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Corporate Social Responsibility By Indian Business Houses Business Essay

Paper Type: Free Essay Subject: Business
Wordcount: 3082 words Published: 1st Jan 2015

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Every business has played his significant role in society. Every Indian business houses has an obligation to society, the philosophy is basically to give back to society, what it has taken from it, in the course of its quest for profit maximization and wealth creation.

The concept of Corporate Social Responsibility (CSR) emerged from the sense of responsibility and can be defined as the ethical Behavior of a company towards society. It is a concept which suggests that Commercial Corporation must fulfill their duty of providing care to the society. Ethics and social Responsibilities are important concerns in making decisions in all aspects of our life. Ethics and social responsibility affects business as does the economy, government and legal Forces.

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The CSR activities of Indian business houses are gradually increases with respect to time. As we all knows, the CSR has been originated in us in early 20th century. The ideas of charity and stewardship helped to shape the early thinking about CSR in the us, where as in India CSR was followed by the Tata’s in almost all sectors. The offering of Tajmahal Hotel daily world was for the purpose of hospital was the first noticeable effect made by Indian business houses.

Present research states the effects made by Indian business houses for the benefits of society through their CSR activities.


Corporate Social Responsibility (CSR) is a concept which encourages organizations to consider the interests of society by taking responsibility for the impact of the organization’s activities on customers, employees, shareholders, communities and the environment in all aspects of its operations

In the increasingly conscience-focused market place of the 21st century, the demand for more ethical business processes and actions is increasing. The concept of Corporate Social Responsibility (CSR) is gaining importance nowadays. It calls upon businesses to follow ethical practices while dealing with its stakeholders, i.e. shareholders, customers, employees, suppliers, creditors and society but unfortunately all the companies are not equally committed towards their social responsibility. We repeatedly hear about various scams taking place in the business world. The concept of CSR emerged from the sense of responsibility and can be defined as the ethical behavior of a company towards society. It is a concept which suggests that commercial corporation must fulfill their duty of providing care to the society Organizations in India have been quite sensible in taking up CSR initiatives and integrating them in their business processes. It has become progressively projected in the Indian corporate setting because organizations have recognized that besides growing their businesses, it is also important to shape responsible and supportable relationships with the community at large. Companies now have specific departments and teams that develop specific policies, strategies and goals for their CSR programs and set separate budgets to support them. Most of the time, these programs are based on well-defined social beliefs or are carefully aligned with the companies’ business domain.

Defining CSR

Social Responsibility of business refers to what business does over and above the statutory requirement for the benefit of the society. The word “responsibility” emphasizes that the business has some moral obligations towards the society. The term corporate citizenship is also commonly used to refer to the moral obligations of the business towards the society. It implies that like individuals, corporate are also the part of the society and their behavior shall be guided by the social norms.

Social Responsibility has been defined by Davis as follows:

“Social responsibilities refer to businessman’s decision and actions taken to reason at least partially beyond the firm’s direct economic or technical interest.”

Corporate Social Responsibility (CSR) is viewed as a comprehensive set of policies, practices and programs that are integrated into business operations, supply chains, and decision-making processes throughout the organization — wherever the organization does business — and includes responsibility for current and past actions as well as future impacts1. CSR involves addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders. Effective CSR aims at “achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.” Simply put it means “what you do, how you do it, and when and what you say.”

Several terms have been used interchangeably with CSR. They include — business ethics, corporate citizenship, corporate accountability, sustainability and corporate responsibility. The issues that represent an organization’s CSR focus vary by size (small, medium and large), sector (for example, financial institutions, infrastructure providers, textile manufacturers, agri-producers, supermarket retailers, etc.) and even by geographic region. In its broadest categories, CSR typically includes issues related to business ethics, community investment, environment, governance, human rights, the marketplace and the workplace.


To understand the concept of CSR and its penetration in Indian Business Houses

To take on overview of CSR activities carried out by major Indian Companies.

To study the various CSR practices adopted by Indian business houses.

To study the relationship between Indian business houses and society with virtue of CSR activities.

Research methodology

The present research paper is primarily based on secondary data a made available by various sources, Descriptive survey method is used for data collection. The major sources of data are research journals, references books, annual reports of various organizations and research work carried out by various contributors as mention in reference list and various websites quoted in the references.

Ethics and Corporate Social Responsibility (CSR):

Webster defines ethics as ‘the discipline dealing with that which is good and bad with moral duty and obligation. Business Ethics means the behavior of a businessman while conducting business by observing morality in his business activities. Ethics and social responsibility are important concerns in making decisions in all aspects of our life. Ethics and social responsibility affect business as does the economy, government and legal forces. Although the primary motive of business is to generate maximum profit, public interest should also be kept in mind, after all business derives profit from the society itself and it’s actions directly or indirectly cause harm to environment or ecological system, it will no longer accepted by the society.

The concept of CSR is expressed as the voluntary assumption of responsibilities that go beyond the economic and legal responsibilities of business firms. Dr. Manmohan Singh, PM of India states CSR as ‘an investment in our collective future’.

The CSR activities of some major Indian companies at a glance:

Tata group of Companies:

There has been a long history of CSR in India and the Tata have been the role model on this path. The Chairman of the Tata group, Ratan Tata explained, “We do not do it for propaganda or publicity, we do it for the satisfaction of having really achieved something worthwhile”.

The CSR programs of the Tata group extend across a wide spectrum including rural development, community development, social welfare, family initiatives, tribal development and water management etc. About 7000 villages around Jamshedpur and Orissa are benefited from development program run by Tata Steel Rural Development Society.

The Wipro Ltd.:

The Chairman and MD of Wipro Ltd. Explained, “We believe strongly that large successful organizations have to proportionate responsibility to lead in areas beyond business that are critical for development and sustenance of society. We are therefore deeply committed to initiatives that can nurture a human, equitable and sustainable world.”

The Wipro has done a lot of work in two major areas i.e. Education and Natural Disaster Rehabilitation. Wipro started Wipro Applying Thought in Schools (WATIS) program. With the purpose of improving quality, content and pedagogy of urban schools in India. This initiative works to build capacity for education reforms through a large network of social organization. Wipro has undertaken various CSR programs i.e. Holistic School Engagement Program, Capacity Building for organization, Mission 10X, TVK School in Chennai, Community Center at Pune, and Tsunami Rehabilitation in Nagapattinam etc.

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Reliance Industries Ltd

The Dhirubhai Ambani Foundation every year recognises meritorious students at district level through rewards and scholarship schemes through “Dhirubhai Ambani SSC – Merit Reward Scheme” and Dhirubhai Ambani Undergraduate Scholarship Scheme”. Also foundation offers ‘Reliance Kargil Scholarship Scheme’ to support educational needs of the children of defence personnel who sacrificed their lives or were disabled during Kargil war, instituted with the generous contribution from Reliance employees.

RIL extends extensive financial support and professional expertise to Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC), a charitable hospital offering free and subsidized services to a good proportion of the patients availing of its various diagnostic and treatment facilities. Dhirubhai Ambani Hospital, Lodhivali, Dist. Ragiad Dhirubhai Ambani Hospital attaches a very high importance to improve the quality of life in surrounding communities. It extends prompt and specialised services to the Mumbai-Pune highway accident victims. In addition, A Cancer and AIDS prevention program was conducted at neighbouring industry for their employees by doctors of Dhirubhai Ambani hospital RIL has always played an active role in protecting lives, environment and property of the neighbouring community. This is done through active support of the Fire and Safety departments for various incidents outside Patalganga such as controlling fire in Warehouse Corporation on Mumbai-Pune highway, assistance in controlling Phenol leakage from a tanker near Pen, District Raigad, Maharashtra; providing support for controlling fire at M/s Ooms Polymer Modified Bitumen Pvt. Ltd. Panvel, Navi Mumbai and containing the fire in MSEB transformer near Apta, District Raigad, Maharashtra. Support was also provided for controlling a Naphtha leak at Kamothe village off Mumbai-Pune highway.

Hindustan Lever Ltd.

Corporate Social Responsibility (CSR) in Hindustan Lever Limited (HLL) is rooted in its

Corporate Purpose – the belief that “to succeed requires the highest standards of corporate

behaviour towards our employees, consumers and the societies and world in which we live”.

HLL’s CSR philosophy is embedded in its commitment to all stakeholders — consumers,

employees, the environment and the society that the organisation operates in. HLL believes that it is this commitment which will deliver sustainable, profitable growth. HLL’s key CSR initiatives are undertaken with a long-term view. Initiatives that are sustainable,have long-term benefits and an ongoing business purpose linked to them are accorded priority focus. As early as in the 1950s, HLL focused on import substitution when balance of payments was an issue. Since the 1980s, most of HLL’s investments have been in designated backward areas and zero-industry districts, spreading industrialisation. HLL has revived sick industries and has developed local entrepreneurship An illustration of how HLL implements its CSR activities is Project Asha Daan. HLL supports Asha Daan run in Mumbai by the Missionaries of Charity (an NGO founded by the late Mother Teresa). Asha Daan is a home for abandoned, handicapped children, the destitute and people affected by AIDS (HIV positive). Asha Daan had been set up on a 72,500 square feet plot, in the heart of the city leased by the company. HLL also bears the capital and revenue expenses for maintenance, upkeep and security of the premises. HLL Also carried out Various CSR Activities like PROJECT SHAKTI – Changing Lives in Rural India, LIFEBUOY SWASTHYA CHETANA — Health & Hygiene Education, AIR & LOVELY FOUNDATION — Economic Empowerment of Women, GREENING BARRENS — Water Conservation and Harvesting, HAPPY HOMES – Special Education & Rehabilitation.


For the Godrej family Nature has always formed an important part of our upbringing and our garden township at Vikhroli bears witness to this. All this started much, much before “environment” became the buzzword that it is today. In a way, if today we have a green image, the credit goes to Godrej founders – they sowed the seeds, the fruit of which we are reaping today The Corporate Environment Policy of Godrej has identified biodiversity enhancement as a focal point.The preservation of open spaces and specially green open spaces such as mangroves has been a priority for us. Godrej’s  entire campus, known as Pirojshanagar, is an industrial garden township. Godrej  strongly believes that this green environment enhances productivity and quality. It has been greatly appreciated by all their employees and visitors.

Mahindra and Mahindra:

Among corporate who have displayed deep commitment to CSR over long years, in Mahindra and Mahindra, the late Mr. K.C. Mahindra for promoting education among Indians at all levels established the K.C. Mahindra Education Trust in 1953. Every year trust offers up to 30-40 interest free loan scholarships to PG students going abroad for higher studies. The Mahindra search for Talent Scholarship is a scheme established in 34 schools in India to ensure and reward students who have achieved excellence in their academic pursuits.

Birla group of Companies:

The Birla group of companies is also among the pioneers in the field of CSR in India. the Birla group runs as many as 15 hospitals in India, includes adult education program, conducting as many as 78 schools all over India, rehabilitates more than 5,000 physically challenged individuals, examined more than 1,00,000 patients, immunized over 15,000 children along with 2,000 pregnant women, operated over 500 cataract patients, provided medical care to more than 2,000 TB patients and attended over 100 leprosy affected free of cost. It has also provided vocational training to over 3,000 women and having distributed over 1,400 tool kits in a variety of areas like electrical, auto repair, electronic equipment, maintenance & repair and tailoring.


The CSR activities of Bajaj Group are guided by the vision and philosophy of its Founding Father, Shri Jamnalal Bajaj, who enunciated the value of Trusteeship in business and laid the foundation stone for its ethical and value-based functioning. The core elements of CSR activities include ethical functioning, respect for all stake-holders, protection of human rights and care for the environment. The Company and Bajaj Group generally implements the above initiatives through its employees, Welfare Funds and Group NGOs / Trusts / Charitable Bodies operating at various locations in the country. It also enlists the help of non-Group NGOs, Local Authorities, Business Associations and Civil Society, wherever deemed necessary Some of the major initiatives taken up during the year under review are summarized as follows:

Education:Under the Public Private Partnership program (PPP), the company has undertaken to upgrade 2 Industrial Training Institutes (ITI) in Pune and one in Pantnagar

Health:The Anti Retroviral Treatment Centre (ART centre) set up by your company at Yeshwantrao Chavan Municipal Hospital (YCM Hospital) has registered 3500 patients with 1900 cases under ART Centre. This centre is now a bench-mark for new centres and is the largest-one run by industry. The Director General, NACO visited the ART centre and later CII awarded its recognition to Bajaj Auto for its initiatives and long-time commitment in the matter.


Awards: The Foundation gives 4 Awards annually – each of the value of Rs.5 lakhs. Of these, three are given to individuals in India for outstanding contribution in the fields of constructive work on Gandhian lines, application of science and technology for rural development and uplift and welfare of women and children. The fourth one is an International Award – given to individuals other than Indian citizens from foreign countries for their contribution to the promotion of Gandhian values outside India.

Jankidevi Bajaj Gram Vikas Sanstha (JBGVS)

During the year under review, JBGVS undertook a number of development initiatives for economic and environment development, health care and prevention of HIV / AIDS, basic education and literacy, women empowerment and social development. Activities carried out by JBGVS for community development and empowerment of women are highlighted as Rural Development,Healthcare,Tribal Development,Trusts for Colleges and Kamalnayan Bajaj Hospital.

Other Activities: It includes Employment Generation Programmes, School under National Child Labour Project, Balwadi (Child Training Centre), Community Awareness Campaign & Health Camp


Indian ethical dilemma is a potential source for Indian business houses to realize their social responsibility. It is vital to quote that big Indian business houses are synonymously used CSR with either corporate philanthropy or corporate citizenship. The CSR practices adopted by Indian business houses are now at the door of keeping its stagnant impact on Indian society through social, medical, cultural and education activities.


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