CSR PRACTICE TOWARDS RESPONSIBLE BUSINESS

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1 International Journal of Business Management & Research (IJBMR) ISSN Vol. 2 Issue 3 Sep TJPRC Pvt. Ltd., CSR PRACTICE TOWARDS RESPONSIBLE BUSINESS SHANTI J Faculty of Management Studies, International Insitute of Business Studies, Bangalore, India ABSTRACT Companies are recognizing that since they are managing an economic unit in the society, they have a broad obligation to the society with regard to matters of long term sustainability. The question is who will lead the responsible growth for the Indian economy. Since we are in the midst of a consumption boom, faster growth and rising incomes means India will be the leading economy in the world. This case study explores the purpose of CSR initiatives that range from enhancing the livelihoods of beneficiaries, reducing the environmental impact and improving the health and well being of society as a whole. KEYWORDS: Teaching Case Study, CSR, Social Responsibility INTRODUCTION With a rapid growth of population in India the resources are being consuming at a rate which is greater than the earth s ability to replenish it. Across the world there is a concern for growth and its impact on the environment leading to sustainability. A rising consumption must be met with responsible growth from government and corporations alike. India has seen this responsibility being shouldered by many companies who believe that CSR initiatives will create economic value and deliver tangible returns to society at large. The purpose of CSR initiatives could range from enhancing the livelihoods of beneficiaries, reducing the environmental impact and improving the health and well being of society as a whole. This article is an insight into two such initiatives started by two of the pioneering companies Infosys and HUL (Hindustan Unilever Limited). RESPONSIBLE GROWTH Unilever with its long history and tradition serves the needs of over 700 million consumers across the length and breadth of India. From a starting turnover of Rs. 119 crores in 1970 the company presently has reported a turnover of Rs. 119 crores in financial year ended 2011.

2 22 Shanti J Unilever Initiative: Health and Well being Initiative Swasthya Chetna, which means 'Health Awakening', is a multi-phased activity that works towards effecting hand washing behaviour change in rural communities. The main message of the campaign is "Visibly clean is not really clean". The Lifebuoy Swasthya Chetna programme was initiated in 2002 as a rural health and hygiene initiative in India. In partnership with local government bodies, the Lifebuoy Swasthya Chetna programme is designed to spread awareness about the importance of washing hands with soap. Studies show that washing hands with soap is one of the most effective and inexpensive ways of preventing diseases. It also promotes general hygiene in rural areas that are difficult to reach through usual marketing campaigns such as television, press or in-store advertising and promotions. Covering 130 million people in 30,000 villages since 2002, the Lifebuoy Swasthya Chetna programme has made its mark as the single largest private hygiene education project in the world. Lifebouy brand aims to change the hygiene behavior of one billion consumers across Asia, Africa and Latin America. UNILEVER INITIATIVE: PROJECT SHAKTI It impacts society in two ways; the programme creates livelihood opportunities for underprivileged rural women and it improves the quality of life in Rural India by spreading health and hygiene awareness. Over two-thirds of India s 600,000 villages are very small and remote. Project Shakti is an initiative that creates a win-win partnership for consumers, rural women and Hindustan Lever. Already

3 CSR Practice Towards Responsible Business 23 operational in 15 states across the country, it has enhanced the livelihoods of 45,000 women entrepreneurs covering three million household in 1 lakh villages through this unique initiative. Project Shakti provides micro-enterprise opportunities for women from Self-help Groups (SHG S), making them direct-to-home distributors of Unilever. They work as brand ambassadors for Unilever, selling products directly to village consumers at their homes. The women are being trained to become entrepreneurs, to manage business and communicate the benefits of the brands. The awareness level of brands in these villages is low as conventional media does not reach these villages and such initiatives help to engage the rural consumers. Project Shakti is a highly interactive form of selling and engagement, which leverages a unique opportunity to communicate, demonstrate and provide experience of the brand benefits. The men in the Shakti families were given bicycles to cover surrounding villages to increase distribution and sales. Shakti Pracharini is a health, hygiene and wellness campaign for the rural community. Rural women are trained to spread awareness of good health and hygiene practices within the community. Therefore Unilever is building on the sustainable living plan in India which focuses on the brand and services they offer with an concern for the people they serve and work to build their business with context of overall benefits to the society. They are looking at end-to-end impact across the entire value chain in order to achieve the goals of sustainable growth. INFOSYS INITIATIVE: SPARK PROGRAM Infosys Limited (NASDAQ: INFY) was started in 1981 by seven people. Today, they are a global leader in consulting, technology and outsourcing with revenues of US$ billion (FY12). Many of the world s most successful organizations rely on Infosys to deliver measurable business value. Infosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries build tomorrow s enterprise.

4 24 Shanti J Infosys has a global footprint with 65 offices and 74 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 149,994 employees as on March 31, CSR INITIATIVE Infosys Limited has launched several programs aimed at evolving a model through which Infosys and academic institutions can partner for competitiveness to enhance the pool of highly capable talent or growth requirements in the Information Technology (IT) space. One such initiative started by Infosys, which has touched the lives of thousands of young people and members of faculty in the country, is SPARK, an extraordinary program that aims to raise the aspirations of students. This nation-wide program focuses on the advances Information technology has made, Infosys role in the growth of IT and how students can learn from it. Spark was launched in August 2008 and volunteered by thousands of Infoscions organization-wide, who spend their personal time on Saturdays to runthesparkprogram. Infosys SPARK is a one day exploratory program for students from different age groups and segments from high school to degree and engineering colleges of urban and suburban areas. Through this on-campus event conducted by volunteers, participating students assess their industry readiness and check their aspirations meter. Spark Rural Reach Program Infosys has implemented different CSR programs for inclusive growth in India. Encouraging rural children to pursue studies in science and mathematics and become part of the IT revolution in the country is one such program. SPARK-Rural Reach Program (RRP) is a one day program that aims to raise Awareness of Computers and the Power of IT among rural school children in India. The Rural Reach Program connects with the Infosys PC donation scheme, so that schools where PCs have been donated or lined up for donation will benefit from the learning. The target audience for RRP is students from rural Government schools studying in 5th to 7th standard within km radius of Infosys Development Centers (DCs). Spark Catch Them Young Spark Catch Them Young (CTY), a decade-long Infosys' initiative, trains high school students in the basics of Information Technology. Started in 1997, this two week long program aims to expose bright urban youth to the world of Information Technology by conducting a summer vacation program for them at Infosys campuses. It also raises the curiosity levels in young students to develop an interest in computer science and information technology. The intended participants for CTY training are the high performing students who have completed 9th standard from local high schools and are interested in computer programming. Students

5 CSR Practice Towards Responsible Business 25 are selected based on an entrance test. CONCLUSIONS CSR however will have to move from superficial to strategic where they move from standard guides for an enterprise and implement small actions in the areas of human resources, environment, community and supply chain. In order for CSR to be strategic, companies have to explore specific strengths, weaknesses and profile of the company and their principal stakeholders. A lot of small companies do not have a formalised mission and so CSR may be used as the means of framing a suitably longer-term view of value creation that is based on sustainability and shared value with stakeholders. (UNIVERSIA BUSINESS REVIEW SEgUNdo trimestre 2011 ISSN: ) Thought Points for the Students 1. Analyse the merits and demerits of CSR initiatives in the case. 2. What type of companies will get engaged in CSR activity and the extent of commitment required by a company. 3. Analyse the cost benefit analysis of CSR initiatives of these companies as mentioned in the case REFERENCES 1. UNIVERSIA BUSINESS REVIEW SEgUNdo trimestre 2011 ISSN: