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A LITERATURE REVIEW: CORPORATE SOCIAL RESPONSIBILITY PRACTICES OF

INDIAN COMPANIES

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AEGAEUM JOURNAL ISSN NO: 0776-3808

A LITERATURE REVIEW: CORPORATE SOCIAL RESPONSIBILITY

PRACTICES OF INDIAN COMPANIES

Dr. C. Vethirajan1, N. Ariyadevi2, J. Antony Nancy3 & S. Jeyachitra4

1
Professor and Head, Department of Corporate Secretaryship, School of Management,
Alagappa University, Karaikudi, Tamil Nadu, India. Mobile: 9443493474
2
Research Assistant, Department of Corporate Secretaryship, School of Management,
Alagappa University, Karaikudi, Tamil Nadu, India.
3,4
Secretarial Assistant, Department of Corporate Secretaryship, School of Management,
Alagappa University, Karaikudi, Tamil Nadu, India.

Email-Id: [email protected], [email protected],

[email protected], [email protected]

ABSTRACT: Corporate Social Responsibility is not a new concept that is aware of the
society as well as the companies after the amendment of companies act, 2013.CSR is that
satisfy the society with the 2% profit that has benefitted the company by the resources taken
from the society. This paper shows that the various literature survey which studies the
Corporate Social Responsibility activities in Indian companies and how they are developing
and positively promoting the CSR practices with good impact.

Keywords: CSR, Companies, Society, Stakeholders, Environment & Sustainability

I. INTRODUCTION
Corporate Social Responsibility means that contribute to the society that is taken from
the society. Corporate Social Responsibility is about capacity building for sustainable
livelihoods. CSR means the requirement of companies to thought on their social, ethical, and
environmental performance as on their monetary performance. CSR refers to companies
taking account of the social and environment, and not just the financial consequences of their
actions. Corporate Social Responsibility (CSR) is an emerging concept which is getting
popularity all over the business organizations. CSR is commonly assumed that the method of
the firm accomplishes stability between economic, environmental, and social imperatives
when they know the prospects of the shareholders and the stakeholders. As businesses try to
in line with laws and regulations on social, environmental, and economic objectives set by the

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legislation and legal institutions, this is often assumed as including the private sector
obligations and accomplishments are those lengthen beyond this foundation of agreement
with laws. The key features of the concept are the way businesses engage or involve the
shareholders, employees, customers, suppliers, governments, non-governmental
organizations, international organizations, and others into the organization.
CSR in India has traditionally been a voluntary activity and keeping this in mind an
activity that was performed was not measured. As an outcome, there is only some
documentation on definite actions associated with this concept. However it has been observed
that the practice of CSR in India remains within the philanthropic space but has moved from
institution building (education to community development through various projects).
Nowadays due to internal and external pressure many companies have started reporting CSR
activities undertaken by them in their annual reports, sustainability reports, and on their
official websites. Before the implementation of the companies‟ act 2013, majority of the
corporate does CSR as philanthropic activities. On 1st April, 2014, the section 25 companies
Act, 2013, has been implemented. According to this act CSR was made mandatory for the
companies having a turnover of Rs 500 crore or more should spend 2% of their profit on
CSR. The Sectors were also defined for doing CSR activities.

According to schedule 7 of section 135 of the companies Act, CSR community activities
should be addressing the below-mentioned challenges:

1) Eradicating hunger, poverty, malnutrition, promoting preventive health care, and sanitation
providing safe drinking water.
2) Promoting education, special education, employment enhancing vocational skills in
children, elderly, women and differently-abled and livelihood enhancement skills.
3) Promoting gender equality, empowering women, setting up homes and hostels for women
and orphans, setting up old age homes, day-care centres and other such facilities for senior
citizens and measure to reducing inequalities faced by socially and economically
backward groups.
4) Ensuring environmental stability, ecological balance, protecting flora and fauna, animal
welfare, agroforestry, conversation of natural resources and maintaining quality of soil,
water, and air.
5) Promotion and development of arts and culture, libraries, traditional handicrafts, etc.,

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6) Measures for benefit of armed forces, veterans, war widows and their dependents.
7) Training to promote national sports, rural sports, Paralympics sports, Olympic sports.
8) Contribution to PMs Relief Funds or any other fund set up by the central government for
socio-economic development and relief and welfare of SC, ST, other backward classes,
Women, and Minorities.
9) Contribution of funds provided to technology incubators located within academic
institutions that are approved by the Central Government.
10) Rural development project.
11) Swatch Bharat Abhiyan ( PWC, 2014)

II. A LITERATURE REVIEW

1. Vethirajan.C, Ramu.C (2019), in his article on “Consumers’ Knowledge On

Corporate Social Responsibility of Select FMCG Companies in Chennai
District” the paper shows that the customers have enough knowledge on legal,
ethical and economical responsibility in CSR practices of FMCG companies and
that not consistent because of various difference in the knowledge across the
categories by social, economic and demographic features, this can also affect the
preferring the particular companies for the personal care products. That the
consumers' knowledge of CSR practices of FMCG companies tends that they give
more preference because of this.

2. Vethirajan.C, Ramu.C (2019) in his article on “Customers Perception Of CSR

Impact on FMCG Companies – An Analysis” shows that CSR is actually about
making sure that the company can produce on a sustainable base to ensure the
equality to all its stakeholders, since CSR has come a long way in India. However,
it is hard for individual entities to make changes in the prevailing social structure
of the country. But still, organizations have their strategical planning, technical
proficiency, human resource, and financial support for delivering socially
responsible measures to the society. Though, both the corporates and NGOs should
join together for achieving faster social development within a short period.

3. Ashish Baghla(2018) said that CSR has the own particular way to make its
practices reliable in India, they must need to also support the various society other

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than being supported already for their sustainable development to make the best
Indian economy. He also said that we have to work united efforts for the
sustainable development of India by various CSR practices implemented and
enhanced in India.

4. Angel A Jaun (2014) in her article on “Promoting Corporate Social

Responsibility in Logistics throughout Horizontal Cooperation” discusses how
CSR can be promoted in Logistics and Transportation (L&T) companies
employing Horizontal Cooperation (HC) practices. An L& T company operates in
a dynamic market and environment so it is challenging for them to survive. This
paper gives that the recent trends and developments in the CSR areas and gives a
few examples of how they can contribute to society to reduce both the distribution
cost as along with the sustainable impact of the environment in these distribution
activities.

5. Kumar, Sachin (2015) in entitled that “Linking Green Marketing with

Corporate Social Responsibility: A Critical Analysis of Home Appliances” the
paper is based on analyzing of vision and mission statements of the major eight
home appliance companies operating in India, concerning CSR and what are the
green marketing published and whether it is executed by them.

6. Anupam Singh and Dr. Priyanka Verma ( 2014) said that India is the large
populated country that has the gap between more poor and rich that can not only
be balanced by our government is not alone is possible. So he suggests that this is
the best time for the corporates to make various efforts by the mandatory 2% CSR
policy to support the society. The corporates should help the society, not by the
legal aspect of view but also assist in the sustainable and holistic view.

7. Deepika Dhingra and Rama Mittal (2014) said that various financial institutions
have assisted various CSR support to the society to achieve their sustainability but
the banks have not mostly involved in this socially responsible practices. So they
suggest doing the triple bottom line structure for more involvement in these
practices through giving training to their employees about the society and
environment diversity.

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8. Prakash Jagdeesh and Naresh Suparna (2014) is discussed that “Public

Relations and Corporate Identities: Corporate Social Responsibility- Genuine
Concern or Mere Image Building?” they have highlighted on various issues like
 Whether CSR is genuinely done or used to establish brand identification?
 Does CSR help in businesses to differentiate from the others and to what
extent it is done?

9. Chinnadurai .P (2014) in their article, “Corporate Social Responsibility in

India” is a theoretical paper studying the evolving concept of CSR, the necessity
of having CSR. For the above concepts CSR of various companies operating in
India is analyzed and the researcher has given suggestions for corporate in
designing their CSR initiatives.

10. Praveen Kumar (2014) in his article on “Corporate Social Responsibility in

India” has discussed the present scenario of CSR in India and the challenges
available in the Context of India. Major challenges faced in India are 1) the general
public is still not aware 2) Lack of transparency 3) Lack of proper government
policy 4) The Media is not giving much attention toward CSR 5) CSR initiative is
not broadly perceived. 6) The company is not ready to spend on CSR willingly. 7)
No availability of proper Guidelines for CSR in India. 8) Education level is low 9)
CSR is not monitored by strict law.

11. Benjamin James Inyang (2013) entitled that “Defining the Role Engagement of
Small and Medium-Sized Enterprises (SMEs) in Corporate Social
Responsibility (CSR)” has studied various CSR activities undertaken by SMEs
and their role in CSR implementation and how does it help in developing
economies. It was found that SMEs were focusing their CSR activities towards
community development, employee initiatives, consumerism, environmental
actions, and supply chain requirements. The paper suggested that the government

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should give necessary incentives and support services for effethe ctive engagement
of SME towards CSR.

12. Gao, Jingyu (2013) discussed that the “Corporate social responsibility and the
balanced scorecard‟. The current research investigates two factors such as
Psychological Distance, Level of Peer Participation that impact managers' results
that investing in Corporate Social Responsibility (CSR) projects. The thesis
intends to tests the effectiveness of the balanced scorecard as a strategic
performance management system for integrating CSR into a company‟s strategy
and enhancing CSR investment decisions. It was found that CSR investment
intention by managers tends to be lower 1) when the outcome of CSR projects
occurs in a very long future or 2) when peer participation is low from the
companies of the same industry. Taking this into consideration two hypotheses has
been framed 1) to study

13. Ghosh, Debjani; Gurunathan, L. (2013) concluded that “An Empirical Study
on Corporate Social Responsibility, Intention to Quit and Job
Embeddedness” has examined employee‟s reaction to CSR programs at the
attitudinal level. This study was to explore the relationship between attrition rates
of workers is indirectly influenced by two dimensions of perceived CSR 1) CSR to
society and 2) CSR to customers through the mediation of job embeddedness. A
survey of 501 managers from 19 banking companies in India has been taken.
Based on hypothesis testing it was found that an effective way to lower the
attrition rate of employees can be by developing CSR to society and CSR to
customers.

14. Chopra, Abha; Marriya Shruti (2013) discussed on “Corporate Social

Responsibility and Education in India” have focused on CSR programs targeted
by the businesses for education sectors. Companies have tried to consider the
challenges faced by education like standardized testing, limited budgets, retention
of teachers and global workforce competition, etc, and have targeted the areas of
the education sector that have a correlation with their business goals.

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15. Wesley, A. Et.al. (2013) concluded that the” Corporate social responsibility: A
governable space‟ the authors have viewed CSR should be re-conceptualized due
to the range of forces like political, institutional, economic, or social. They also
indicate that the impact of global social forces such as the prevailing neoliberal
mentalities and the global accumulation agenda on CSR can be better understood
when taking this perspective into consideration.

16. Greet Overbeek et.al. ( 2013) entitled that the “Biodiversity and the corporate
social Responsibility Agenda” has undertaken exploratory study about companies
commitment to manage biodiversity and ecosystems by doing literature of
sustainability approaches and interviews with sustainability representatives of 12
national and international companies in the Netherlands. The results show that
companies use a reactive approach to biodiversity. It is getting more attention on
the sustainability agenda of the executive board but still creating internal
commitment for the corporate responsibility on biodiversity and ecosystems
remains challenging.

17. Herwina Rosnan et.al. (2013) concluded that the „” Opinion towards Corporate
Social Responsibility among Budding Business Leaders‟ has undertaken a
study to examine the relationship between four variables named ethical idealism,
ethical relativism, acquisitive value and personal devoutness towards CSR based
on personal moral philosophy model by Forsyth (1992). The survey was
undertaken on MBA students. The data were analyzed through multiple regression
analysis and the result was ethical idealism and materialistic values have a
significant influence on opinion towards CSR compare to the other two.

18. Akinyomi, Oladele John (2013) has examined the practice of corporate social
responsibility by manufacturing firms in Nigeria, based on stakeholder‟s
theory. According to the survey the major areas of focus of the CSR activities
include Education and Youth Development/Sport, among others. Moreover the
study revealed that the investment in CSR activities was negligible compared to
the turnover of the companies.

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19. According to Aghashahi, Betsabeh et.al.(2013) examines the extent and

tendency of corporate social responsibility (CSR) reporting of the large
corporations of the Food & Beverages industry. The authors have investigated
the CSR reporting by companies as outlined in the Global Reporting Initiative (
GRI) guidelines.

20. Neha Gupta (2013) examines that the “Corporate social responsibility In
Textile Industry‟ has highlighted that every stakeholder has to be involved
equally for penetrating corporate social responsibility. For which various
companies social responsibility activities in textile industries have been studied.
Along with it, the researcher has tried to study whether there is a relationship
between economic growth of a country and the growth of the society and if so
whether it is growing at the same rate or is it different

21. Krishna Kumar Shah (2012) discussed that the “Corporate Social
Responsibility in Nepal‟ has discussed the conceptual part of social responsibility
and its importance in Nepal in his article. It also has emphasized on how corporate
should comply and get motivated to do activities for the development of society
and helping government and social institutions to face problems like
environmental risks, unemployment, poverty, and others.

22. Laura Poddi; Sergio Vergalli (2012) concluded that ”Does Corporate
responsibility Pay?‟ they have used three main international performance
indicators (1) Domini 400 Social Index, (2) Dow Jones Sustainability World
Index, and (3) FTSE4 Good Index for studying does CSR pay? It was found that
companies doing CSR have better long-run performance. Companies have to incur
some initial costs but CSR helps in increasing sales and profits due to several
causes like an increase of reputation, increased socially responsible demand from
the public, and a reduction of long-run costs.

23. Vallaster, Christine et.al. (2012) in their article on “Strategically leveraging

corporate social responsibility.” have discussed on how to tackle CSR in a way
that should benefits society and corporate brand both, for which a qualitative
analysis was undertaken for the categories like entrepreneurs, performers, vocal

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converts, or quietly conscientious in the companies for studying CSR and their
brands strategically. The above categories were defined based on the level of
involvement, integration, and the key initiator of the CSR focus. It is concluded
from the research that those who practice CSR should balance stakeholder’s
expectations for achieving consistency in their corporate branding and CSR
efforts.

24. Mihaela Irina Ionescu (2012) discussed that the “Corporate social
responsibility: optional or regulatory” has reviewed various ways in which CSR
has been addressed in advanced economies in the European Union and the EU
itself, along with merits and demerits of regulation, the compulsion of CSR.

25. Font, X; et.al. (2012) in their article on “Corporate Social responsibility: The
disclosure-performance gap‟ has tried to throw light on whether there is a gap
between CSR claims and actual practice. For which CSR policies and practices of
10 international hotel groups in the European market have been taken. The
findings were environmental performance is driven by eco-savings, labor laws
were according to local legislation, corporate systems do not necessarily reflect
actual operations, socio-economic policies pay little attention to customer
engagement and destination, rather it is more inward-looking. Larger groups have
more comprehensive policies compared to smaller groups which have focused
only on environment management, but the gap in implementation is more for
larger hotel groups compare to smaller hotel groups as they deliver what they
promised.

26. Ray, Dr.Sarbapriya; et.al. (2012) have made an attempt to make an objective
evaluation of the Corporate Social Responsibility and related ethical business
practices that are being adopted by large corporate houses in India.

27. Bolajoko N. Dixon-Ogbechi; et.al. (2011) examine that the “Marketers‟

perception of corporate social responsibility and the impact on the company's
performance: a study of companies in the Nigerian service industry in Lagos
metropolis‟ has studied Nigerian service industry‟s CSR trend. It was found
through their survey that managers perceive that firms that participated in CSR

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will have a good number of customers, and will face low business conflict and
would have less employee‟s turnover.

28. Suman Kalyan Chaudhary et.al (2011) concluded that the Practices of
Corporate Social Responsibility (CSR) In Banking Sector in India: An
Assessment‟ has highlighted the CSR practices in 12 major Indian Banking and
Financial Institutions from the country. Banks' annual reports, websites,
newsletters, etc. were used as secondary sources of data for a period of 3 years
(2007-2010). Paper concludes that all banking and financial institutes are engaged
in social banking and development of banks approach.

29. According to Kim, Jong-Keun (2011) examine that “Effects of CSR on

relational performance‟ has found that CSR is one of the most effective tools for
managing various stakeholder groups. This paper tries to study the relationship
between B to B (includes suppliers, stakeholders) transaction performance and
CSR activities. The findings were relationship performance is better in terms of
satisfaction, relationship value, dependence, cooperation, commitment, and
communication for the companies having excellent CSR activities.

30. Tripathi, Shiv and Petro, Gerald (2010) in examine that “Developing Green
Attaining and Sustainable Supply Chain activities in the Organizations: A
Framework to Align Functional Strategy Implementation to Organization‟s
Corporate Social Responsibility (CSR) Objectives” has shown the link of
efficient strategy and CSR, it was found that there should be clear relation between
CSR objectives and functional objectives and plans for executing CSR effectively.
The research methodology is based on secondary data and analytical
conceptualization. It has focused on „green procurement‟ a new global trend and
has tried to conceptualized CSR oriented functional strategic framework and
supply chain function.

31. Suparn Sharma, et.al. (2009) discussed that the ‘Corporate Social
Responsibility: The Key Role of Human Resources Management‟ has
attempted to explore the engagement of HRM professionals in undertaking
corporate social responsibility. They have concluded that the combined impact of

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CSR and Human resource activities, can make a major contribution to creating
long term success in organizations by reinforcing the desired behavior of
employees.

32. Delphine Rabet (2009) entitled that “Human Rights and Globalization: The
Myth of Corporate Social Responsibility?‟ it was found that enforcement of
human rights standards is followed as per the national government rules and
corporate has an important role to play. It is the responsibility of the companies to
share or complement state responsibilities on human rights. The result shows the
contradiction between the human rights to fair remuneration over wealth creation.

33. Duangkaew Chaisurivirat (2009) examine that “The effect of corporate social
responsibility: Exploring the relationship among CSR, opinion towards the
brand, purchase intention, and persuasion knowledge” Submitted to the
University of South Florida the study replicates and extends previous research by
examining the effect of consumers‟ persuasion knowledge, based on the
Persuasion Knowledge Model (PKM), as one variable that can affect consumers‟
opinion toward CSR initiatives and brands.

34. Stoain Ciprian-Dumitru (2007) examines that the “Corporate social

responsibility versus tax avoidance practices‟ has studied major two issues 1)
whether companies which are having operations offshore do tax avoidance? And
another part of the research is what the influence of stakeholders for those
companies practicing tax avoidance and its implications on CSR action.

35. Lorraine Sweeney (2007) concluded that “A study of the current practice of
Corporate Social Responsibility (CSR) and an examination of the relationship
between CSR and Financial Performance using Structural Equation
Modelling (SEM)‟ experimenting at Dublin Institution of Technology, that has
decided that CSR was created to have a strong positive connection with a
reputation in the society, workers attraction, motivation and retaining and
customer attraction and loyalty but a weaker relationship with other business
benefits like access to capital and business reputation.

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36. Wickramasinghe, D.W.A. (2006) concluded that the “Corporate social

responsibility: does it matter?‟ has tried to explore the impact and relationship
of social responsibility on the success of the selected manufacturing companies in
Sri Lanka. For studying the relationship, six critical factors: economic, personal,
product, environment, discrimination, and community involvement of social
responsibility were considered. Data was collected through a questionnaire and
handbook of selected manufacturing companies. For measuring the success of each
company a tool name Return on investment (ROI) of the company was measured.
To identify the relationship between the success of companies through ROI and
social responsibility various statistical tools has been used.

37. Ilaria Bissacco, et.al. (2005) discussed that “The strategic approaches to CSR
by large companies: a contingent model” the paper focused on analyzing the
determinants of various CSR strategies adopted by the companies. Case study of
Large MNC operating in Italy with an oil and gas sector focus has been discussed
for studying the interpretative framework of different CSR strategies to some
variables.

38. Sanjay Pradhan and Akhilesh Ranjan (2005) examine that has explored CSR
Practices by Corporate in Rural Development. For this they have studied
CSR practices of 14 public and private sector Indian companies for rural
development. The methodology used was secondary data. The purpose of their
study was whether corporate considering rural people as a stakeholder? And if it is
yes then what are the CSR initiatives taken by corporate for the rural development
and do they take it as a part of their business strategy? The findings have
concluded that CSR activities undertaken by organizations have a positive impact
on rural development and their business also.

III.CONCLUSION
This paper shows that the conceptual study on literature surveys based on CSR
activities which have been amended in India. Through various literature, studies say that
many companies have a positive effect on the performance, CSR activities which helps the

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Consumers made their preference for their products on particular companies. This also
examines that CSR practices helps the society as well as companies for their profit.

IV. Acknowledgment

The Author Dr.C.Vethirajan, Professor and Head, Department of Corporate Secretaryship,

School of Management, Alagappa University, Karaikudi, Tamil Nadu, India, and the
Co-author Miss.N.Ariyadevi, Research Assistant, Department of Corporate Secretaryship,
School of Management, Alagappa University, Karaikudi, Tamil Nadu, India has greatly
acknowledged under RUSA 2.0 Scheme. Mrs.J.Antony Nancy and Miss.S.Jeyachitra,
Secretarial Assistant are also acknowledge the same.

V.REFERENCES

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Companies – An Analysis”, IMPACT: International Journal of Research
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