In
fiscal year 2013 alone, Microsoft donated $795 million (fair market value) in cash, software and services
to 70,286 nonprofits in more than 115 countries around the world.



50
REPORT HIGHLIGTHS
Increased software donations to 13 percent more nonprofits in FY13, empowering 70,286
organizations globally. We now have software donation programs in 117 countries around the
world

Provided $795 million worth of software to non-profits around the world including
matched donations through our employee giving program.

Launched new software donation programs in Austria, Indonesia, and Vietnam through
our partnership with TechSoup Global.

Developed a pilot program to help nonprofits implement Microsoft Office 365, a cloud-
based software solution that provides email, productivity, and collaboration tools in the familiar
Microsoft Office format. We will launch the full Office 365 for Nonprofits program in FY14.






51






Bill & Melinda Gates Foundation (B&MGF or the Gates Foundation) is one of the largest private
foundations in the world, founded by Bill and Melinda Gates. It is "driven by the interests and passions
of the Gates family. The primary aims of the foundation are, globally, to enhance healthcare and reduce
extreme poverty, and in America, to expand educational opportunities and access to information
technology. The foundation, based in Seattle, Washington, is controlled by its three trustees: Bill Gates,
Melinda Gates and Warren Buffett. Other principal officers include Co-Chair William H. Gates, Sr. and
Chief Executive Officer Jeff Raikes.
It had an endowment of US$38.3 billion as of 30 June 2013.The scale of the foundation and the way it
seeks to apply business techniques to giving makes it one of the leaders in the philanthrocapitalism
revolution in global philanthropy, though the foundation itself notes that the philanthropic role has
limitations. In 2007, its founders were ranked as the second most generous philanthropists in America,
and Warren Buffett the first. As of May 16, 2013, Bill Gates had donated US$28 billion to the
foundation.

Type Non-operating private foundation
Founded 1997
Founder(s) Bill Gates & Melinda Gates
Headquarters Seattle, Washington, United States of America
Area served Global
Focus(es) Education, Healthcare, Ending poverty
Method(s) Donations and Grants
Employees 1,058

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ACTIVITIES
To maintain its status as a charitable foundation, it must donate funds equal to at least 5% of its assets
each year.Thus the donations from the foundation each year would amount to over US$1.5 billion at a
minimum
The Foundation has been organized, as of April 2006, into four divisions, including core operations
(public relations, finance and administration, human resources, etc.), under Chief Operating Officer
Cheryl Scott, and three grant-making programs:

Global Health Program
Global Development Program
United States Program

GLOBAL HEALTH PROGRAM

The Global Health Program's significant grants include:

Polio eradication
The Foundation provides 17% (US$86 million in 2006) of the world budget for the attempted
eradication of poliomyelitis (polio).

The GAVI Alliance
The foundation gave the GAVI Alliance (formerly the Global Alliance for Vaccines and
Immunisation) a donation of US$750 million on January 25, 2005.





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Children's Vaccine Program
The Children's Vaccine Program, run by the Program for Appropriate Technology in Health (PATH),
received a donation of US$27 million to help vaccinate against Japanese encephalitis on December 9,
2003.

University of Washington Department of Global Health
The foundation provided approximately US$30 million for the foundation of the new Department of
Global Health at the University of Washington in Seattle. The donation promoted three of the
Foundation's target areas: education, Pacific Northwest and global health. The foundation also leads a
study to increase access to high education globally.






HIV Research
The foundation has donated a grand total of US$287 million to various HIV/AIDS researchers. The
money was split between sixteen different research teams across the world, on the condition that they
share their findings with one another.

Aeras Global TB Vaccine Foundation
The foundation gave the Aeras Global TB Vaccine Foundation more than US$280 million to develop
and license an improved vaccine against tuberculosis for use in high burden countries.

Cheaper high-tech TB test
In August 2012, the foundation, in partnership with PEPFAR (United States Presidents Emergency
Plan for AIDS Relief), USAID (United States Agency for International Development), and UNITAID
(an international drug purchasing facility hosted by WHO), announced they had finalized an agreement
to reduce the cost of a commercial TB test (Cepheids Xpert MTB/RIF run on the GeneXpert platform)
from $16.86 to $9.98. This test can take the place of smear microscopy, a technique first developed in
the 1880s by Robert Koch. Smear microscopy often does not show TB infection in persons who are also
co-infected with HIV, whereas Xpert MTB/RIF can show TB in the co-infected patient. In addition, the

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GeneXpert system can show whether the particular TB strain is resistant to the antibiotic rifampicin,
which is a widely accepted indicator of the presence of multi-drug resistant tuberculosis.

Visceral Leishmaniasis Research
The foundation awarded the Hebrew University of Jerusalem Kuvin Center for the Study of Infectious
and Tropical Diseases a US$5 million grant in 2009 for research into visceral leishmaniasis, an
emerging parasitic disease in Ethiopia where it is frequently associated with HIV/AIDS, and a leading
cause of adult illness and death. The project is a collaborative effort with Addis Ababa University and
will gather data for analysis to identify the weak links in the transmission cycle and devise methods for
control of the disease.

The foundation has also given The Institute for One World Health a donation of nearly US$10 million to
support the organization's work on a drug for visceral leishmaniasis.

Next Generation Condom
The foundation is offering $100,000 to the scientist who can develop an improved condom,one that
"significantly preserves or enhances pleasure, in order to improve uptake and regular use" according to
the Gates Foundation's Grand Challenges in Global Health website. The condom challenge is one of five
health initiatives put forward in Round 11 of the Grand Challenges Explorations, a program that rewards
innovative, unorthodox approaches to global health and disease prevention.

Neglected tropical diseases
The foundation took the initiative of the WHO-inspired project called London Declaration on Neglected
Tropical Diseases launched on 30 January 2012 in London, and had allocated a 5-year US $363 million
commitment, the largest funding for the project. The programmer is to eradicate or control 10 major
tropical diseases by 2020





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CSR INITIATIVE IN ASIA STRATEGY

Agricultural Development
Agricultural Development is one of the largest initiatives of the Bill & Melinda Gates Foundation. To date, we
have committed more than US$2 billion to agricultural development efforts, primarily in Sub-Saharan Africa and
South Asia. Our approach is based on the following principles:

1. Listening to farmers and addressing their specific needs. We talk to farmers about the crops they
want to grow and eat, as well as the unique challenges they face. We partner with organizations
that understand and are equipped to address these challenges, and we invest in research to
identify relevant and affordable solutions that farmers want and will use.
2. Increasing farm productivity. We support a comprehensive approach to helping smallholder
farmers prosper that includes access to heartier seeds, more effective tools and farm management
practices, locally relevant knowledge, emerging digital technologies, and reliable markets. We

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also advocate for agricultural policies that support farmers in their efforts to better feed
themselves and their communities.
3. Fostering sustainable agricultural practices. In an era of increasingly scarce resources and
growing impact of climate change, we encourage farmers to embrace and adopt sustainable
practices that help them grow more with less land, water, fertilizer, and other costly inputs while
preserving natural resources for future generations.
4. Achieving greater impact with partners. We are committed to communicating our strategy more
effectively and sharing what weve learned with grantees and other partners, including
governments, nongovernmental organizations, traditional and emerging donors, and the private
sector. Our resources, while significant, represent only a fraction of what is needed.
Collaborating effectively with others maximizes our collective impact in helping farming
families.
The Opportunity

Helping farming families increase production in a sustainable way, and sell more crops, is the most
effective way to reduce hunger and poverty over the long term.
When farmers grow more food and earn more income, they are better able feed to their families, send
their children to school, provide for their familys health, and invest in their farms. This makes their
communities economically stronger and more stable.
Helping farmers improve their yields requires a comprehensive approach that includes the use of seeds
that are more resistant to disease, drought, and flooding; information from trusted local sources about
more productive farming techniques and technologies; greater access to markets; and government
policies that serve the interests of farming families.





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TOBACCO CONTROL
The Bill & Melinda Gates Foundation supports advocacy at the country level for full implementation
and enforcement of FCTC provisions. We work with our partners to convey the benefits of tobacco
control policies and thereby reduce tobacco-related death and disease in developing countries. Our
efforts are focused on Africa, China, and Southeast Asia.

Bill Gates and Michael Bloomberg have called on government and business leaders to make the fight
against tobacco use a higher priority.

Our strategy is centered on three priorities:
Supporting implementation and enforcement of proven tobacco control policies: tobacco
taxation, advertising bans, graphic warning labels, and smoke-free environments
Supporting social marketing campaigns that increase public and policymaker knowledge of the
harmful effects of tobacco and change attitudes and perceptions related to tobacco use
Funding global and locally-based research to inform our ongoing policy and social marketing
efforts
POLIO








Polio eradication is a top priority of the Bill & Melinda Gates Foundation. As a major supporter of the
GPEI, we contribute technical and financial resources to our GPEI partners to accelerate efforts to
eradicate polio. Many of these strategies are proven, such as targeted vaccination campaigns, community
mobilization, and stronger routine immunization efforts. We are also working with partners on
innovative ways to enhance polio surveillance and outbreak response, accelerate the development and
use of safer and more effective polio vaccines, and galvanize financial and political support for polio
eradication efforts from both donor and polio-affected countries.

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The foundation has a unique ability to contribute to polio eradication by taking big risks and by making
nontraditional investments that can lead to valuable program improvements. Examples include our
funding for Geographic Information System (GIS) mapping to replace hand-drawn maps for campaign
planning, GPS tracking to monitor the movement of vaccination campaign teams, and investments in
polio vaccine research.






















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CHAPTER-5
RECOMMENDATION &
CONCLUSION












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RECOMMENDATION

Every business organization should adopt CSR and focus on poverty alleviation programmes.

It is the responsibility of corporations to return some of their wealth and success to the
communities that support them.


Given their wealth, social influence and contacts within government and business, corporations
can make a difference for people in need by contributing to efforts in education, employment
training, prison diversion programs, drug counseling and small business startups.

The natural environment is the source of all wealth, and those making the wealth have been
badly abusing it for centuries. Companies that engage in CSR should recognize this and focus on
saving Natural environment


The employees who work for a company are the ones who directly produce its wealth.
Companies should fairly remunerate employees for the efforts that they put into the success of
the company. Equitable packages for employees include fair pay, benefits, paid vacations and
pension plans. Just as importantly, workplaces should be healthy and safe places that don't
subject workers to unregulated toxins or dangerous conditions.








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CONCLUSION

Thus Corporate Social Responsibility (CSR) is about how companies manage the business processes to
produce an overall positive impact on society. Thus companies consider the interests of society by
taking responsibility for the impact of their activities on customers, suppliers, employees shareholders,
communities and other stakeholders, as well as the environment. This is seen to extend beyond the
statutory obligation to comply with legislation as organizations are voluntarily taking further steps to
improve the quality of life for employees and their families as well as for the local community and
society at large. If a company chooses to follow the way of CSR, it will integrate ethical concerns in its
activities and in its interaction with all the Stake holders. This implies that the corporate units function in
such a way that their CSR activities in all likelihood actually reach out to the beneficiaries the society
in general. The ethical considerations are aimed at preparing the groundwork for expecting the correct
reaction or response of their CSR generated activities

It would be useless to even try to initiate action where the response generated would be negative. This is
why prior to corporate social responsibility lies the work of preparing the society for the same, which
should be the joint efforts of corporates, non-governmental organisations and definitely the monitoring
authority, that is the government. Such concerted efforts can expectedly produce the desired results. The
groundwork is essential ,since an unresponsive, obstructive , unwilling, suspicious recipient in this case
the society, will actually deter all efforts directed towards development and cause unnecessary delay and
confusion. Providing employment and spreading literacy will actually see the commencement of
CSR.Yes,the question will definitely arise that if transport and communication is grossly undeveloped
,how is it possible to spread literacy? The obvious solution would be the involvement of the residents in
the construction of roads and other communication networks,which would therefore guarantee them
employment.





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BIBLIOGRAPHY

http://serd.org.in/csr2013/
http://smallbusiness.chron.com/corporate-social-responsibility-tool-sales-promotions-10181.html
http://businessthatcares.blogspot.in/2010/08/corporate-social-responsibility-and.html
http://smallbusiness.chron.com/four-types-corporate-social-responsibility-54662.html
http://www.gatesfoundation.org/What-We-Do
http://en.wikipedia.org/wiki/Corporate_social_responsibility
http://smallbusiness.chron.com/five-dimensions-corporate-social-responsibility-54700.html