Corporate Social Responsibility in India
Corporate Social Responsibility is not a new term in India, but however there is a shift in focus towards the challenges faced by society which is a good positive sign. Each company has responsibility of contributing something to the society and can no longer exploit the environmental resources. Most of the companies in India have identified the need of CSR and already in target of wellness of the society. This essay will highlight some of the CSR initiatives taken by companies in India and throws light on some other negative side of the business.
To start with, TATA Motors one of the leading automobile specialist in India, according to its Sustainability report 2009 it has provided various utilities such as student's benches, chairs, tables for staffs, fully furnished cup-boards in each class rooms, electrical equipments, educational CD's and sports goods to many schools in Singur. Hyundai Motor India Ltd (HMIL), the country`s second largest car manufacturer continued its CSR initiatives in its factory located in Irrungattukottai, near Chennai. It has organized a blood donation camp in partnership with Lions Club International and has seen active participation from its employees . As another measures, a meager amount from each car sold will be moved to the Hyundai foundation to support the social activities. Moving to IT sector, Infosys Technologies Ltd was ranked highest for its CSR activities in the year 2008. Infosys Foundation has partnered with many NGOs in India and provides support to the following key areas Affordable healthcare; Rehabilitation of destitute women; Enabling children from rural and under privileged communities. They provide necessary funds to these organizations and also help them in their engagements. Similarly, Satyam Computers Ltd has launched the Ambulance 108 service which provides emergency services and helps the people who met with an accident or stuck with natural disaster. This is a remarkable initiative taken by Satyam computers Ltd, almost entire south India has been benefited and received much appreciation from all people. Finally in Electronics sector, TVS Electronics as part of its CSR measures has conducted a Anemic detection and control camp for adolescent girls in Tiruvidanthai, a village near south TamilNadu. As further initiatives they have extended their help to the Government in constructing solid waste management system in the same place which provides a clean atmosphere in the village. Another Electronics giant, Videocon Electronics runs its own hospital with complete facilities and provides free treatment to all poor people in Indian villages. It also runs a school aiming to provide free and quality education to underprivileged girls in India. These are some of the good initiatives taken by the companies in India.
Moving on to another viewpoint of CSR, corporate and disaster to society, popular soft drink company PepsiCo Inc. has faced ban on many of the states in India for its contamination of water and addition of pesticides. PepsiCo Inc. has fought back over the controversy alleging that, report released by NGO Centre for Science and Development is not an ISO approved standards. Other famous soft drink company Coca-Cola has been the latest for using more groundwater which led to the drying up of many wells in Kerala The Coca-Cola bottling plant has using more than a million litres of water per day and the villagers are demanding compensation and to fix the well issue. In Industrial sector one of the medium sized firm in Chennai, South India Metal Industries has caused air and noise pollution in Kodungayur, a village in Chennai. One of the local resident has said "I even developed wheezing, something that has never happened to me before, and I was told by my doctor that it was due to the pollution in the air," This is huge nuisance to the residents and they have even lodged a complaint to Pollution Control Board (PCB). PCB later has visited the industry and issued a show cause notice but however it was stopped, means no action was taken after that from both the sides. Moving on to IT sector, Satyam Computers Ltd recently in news for various bad reasons. Its CEO Ramalinga Raju has confessed of diverting Satyam's money to two real estate firms promoted by his family and also admits of bribing for getting contracts. Raju was actually heading the corporate responsibility committee of Indian Industries till January 2009. These evidences clearly state that, companies doing good for society also indulging in negative side which promotes business in some way or other, that doesn't mean that they are against CSR but actually not having a proper mechanism in evaluating CSR measures of their company.
Milton Friedman (1970) says "The Social Responsibility of Business Is to Increase Its Profits." Is this the motive of all companies to engage in CSR activities? Experts claim that, most companies use CSR as a marketing strategy, for instance, some amount will be donated to a social cause on purchasing a new product. And also often for many companies, the tax advantages are attractive. But the fact is, motive for CSR can vary between each corporate based on the social interest or business interest. In India, over period of time, expectations of the people have grown tremendously with demands focusing on eradicating poverty, overcoming unemployment, fighting racialism. Coca-Cola, for the water scarcity issue, it has identified Water Neutrality as CSR measures through which, all water will be replenished by the year 2012 in India. Recently Satyam has been taken over by Mahindra group of companies and already started revamping all the CSR policies. From this essay, it is very much clear that most companies in India are already paying attention to the CSR activities and revamping their policies based on the feedback and hence in my opinion whatever may be the reasons, either it is for business or for brand image or any other; in any case society gets benefited and also adds to the benefit of a company and creates an internal brand among its employees.
Bibliography:
Details on Tata Motors from http://www.tatamotors.com/CSR-09/content.php
[Viewed 7th October 2009]
Article on Hyundai CSR initiatives from http://www.csrindia.info/story.php?aid=164 [Viewed 7th October 2009]
Infosys Sustainability report from http://www.infosys.com/beyond-business/infosys-sustainability-report-0809.pdf
[Viewed 7th October 2009]
Satyam Computers Ltd company Website http://www.satyam.com
[Viewed 8th October 2009]
Videocon CSR initiatives from http://www.videoconworld.com/global/social-commitment/projects/hospitals/index.php
http://www.videoconworld.com/global/social-commitment/projects/schools/index.php
[Viewed 8th October 2009]
TVS CSR Initiatives from http://www.tvse.com/csr-initiatives.asp [Viewed 9th October 2009]
The Times of India for water issue from http://timesofindia.indiatimes.com/NEWS/India/Kerala-cans-Coca-Cola-Pepsi/articleshow/1879330.cms [Viewed 9th October 2009]
The Times of India for industrial pollution issue from http://timesofindia.indiatimes.com/Cities/Chennai/Kodungaiyur-mired-in-industrial-pollution/articleshow/4623109.cms [Viewed 9th October 2009]
Article on Satyam scandal from http://www.ethicalcorp.com/content.asp?ContentID=6381
http://blogs.worldbank.org/governance/satyam-vs-siemens-corruption-the-difference-is-in-ponzinomics [Viewed 9th October 2009]
Milton Friedman(1970) , The New York Times Magazine , September 13,1970 Accessed from http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html [Viewed 9th October 2009]
