PROJECT DISSERTATION

ON

“FINANCIAL PERFORMANCE & CSR: AN EMPIRICAL STUDY ON FMCG

SECTOR”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF

Dr. RUHEE MITTAL

ASSISTANT PROFESSOR RDIAS

SUBMITTED BY

ANKUR SHARMA

06315903913

MBA IV

Batch 2013-2015

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2008 Certified Institute

NAAC Accredited: A, Category A+ Institute

(Approved by AICTE, HRD Ministry, Govt. of India)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085

Table of Contents

Student declaration……………………………………………….…….……………..i

Certificate from Guide……………………………………………………..………….ii

Acknowledgement.........................................................................................................iii

Executive Summary……………………………………………………...…………….iv

CHAPTER- 1 INTRODUCTION……………………………………………………

1.1 About the Industry

1.2 About Organization/ Company Profile

CHAPTER – 2 LITERATURE REVIEW……………………………………………

2.1 Literature Review

2.2 About the Topic

CHAPTER –3 RESEARCH METHODOLOGY……………………………………

3.1Research Objectives of the Study

3.2 Research Methodology

3.2.1 Research Design

3.2.3 Method of Data Collection

3.3 Limitation

CHAPTER – 4 ANALYSIS & INTERPRETATION………………………………...

4.1 Analysis & Interpretation

CHAPTER – 5 FINDINGS AND SUGGESTION……………………………………5.1 Finding5.2 Suggestion

CHAPTER – 6 CONCLUSIONS……………………………………………………..6.1 Conclusion

BIBLIOGRAPHY

STUDENT‘s DECLARATION

This is to certify that I have completed the Project titled “Financial Performance &

CSR: An Empirical Study on FMCG Sector” under the guidance of “Dr. Ruhee

Mittal” in the partial fulfillment of the requirement for the award of the degree of

“Masters in Business Administration” from “Rukmini Devi Institute of Advanced Studies,

New Delhi.”

This is an original work and I have not submitted it earlier elsewhere.

Ankur Sharma

06315903913

MBA IV-M-A

CERTIFICATE OF GUIDE

This is to certify that the project titled “Financial Performance & CSR: An Empirical

Study of FMCG Sector” is an academic work done by “ANKUR SHARMA” submitted

in the partial fulfillment of the requirement for the award of the degree of “Masters in

Business Administration” from “Rukmini Devi Institute of Advanced Studies, New

Delhi.” under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him in the

project has not been submitted earlier elsewhere.

Dr. Ruhee Mittal

Assistant Professor

RDIAS

ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced

Studies, GGSIP University, New Delhi for imparting us very valuable professional

training in MBA.

I pay my gratitude and sincere regards to Dr. Ruhee Mittal, my project Guide for giving

me the cream of his knowledge. I am thankful to her as she has been a constant source of

advice, motivation and inspiration. I am also thankful to her for giving her suggestions

and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and

library staff for providing me opportunity to utilize their resources for the completion of

the project.

I am also thankful to my family and friends for constantly motivating me to complete the

project and providing me an environment which enhanced my knowledge.

Ankur Sharma

06315903913

MBA-IV-A

EXECUTIVE SUMMARY

CSR has become an integral part of corporate strategy. Companies have CSR teams that

devise specific policies, strategies and goals for their CSR programs and set aside budgets to

support them.

CSR has come a long way in India. From responsive activities to sustainable initiatives,

corporate have clearly exhibited their ability to make a significant difference in the society

and improve the overall quality of life. Everyone sees CSR as part of a continuing process of

building long-term value. Everything a company do, helps improve the reputation of company

and encourage customers and other stakeholders to stay involved with it.

This dissertation tries to identify the after effects of CSR activities undertaken by the firms.

CSR initiatives of some companies have also been discussed. This project also identifies the

projects undertaken by the firm and amount of money spend by them. CSR budget is

calculated by taking the 2 percent of the total net profit earned. Every organization operates in

the society therefore it is the responsibility of the firm to fulfill their obligations towards the

society in which it operates otherwise it will lose competitiveness. Every firm contributes

little part of its earning towards welfare of the society.

In this study we calculate CSP score of different companies on the basis of rating provided by

the Karmayog website and contribution by them.

There may be some scope for improvement but serious efforts have been put into to get the

best results.

CHAPTER 1

INTRODCUTION

1.1 ABOUT INDUSTRY

The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian

economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in

2011 to US$ 74 billion in 2018. Food products are the leading segment, accounting for 43 per

cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next

in terms of market share.

FMCG goods are popularly known as consumer packaged goods. Items in this category

include all consumables (other than groceries/pulses) people buy at regular intervals. The

most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products,

shoe polish, packaged foodstuff, and household accessories and extends to certain electronic

goods. These items are meant for daily of frequent consumption and have a high return. Fast-

moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are

sold quickly and at relatively low cost. Examples include non-durable goods such as soft

drinks, toiletries, over-the-counter drugs, toys, processed foods and many other consumables.

FMCG have a short shelf life, either as a result of high consumer demand or because the

product deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy

products, and baked goods—are highly perishable. Other goods such as alcohol, toiletries,

pre-packaged foods, soft drinks, and cleaning products have high turnover rates.

EVOLUTION OF INDIAN FMCG MARKET

India has always been a country with a big chunk of world population, be it the 1950’s or the

twenty first century. In that sense, the FMCG market potential has always been very big.

However, from the 1950’s to the 80’s investments in the FMCG industry were very limited

due to low purchasing power and the government’s favouring of the small-scale sector.

Hindustan Lever Limited (HLL) was probably the only MNC Company that stuck around and

had its manufacturing base in India.

At the time, the focus of the organised players like HLL was largely urbane. There too, the

consumers had limited choices. However, Nirma’s entry changed the whole Indian FMCG

scene. The company focused on the ‘value for money’ plank and made FMCG products like

detergents very affordable even to the lower strata of the society. Nirma became a great

success story and laid the roadmap for others to follow.

MNC’s like HLL, which were sitting pretty till then, woke up to new market realities and

noticed the latent rural potential of India. The government’s relaxation of norms also

encouraged these companies to go out for economies of scale in order to make FMCG

products more affordable. Consequently, today soaps and detergents have almost 90%

penetration in India.

Post liberalisation not only saw higher number of domestic choices, but also imported

products. The lowering of the trade barriers encouraged MNC’s to come and invest in India to

cater to 1bn Indians’ needs. Rising standards of living urban areas coupled with the

purchasing power of rural India saw companies introduce everything from a low-end

detergent to a high-end sanitary napkin. Their strategy has become two-pronged in the last

decade. One, invest in expanding the distribution reach far and wide across India to enable

market expansion of FMCG products. Secondly, upgrade existing consumers to value added

premium products and increase usage of existing product ranges.

There are others, like Nestle, which have till date catered mostly to urban India but have still

seen good growth in the last decade. The company’s focus in the last decade has largely been

on value added products for the upper strata of society. However, in the last couple of years,

even these companies have looked to reach consumers at the slightly lower end.

One of the biggest changes to hit the FMCG industry was the ‘sachet’ bug. In the last 3 years,

detergent companies, shampoo companies, hair oil companies, biscuit companies, chocolate

companies and a host of others, have introduced products in smaller package sizes, at lower

price points. This is the single big innovation to reach new users and expand market share for

value added products in urban India, and for general FMCG products like detergents, soaps

and oral care in rural India.

ROAD AHEAD

FMCG brands would need to focus on R&D and innovation as a means of growth. Companies

that continue to do well would be the ones that have a culture that promotes using customer

insights to create either the next generation of products or in some cases, new product

categories.

One area that we see global and local FMCG brands investing more in is health and wellness.

Health and wellness is a mega trend shaping consumer preferences and shopping habits and

FMCG brands are listening. Leading global and Indian food and beverage brands have

embraced this trend and are focused on creating new emerging brands in health and wellness.

According to the PwC-FICCI report Winds of change, 2013: the wellness consumer, nutrition

foods, beverages and supplements comprise an INR 145 billion to 150 billion market in India,

is growing at a CAGR of 10 to 12%.

1.2 ABOUT COMPANIES

HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company

with a heritage of over 80 years in India and touches the lives of two out of three Indians.

HUL works to create a better future every day and helps people feel good, look good and get

more out of life with brands and services that are good for them and good for others. With

over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care,

toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water

purifiers, the Company is a part of the everyday life of millions of consumers across India. Its

portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel,

Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sun silk, Pepsodent, Closeup,

Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over

16,000 employees and has an annual turnover of INR 27408 crores (financial year 2013 -

2014). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving

consumer goods with strong local roots in more than 100 countries across the globe with

annual sales of €49.8 billion in 2013. Unilever has 67.25% shareholding in HUL.

ITC

ITC is one of India's foremost multi-business enterprise with a market capitalization of US $

45 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big

Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine

and as 'India's Most Admired Company' in a survey conducted by Fortune India magazine and

Hay Group. ITC also features as one of world's largest sustainable value creator in the

consumer goods industry in a study by the Boston Consulting Group. ITC has been listed

among India's Most Valuable Companies by Business Today magazine. The Company is

among India's '10 Most Valuable (Company) Brands', according to a study conducted by

Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best

performing companies compiled by Business Week.

ITC’s aspiration to create enduring value for the nation and its stakeholders is manifest in its

robust portfolio of traditional and green field businesses encompassing Fast Moving

Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-

Business, and Information Technology. This diversified presence in the businesses of

tomorrow is powered by a strategy to pursue multiple drivers of growth based on its proven

competencies, enterprise strengths and strong synergies between its businesses.

The competitiveness of ITC’s diverse businesses rest on the strong foundations of institutional

strengths derived from its deep consumer insights, cutting-edge Research & Development,

differentiated product development capacity, brand-building capability, world-class

manufacturing infrastructure, extensive rural linkages, efficient trade marketing and

distribution network and dedicated human resources. ITC’s ability to leverage internal

synergies residing across its diverse businesses lends a unique source of competitive

advantage to its products and services.

BRITANNIA

The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time, in

1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now

Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.

On the operations front, the company was making equally dynamic strides. In 1992, it

celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity -

"Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999,

the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had

with 'Brand Britannia'.

COLGATE PALMOLIVE

The Colgate-Palmolive Company is an American multinational consumer products company

focused on the production, distribution and provision of household, health care and personal

products, such as soaps, detergents, and oral hygiene products (including toothpaste and

toothbrushes). Under its "Hill's" brand, it is also a manufacturer of veterinary products. The

company's corporate offices are on Park Avenue in Midtown Manhattan, New York City.

Colgate-Palmolive Company is a $15.6 billion global company serving people in more than

200 countries and territories with consumer products that make lives healthier and more

enjoyable. The Company focuses on strong global brands in its core businesses – Oral Care,

Personal Care, Home Care and Pet Nutrition. Colgate follows a tightly defined strategy to

grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps,

deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners

and specialty pet food.

P&G

P&G is one of the largest and amongst the fastest growing consumer goods companies in

India. Established in 1964, P&G India now serves over 650 million consumers across India.

Its presence pans across the Beauty & Grooming segment, the Household Care segment as

well as the Health & Well Being segment, with trusted brands that are household names

across India. These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers,

Pantene, Oral-B, Head & Shoulders, Wella and Duracell. Superior product propositions and

technological innovations have enabled P&G to achieve market leadership in a majority of

categories it is present in. P&G India is committed to sustainable growth in India, and is

currently invested in the country via its five plants and over nine contract manufacturing sites,

as well as through the 26,000 jobs it creates directly and indirectly. Our sustainability efforts

focus on Environmental Protection as well as Social Responsibility to help develop the

communities we operate in.

P&G operates under three entities in India - two listed entities “Procter & Gamble Hygiene

and Health Care Limited” and ‘Gillette India Limited’, as well as one 100% subsidiary of the

parent company in the U.S. called ‘Procter & Gamble Home Products’.

DABUR

Dabur India Limited is the fourth largest FMCG Company in India with Revenues of over Rs

7,073 Crores & Market Capitalisation of US $5 Billion. Building on a legacy of quality and

experience of over 130 years, Dabur operates in key consumer products categories like Hair

Care, Oral Care, Health Care, Skin Care, and Home Care & Foods. Dabur India Limited has

marked its presence with significant achievements and today commands a market leadership

status. Our story of success is based on dedication to nature, corporate and process hygiene,

dynamic leadership and commitment to our partners and stakeholders. The results of our

policies and initiatives speak for themselves.

NESTLE

Nestlé is the world's leading Nutrition, Health and Wellness Company. Our mission of "Good

Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a

wide range of food and beverage categories and eating occasions, from morning to night.

The Company was founded in 1866 by Henri Nestlé in Vevey, Switzerland, where our

headquarters are still located today. We employ around 2, 80,000 people and have factories or

operations in almost every country in the world. Nestlé sales for 2009 were CHF 108 bn.

Nestlé's relationship with India dates back to 1912, when it began trading as The Nestlé

Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished

products in the Indian market.

GODREJ

Established in 1897, the Godrej Group has its roots in India's Swadeshi movement. Our

founder, Ardeshir Godrej, lawyer-turned-serial entrepreneur failed with a few businesses,

before he struck gold with the locks business that you know today. One of India’s most

trusted brands, with revenues of USD 4.1 billion, Godrej enjoys the patronage of over 600

million Indians across our consumer goods, real estate, appliances, agri and many other

businesses. You think of Godrej as such an integral part of India that you may be surprised to

know that over 25 per cent of our business is done overseas.

We promise Godrejites a culture of tough love; take serious bets on them and differentiate

basis performance. We also understand that our team members play multi-faceted roles and

so, we strongly encourage them to explore their whole selves. Our canvas is growing. In fact,

our Vision for 2020 is to be 10 times the size we were in 2010. We truly believe that while

our amazing past distinguishes us, we are only as good as what we do next.

CHAPTER 2

LITERATURE

REVIEW

2.1 Literature Review

In the context of India, the publically available CSR surveys are few. Singh and Ahuga

(1983) conducted the first study on CSR of 40 Indian public sector companies for the years

1975-76. They found that 40 percent of the companies disclosed more than 30 percent of total

disclosure items included in their survey. From the year 2000 onwards four important surveys

have been carried out. The first survey was carried out in the year 2001 by Business

Community Foundation for Tata Energy Research Institute (TERI) - Europe and found that all

companies irrespective of size or sector have awareness of CSR and its potential benefits. The

second survey was conducted in the year 2002 by Business Community Foundation for TERI

jointly with Confederation of Indian Industries (CII), United Nations Development Program,

British Council and Price Water Coopers. The survey found that CSR is very much a part of

domain of corporate action and passive philanthropy is no longer sufficient. Third survey was

conducted in 2007-08 by Karmayog a platform for the Indian non-profit sector established in

the year 2004 providing research on CSR activities of Indian Companies. It surveyed the CSR

activities of 500 largest Indian companies. In the survey the companies were placed in the

levels of their involvement in the CSR activities from 0 to 5. The levels were assigned based

on criteria like Product and services, reach of CSR activities, expenditure of CSR, harmless

processes etc. The fourth survey carried out by TNS Automotive India in 2008, leading

Market Research Company and Times Foundation used a sample size of 250 companies

involved in CSR activities through a method of online administration of questionnaire. 82

organizations (11 public sector, 39 private national agencies and 32 private multinational

organizations) revealed that over 90% of all major Indian organizations were involved in CSR

initiatives and faced few challenges(Lack of community participation in CSR activities, Issue

of Transparency, Narrow perception towards CSR initiatives and Non-Availability of clear

CSR guidelines) also. Pava and Krausz (1996) identified and reviewed twenty-one empirical

studies which addressed the relationship between CSR and financial performance. Of these,

twelve studies reported a positive association between social and financial performance, one

reported a negative relationship and eight reported neutral relationship. The fundamental idea

of CSR is that business corporations have an obligation to contribute to the welfare of the

society (Davis William 1984) and to work for social betterment(Fredrick 1986) CSR is the

policy in which the firm goes beyond compliance and engages in ''Actions that appear to

further some social good, beyond the interests of the firm and that which is required by

Law”(McWilliams and Siegel,2001) and it at least knowingly does not do anything to harm to

its stakeholders (Campbell,2006). Regarding the research works in the area of CSR

disclosures, there are few attempts made in by Indian and other countries researchers. John

Mahon et al (2012) studied the relationship between Corporate Social Performance and

overall organizational performance and access how customer stakeholders and financial

stakeholders measured and evaluate Corporate Reputation in an Industry context. Authors

selected 5-8 companies in each of nine leading industries across 3-years’ time span. (56

companies for each year) and developed a measurement tool labeled “'CSP Profiling” consists

of Business Motivations, Business Actions and Business Social Impacts and the authors

attempt to move the discussion of CSP away from the dominance of Financial performance-

Social performance research and focused on the existence and attempts to explain casualty

and recognized that results are not statistically significant. Suwaidan (2004), Saleh et al.

(2008) found that the size, profitability and risk to be significantly and positively associated

with the disclosure of social responsibility information. Tamoi et al. (2007) tried to find out

the level and trend of CSR disclosure pattern of Industrial companies in Malaysia and its

relationship with company's characteristics. Content Analysis was used to analyze the data

from the Annual Reports of the companies from 1998 to 2003 for this study. They found that

there was a positive relationship between CSR and company's turnover.

Windsor (2001), article examined the future of Corporate Social Responsibility or the

relationship between business and society in long run. The researcher tried to find out that

whether the organization and society will come closer to each other in future or not and what

will be the changing phase of CSR. With the help of history or past trend of CSR, Caroll‟s

model analysis and in global context, the researcher found three emerging alternatives of CSR

i.e. conception of responsibility, global corporate citizenship, stakeholder management

practices.

Nigel Sarbutts (2003), the paper explored the way of doing CSR by small and medium sized

companies. The research depicted that a structured approach to managing corporate reputation

and profit maximization of SME‟s through CSR. The societal activities of small and medium

sized companies is based on their cost is Benefit Analysis. Small Corporation always struggle

for more reputation and minimization of risk. In such a situation, CSR comes as hope for

these companies. Large companies have so many resources for implementing CSR activities

but SME‟s have fewer resources. It can be a barrier for them to stay in the market. So, in that

situation by imparting much information, proper utilization of resources, doing well for

businesses, SME‟s can minimize their risk and manage CSR.

2.2 ABOUT TOPIC

CORPORATE SOCIAL RESPONSIBILITY

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”), 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.

Key CSR issues: environmental management, eco-efficiency, responsible sourcing,

stakeholder engagement, labour standards and working conditions, employee and community

relations, social equity, gender balance, human rights, good governance, and anti-corruption

measures.

A properly implemented CSR concept can bring along a variety of competitive advantages,

such as enhanced access to capital and markets, increased sales and profits, operational cost

savings, improved productivity and quality, efficient human resource base, improved brand

image and reputation, enhanced customer loyalty, better decision making and risk

management processes.

From the above definitions, it is clear that:

1. The CSR approach is holistic and integrated with the core business strategy for

addressing social and environmental impacts of businesses.

2. CSR needs to address the well-being of all stakeholders and not just the company’s

shareholders.

3. Philanthropic activities are only a part of CSR, which otherwise constitutes a much

larger set of activities entailing strategic business benefits

CSR HISTORY AND ITS TRANSITION

CSR started as Philanthropy. In the pre-industrialization period, till 1850, merchants helped

the society in getting over phases of famine and epidemics by providing food and money and

thus securing an integral position in the society. With the arrival of colonial rule in India the

approach towards CSR changed. The industrial families of the 19th century such as Tata,

Godrej, Bajaj, Modi, Birla and Singhania were strongly inclined towards economic as well as

social developments. Culture, religion, family values, tradition and industrialization were they

key influencers of CSR. It was observed that efforts towards social as well as industrial

development were not only driven by selfless and religious motives but also influenced by

political objectives.

During the independence movement, there was increased stress on Indian Industrialists to

demonstrate their dedication towards the progress of the society. Mahatma Gandhi introduced

the notion of "trusteeship", according to which the industry leaders had to manage their

wealth so as to benefit the common man. "I desire to end capitalism almost, if not quite, as

much as the most advanced socialist. But our methods differ. My theory of trusteeship is no

make-shift, certainly no camouflage. I am confident that it will survive all other theories."

Gandhi's influence put pressure on various Industrialists to act towards building the nation

through socio-economic development. According to Gandhi, Indian companies were supposed

to be the "temples of modern India". Under his influence businesses established trusts for

schools, colleges, hospitals and also helped in setting up training and scientific institutions.

The operations of the trusts were largely in line with Gandhi's reforms which sought to

abolish untouchability, encourage empowerment of women and rural development.

Post-independence during 1960 to 1980 the element of "mixed economy", emergence

of Public Sector Undertakings (PSUs) and laws relating labor and environmental standards

gained importance. During this period the private sector was forced to take a backseat. The

public sector was seen as the prime mover of development. Because of the stringent legal

rules and regulations surrounding the activities of the private sector, the period was described

as an "era of command and control".  The policy of industrial licensing, high taxes and

restrictions on the private sector led to corporate malpractices which lead to enactment of

legislation regarding corporate governance, labor and environmental issues. PSUs were set up

by the state to ensure suitable distribution of resources (wealth, food etc.) to the needy, but

this was effective only to a certain extent. Expectations from the private sector rose again and

their active involvement in the socio-economic development of the country became absolutely

necessary. In 1965 Indian academicians, politicians and businessmen set up a national

workshop on CSR aimed at reconciliation. They emphasized upon transparency, social

accountability and regular stakeholder dialogues. In spite of such attempts CSR failed to catch

steam.

During rapid industrialization in 1980 Indian companies started abandoning their traditional

engagement with CSR and integrated it into a sustainable business strategy. In 1990s the first

initiation towards globalization and economic liberalization were undertaken. Controls and

licensing system were partly done away with which gave a boost to the economy the signs of

which are very evident today. Increased growth momentum of the economy helped Indian

companies grow rapidly and this made them more willing and able to contribute towards

social cause. Globalization has transformed India into an important destination in terms of

production, manufacturing and marketing. The overseas markets were becoming more and

more concerned about labor and environmental standards in the developing countries.  Indian

companies who were into producing goods for the developed countries needed to pay a close

attention to compliance with the international standards. The basic objective of social

responsibility was to maximize the company's overall impact on the society and stakeholders.

CSR policies, practices and programs were being comprehensively integrated by companies

throughout their business operations and processes. A growing number of companies felt that

economy helped Indian companies grow rapidly but it was important for protecting the

goodwill and reputation to increase business competitiveness.

CSR IN INDIA

CSR in India has traditionally been seen as a philanthropic activity. And in keeping with the

Indian tradition, it was an activity that was performed but not deliberated. As a result, there is

limited documentation on specific activities related to this concept. However, what was

clearly evident that much of this had a national character encapsulated within it, whether it

was endowing institutions to actively participating in India’s freedom movement, and

embedded in the idea of trusteeship.

As some observers have pointed out, the practice of CSR in India still remains within the

philanthropic space, but has moved from institutional building (educational, research and

cultural) to community development through various projects. Also, with global influences

and with communities becoming more active and demanding, there appears to be a discernible

trend, that while CSR remains largely restricted to community development, it is getting more

strategic in nature (that is, getting linked with business) than philanthropic, and a large

number of companies are reporting the activities they are undertaking in this space in their

official websites, annual reports, sustainability reports and even publishing CSR reports.

The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its

disclose-or-explain mandate, is promoting greater transparency and disclosure. Schedule VII

of the Act, which lists out the CSR activities, suggests communities to be the focal point. On

the other hand, by discussing a company’s relationship to its stakeholders and integrating

CSR into its core operations, the draft rules suggest that CSR needs to go beyond

communities and beyond the concept of philanthropy. It will be interesting to observe the

ways in which this will translate into action at the ground level, and how the understanding of

CSR is set to undergo a change.

CSR & SUSTAINABILITY

Sustainability (corporate sustainability) is derived from the concept of sustainable

development which is defined by the Brundtland Commission as “development that meets the

needs of the present without compromising the ability of future generations to meet their own

needs” Corporate sustainability essentially refers to the role that companies can play in

meeting the agenda of sustainable development and entails a balanced approach to economic

progress, social progress and environmental stewardship.

CSR in India tends to focus on what is done with profits after they are made. On the other

hand, sustainability is about factoring the social and environmental impacts of conducting

business, that is, how profits are made. Hence, much of the Indian practice of CSR is an

important component of sustainability or responsible business, which is a larger idea, a fact

that is evident from various sustainability frameworks. An interesting case in point is the

NVGs for social, environmental and economic responsibilities of business issued by the

Ministry of Corporate Affairs in June 2011. Principle eight relating to inclusive development

encompasses most of the aspects covered by the CSR clause of the Companies Act, 2013.

However, the remaining eight principles relate to other aspects of the business. The UN

Global Compact, a widely used sustainability framework has 10 principles covering social,

environmental, human rights and governance issues, and what is described as CSR is implicit

rather than explicit in these principles.

COMPANIES ACT 2013 & CSR

The Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the

Companies Act 2013 as well as the provisions of the Companies (Corporate Social

Responsibility Policy) Rules, 2014 to come into effect from April 1, 2014.

With effect from April 1, 2014, every company, private limited or public limited, which either

has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore,

needs to spend at least 2% of its average net profit for the immediately preceding three

financial years on corporate social responsibility activities. The CSR activities should not be

undertaken in the normal course of business and must be with respect to any of the activities

mentioned in Schedule VII of the 2013 Act. Contribution to any political party is not

considered to be a CSR activity and only activities in India would be considered for

computing CSR expenditure.

The net worth, turnover and net profits are to be computed in terms of Section 198 of the

2013 Act as per the profit and loss statement prepared by the company in terms of Section 381

(1) (a) and Section 198 of the 2013 Act. While these provisions have not yet been notified, is

has been clarified that if net profits are computed under the Companies Act, 1956 they needn't

be recomputed under the 2013 Act. Profits from any overseas branch of the company,

including those branches that are operated as a separate company would not be included in the

computation of net profits of a company. Besides, dividends received from other companies in

India which need to comply with the CSR obligations would not be included in the

computation of net profits of a company.

The activities that can be undertaken by a company to fulfil its CSR obligations include

eradicating hunger, poverty and malnutrition, promoting preventive healthcare, promoting

education and promoting gender equality, setting up homes for women, orphans and the

senior citizens, measures for reducing inequalities faced by socially and economically

backward groups, ensuring environmental sustainability and ecological balance, animal

welfare, protection of national heritage and art and culture, measures for the benefit of armed

forces veterans, war widows and their dependents, training to promote rural, nationally

recognized, Paralympic or Olympic sports, contribution to the prime minister's national relief

fund or any other fund set up by the Central Government for socio economic development

and relief and welfare of SC, ST, OBCs, minorities and women, contributions or funds

provided to technology incubators located within academic institutions approved by the

Central Government and rural development projects.

The CSR Rules specify that a company which does not satisfy the specified criteria for a

consecutive period of three financial years is not required to comply with the CSR

obligations, implying that a company not satisfying any of the specified criteria in a

subsequent financial year would still need to undertake CSR activities unless it ceases to

satisfy the specified criteria for a continuous period of three years. This could increase the

burden on small companies which do not continue to make significant profits.

The report of the Board of Directors attached to the financial statements of the Company

would also need to include an annual report on the CSR activities of the company in the

format prescribed in the CSR Rules setting out inter alia a brief outline of the CSR policy, the

composition of the CSR Committee, the average net profit for the last three financial years

and the prescribed CSR expenditure. If the company has been unable to spend the minimum

required on its CSR initiatives, the reasons for not doing so are to be specified in the Board

Report.

COMPANIES ENGAGED IN CSR

1. HUL

(A) Project Shakti: - Project Shakti is an initiative to financially empower rural women and

create livelihood opportunities for them. Through this project, the Company endeavors to

enhance livelihoods of rural women. Around 70% of Shakti Ammas are working in low

Human Development Index (HDI < 0.51) districts.

(B) Hand Washing Behavior Change Program: - More than 600,000 children in India do

not reach the age of five due to infections like diarrhea and pneumonia. Independent research

has shown that washing hands with soap at five critical times in a day can reduce the

incidence of these infections significantly

(C) Safe Drinking Water: - The lack of safe drinking water is a major public health issue,

particularly in developing countries where majority of diseases are waterborne. Pureit inhome

water purifier provides water 'as safe as boiled water', without the need for electricity or

running water.

2. NESTLE

In consultation with stakeholders, the Company has decided to focus its activities on the

following areas, where it is in a position to create maximum value. These focus areas are:

(A) Nutrition: A large part of our population is impacted by the double burden of

malnutrition. Improving nutrition awareness of communities particularly school children will

be a focus area.

(B) Water and Sanitation: India is among the world’s most water stressed regions.

Additionally, safe drinking water is a concern in many parts of the country. The Company

would focus on helping farmers reduce water usage in agriculture, raising awareness on water

conservation and providing access to water and sanitation.

(C) Rural Development: Supporting the sustainable development of farmers will be the third

focus area.

3. COLGATE PALMOLIVE

(A) Teachers Training Program: - Training in the basics of oral health care is imparted to

school teachers. This helps them play a significant role in preventive oral care by inculcating

good oral care habits in the students. The Teachers Training Program forms a vital part of the

Colgate Bright Smiles, Bright Futures Program. Till date, 1,75,000 teachers have been trained

under the program

(B) National Oral Health Program: - Colgate-Palmolive India continues its march in the

area of spreading oral health awareness through the School Dental Health Education Program.

Under this Program, over 50 million school children in rural and urban parts of the country in

the age group of 6-12 years have been reached out till date. Members of various IDA local

branches organized the Program across the country with the help of audio-visual aids, posters,

charts and demonstration of right brushing techniques.

(C) Colgate-IDA Activities: - Colgate actively and closely supports the efforts of

Professional Dental Associations to continuously update the knowledge and skills of dental

professionals through various form. Colgate today is the major sponsor of almost all Dental

Conventions, Seminars, Conferences and specialized workshops. In collaboration with the

Indian Dental Association, IDA-Colgate Continuing Dental Education Programs are regularly

organized all over the country, exposing the practicing dental professional to the latest

advances in dentistry.

4. P&G

(A) Shiksha’s NGO Partners: - Shiksha’s vision is to help India get to 100% Shiksha

someday, and it is working towards this vision in partnership with NGOs like Save the

Children India, Army Wives Welfare Association (AWWA), Navy Wives Welfare

Association (NWWA) and Round Table India (RTI), amongst others. Each of Shiksha’s NGO

partners focuses on a critical approach towards education, with NGO Round Table India

specializing in building educational infrastructure and supporting schools across India, NGO

Save the Children laying emphasis on the girl child via supporting the government’s Kasturba

Gandhi Balika Vidhyalays, and the NGOs AWWA and NWWA serving the unique

educational needs of differently-abled children of naval and army officer’s families.

(B) Disaster Relief: - India has braved several natural disasters in the recent past, such as the

Tsunami in South India, floods in Bihar or earthquakes in J&K and Gujarat. P&G has stepped

forward in each of these calamities and helped communities get back on their feet. Most

recently we helped rebuild the Army School in Ladakh, located in one of the most challenging

Himalayan Terrains, which was wrecked by the Flash Floods in 2010.

5. GODREJ

(A) Long term employment for the visually disabled: - The activity of hardware packet

making for chairs has been outsourced to National Association for Disabled Enterprises

(NADE) for the last several years. The objective of this decision was to ensure continued

occupation for the visually disabled. The activity began way back in 1996-97, where

approximately 8,000 to 10,000 hardware packets of 30 different kinds every month were

made by them.

(B) Environment protection and corporate responsibility: - The vast tract of unique

Mangrove forests conserved and protected by Godrej in Vikhroli demonstrates how industry

and nature could well exist in harmony with each other. The mangrove flora of Pirojshanagar

is well diversified. There are 13 species of mangroves and mangrove associates. The faunal

composition in the area is also equally diverse.

6. DABUR

Sustainable Development Society (SUNDESH) is sworn to the mission of ensuring overall

socio-economic development of the rural & urban poor on a sustainable basis, through

different participatory and need-based initiatives. It aims to reach out to the weaker and more

vulnerable sections -- such as women and children, illiterate and unemployed – of the society.

Today, SUNDESH operates in Ghaziabad and Gautam Budha Nagar district of Uttar Pradesh,

and has -- more recently – established presence in Rudrapur district of Uttrakhand. Over the

years, it has contributed to many worthy causes, addressing children’s literacy, improving

healthcare services, skill development, and environment, to name a few.

7. ITC

(A) Eradication of hunger and poverty

(B) Promotion of Education

(C) Promoting Gender Equality & Empowering Women

(D) Reducing child mortality & improving maternal health

8. BRITANNIA

(A) Ensuring Environmental Sustainability

(B) Employment enhancing vocational skills

FINANCIAL PERFORMANCE

A subjective measure of how well a firm can use assets from its primary mode of business and

generate revenues. This term is also used as a general measure of a firm's overall financial

health over a given period of time, and can be used to compare similar firms across the same

industry or to compare industries or sectors in aggregation.

There are many different ways to measure financial performance, but all measures should be

taken in aggregation. Line items such as revenue from operations, operating income or cash

flow from operations can be used, as well as total unit sales. Furthermore, the analyst or

investor may wish to look deeper into financial statements and seek out margin growth rates

or any declining debt.

Once your business is established and financially secure, you need to think about how to grow

or improve it.

Regularly reviewing your progress will give you an idea of how you can benefit in your

current market, access new customers and find new business opportunities. However, it is

important that you understand how to correctly review and assess your performance to make

the most out of the information available to you.

A performance measurement system is an important way of keeping track of your business'

progress. This should give you reliable information about business performance and allow

you to set targets for implementing your growth strategies. You should update your business

plan with your new strategy and make sure you introduce the developments you have noted.

This guide sets out the business benefits of performance measurement and target-setting. It

shows you how to choose which key performance indicators (KPIs) to measure and suggests

examples in a number of key business areas. It also highlights the main points to bear in mind

when setting targets for your business.

MEASUREMENT OF YOUR FINANCIAL PERFORMANCE

A review of your financial performance can help you reassess your business goals and plan

effectively for improving the business. When conducting a financial review of your business,

you might want to consider the following:

1. Cash flow - This is the balance of all of the money flowing in and out of your business.

You should ensure that your forecast is regularly reviewed and updated. For more

information, see our guide on cash flow management: the basics.

2. Working capital - Have your requirements changed? If so, research the reasons for this

movement and assess how this compares to the industry standard. If necessary, take steps to

source additional capital - see our guide on how to use your business plan to get funding.

3. Cost base - Keep your costs under constant review. Make sure that your costs are covered

in your sale price - but don't expect your customers to pay for any business inefficiencies. For

more information, see our guide on how to price your product or service.

4. Borrowing - what is the position of any overdrafts or loans? Are there more appropriate or

cheaper forms of finance you could use?

5. Growth - Do you have plans in place to adapt your financing to accommodate your

business' changing needs and growth?

MEASURING YOUR PROFITABILITY

One of the most important areas of your finances you should review is your profitability.

Most growing businesses ultimately target increased profits, so it's important to know how to

measure profitability. The key standard measures are:

1. Gross profit margin - How much money is made after direct costs of sales have been taken

into account, or the contribution as it is also known.

2. Operating margin - This lies between the gross and net measures of profitability. Overheads

are taken into account, but interest and tax payments are not. For this reason, it is also known

as the EBIT (earnings before interest and taxes) margin.

3. Net profit margin - This is a much narrower measure of profits, as it takes all costs into

account, not just direct ones. All overheads, as well as interest and tax payments, are included

in the profit calculation.

4. Return on capital employed - This calculates net profit as a percentage of the total capital

employed in a business. This allows you to see how well the money invested in your business

is performing compared with other investments you could make with it, like putting it in the

bank.

OTHER KEY ACCOUNTING RATIOS

There are a number of other commonly used accounting ratios that provide useful measures of

business performance. These include:

1. Liquidity ratios, which tell you about your ability to meet your short-term financial

obligations

2. Efficiency ratios, which tell you how well you are using your business assets

3. Financial leverage or gearing ratios, which tell you how sustainable your exposure to long-

term debt is

CHAPTER 3

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

The study has been carried out with the aim of analysing the CSP with Financial

performances of the selected companies in the FMCG industry. The aim of the study has been

carried out with the following specific objectives:

1. To study the nature and extent of CSR initiatives and their disclosure levels of the selected

Companies in India.

2. To examine the relationship between the CSR initiative score and Financial Performance of

the selected companies in India.

3. To explore, whether there is any impact of CSR initiatives score on the Stock performance

of selected companies in India.

RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research problem. Research,

in common terms refers to a search for knowledge. Research methodology consists of

different steps that are generally adopted by a researcher to study the research problem

along with the logic behind them.

RESEARCH DESIGN

Research design is the plan, structure and strategy of investigation conceived so as to

obtain answers to research question. There are two types of research design. One is

exploratory research and other is descriptive research.

The study is based on the secondary data, collected from CMIE database for the

following variables from Karmayog CSR rating of the largest 500 Indian Companies in

India for the year ended on 2010, 2011, 2012 and 2013. Henceforth, 8 companies in the

FMCG industry, which were ranked by Karmayog. To measure the Corporate Social

performance (CSP) the following three key parameters were considered. First, the

ratings given by Karmayog, Secondly, budget allocation of fund for CSR activities,

which is calculated at 0.02% on Turnover of the year. Third, the focusing area of CSR

activity of involvement has been classified into Healthcare, Education including

Training Programs, Environment, Rural development and Other Community welfare

activities and if an item of information disclosed in their annual or other report, receives

a score of 1, and 0 if it is not disclosed (Total Score is 5). This paper uses an weighted

approach for disclosure INDEX scoring and equal importance given to all the parameter

and calculated as Σ (B *Kr * Pr) where Kr is karmayog rating score, B is Budgeted CSR

allocation amount and Pr is performance rating calculated by authors. When the

Karmayog rating is 1, the actual CSR allocation is treated as CSP score. Total Assets,

Net Worth, Profit before Tax, Debts and EPS were treated as financial measures and

market capitalization is treated as stock market performance.

METHOD OF DATA COLLECTION

Data collected from secondary sources only.

SECONDARY DATA: - Secondary data, is data collected by someone other than the

user. Common sources of secondary data for social science include censuses,

organizational records and data collected through qualitative methodologies or

qualitative research. In this we also used data provided by the company including details

of the customers, their preference etc.

In this data is collected mainly through information provided by the company in their

annual reports or through different websites which keeps an eye over the financial

performance of the company. We use different websites such as Yahoo Finance, Money

control, Rediff etc. to collect the data. After collecting the data we put it into excel and

processed the entire data by applying various formulae which are required to undertake

the whole process. In this the main role was rating provided by karmayog website.

These rating indicate the concern of the different companies towards the society and

their obligation.

LIMITATIONS OF THE STUDY

1. CSR initiatives practiced by companies were easily available but the results of these

initiatives are hard to find out.

2. Time available for making the project was not sufficient.

3. It was difficult to find out the contribution of the CSR practices to the profit of the

company after they were initiated.

CHAPTER 4

ANALYSIS &

INTERPRETATION

Data analysis is a process for obtaining raw data and converting it into information

useful for decision-making by users. Data is collected and analyzed to answer questions,

test hypotheses or disprove theories. The purpose of the data analysis and interpretation

phase is to transform the data collected into credible evidence about the development of

the intervention and its performance.

In this study we collect the data of different companies including Debts, Profits, and

total assets in order to assess the performance of the company. We will calculate the

CSP score by using the data available at karmayog website which provides ranks to the

companies engaged in CSR activities.

Data Analysis include the following:

1. Calculation of CSP Score.

2. Calculation of contribution towards CSR activities.

3. Calculation of Statistical Variables of various data like profits, total assets.

Analysis of following helps us in finding the impact of these activities on the financial

performance of the company and how much they contribute towards the welfare

activities. We assume those firms which are more active in social causes are in better

position over others and can capitalize it in the near future because investors and

consumers are more aware and concerned about the environment.

DIAGRAM OF CSR & FINANCIAL PERFORMANCE

This Diagram shows the components of the CSR score and Financial Performance. CSR

score is calculated on the basis of the karmayog rating, CSR budget and Performance

Rating. Whereas Financial Performance measures includes the total assets, net worth,

profit and Debts.

Statistical Calculation of Variables

Table 1

Particulars Mean Median Standard Deviation

Skewness

Total Assets 4974.44 1465.53 9001.63 2.42299171

Net Worth 3398.39 1187.56 5713.91 2.43176688

Profit Before Tax

1970.59 749.5 2704.17 2.03699988

Debts 346.26 72.75 583.09 1.90767

EPS 19.22 11.84 17.36 1.218884

Table 1 shows the Mean, Median, Standard Deviation and skewness of total assets, net worth,

and profit before tax, debts and EPS of companies taken into analysis process. Mean indicates

the average of industry, Median helps in determining the center point, and Standard Deviation

reflects the deviation in the industry in terms of profit, Debts etc.

The average profits of the industry are 1970.59 crores, average debts in the industry are

346.26 crores whereas the change in profits and debts are 2704.14 and 583.09 respectively.

Contribution towards CSR Activities (2010)

Table 2 crores

Companies Net Profit CSR Budget (0.02 of NP)HUL 2153.25 43.065ITC 4061 81.22DABUR 433.33 8.6666NESTLE 655 13.1BRITANNIA 116.51 2.3302P&G 1095 21.9COLGATE PALMOLIVE 423.26 8.4652GODREJ 80.93 1.6186

Fig 1

HUL ITC DABUR NESTLE BRITANNIA P&G COLGATE PALMOLIVE

GODREJ0

500

1000

1500

2000

2500

3000

3500

4000

4500

0

10

20

30

40

50

60

70

80

90

Net Profit & CSR

Net Profit CSR Budget

Table 2 shows the contribution of different firms towards CSR. According to government

regulation every company must contribute at least 2% of their profits towards society welfare.

In year 2010 ITC is the highest contributor towards the CSR activities. We only assume that

every company only contributes 2% which is mandatory for them.

CONTRIBUTION TOWARDS CSR (2011)

Table 3 crores

Companies Net Profit CSR budget(0.02 of NP)

HUL 2599.23 51.9846

ITC 4987.61 99.7522

DABUR 471.41 9.4282

NESTLE 818.66 16.3732

BRITANNIA 145.29 2.9058

P&G 1157 23.14

COLGATE PALMOLIVE 402.58 8.0516

GODREJ 133.43 2.6686

FIG 2

HUL ITC DABUR NESTLE BRITANNIA P&G COLGATE PALMOLIVE

GODREJ0

1000

2000

3000

4000

5000

6000

0

20

40

60

80

100

120

Net Profit & CSR

Net Profit CSR Budget

Table 3 reflects the CSR contribution by each firm in year 2011. As we can see the contribution of each company increases from year 2010. The reason for this is increase in profits over the years. Still the highest contributor in CSR activities is ITC followed by HUL, P&G and so on.

CONTRIBUTION TOWARDS CSR (2012)

Table 4 crores

Companies Net Profit CSR Budget (0.02of NP)

HUL 3314.35 66.287ITC 6162.37 123.2474DABUR 463.24 9.2648NESTLE 961.55 19.231BRITANNIA 186.74 3.7348P&G 2170 56.25COLGATE PALMOLIVE 446.47 8.9294GODREJ 201.56 4.0312

Fig 3

HUL ITC DABUR NESTLE BRITANNIA P&G COLGATE PALMOLIVE

GODREJ0

1000

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6000

7000

0

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Chart Title

Net Profit CSR Budget

Table 4 shows the net profits and corresponding CSR activities by each of the firm taken into study. The Contribution in CSR is highest by ITC because its profits are increasing followed by HUL, NESTLE, DABUR, COLGATE and GODREJ.

CONTRIBUTION TOWARDS CSR (2013)

Table 5 crores

Companies Net Profit CSR Budget(0.20 0f NP)HUL 3555.32 71.1064ITC 7418.39 148.3678DABUR 590.98 11.8196NESTLE 1067.93 21.3586BRITANNIA 233.87 4.6774P&G 1121 22.42COLGATE PALMOLIVE 496.75 9.935GODREJ 96.74 1.9348

Fig 4

HUL ITC DABUR NESTLE BRITANNIA P&G COLGATE GODREJ0

1000

2000

3000

4000

5000

6000

7000

8000

0

20

40

60

80

100

120

140

160

Net Profit & CSR

Net Profit CSR Budget

Table 5 shows the net profit and CSR budget of every firm taken into consideration. CSR budget is calculated by taking 2% of the net profit of the firm. In this as we see above ITC is the leader in contribution towards Society.

Calculation of CSP SCORE

Table 6

Companies CSR Rating (Karmayog)

Contribution Towards CSR

Area of Focus Total

HUL 3 28 11 924

ITC 2 28 6 336

DABUR 3 4.2 5 63

NESTLE 2 2 5 20

BRITANNIA 2 9.2 4 73.6

P&G 2 1.3 4 10.4

COLGATE PALMOLIVE

2 3.2 7 44.8

GODREJ 1 1.8 3 5.4

In Table 6 we have calculated CSP SCORE of different companies. CSP SCORE helps

in determine the social performance of the companies. CSP SCORE is calculated by

multiplying CSR rating provided by the Karmayog and contribution towards CSR in

their profits and area of focus i.e. area of contribution.

In the above table company with highest CSP score is contributing more towards

society. Contribution can be in education sector, employment, rural development etc.

HUL secured highest score of 994 and Nestle secured lowest score.

CHPATER 5

FINDINGS

FINDINGS

1. ITC is major contributor towards the society among all other companies.

2. CSP score of HUL is highest among the companies taken into study.

3. Contribution of companies toward CSR is increasing over the years due to the

consumer’s perception and awareness.

4. Companies contributing higher into CSR are getting benefit in long term.

5. Godrej company is least engaged in CSR activities.

6. HUL, ITC and DABUR receives highest rating by Karmayog websites.

CHAPTER 6

RECOMMENDATION

RECOMMENDATIONS

1. The companies practicing CSR should provide information about the after effects of

their CSR initiative. This would help the stakeholders to understand the initiative

better.

2. Companies should focus more on CSR initiatives as it leads to the growing profits for

the company.

3. CSR activities help in Recognition in the market therefore company should engage

itself in more and more activities.

4. CSR activities are necessary as companies use resources of the society therefore it is

in long term interest to engage in these activities.

BIBLIOGRAPHY

WEBSITES

1. http://www.britannia.co.in/investerzone_bonus_financial.htm

2.http://www.moneycontrol.com/financials/britanniaindustries/financial-graphs/ebidta-pbt-pat/BI

3.https://www.equitymaster.com/detail.asp?date=2/22/2003&story=5&title=The-evolution-of-Indian-FMCG-market

4. http://www.moneycontrol.com/financials/britanniaindustries/results/quarterly-results/BI

5.http://www.moneycontrol.com/financials/proctergamblehygienehealthcare/balance-sheet/PGH

6. http://www.moneycontrol.com/financials/nestleindia/financial-graphs/ebidta-pbt-pat/NI

7.http://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-responsibility-in-india.pdf

BOOKS

1. Sandeep K. Krishnan, Rakesh Balachandran , Corporate Social Responsibility as a determinant of market success: An exploratory analysis with special reference to MNCs in emerging markets

2. Kuttayan Annamalai, Sachin Rao, what works ITC’s e-Choupal and profitable rural transformation

3. C.V Baxi , Ajit Prasad, Corporate Social Responsibility

ANNEXURES