Do you know about - Corporate social responsibility in India - An Empirical explore
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India has become one of fast growing economies of the world. It is growing at the rate of 9 per cent p.a. As an emerging shop all are looking at India from an international perspective. At the stage when India is set to gather a global position, it is valuable to gauge whether the economic increase is due to prosperous company operations. Organizations must realize that government alone will not be able to get success in its exertion to uplift the downtrodden of society. The present societal marketing conception of fellowships is enduringly evolving and has given rise to a new concept-Corporate group Responsibility. Many of the important corporations across the world had realized the point of being linked with socially relevant causes as a means of promoting their brands. Cause-related marketing and corporate group accountability has in case,granted fellowships with a new tool to compete in the market. Csr refers to the corporation's obligation to all the stakeholders. It stems from the desire to do good and get self pleasure in return as well as societal obligation of business. This could be a strategic marketing action a way for a company to do well by doing good-distinct from sales promotion, corporate philanthropy, corporate sponsorship, corporate Samaritan acts and group relations. Now, it is assumed to be accountability of the company houses too.
Nothing builds brand loyalty among today's increasingly hard to please consumers, like a company's proven commitment to a worthy cause. Other things being equal many consumers would do company with a company that stands for something beyond profits. In nutshell, Csr and cause linked marketing results in increased sales, visibility, and buyer loyalty and enhanced company image along with unavoidable media coverage.
Rural India has a habitancy of 700 million habitancy spread across 6,38,000 villages. Thus more than 60 per cent of India's total habitancy is rural by nature. A report by National Council of Applied Economic explore (Ncaer) shows that rural consumers contain more than 50% of consumers and are a prime shop for buyer goods and valuable services. Culture is the pillar of our country and if the pillar has strength, then it can raise our country to a top level. Organizations are helping to preserve as well as revive the rich culture of the country straight through their programs. Today, India's literacy rate stands around 65 per cent, up from 52 per cent in 1991. (Nsso Survey) inspecting the rate of increase, it would take some 20 to 25 years to clear this problem. Hence, the Csr schedule of corporate reconsider rural development as one of the important dimension.
On the other hand, a nonprofit society is an organization, which exists for providing some benefit or assistance or a sort of self-help group. Like the name suggests, the society will have all the properties of a profit-making organization, i.e. A mission statement, a vision, offices, infrastructure etc., but the objective will not contain manufacture a profit out of its operations. However, to run any organization, funds are needed, and this has to come in to the non-profit in terms of financial i.e. Grants, subsidies, donations etc or services in terms of staff preserve or infrastructure support.. The sources for these funds could be individuals, the government or other charitable institutions and ultimately companies. These company houses straight through their Csr (Corporate group Responsibility) initiatives lead to the mission of group expand and increase of India.
Defining Corporate group responsibility
Definitional issues concerning "corporate group responsibility" (Csr) have been debated since many years. Early Csr models was initiated in the early 1960s.It showed the "social" aspect of Csr as referring directly to those responsibilities above and beyond economic and legal obligations (Carroll, 1979; Waddock, 2004; Matten and Crane, 2005). Many carefully corporate group accountability synonymous with voluntary and philanthropic acts by company organizations which are designed to alleviate group ills or in order to benefit a disadvantaged group chosen by the corporation's managers.
The World company Council for Sustainable development in its publication "Making Good company Sense" by Lord Holme and Richard Watts, used the following definition. "Corporate group accountability is the persisting commitment by company to behave ethically and lead to economic development while improving the potential of life of the workforce and their families as well as of the local society and society at large"
"Csr is about capacity building for sustainable livelihoods. It respects cultural differences and finds the company opportunities in building the skills of employees, the society and the government" "Csr is about company giving back to society.
Traditionally, Csr has been defined much more in terms of a philanthropic model. fellowships make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a unavoidable share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.
According to Philip Kotler, "Corporate group Responsibility: Doing the Most Good for your company and Cause" does a frightful job of describing the range of corporate group initiatives and suggests best practices for choosing, implementing and evaluating them.
Thus, corporate group accountability has been a topic that has received a lot of concentration in new years (Sethi, 1995).
Need for study:
The basic aim of the study is to gain familiarity or formulating a problem or to perform new insights into it. In this single study, an exertion has been made to realize and gain comprehension into behavior or attitude of fellowships towards various aspects of group contribution. This study deals with the behavior of the corporates. It tries to identify complicated behavior and set patterns in it. The present study relates to the attitude of 50 fellowships in India so as to predict the behavior.
Why will any company give funds or services to a non-profit? The government will contribute for funds and or services as it is responsible for the group welfare of the people. Similarly a charitable institution will do the same as it is their objective to help the group cause. An individual may donate to a nonprofit due to reasons of philanthropy, or in memory of some man etc, but why does a commercial society lead for a group cause? The basic objective of a commercial society is to make profits. Why will it divert mammoth funds to a nonprofit if there is no return on that investment?
Objective of the study:
The objective of the study was to try and understand why an society contributes to a group cause and what it expects to gain in the process. Is it philanthropy, is it a feeling of obligation to the society in normal or is it for financial benefits in terms of tax exemptions, etc.
Research form process:
To understand the think why an society contributes to a group cause, it was valuable to get an comprehension into the organizations' view of the business, its views , its policies , the reasons why it contributes and its objectives and relationships with all its stakeholders i.e. Employees, customers, suppliers, shareholders and society. The questionnaire was designed accordingly to get the relevant data from the respondents.
In this study the researchers have adopted convenience sampling. habitancy of study includes fellowships located in India.
Sources of Data Collection:
The explore consists of the application of both customary and secondary data. customary data was collected by administering questionnaire.
The secondary data was collected straight through websites and from various journals and magazines. Reasons for offering to Csr by organizations were a sensitive issue. Hence the researchers had to gain the reliance of the administration otherwise a study of this nature was impossible.
The questionnaire was administered to various companies. Anonymity of responses was promised. While it was sent to about 70 companies, only 50 fellowships responded. The responses were obtained straight through the human resource departments of the company or indirectly straight through the concerned department or official handling the area. The questionnaire was coded into Spss and then the data from the questionnaire entered into the database. While frequency and cross tabulations were used for most of the data analysis, factorization was used to group attributes, which were important reasons for contributing to a group cause.
The pathology and Findings:
Views towards business: 82.4% of the fellowships seem to strongly agree that company means maximizing benefits, manufacture money and doing your work well. No company disagrees on this point. 17.6% more agree than disagree to the same. 76.5% says that company is manufacture money. 88.2% strongly agree as well as agree that it is all about group accountability while 17.8% more disagree than agree.
Place for ethics in business: 88.3% believe that there is place for ethics in business. However, a small majority, 11.8% strongly feel that there is no place for ethics in business.
Business & Economic attitude: 82.3% believe that company needs only an economic attitude while 17.7% respondents felt that company does not need an economic attitude, balance feel it is needed.
Social policies: 70.6% of the corporates join together to the society straight through group activities, and 23.5 % straight through definite Ngo. Only half (52.9%) have a clear-cut policy on group development. 64.7% feel that their group accountability is towards both the society and their employees. 29.4% feel that their group accountability is only towards their employees. 35.3% have not adopted any village or group organization. The participation of the company in various activities is mixed, with no clear-cut trend emerging.
Donations: 70.6% feel that giving a donation will not increase the image of the company. However, 29.4% give donation to benefit from tax.
However, cross tabulation of these two parameters revealed that only 71.4% respondents who said that donations do not heighten its image while 28.6% respondents say that giving donations improves image building. About 50% lead to a group cause, invest as a long-term investment. 70% responded that they do not donate for tax.
Credo of the organization:
Principal Component Factor pathology methodology was used with varimax method to identify the relevant factors which has been consistently identified as customary by the respondents. The rotated component matrix was used, as it would be easier to decide which variables are loaded on which factor.
Factor pathology shows that 4 main factors used by organizations as their credo. The first factor 1 as company value: internal stakeholders which contain humane approach, laborer and buyer satisfaction, potential of life.
Factor 2: profit Maximization, which contain team work and profit maximization.
Factor 3: group Responsibility, which combines with hard working behavior.
Factor 4: Ethical Practices
Csr: Objectives and Relationships with stakeholders:
Customers: 47.1% have their objectives towards the buyer as satisfying them by providing quality, and within this, 50% term their connection as friendly. Another 29.4% objective is to give good value and satisfactory service.
Shareholders: 41.2% objectives are more towards good returns and 35.3% express the real picture of the company, while 23.5% assure profit to its shareholders.
Employees: 64.7% feel that their objective towards the employees is to motivate to perform goals and rewards, 23.5% satisfy by fulfilling needs while 5.9% feel that their connection is that of family feeling and Another 5.9% contribute them with an opportunity for self development.
Suppliers: 5.9% have their objective as mutual benefits, which also elucidate that it feels its connection is that of a teammate (29.4%). balance is equally divided in terms of relationships. Practically 47.1% company's objective vis-à-vis suppliers are potential and price of stock related.
Community: Over 52.9% of the fellowships have group welfare as the objective towards the community. 11.8% fellowships have stated that their connection with the society is that of a family member so as to contribute help to the target group who needs it and 17.6% have stated that their connection is cordial and friendly. They are sensitive to the needs of the society and Another 17.6% contain society welfare in the objectives of the company
Attributes as important reasons for contributing to group causes:
The present study of the researchers is to study the think of the company's corporate group responsibility. The variance chart and the scree plot show that 4 components elucidate 83.03% of the variance. The valuable component pathology was used using varimax rotation method. The rotation converged in 5 iterations. The resultant rotated component matrix was analyzed. The constituents of the four factors are identified as
Factor 1: (Customer oriented)
Customer goodwill .966
Customer loyalty .966
Philanthropy .752
Factor 2: (Ethical oriented)
Projecting the company as one with explicit moral judgment .873
Projecting an upright character of the company .944
Contributing to a definite cause .637
Bottom-line benefits .618
Factor 3: (Community oriented)
Helping the society .894
Social accountability .889
Factor 4: (Humane oriented)
To remove the image of the company as a faceless institution. .903
Bottom-line benefits - .542
Philanthropy in the first component and bottom-line benefits in the second component seem to be out of line of the components. Else the first component talks about buyer relationships, the second on moral character of the company and the third on group responsibility. Bottom-line also plays an important role.
Conclusion:
The study was conducted to find out the company's reasons towards corporate group accountability on cause linked and its impact on the company's brand image and sales. The important factors that sway the company to lead are: buyer oriented, Ethical oriented, society oriented, Humane oriented.
Financial benefits in terms of tax benefits also are important, though the responses to this issue seem to be guarded.
Companies must generate awareness to the various stakeholders concerning its offering to corporate group accountability straight through its affiliation with group cause straight through event administration (Mumbai marathon events) & company websites as it is directly linked to increase in sales and brand loyalty. India being a developing country with over 250 million strong middle class families has a large inherent for any marketer & at the same time it can preserve quiet a good whole of causes which benefits the society at large. E.g. Due to carrying out of Cry' a Ngo 89244 children lives were enduringly transformed 1013 communities experienced 100% school enrollment, 159 customary health centers began functioning and long term restoration schedule were initiated in Practically 100 tsunami affected villages in Tamilnadu, Andhra Pradesh and Kerala and earth quake relief & restoration programs were initiated in 11villages in Jammu & Kashmir. So we can conclude that corporate group accountability and cause linked marketing is useful both for company and the society.
Limitations:
While fellowships have responded, 25% of them (spokesman) have requested that the source should not be mentioned - i.e. The company should not be identified. The sample size being very small, the follow of the study may not recite the whole population.
References:
Carroll, A.B. (1979), "A three-dimensional conceptual model of corporate performance", Academy of administration Review, Vol. 4 No. 4, pp. 497-505.
Matten, A. And Crane, D. (2005), "Corporate citizenship: toward an extended theoretical conceptualization", Academy of administration Review, Vol. 30 No. 1, pp. 166-79.
Sethi, S.P. (1995). "Introduction to Amr's special topic forum on shifting paradigms: Societal expectations and corporate performance." Academy of administration Re view, 20, pp.18- 21.
Waddock, S. (2004), "Parallel universes: companies, academics and the expand of corporate citizenship", company and society Review, Vol. 109 No. 1, pp. 5-42.
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