REVIEW OF LITERATURE

1.1 Meaning of Corporate Social Responsibility. "Corporate Social Responsibility (or 'responsible entrepreneurship') refers to ensuring the success of a business by the inclusion of social and environmental considerations into a company's operations. It means satisfying your customers' demands whilst also managing the expectations of other people such as employees, suppliers and the community around you. It means contributing positively to society and managing your enterprise's environmental impacts. 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. It relates to operating a business in a manner that meets the ethical, legal, commercial and public expectations that society has of business. CSR is a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. In other words CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis". Corporate social responsibility is not about planting trees in some vague corner of the world, but about how you do your business and how ethical you are as a corporation. Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental, and social imperatives (Triple-Bottom-Line- Approach), People, Planet, and Profit while at the same time addressing the expectations of shareholders and stakeholders. In this sense, it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company, and strengthen its brand, the concept of CSR clearly goes beyond that. Corporate social responsibility (CSR,
1

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. 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. All the definitions of the CSR are focused on the Triple Bottom Line (TBL) approach. This concept captures an expanded spectrum of values and criteria for measuring organizational (and societal) success - economic, environmental and social. The TBL approach means expanding the traditional company reporting framework to take into account not just financial outcomes but also environmental and social performance starting from the base (bottom) and following three objectives (tripleline) that are: Social justice, Environmental quality, Economic prosperity. The definition of CSR varies from company to company and many use other terms such as sustainable growth, corporate responsibility, social responsibility or corporate citizenship. No matter how it is described, CSR considers the human being as the centre of the economic system. The universal values of the individuals and their needs are seen as fundamental and unrepeatable resources. Hence, CSR is the business contribution to sustainable development, meaning the way a company balances its economic, environmental and social objectives while addressing stakeholder expectations and enhancing shareholder value. It is not possible to give CSR a universal definition. CSR frequently involves creating innovative and proactive solutions to societal and environmental challenges, as well as collaborating with both internal and external stakeholders to improve CSR performance. CSR is not a rule; it is a way of life, a multidimensional philosophy of global governance which one can voluntary subscribe to. All organizations have an impact on society and the environment through their operations, product or services, and their interactions with key stakeholder groups including employees, customers, suppliers, investors and the local community. There is no single, commonly accepted definition of the notion of Corporate Social Responsibility and the concept is often used interchangeably with other terms including corporate governance, corporate
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citizenship, corporate accountability, business ethics, corporate responsibility and sustainability. Moreover definitions vary in different cultural and national settings. The legally defined mandate of todays corporation is to pursue relentlessly and without exception, its own self interest, regardless of the often harmful consequences it might cause to others. From the 1950s till date, the concept of CSR has gained considerable acceptance and the meaning has been broadened to include additional components. 1.2 The History of Corporate Social Responsibility: The development concept of Corporate Social Responsibility (CSR) has been carried out mainly in western countries; particularly in United States. Literature picks up the issue from the 1950s when attention was devoted to the responsibility of businessmen ( Bowen, 1953) to the 1980s when the argument with stakeholder theory took place (Freeman, 1984) and of course, to the 1990s when most studies were devoted to the analysis of the relationship between CSR and corporate financial performance (Roman et al, 1999). In the beginning of the 1950s, Howard Bowen tried to give rational and systematic arguments in favour of CSR and its connection with big corporations and their influence on social consequences and undoubtedly, their primary societal responsibilities. The one of the earliest books on CSR, "The Social Responsibilities of the Businessman", was written by Bowen in 1953. Bowen's book was specifically concerned with the doctrine of social responsibility. Bowen argued that social responsibility is not panacea for all business social problems, but that it contains an important truth that must guide business in the future (Asongu, 2007). Because of Bowen's early and very valuable work, Carroll has argued that Howard Bowen should be called the "Father of Corporate Social Responsibility" (Carroll, 2000). The decade of the 1960s is characterized as seeing a growing interest in the formalizing or more precisely, defining the meaning of CSR. One of the prominent writers in this period was Keith Davis, who later extensively wrote about the topic in his business and society textbooks, later revisions and articles. He argued that social responsibility is a nebulous idea, but should be seen in a managerial context (Mahon, 1991). Another influential contributor to the early research into CSR was Friedman. The argument made by Friedman (1962) that the main corporation's responsibility is toward shareholders has created much debate among academics. It was not until 1970, that Wallich and McGowan first made attempts to demonstrate the link between
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corporations' social responsibility and shareholder's interests. They argued that the aim of corporation's long-term interest should be linked to the environment to which a corporation belongs. If society and environment became worse, a business would lose their "critical support structure" and customer base (Keim, 1978). In the 1970s there are a wide range of references, increasingly being made to corporate social responsiveness, corporate social performance as well as corporate social responsibility. In the 90s, literature tried to find out answers to questions such as why some companies are doing well and if CSR could be identified as a competitive advantage. Most academics and scholars started to apply the stakeholder theory to CSR, because stakeholders, other than shareholders have interest in the well-being of a company in relation to employees, customers, governments and others. This model renewed the interest in CSR and more research was devoted to this subject. Also, there is great interest in the linkage between CSR and corporate competitiveness; but there is a shortcoming of quantitative translation of socially responsible practices into specific results affecting the income and loss of particular organization (Murillo and Lozano, 2006). Many scholars connect CSR with the competitive advantage that a company can gain. The most well-known work in this field is Professor Michel Porter's "The competitive advantage of corporate philanthropy" in which he describes how a company is able to improve its long-term potential by linking financial and societal goals (Porter, 2003). Further development in this area was made by Kramer (2003). 1.3 CSR Scenario in India: In India, CSR has evolved to encompass employees, customers, stakeholders and sustainable development or corporate citizenship. The spectrum of CSR includes a number of areas as human rights, safety at work, consumer protection, climate protection and caring for the environment, and sustainable management of natural resources. From the perspective of employees, CSR activities include providing health and safety measures, preserving employee rights and discouraging discrimination at workplace. This helps in fostering a healthy environment within the company. For example, after 1945, TATA implemented social welfare provisions for its employees that have since become the legislative norm. From the perspectives of customers, CSR activities may include commitment to product quality, fair pricing policies, and so. India is one of the fastest growing large countries with rising interest in investment
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from global market. Its emerging market, with a mega population of more than 105 crores people, attracts global investors who want to minimize their risk of depending just on western markets. One of the main objectives of any business activity is making profits, but in the present scenario of competitive world all businesses seem to be heading towards improving the bottom line only while paying lip service to other objectives. Corporate Social Responsibility assumes critical significance in such a scenario. The responsibility starts at the individual level and later reaches a movement stage at the corporate level. One is reminded of the famous words of late John F Kennedy, former US president, who had said Ask not what your country can do for you, but ask what you can do for the country. As our economy is growing at a rapid speed, the means becomes as important as the end, if not more. No business should flourish at the cost of the society. Business houses must behave ethically and contribute to the economic development while improving the quality of life of the employees and that of the society at large. Different options exist on this topic ranging from CSR is Governments or NGOs baby and business has nothing to do with it. The money spent on CSR is a theft from the shareholders of the business, etc., but the fact remains that a business survives only through the service of its employees, who by themselves form an effective part of the society itself. Major corporate have taken it upon themselves to think beyond profits and paying taxes, like the Bill Gates Foundations fight against AIDS, and other companies like TATA, Mahindra & Mahindra, AV Birla Group, taking a socially responsible approach when it mattered the most. It is time when the companies started looking at CSR more pragmatically and as a separate entity from philanthropy. Experts argue that CSR and even philanthropy can be a source of competitive advantage. In a country like India, where 70% of the population resides in rural areas, doing a bit of good to them makes a big business sense as huge volumes and large potential exist there. Mitigating environmental hazards caused due to intense industrial activity is a notable feature of CSR. Thus, there is an urgent need to initiate proactive measures in this regard at least not to harm the society. 1.4 Approaches to Corporate Social Responsibility: A more common approach of CSR is philanthropy. This includes monetary donations and aid given to local organizations and impoverished communities in developing countries. Some organizations do not like this approach as it does not help
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build on the skills of the local people, whereas community-based development generally leads to more sustainable development. Another approach to CSR is to incorporate the CSR strategy directly into the business strategy of an organization. For instance, procurement of Fair Trade tea and coffee has been adopted by various businesses including KPMG. Its CSR manager commented, "Fair trade fits very strongly into our commitment to our communities." Another approach is garnering increasing corporate responsibility interest. This is called Creating Shared Value, or CSV. The shared value model is based on the idea that corporate success and social welfare are interdependent. A business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively. For society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and opportunities for philanthropy. CSV received global attention in the Harvard Business Review article Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility by Michael E. Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School; and Mark R. Kramer, Senior Fellow at the Kennedy School at Harvard University and co-founder of FSG Social Impact Advisors. The article provides insights and relevant examples of companies that have developed deep linkages between their business strategies and corporate social responsibility. Many approaches to CSR pit businesses against society, emphasizing the costs and limitations of compliance with externally imposed social and environmental standards. CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but focuses more on the opportunities for competitive advantage from building a social value proposition into corporate strategy. CSV has a limitation in that it gives the impression that only two stakeholders are important shareholders and consumers - and belies the multi-stakeholder approach of most CSR advocates. Many companies use the strategy of benchmarking to compete within their respective industries in CSR policy, implementation, and effectiveness.

Benchmarking involves reviewing competitor CSR initiatives, as well as measuring and evaluating the impact that those policies have on society and the environment, and how customers perceive competitor CSR strategy. After a comprehensive study of
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competitor strategy and an internal policy review performed, a comparison can be drawn and a strategy developed for competition with CSR initiatives. 1.5 Tools of Corporate Social Responsibility: The CSR tools are standard methodologies with the scope of providing the company with a set of instruments (objectives, processes, roles, responsibilities, performance indicators, and so on) to follow up during the management phase. Some of these tools, described in the Green Paper of the European Commission, are illustrated in the following. Code of Conduct (Ethic Code): The "corporate code of conduct" (a completely voluntary document) refers to companies' policy statements that define ethical standards for their conduct. It is a statement of minimum standards together with a pledge by the company to observe them and to require its contractors, subcontractors, suppliers and licensees to observe them. Moreover, the code contains the companys position about the economic, social and environmental policies. Chart of Values: A written statement of the companys principles for conducting business. Social Balance (Social Report): A voluntary document that the company produces in order to inform the stakeholders about the social effects of its activity. Environmental Certifications: Management tools containing guidelines and methodologies for an environmentally-aware corporate activity. Environmental impact assessment: a voluntary document containing the analysis of the impact of a business project or operation on the environment in terms of specific parameters defined by the international standard organizations. Social and Safety Certifications: International standards (SA 8000, ILOOSH 2001, and OHSAS 18001) defining working conditions, health and safety requirements in all the economic organizations. Cause Related Marketing: Cause Related Marketing refers to a commercial activity in which companies and non-profit organizations form alliances to market an image, product or service for mutual benefit. Some companies also extend their relationship with an organization or a cause beyond marketing, integrating it with

other

company activities,

such

as

community involvement,

employee

volunteerism or corporate philanthropy. 1.6 Potential Business Benefits of Corporate Social Responsibility: The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones (e.g., Deming's Fourteen Points, balanced scorecards). However, businesses may not be looking at short-run financial returns when developing their CSR strategy. Intel employs a 5-year CSR planning cycle. The definition of CSR used within an organization can vary from the strict "stakeholder impacts" definition used by many CSR advocates and will often include charitable efforts and volunteering. CSR may be based within the human resources, business development or public

relations departments of an organization, or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSR-type values without a clearly defined team or programme. The business case for CSR within a company will likely rest on one or more of these arguments: 1. 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. 2. 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.

3. 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. 4. 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. 5. Criticisms and Concerns: Critics of CSR as well as proponents debate a number of concerns related to it. These include CSR's relationship to the fundamental purpose and nature of business and questionable motives for engaging in CSR, including concerns about insincerity and hypocrisy. 1.7 Drivers / Factors Responsible for Realization of Corporate Social Responsibility: 1) Ethical Consumerism: The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand. Industrialization, in many developing countries, is booming as a result of both technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are therefore beginning to make purchasing decisions related to their environmental and ethical concerns. However, this practice is far from consistent or universal. 2) Globalization and Market Forces: As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. Government regulations, tariffs, environmental restrictions and varying standards of what
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constitutes "labor exploitation" are problems that can cost organizations millions of dollars. Some view ethical issues as simply a costly hindrance, while some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising. Global competition places a particular pressure on the corporations to examine not only their own labour practices, but those of their entire supply chain, from a CSR perspective that all government is controlling. 3) Social Awareness and Education: The role among corporate stakeholders is to work collectively to pressure corporations that are changing. Shareholders and investors themselves,

through socially responsible investing are exerting pressure on corporations to behave responsibly. Non-governmental organizations are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behavior. Through education and dialogue, the development of community awareness in holding businesses responsible for their actions is growing. In recent years, the traditional conception of CSR is being challenged by the more community-conscious Creating Shared Value concept (CSV), and several companies are refining their collaboration with stakeholders accordingly. 4) Ethics Training: The rise of ethics training inside corporations, some of it required by government regulation, is another driver credited with changing the behavior and culture of corporations. The aim of such training is to help employees make ethical decisions when the answers are unclear. It is believed that humans are built with the capacity to cheat and manipulate, hence the need for learning normative values and rules in human behavior. The most direct benefit is reducing the likelihood of "dirty hands", fines and damaged reputations for breaching laws or moral norms. Organizations also see secondary benefit in increasing employee loyalty and pride in the organization. Caterpillar and Best Buy are examples of organizations that have taken such steps. Increasingly, companies are becoming interested in processes that can add visibility to their CSR policies and activities. One method that is gaining

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increasing popularity is the use of well-grounded training programs, where CSR is a major issue, and business simulations can play a part in this. 5) Laws and Regulations: Another driver of CSR is the role of independent mediators, particularly the government, in ensuring that corporations are prevented from harming the broader social goods, including people and the environment. CSR critics such as Robert Reich argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow a business to conduct social responsibility themselves. The issues surrounding government regulation pose several problems. Regulation in itself is unable to cover every aspect in detail of a corporation's operations. This leads to burdensome legal processes bogged down in interpretations of the law and debatable grey areas. 6) Stakeholder Priorities: Increasingly, corporations are motivated to become more socially responsible because their most important stakeholders expect them to understand and address the social and community issues that are relevant to them. Understanding what causes are important to employees is usually the first priority because of the many interrelated business benefits that can be derived from increased employee engagement (i.e. more loyalty, improved recruitment, increased retention, higher productivity, and so on). Key external stakeholders include customers, consumers, regulators, academics, and the media. Branco and Rodrigues (2007) describe the stakeholder perspective of CSR as the inclusion of all groups or constituents (rather than just shareholders) in managerial decision making related to the organizations portfolio of socially responsible ctivities. This normative model implies that the CSR collaborations are positively accepted when they are in the interests of stakeholders and may have no effect or be detrimental to the organization if they are not directly related to stakeholder interests. The stakeholder perspective suffers from a wheel and spoke network metaphor that does not acknowledge the complexity of network interactions that can occur in cross sector partnerships. It also relegates communication to a maintenance function, similar to the exchange perspective.
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7) Growth of Trade Unions: The workers have always been weak in bargaining with the management. The employees have been dictating terms on wage rates and working conditions. The developments of trade unions among workers have greatly changed the situation. Their strength has grown up with unity. Workers can know how to bargain for higher wages and better working conditions. Management also tries to give more and more benefits to workers for avoiding any conflict. The development of trade unions has made managements to think about the welfare of their employees. 1.8 Social Accounting, Auditing, and Reporting For a business to take responsibility for its actions, that business must be fully accountable. Social accounting, a concept describing the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large, is thus an important element of CSR. Social accounting emphasizes the notion of corporate accountability. D.Crowther defines- Social accounting in this sense as "an approach to reporting a firms activities which stresses the need for the identification of socially relevant behavior, the determination of those to whom the company is accountable for its social performance and the development of appropriate measures and reporting techniques." An example of social accounting, to a limited extent, is found in an annual Director's Report, under the requirements of UK company law. A number of reporting guidelines or standards have been developed to serve as frameworks for social accounting, auditing and reporting including: Accountabilitys AA1000 standard, based on the John Elkington's Triple bottom line (3BL) reporting. 1.9 Review of Related Literature on the Corporate Social Responsibility: Analysis of Previous Research Study. The aim of the following literature review is to identify the most valuable academic studies and important practical investigations. The concept of CSR has a long and varied history. The concept existed in remote past in varied forms but never got a formal recognition until 20th century that
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has seen many turbulent times since its beginning. A concern for social responsibility can be traced back to the 1930s. Chester Bernards 1938 publication, The Functions of the Executive, J. M. Clarks Social Control of Business from 1939 and Theodore Krepss, Measurement of the Social Performance of Business, published in 1940 were two early references to the social responsibilities of executives and business. The concept of social responsibilities was formally coined in 1953 by Howard Bowen in his publication Social Responsibilities of Businessmen (Corporate Watch Report, 2006). Bowen also provided a preliminary definition of CSR: it refers to the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society. During the same period, Morrell Healds (1957), Managements

Responsibility to Society: The Growth of an Idea; and Eells (1956), Corporate Giving in a Free Society were published. The literature expanded the definition during the 1960s with Keith Davis definition of CSR as referring to Businessmens decisions and actions taken for reasons at least partially beyond the firms direct economic or technical interest (Davis K, 1960). Davis established the so-called Iron Law of Responsibility, which held that social responsibilities of businessmen need to be commensurate with their social power. The concept received academic attention in 80s and 90s and became an issue of debate and discussion among academic circles. The first company to implement CSR was Shell in 1998. Although, the literature on CSR has been developed in all countries, it practical application is more profuse in the developed countries, mainly the US and some European nations. The UK has passed a legislation which makes it mandatory for all corporations to report their contribution to the on the issues included under the umbrella of CSR. The Corporate Responsibility Bill (2002) outlined this duty and also pronounced penalties for non-compliance, which range from fines to the cessation of operations and imprisonment. The UK also provides a number of incentives for implementing CSR related activities such as the Dow Jones Sustainability Index and FTSE4 Good Index promote environmental reporting, and the Association of Chartered Certified

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Accountants (ACCA) gives awards for social and environmental reporting internationally. The concept of social responsibility has been interpreted by different authors from different corporate perspectives. A number of concepts and issues are subsumed under the heading of CSR, including human rights, environmental perspective, diversity management, environmental sustainability and philanthropy (Amaeshi and Adi, 2006). Thus, it can be said that the concept of CSR is complex in nature. CSR is generally agreed to be as a voluntary action on the part of the large corporations to take stock of social, economic and environmental impact of their operations. The European Commission defined CSR as "A concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis." (European Multi-stakeholder Forum on CSR, 2004: 3) The World Business Council for Sustainable Development defines Corporate Social Responsibility as, 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. Frederick (1998) divided the first fifty or so years of CSR into four phases: CSR- 1 (1960s 1970s) as doing the right things; CSR 2 (1980s) is marked by more responsive corporate behavior toward social responsibilities, i.e., corporate social responsiveness; CSR -3 (1990s) is marked by compliance and Frederick imagines that CSR- 4 (Since then) will bring more on cosmological and spiritual aspects. Assochams Eco Pulse Study on CSR, released in June 2009, says some 300 corporate houses, on an aggregate, have identified 26 different themes for their CSR initiatives. Of these 26 schemes, community welfare tops the list, followed by education, the environment, health as well as rural development. Edenkamp (2002) remarked that the importance of all forms of global corporate social responsibility (CSR) is evident with the increasingly widespread adoption of ISO 9000 and ISO 14000 management systems by global corporations.
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As more consumers demand that marketers follow socially responsible practices, corporations are given an opportunity to further exploit the newer, verifiable social accountability system, SA 8000, to enhance their reputation, differentiate their products, and build competitive advantage. The adoption of SA 8000 may be perceived as a very rational, cost effective, and strategic approach to managing the corporation's social reputation with its stakeholders. Vijaya Murthy (2003-2004) undertook an analytical study of the corporate social disclosure practices of the top 16 software firms in India by analyzing their annual reports using content analysis to examine the attributes reported relating to human resource, community development activities, products and services activities and environmental activities. It was revealed that the human resources category was the most frequently reported followed by community development activities and the environmental activities was the least reported. Most of the information was qualitative. Some firms had separate sections for each category while many others disclosed their social practices in the introductory pages of the annual report. Venu Srinivasan (2007) highlighted that Corporate Social Responsibility is more than philanthropy and must not mean giving and receiving. An effective CSR initiative must engage the less privileged on a partnership basis. CSR means sustainable development of the community by being partners in their progress. The government has been evolving a large number of welfare schemes for the people but experience shows that in most cases the benefits do not reach the most deserving. Industries have expertise in man management, financial management and business planning. They can easily provide the missing ingredients of leadership and organization and establish the last mile connectivity to reach the benefits to the deserving people. Therefore the focus of CSR could be unlocking the last mile connectivity. Industry must be a catalyst for social development. They must provide the leadership, know-how, training, etc. There are a number of factors that hinders the development of CSR in Indian corporate world. According to Indu Jain (2008), a lack of understanding, inadequately trained personnel, non-availability of authentic data and specific information on the kinds of CSR activities, coverage, policy etc. contribute to poor reach and effectiveness of CSR programmes in India. But the situation is changing CSR is coming out of the purview of doing social good and is fast becoming a business
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necessity. The business case for CSR is gaining ground and corporate houses are realizing that what is good for workers their community, health, and environment etc. Oana Branzei (2010) stated in his case study analysis that the Tata Group, an India-based indigenous multinational enterprise with a unique 140-year old commitment to the community, is the pioneer in India for CSR activities. Despite the 2008-2009 global recessions, the Tata Group topped the economic value creation charts. In 2008-2009, the Group had grossed US $70.8 billion in revenues. 64.7 per cent of the Groups revenues were now coming from outside India. It explores valuecreation, leadership, ethics and sustainable development on the backdrop of rapid internationalizations and shifting stakeholders' expectations for corporate social responsibility. Jorge A. Arevalo and Deepa Aravind (2011) concluded in their article Corporate Social Responsibility Practices in India: Approach, Drivers, and Barriers that the CSR approach that is most favored by Indian firms is the stakeholder approach and that the caring or the moral motive, followed by the strategic or profit motive, are important drivers for Indian firms to pursue CSR. Further, the results indicate that the most significant obstacles to CSR implementation are those related to lack of resources, followed by those related to the complexity and difficulty of implementing CSR. A study by Professor Stephen Erfle and Michel Frantantuono found that firms that were ranked highest in terms of their record on a variety of social issues had greater financial performance because such practices are capable of enhancing brand value of positive publicity. Zairi (2000) proposes that given the proven impact of social responsibility on business performance and corporate image, CSR should be included in business excellence models. By extrapolation, it can be argued that if CSR impacts on factors including company reputation and corporate image, that it shares characteristics with, and therefore can be regarded implicitly as an integral component of at least some models of corporate identity. Even though, companies publish huge volumes of literatures with respect to their works for the wellbeing of the society, in practice many companies define their obligations in a much more limited. (Geoffrey, 2008, p.2) Normally, the published
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claims and the actual things may not balance each other. Lot of declarations on CSR may lie on paper alone. Companies use such tactics to cheat the public in the name of CSR. The big companies will do small things for the wellbeing of the society and they will use such things as a curtain for their exploitation of the society. There are also certain myths about CSR like; the market can deliver both shortterm financial returns and long-term social benefits; the ethical consumer will drive change; there will be a competitive race to the top over ethics amongst businesses; countries will compete to have the best ethical practices etc (Source watch, 2009) But all the above things has nothing to do with corporate social responsibility. It is not necessary for the public to think in terms of big things from the corporate companies. But even small things from all the companies together can make lot of changes in the society.

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OIL INDIA LIMITED: A BIRDS EYE VIEW

2.1 History: The story of OIL India Limited (OIL) traces and symbolizes the development and growth of the Indian petroleum industry. From the discovery of crude OIL in the far east of India at Digboi, Assam in 1889 to its present status as a fully integrated upstream petroleum company, OIL has come far, crossing many milestones. On February 18, 1959, OIL India Private Limited was incorporated to expand and develop the newly discovered OIL fields of Naharkatiya and Moran in the Indian North East. In the year 1961, it became a joint venture company between the Indian Government and Burma OIL Company Limited, UK. In 1981, OIL became a wholly-owned Government of India enterprise. Today, OIL is a premier Indian National OIL Company engaged in the business of exploration, development and production of crude OIL and natural gas, transportation of crude OIL and production of LPG.OIL also provides various E&P related services and holds 26% equity in Numaligarh Refinery Limited. OIL has over 1 lakhs sq km of PEL/ML areas for its exploration and production activities, most of it in the North East India, which accounts for its entire crude OIL production and majority of gas production. Rajasthan is the other producing area of OIL, contributing 10 percent of its total gas production. Additionally, OILs exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, Iran, Nigeria and Sudan. In a recent CRISIL-India Today survey, OIL was adjudged as one of the five best major PSUs and one of three best energy sector PSUs in the country.

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Capital Structure and Shareholding Pattern: The Authorized share capital of the Company is Rs. 500 Cr. The Issued, Subscribed and Paid up share capital of the company is Rs. 240.45 Cr. At present, The Government of India, the Promoter of the Company is holding 78.43% of the total Issued & Paid-up Capital of the Company. The balance 21.57% of the Equity capital is held by others. Activities/ Operations: Exploration of Crude Oil and Natural Gas Reserves Production and development of Crude Oil and Natural Gas. Transportation of Crude Oil and LPG. 2.2 Objective, Missions & Vision of Oil India Limited. Corporate Objectives: Accelerate exploratory efforts in order to increase hydrocarbon reserves. Speedy development of discovered fields and increase recovery from depleting and developed fields, to augment crude oil and gas production. Ensure adequate return on capital by capacity utilization, cost effectiveness and optimum productivity. Ensure proper development and effective utilization of human resources. Diversify into the field of oil field services: indigenous and overseas. Undertake overseas venture in exploration, development of oil and natural gas resources. Promote oil related research and developmental activities. Maintain and promote environmental friendly measures. Maintain professional and efficient corporate character. Enhance safety measures in operations.

Companys Missions: Balance between our investment in the E & P section and other low risk diversification opportunities with the objective of optimizing our asset portfolios.

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Continuously upgrade manpower skills, processes and technologies and thereby consistently improve operational and financial performance which adhering to the highest standards business conducts.

Grow with unwavering concern for the community and all over stick holders. Have unstinted faith in our employees to enable them to make quick and informed decision through adequate training and to improve then to do so.

Company's Vision: OIL India is the fastest growing Energy Company with highest profitability. OIL India delights the customers with quality products and services at competitive prices. OIL India is a Learning Organization, nurturing initiatives, innovations and aspirations with best practices. OIL India is a team, committed to honesty, integrity, transparency and mutual trust creating employee pride. OIL India is fully committed to safety, health and environment issues. OIL India is a responsible corporate citizen deeply committed to socioeconomic development in its areas of operations. 2.3 Corporate Social Responsibility Scenario in Oil India Limited. Since its inception OIL has always given top priority towards the all-round development of the people residing in and around the Companys area of operation. OIL management understands that there is a need to strike a balance between the overall objectives of achieving corporate excellence vis--vis the corporate responsibility towards the community. It is this twin objective of business and social commitment that has prompted OIL to embark upon massive programmes of educational, health and infrastructural development endeavors; an attempt to invest technology with a human face. The Corporation's objectives in this key performance area are enshrined in its Mission statement: To promote the awareness and practice of Good Corporate Citizenship, by business becoming an integral part of societal process where people have access to resources to make informed choices and decisions towards a more humane and compassionate society.
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Oil India Limited has been taking right action to realise its social responsibility objective thereby building value for its shareholders and customers. The Corporation respects human rights, values its employees & invests in innovative technologies and solutions for sustainable energy flow and economic growth. In the past four decades, OIL has supported innumerable social and community initiatives in India: Touching the lives of thousands of people positively by supporting environmental and health-care projects and social, cultural and educational programmes. Oil India also targets at developing techno-economically viable and environment-friendly products services for the benefit of millions of its consumers, while at the same time ensuring the highest standards of safety and environment protection in its operations. Vision Statement: OIL is a Responsible Corporate Citizen deeply committed to the socio-economic development in its areas of operations. Philosophy: To promote the awareness and practice of Good Corporate Citizenship, by business becoming an integral part of societal process where people have access to resources to make informed choices and decisions towards a more humane and compassionate society. The CSR philosophy of the company is to maintain public relations as an integral part of the day-to-day workings in order to establish, maintain and sustain proactive approaches and project a positive image of the Company by building mutually beneficial relationships with the public to achieve the overall mission of the Company. Strategy: To mobilize core competencies and resources of business, public organizations and Government Institutionsto facilitate their working in partnership on projects that benefit communities. Resource Allocation: From a relatively small budget of Rs 20 Lakhs in the early eighties, the Company has recently enhanced the budgetary allocation for CSR activities with an objective to spend up to 2% of the net profit of the previous year through its various continuing welfare schemes for the benefit of the society as a whole with particular focus on the under-privileged and economically deprived sections of the society as the ultimate beneficiaries. The plans and the programs are implemented through the various ongoing schemes:
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 Social Welfare Programme (SWP) for developing rural education, building roads and bridges, sports promotion and providing street illumination. Educational development through grants of scholarships, grants to educational institutions for building/upgrading schools, grants for promotion of research for petroleum. Rural entrepreneurial development and promotion of agro-based projects jointly with SIRD for training and promoting entrepreneurship in weaving, tailoring, embroidery, knitting, bamboo cultivation, floriculture, fishing, sericulture, organic farming etc. and promoting entrepreneurship development through self-help groups. Women empowerment through gender budgeting for the relevant employees for providing training in handicrafts, general nursing and midwifery, family welfare and providing hostel facilities. Medical and healthcare services through our OIL hospital and mobile dispensary units for servicing the employees and rural areas and providing grants for promotion of cancer research. Promotion of sports and culture by sponsoring tournaments and supporting athletes and artists.

Recognitions for CSR Initiatives:

Golden Peacock Award A Pat on the back: OILs exemplary achievements in Corporate Social Responsibility have earned the Company due recognition from prestigious organizations.
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The World Council for Corporate Governance (WCFCG) and Centre for Corporate Governance (CFCG) awarded Oil India with the prestigious Golden Peacock Award for Corporate Social Responsibility in 2002.

TERI Corporate Social Responsibility Award Oil India Limited (OIL) also bagged the prestigious TERI Corporate Social Responsibility Award, 2004, which was presented to OIL in recognition of corporate leadership for good corporate citizenship and sustainable community development initiatives. At the 20th World Petroleum Congress (WPC) hosted by Qatar Petroleum at Doha, OILs flagship CSR initiative Project Rupantar for supporting Self Help Groups was recognized as one of the twelve best CSR initiatives across the global oil & gas sector companies by WPC and the project was showcased at a special Social Responsibility Global Village organized as a part of the Congress at Doha and a presentation on the Project was also made to the global audience.

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RESEARCH METHODOLOGY
3.1 Objectives of the Study: The prime objective of the study is to generate information about the CSR activities undertaken by the Oil India Limited in Duliajan Town with special reference to social initiatives for the development and the perception of the local people regarding their CSR activities. The main objectives behind the study have summarized as below: To evaluate the CSR performance by the Oil India Limited in Duliajan Town. To know about the factors that are responsible for influencing the companies to achieve their Corporate Responsibility. To access the various dimensions where the company has implemented its CSR policies. To understand the perceptions and opinions of the society regarding the CSR activities performed by the concerned company. To make suggestions for accelerating CSR initiatives in the relevant dimensions of the society. 3.2 Significance of the Study: At present the businesses is more responsive to the needs and requirements of the society than it was earlier. Now, the business corporates has realized that the goals of a business can be achieved only through fulfillment of social responsibilities of the business. No business can survive in long run by ignoring the interests of the society. The importance of the study is that it enables us to understand the various dimensions or sphere where the businesses are undertaking their social responsibility and trying to achieve them. In what ways their activities or operations have significant impact on the society as a whole. 3.3 Limitations of the Study: As there always remain some limitations in every work and requires further improvements. This study also suffers on account of following limitations:
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a) Limited Data: The report has been completed with secondary data as main constituent because there arouse a lot of problems on account of collection of primary data from respondents. However, the balance has been maintained in collecting data from both sources to enhance its usability. b) Limited Time: As we are the students of full time degree course, the main limitation of the study was the lack of time involved in preparation of the project. c) Limited Resources: As we are only students, we dont have proper resources to finance our research study and relies on our parents for the expenses involved in such study. d) Limited area: The field study of this project work has been limited to the local area of Duliajan town as already mentioned because of lack of time and resources. e) Lack of Response from Respondents: Another major limitation lies on the fact that there is low level of active response from the respondents. Firstly, they rarely used to expend their valuable time on such matters and secondly they hesitate to honestly disclose information to the enumerator. f) Population Sampling: Due to various reasons such as lack of time and resources, the respondents have been selected on random sampling method which may not be able to describe the population. 3.4 Chapterisation Scheme: The proposed study has been divided into 5 chapters for the sake of convenience and easy understanding to the users. Chapter 1: Consists of the introduction and statement of the problem, and reviews of existing available related literatures related to the topic. Chapter 2: Consists of a brief introduction to the companys profile and CSR scenario undertaken. Chapter 3: Consists of research methodology used in the study. Chapter 4: Consists of presentation and analysis of data which enable to make a clear picture in the minds of the users about the related problem. Chapter 5: Deals with the important findings, conclusions and recommendations for the response of the users.
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3.5 Area of the Study: For conducting the study, Duliajan town has been selected as universe. Duliajan is situated in Dibrugarh district of the state of Assam. The total area of the Duliajan town is approximately around 6.7 sq km and the population is approximately about 65000 people. 3.6 Sources of Data Data and Information for the study would be collected from primary as well secondary sources. Primary Data refers to those data which are collected fresh or first hand, for the first time and hence they are original in nature. Primary data can be collected through personal interview, questionnaires, investigations etc. to support the secondary data. The Primary data could be generated mainly by means of oral investigation into the related matter. Secondary Data means those data which have been already collected and stored by an researcher or data gathering organizations etc., These type of data are easily available to the users which can be collected from records, journals, annual reports etc., which benefits the user with the costs and time involved in their collection if collected by self. Secondary data sources like textbooks, magazines, periodicals etc were very handy in compiling theoretical background. The study is based on both primary and secondary data. Primary data were collected through personal visits to the field of the study i.e., Duliajan Town and some interaction with the respondents. Secondary data are collected from companys annual reports, magazines, books and websites. Companys websites and Annual reports were used to collect valuable information about CSR Activities of Oil India Limited, Duliajan around its operational areas. Some reputed journals, books and magazines in the field of business ethics and corporate responsibility were also consulted. 3.7 Methodology of the Study Research is common parlance which refers to search for knowledge. One can also define Research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Research methodology is very important step in every project as it is concerned with the generation, collection, and evaluation of data. Without proper methodology a project
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cannot be done accurately. The methodology for the present study would consists of determining the universe of the study, selection of data source, selection of respondents, collection of data through different techniques, classification, tabulation, analysis and presentation of data and thereby the report writing. The choice of sampling design and tool for analysis were determined based on the specific objectives, questions for analysis and characteristic of the universe of the study. In this research paper the case study was employed as the research strategy. Usually descriptive or exploratory research is associated with the case study, and this might be particularly useful when the phenomenon under investigation is difficult to study outside its natural setting. Using case study research methodology is also helpful when the concepts and variables need to be considered where experimental or survey methods are regarded to be inappropriate. Case study is used particularly in looking at the specific questions such as "how and why" that is set in the contemporary environment. Case study methodology has a lot of advantages over some other methodologies. First, it allows the use of multiple data collection techniques in order to build a more comprehensive picture of the case being investigated. Second, this in turn leads to the ability to capture both qualitative and quantitative data. Case studies can provide a solid understanding required for hypothesis development that then leads to improved theory development. The main advantage of case based research is that results are considered to be interesting and important and can shift the focus of investigation towards a new area of interest. The case study is usually considered more accurate, diverse and rich, if it is based on several sources of data. 3.8 Selection of Respondents: In order to get a proper feedback on the related matter questionnaires have been prepared. Each of the questionnaires has been distributed amongst the various segments of the society ranging from common persons to employees of the concerned company. Table- 4.2.2 Shows the selection of respondent on the basis of Sex Ratio and Segments of the society. For the respondents, questionnaires have been distributed among the people in Duliajan town.
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Sl.no A B C D E F G H -

Particulars Religious Groups Business Persons Employees Sports Persons Environmentalists Educational Institutions Local Communities NGOs/ SHGs Total

Male 9 15 20 7 8 2 20 4 85

Female 6 10 10 3 2 3 15 16 65

Respondents Percentage 15 25 30 10 10 5 35 20 150 10 16.67 20 6.67 6.67 3.33 23.33 13.33 100

Total respondents has been 150 peoples and distribution of respondents is as follows: 15 respondents belongs to religious groups, 25 respondents were business persons, 30 were employees of the company, 10 respondents were sports persons, 10 respondents are from the group of environmentalists, 5 respondents belongs to educational institutions, 35 respondents from the local community and 20 were respondents from Self Help Groups and Non-governmental Organizations indulged in social activities. Respondents were selected on random basis and care was taken covering entire field of the study area. 3.9 Description of Data Gathering Instruments Used: For collecting primary data a comprehensive interview schedule covering the related matters of the topic were prepared. Secondary data were collected from the various sources of secondary data. To serve the purpose various valuable books, journals, magazines, companys websites and annual reports and other related resourceful websites have been approached. After the Collection of data the other procedures or steps followed are as follows: Classification and Tabulation of data according to their nature and category. After thorough analysis of different aspects of the relevant matter, data were presented in the table to give a clear and concise look to the data.

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 Findings and conclusions were drawn from the study to give an insight to the whole problem and then to conclude with a clear, useful and objective suggestions for the future study.

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ANALYSIS AND INTERPRETATION

1. SEX RATIO OF THE RESPONDENTS: TABLE 5.1: Sex Ratio of the Respondents. SL.NO A B TOTAL PARTICULARS Male Female RESPONDENTS 85 65 150 PERCENTAGE 56.67 43.33 100

SEX RATIO OF THE RESPONDENTS

43% 57%

Male Female

Interpretations: The graphical representation of the table shows that out of 150 respondents: 85 were male respondents and 65 were female respondents.

2. COMPOSITION OF RESPONDENTS: Table 5.2: Composition of Respondents. SL.NO A B C D E F G H TOTAL PARTICULARS Religious Groups Business Persons Employees Sports Persons Environmentalists Educational Institutions Local Communities NGOs/ SHGs RESPONDENTS 15 25 30 10 10 5 35 20 150 PERCENTAGE 10 16.67 20 6.67 6.67 3.33 23.33 13.33 100

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COMPOSITION OF RESPONDENTS
25 20 20 15 10 10 5 0 6.67 6.67 3.33 Respondents 16.67 13.33 23.33

Interpretations: The graphical representation of the table shows that out of 150 respondents: 15 respondents belongs to religious groups, 25 respondents were business persons, 30 were employees of the company, 10 respondents were sports persons, 10 respondents are from the group of environmentalists, 5 respondents belongs to educational institutions, 35 respondents from the local community and 20 were respondents from Self Help Groups and Non-governmental Organizations indulged in social activities.

3. RESPONDENTS OPINION REGARDING COMPANYS EXPENDITURE ON CSR ACTIVITIES: Table 5.3: Regarding Companys Expenditure on CSR Activities: PARTICULARS Yes No TOTAL RESPONDENTS 129 21 150 PERCENTAGE 86 14 100

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OPINION REGARDING COMPANYS EXPENDITURE ON CSR ACTIVITIES

No 14%

Yes 86%

Interpretations: From the table above it was found that regarding the companys expenditure on CSR activities, out of 150 respondents: 86 % were satisfied with the companys expenditure on CSR activities While 14 % were not satisfied with the companys expenditure on CSR activities. 4. RESPONDENTS VIEW ON OIL INDIA COMMITMENT TO VARIOUS FIELDS OF CSR: Table 5.4: Response on Oil India Commitment to Various Fields of CSR: SL.NO A B C D E F PARTICULARS Education Infrastructure Health Services Community Development Sports and Games Environmental Protection YES 61 78 53 83 30 49 NO 89 72 97 67 120 101 PERCENTAGES 40.67 59.33 52 48 35.33 64.67 55.33 44.67 20 80 32.67 67.33

OIL INDIA'S COMMITMENT TO VARIOUS FIELDS OF CSR

140 120 100 80 60 40 20 0 Education YES NO 61 89 Infrastructur e 78 72 Health Services 53 97

Axis Title

Community Developmen t 83 67

Sports and Games 30 120

Environment al Protection 49 101

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Interpretations: The graphical representation of the table shows that about 40.67% respondents think that the company has implemented its CSR policies in the field of education while 59.33% are not of the same opinion, 52% respondents think that the company has worked for the development of infrastructure as its CSR policies while 48% doesnt, 35.33% respondents think that the company has provided valuable health services as its CSR policies while 64.67 does not agree with this statement, 55.33% respondents were of the opinion that the company has implemented and executed community development programmes as a part of its CSR policies while 44.67% respondents doesnt think so, about 20% respondents think that the company has worked for the upstream of sports and games while 80 % does not give the same opinion and 32.67% respondents think that the company has implemented environmental protection measures while 67.33% respondents doesnt agree.

5. RESPONDENTS OPINION REGARDING ENSUREMENT OF SAFETY MEASURES AND ENVIRONMENTAL PROTECTION MEASURES IN ITS OPERATIONS: Table 5.5: Ensurement of Safety Measures and Environmental Protection Measures in its Operations: RESPONSES Yes No TOTAL RESPONDENTS 80 70 150 PERCENTAGE 53.33 46.67 100

ENSUREMENT OF SAFETY MEASURES AND ENVIRONMENTAL PROTECTION MEASURES

54 52 50 48 46 44 42 Yes No

Interpretations: From the table above it was found that regarding the ensurement of safety measures and environmental protection measures in its operations: Out of 150 respondents: 46.67% were satisfied with the companys activities while 53.33% were
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not satisfied with the companys activities for adopting environmental protection measures.

6. RESPONDENTS OPINION REGARDING PROVISION OF CIVIC AND EDUCATIONAL FACILITIES: Table 5.6: Provision of Civic and Educational Facilities: RESPONSES Yes No TOTAL RESPONDENTS 104 46 150 PERCENTAGE 69 31 100

PROVISION OF CIVIC AND EDUCATIONAL FACILITIES

0%

Axis Title

100%

Yes No RESPONDENTS Yes 69 No 31

Interpretations: From the table above it was found that regarding the provision of civic and educational facilities: Out of 150 respondents: 69 % were satisfied with the companys activities while 31 % were not satisfied at all.

7. RESPONDENTS OPINION REGARDING PROVISION OPPORTUNITIES TO THE LOCAL PEOPLE: Table 5.7: Provision of Job Opportunities to the Local People: RESPONSES Yes No TOTAL RESPONDENTS 134 16 150
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OF

JOB

PERCENTAGE 89 11 100

PROVISION OF JOB OPPORTUNITIES TO THE LOCAL PEOPLE

100 80 60 40 20 0 Yes 11 No 89 RESPONDENTS

Interpretations: From the table above it was found that regarding the provision of civic and educational facilities: Out of 150 respondents: 69 % were satisfied with the companys activities while 31 % were not satisfied at all.

8. RESPONDENTS OPINION REGARDING PROVISION OF JOB RESERVATIONS TO THE WEAKER SECTIONS OF THE SOCIETY: Table 5.8: Provision of Job Reservations to the Weaker Sections of the Society: RESPONSES Yes No TOTAL RESPONDENTS 143 7 150 PERCENTAGE 95 5 100

PROVISION OF JOB RESERVATIONS TO THE WEAKER SECTIONS OF THE SOCIETY

Yes No

89%

11%

11%

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Interpretations: From the table above it was found that regarding the provision of civic and educational facilities: Out of 150 respondents: 89 % of the respondents is of the opinion that the company provides job reservation to the weaker sections of the society While 11 % of the respondents doesnt agrees with this opinion.

9. RESPONDENTS OPINION REGARDING COMPANYS ASSISTANCE TO DEVELOPMENTAL AND SOCIETAL PROGRAMMES: Table 5.9: Companys Assistance to Developmental and Societal Programmes: RESPONSES Yes No TOTAL RESPONDENTS 135 15 150 PERCENTAGE 90 10 100

COMPANYS ASSISTANCE TO DEVELOPMENTAL AND SOCIETAL PROGRAMMES

RESPONDENTS

No

10

Yes

90

10

20

30

40

50

60

70

80

90

100

Interpretations: From the table above it was found that regarding companys assistance to developmental and societal programmes: out of 150 respondents: 90% of the respondents are of the opinion that the company provides assistance to developmental and societal programmes while 10% of the respondents dont agree with this opinion.

10. RESPONDENTS OPINION REGARDING COMPANYS ASSISTANCE TO ORGANISATIONS ENGAGED IN PROMOTING SOCIAL WELFARE AND DEVELOPMENTAL PROGRAMMES:
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Table 5.10: Companys Assistance to Organizations Engaged in Promoting Social Welfare and Developmental Programmes: RESPONSES Yes No TOTAL RESPONDENTS 120 30 150 PERCENTAGE 80 20 100

COMPANYS ASSISTANCE TO ORGANISATIONS ENGAGED IN PROMOTING SOCIAL WELFARE AND DEVELOPMENTAL PROGRAMMES
RESPONDENTS 100 80 60 40 20 0 Yes No 20 80

Interpretations: From the table above it was found that regarding companys assistance to developmental and societal programmes: Out of 150 respondents: 80% of the respondents are of the opinion that the company provides assistance to organizations engaged in promoting social welfare and developmental programmes while 20% of the respondents dont agree with this opinion.

11. RESPONDENTS OPINION REGARDING PROMOTION OF CULTURAL PROGRAMMES BY THE COMPANY: Table 5.11: Promotion of Cultural Programmes by the Company: RESPONSES Yes No TOTAL RESPONDENTS 78 72 150 PERCENTAGE 52 48 100

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PROMOTION OF CULTURAL PROGRAMMES BY THE COMPANY:

Yes No

48%

52%

Interpretations: From the above table it was found that regarding companys promotion of cultural programmes: Out of 150 respondents: 52% of the respondents are of the opinion that the company promotes cultural programmes while 48% of the respondents dont agree that the company promotes cultural programmes in the area.

12. RESPONDENTS OPINION REGARDING OIL DULIAJAN DISCLOSURE OF ITS CSR POLICIES:

INDIA

LIMITED

Table 5.12: Oil India Limited Duliajan Disclosure of its CSR Policies: RESPONSES Yes No TOTAL RESPONDENTS 107 43 150 PERCENTAGE 71.33 28.67 100

OIL INDIA LIMITED DULIAJAN DISCLOSURE OF ITS CSR POLICIES

RESPONDENTS 200 107 PERCENTAGE

71.33 43 28.67

0 Yes No

Interpretations: From the above table it was found that regarding companys disclosure of its CSR policies: Out of 150 respondents: 71.33 % of the respondents
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are of the opinion that the company provides adequate information relating to its CSR policies in its annual accounts or other published sources While 28.67% of the respondents dont agree with the view that the company discloses appropriate information relating to its CSR policies.

13. RESPONDENTS OPINION REGARDING SATISFACTION WITH THE CSR POLICIES OF OIL INDIA LIMITED DULIAJAN: Table 5.13: Satisfaction with the CSR Policies of Oil India Limited Duliajan: RESPONSES Fully Partly Not Satisfied TOTAL RESPONDENTS 92 43 15 150 PERCENTAGE 61.33 28.37 10.30 100

PEOPLE'S SATISFACTION WITH THE CSR POLICIES OF OIL INDIA LIMITED DULIAJAN
100 80 60 40 20 0 Fully Satisfied Partly Satisfied

Axis Title

Not Satisfied

RESPONDENTS PERCENTAGE

Fully Satisfied 92 61.33

Partly Satisfied 43 28.37

Not Satisfied 15 10.3

Interpretations: From the above table it can be viewed that regarding peoples satisfaction with the CSR policies of Oil India Limited Duliajan: Out of 150 respondents: 61.33 % were fully satisfied with the CSR activities of the company, 28.37 % are partly satisfied with the companys CSR policies and about 10.30 % were not satisfied with the CSR activities of Oil India Limited Duliajan.

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CONCLUSIONS AND SUGGESTIONS

5.1 General overview and Feedback from respondents:

Most of the respondents have a little knowledge about the Corporate Social
Responsibility and some of them were not clear about its meaning.

People generally used to believe that CSR is a voluntary practices adopted by

the various large business houses.

It was found that the development of Duliajan Oil Town is closely related with
the CSR activities of OIL.

It has been seen that the company has provided a lot of job opportunities to the
local community.

It was found in this study that the company was successful in providing
financial and developmental assistance to the various weaker sections of the society.

Maximum number of respondents agrees that the company has been providing
various services to the society through its various policies and plans related to the development of mass population.

It was also found that the company has encouraged religious, cultural,
educational and sports by providing both financial and non-financial assistance.

It has also been found that the company has actively participated in
environmental protection programmes and also has adopted various environmental safety measures in its operations.

It was viewed that the local community has also been involved in its business
activities by outsourcing of its business contracts. 5.2 Conclusions: Corporate social responsibility has become an increasingly significant phenomenon in todays business world. Public sector corporate houses are more aware about it, and acting to the social problems more appropriately and consciously. Apart from giving philanthropy public sector corporate houses are interested for social capacity building, through providing training and educational facilities to the weaker section of the society, developing entrepreneurial skill among the youth, and trying to make people self-employed by providing facilities to the needy.
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5.3 Recommendations for the future of Corporate Social Responsibility:

Stakeholder Engagement
Relationship with stakeholders needs to become close and strategic. Open communication will help companies build ongoing relationship with different groups of stakeholders. A good relationship will help the company to reduce risk, to be a source of market research and to build a good brand image and reputation. Stakeholder engagement should be implemented in the decision making process. Improved listening to stakeholders and taking more responsibility on global issues must be an integral part of new management.

A New View on Business Model

Every business should take into account its impact on the community and environment. As practice shows, most companies' operations negatively affect the community and environment. Companies should start with a thorough review of existing policy, values frameworks and develop vision for the future, in which CSR will become the central to business strategy and an integral to long-term development. The focus must be on having long term profitability from sustainable business practice rather than making short term profit, but harming almost everything. Taking care of communities and environment must be requirements for proper business operation.

Capacity BuildingIncreased training of employees in understanding

and proper implementation of CSR will help the corporations towards sustainable development. Companies should support wider professional development initiatives. The notion of a CSR manager should be implemented and developed. The on-going evaluation of staff should be held in order to make them contribute towards social and environmental activitie

Regular Audit Companies need to develop a comprehensive Code of

Conduct and regularly monitor its CSR activities towards society and environment through regular audits. Corporations should check the working conditions, whether workers are provided with everything they need, health care, support, the working hours, fair payment and relationship between workers and managers.

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 Partnerships The importance of community investments will be

benefitted both by community and business enterprise itself. But the most beneficial and advantages will be from partnerships with non-governmental organizations and local community groups. This will show that the company targets both local and global challenges and it will be the part of business activity that works towards sustainability. Working with local communities, the company can better understand the domestic issues and its impacts, rather than giving money for short term alleviation of problems. Social entrepreneurship will be much more effective for almost everyone.

Reporting and Disclosure The requirement for transparency and

accountability will demand improved reporting and disclosure. But, reporting must be very interactive and useful, and should be used to disclose the complete truth about a company's operation. The new model of reporting must include the engagement of stakeholders, as it might be a new dynamic type of disclosure. Using on-line interaction with different groups of stakeholders, they can give their opinion on disclosed information and leave the comments in special blogs in online forums on "hot topics". Owing to such implementation, the company will know which area is more affected by business or where the company can make a large contribution.

Regulations from Government Most of the developing countries

suffer from the unethical behaviour of companies due to their weak legislation system. As practice shows, many voluntary approaches tackling social and environmental challenges have limited success. The new requirements must be implemented by government concerning the issues like environmental, labour rights, fair payment and much more. Regulations must be mandatory for all types of business activities and those likely to come from security regulators and institutions tasked with tackling health and safety.

Product Responsibility The companies should ensure that the

produced products and goods are safe, healthy and provide a high quality. Companies should take improved measures to ensure that a range of safety processes are in place. Better product quality will not raise the boycotts of products and of brands by consumers and consequently, will positively affect on the company's reputation.
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 Other Types of Initiatives Since CSR becomes an integral and

important part of business operation, every corporate organization should demonstrate that they have positive impacts on the communities where they operate. It must involve in community investments projects in health, safety, education, sport and other programmes. Involvement in community life must be regular and not just after hazardous consequences. Contributing to the poverty alleviations and health initiatives should be on the agenda of every business enterprise.

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