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CORPORATE SOCIAL RESPONSIBILITY (CSR): A CASE STUDY OF ADITHYA BIRLA

GROUP

Devaraja Nayaka & Dr. Nanjunda

Centre for the study of Social Exclusion and Inclusive Policy, University of Mysore, Karnataka

Abstract

This paper attempts to make an attempt to reveal conceptual approaches and practical function

of Corporate Social Responsibility (CSR) in Adithya Birla Group-india. From the initial days of

barter system to the recent trend of plastic money, the humankind has treaded a long way.

Certainly, profitability has constantly been the strong force behind running a business; however

as each coin has two faces, rising cutthroat competition and company’s rivalries is taking a huge

toll on the society, environment and quality of products in general, imperiling the diplomatic co-

existence of society and corporate business. The corporate houses have started realized and

recognized that they would have to look beyond the profitability aspect and take care of all the

stakeholders those who connected with their endurance directly or else indirectly in the society.

This resulted into the concept of Corporate Social Responsibility (CSR). This study move about

rising a considering about the CSR investigating into its idea and finding out its extent taking the

case study of the Adithya Birla Group about their social responsibility focusing social

development, environmental protection etc This study is based on the secondary sources of

information collected from various journals, sustainable reports of the company, website of the

company.

Keywords: Aditya Birla Group, Corporate Social Responsibility,

Introduction

The term CSR is based upon Anglo-American philosophy . Initially it started at United States of

America (USA) in 1953. Howard Bowen (1953) the USA economist noticed in his book ‘Social

Responsibilities of the Businessmen’ those entrepreneurs had the responsibility to familiarize

on values, aims and expectations of a society. The perception is divided within corporate ethics






176

a subzone of realistic and practical ethics. Consequently, the corporate ethics be there to

questions of a ethically-morally management (Katrin, 2007). Still in the past, entrepreneurs in

Germanys like Bosch, Robert and USAs Ford, Henry took corporate social responsibility for their

entrepreneurial background previously at the ending of the 19th century among at the starting

of the 20th century by safety of social systems for employees. The center of the concept is

foundation on social mechanism of corporate responsibility in a historical background.

However, the meaning of CSR has a better term of responsibility nowadays.

The European Commission (EC) which describes the concept of CSR and which is the foundation

for companies to integrate economical and social requirements in their company’s initiatives

and the inter-relation by the stakeholders is more popular. Josef et. al. (2007) examined the

firms make a decision to go beyond the lawful minimum responsibilities and requirements

based on combined bargaining‘s to permit for the social need. The main objective of a company

to gain natural profit, in this meaning is comprehensive by the duty to contribute to the society

welfare (Hempel, 2008). Corporate social responsibility (CSR) looks towards wealth formation

for the best possible benefit of all the stakeholders including employees, customers,

shareholders, internal and external environment and society. According to Freeman (1984), the

word stakeholder means everyone those on whom a firm’s performance, actions and activities

has some impact also directly or indirectly.

In corporate practices the CSR concept has become more familiar and customers expects today

companies to be socially responsible. The firms businesses of the 21st century have no choice

but to CSR implementation. Companies have the capacity to make a considerable difference in

the society by taking extensive initiatives. The Inclusive growth helps in development of

economy and rising employment productive opportunities. During the current situation, it is

complicated for a single body to bring transformation as the scale is huge. Successful

partnership among Government, NGO’s and Corporates will place a faster track in India.

Corporate Social Responsibility (CSR) is referred to as the business responsibility and an

organization’s actions on environmental, social, ethical and economic issues of its surroundings.






177

It is usually described in terms of a company allowing for, organizing and harmonizing the

various social, environmental more important is economic impacts of its activities. A business

organization cannot work in isolation and the extent to which a business organization should

consider the environmental, ethical and social issues in its working foregoing a part of its profit

for the betterment of the society as a whole, the constituents of which are its employees,

environment, moral and ethical issues etc Singh(2010). A company which fails to do so is

jeopardizing its commercial future. In India, the ethical and moral model initiated by Mahatma

Gandhi during 1930s is well known which affirmed the responsibility of family-run-businesses

conducting social and economic activities. Corporate social responsibility has no standard

definition. However, we can generally define that it is a type of contribution/s from the

corporate houses out of their hug profit to the various aspect of social development of the

society. Whatsoever business houses functions in the domestic and global economy. They

have to respond the local social needs in which they are working. On other hand they have to

also address the needs of the share holders demands on time ( Ramakrishnan & Reshma ,2010).

Some of the big Indian corporate like Infosys, WIPRO, TATA, have become a kind of role model

in CSR activities in India. Some of them have really done wonders in the selected social sectors.

Also some reputed companies are spending more than 15-20% of their profit for social service!.

All though various Indian corporate sector involved in CSR activities; it is not enough when

compare to their actual financial capacity. In addition companies have institutional and other

problems in having CSR policies. Further, some Companies’ social involvement also helps for

inclusive growth and eradicates social exclusion in the country. Companies’ social presence will

help the company in increasing stronger financial performance, social accountability, reputation

and branding etc. This is the time to think to involve small and medium scale industries to

enter into CSR also. They can take-up small projects at local level using their business presence

and network. Also they can share their human and technical skills with the local NGO’s . Even

they can train the NGO’s also. Still it is a dearth need of CSR in some untouched sectors






178

including human rights, poverty eradication, rehabilitation, training, tribal development, etc

which need more money and time.

Objectives of the study

(i) To highlight the CSR initiatives of Adithya Birla Group and its subsidiary companies

Methodology

This article is mainly based on the secondary sources of information collected from

various journals, sustainable reports of the company, website of the company.

1.Adithya Birla Group-A Profile

The Aditya Birla Group is an multi-national conglomerate company (MNCs) in India named

after Aditya Vikram Birla head quartered in Aditya Birla Centre at Worli, Mumbai, Maharashtra,

India. It functions in 33 different countries with worldwide more than 1,36,000 employees are

working. The group was established in 1857 by Seth Shiv Narayan Birla. The group interested in

sectors such as cement (Ultratech Cement), metals (Hindalco Industries), Diversified(Grasim

Industries), telecom (Idea Cellular ), viscose staple fiber, financial services, insulators, fertilizers,

branded apparel, carbon black, viscose filament yarn, retail (Aditya Birla Retail Ltd, Pantaloons,)

chemicals (Aditya Birla (India) Chemicals,), IT and BPO services. The Aditya Birla group is a

diversify company with total profits in the year 2012 of approximately US$ 40 billion and with

gross profit of US 40$ billion it is the third biggest Indian private sector conglomerate company

behind Tata Group with profit of just over US$ 100 Billion and RIL with revenue of US$ 74

Billion.

CSR initiatives of Adithya Birla Group

Adithya Birla Group gave importance to rural development activities extent five main key areas

and our single-minded objective here was to help build good model villages that preserve stand

on their own interest. Focus areas are education, healthcare and family welfare, social causes,

infrastructure development and sustainable livelihood

Process of implementation: Project Identification






179

All projects are recognized in meeting with the community in a participatory mode, literally

meeting with them and measuring their essential needs. It recourses to the participatory

appraisal for rural planning process. Consequently, foundation on a consensus and in

conversation with the stakeholder’s and village Panchayats and projects are prioritized.

Beginning this the focus areas that have emerged are education, health care and family welfare,

espousing social causes, Infrastructure development and Sustainable livelihood. All of their

community programmes are carry out under the sponsorship of the Aditya Birla centre for

community initiatives and rural development.

(a) Education

To carry about Education, endeavor is to glow the wish for learning and information at every

phase throughout Group runs 45 schools, the company is doing work in Adult education, formal

and non-formal education, Scholarships for girl students, technical education for boys and merit

scholarships, Distance education, Girl student education, Computer education facility and

Digital literacy awareness program sector.

(b) Health care and family welfare

Health care and family welfare goal is to cause to be fineness health care facilities to people

living in the rural community and everywhere throughout our Hospitals. Group runs 18

hospitals, pulse polio programs, mobile clinic’s -doctor's office visits, cleft lips, multi-specialty

and general medical camps, child health care and reproductive, mid-day meal projects,

supplementary nutrition, Sanitation, Safe drinking water, community hospitals, household

toilets, TB awareness, HIV / AIDS, cancer and prevention camps, Blood donation camps

Responsible parenting.

(c) Social causes

In Social Change, the company is enthusiast and support, Dowry-less mass marriages, Widow

re-marriage, Social security and insurance, Sports and culture, Women empowerment etc.

(d)Infrastructure development






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In the Infrastructure Development, the company is endeavord to situate necessary services

that form the foundation of sustainable growth throughout Community centers, Village

Schools, Hospitals and health care centers, Roads, Home for the homeless, Rural electrification

facility, Modern irrigation facility and water storage tanks etc.

(e) Sustainable livelihood

Adithya Birla Group programmes are aim at provided that livelihood in a close by appropriate

and eco-sustainable manner through Self-Help Groups (SHGs)-Micro-finance to the farmers

and women, Incorporated agriculture development, Integrated livestock activity, Watershed

management, Micro-enterprise development, Vocational training and Skill development

throughout Aditya Birla Technology Park for included training programs and VT centers at the

majority in association of our industrial plants.

CSR activities of subsidiary companies of Adithya Birla Group

(2) Hindalco Industries Limited

Established in the year 1958, Hindalco specially made its aluminium facility at Renukoot in1962

Uttahar Pradesh east. Later, acquirement and mergers with Indal, Birla Copper, the Nifty and

Australia’s Mt. Gordon copper mines, make stronger the company's point in value-added

alumina, copper products and aluminum with vertical combination throughout access to

captive copper consider. In the year 2007, the acquisition of Novelis Inc., a leading

manufacturer international level in can recycling and aluminum rolling, marked a important

landmark in the history of the aluminum company in India. Among, Novelis under its fold up,

Hindalco ranks amongst the international top five aluminum major manufactures, as an

included producer with low cost alumina and aluminum amenities joint with high end

progressing facilities and a global marks in 13 countries. Its consolidated earnings for the year

Financial Year 2013 was US$14.8 billion (Rs.80,193 crore).

(1) Health care

(i) Medical camps: Taking mobile medical camps and ambulance service to rural remote areas;

(ii) Health facilities: Setting up well equipped hospital and professionally managed health






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centers at so many locations;(ii) Regular health camps: the company is focusing on Mother and

child care, providing family planning, and specialized medical camps for eye care and for

cataract, coordinating regular pulse polio immunization drives and promoting the awareness,

prevention and treatment of water-borne diseases, malaria, HIV/AIDS, TB etc.

(2) Education

The company is working in

1.Balwadis: Providing for the primary education facilities to underprivileged children

2Adult literacy: Given that formal, informal classes and active sustainable support to the

government's mission to improve literacy levels of rural

3.Merit scholarships Schemes: Support to poor female students for educational endeavor

(4.Educational support: Contributing textbooks, uniforms, classroom equipment and

undertaking school building construction with maintenance.

(3) Skills training and capacity building

(i) The Aditya Birla Rural Technology Park (Muirpur, Uttar Pradesh, India): Runs training

programmes in diesel over 70 centers, hand pump repair, electrical repair, tailoring, bee-

keeping, agriculture-related programmes, knitting and encouraging own employment

throughout projects of income generating; (ii) The Yashogami Skills Training Centre

(Radhanagari, Tarale, Maharashtra, India): Trains women in skills such as fashion design,

tailoring, rexine handicraft, food processing, lamination, electronics assembly, pottery, zardozi,

papier mache, rangoli, fabric design and jewellery design.

(4) Women's empowerment

(i) Self-Help Groups (SHG): These programmes engage over 11,000 rural women around

Hindalco units; (ii) SHG activities: Micro finance and micro credit schemes, oil-processing units,

entrepreneurship building, horticulture, tailoring centres, nutrition gardens, diesel hand pump

repair, mushroom cultivation, vermi compost production, food processing, etc; (iii) Awareness

building: Health and sanitation, literacy drives, family planning and micro finance facilitating

government loans for small-scale enterprise(SSEs) and rural insurance schemes;






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(e) Social causes: Widow re-marriages and promoting dowerless marriages.

(5) Agricultural support

The company is stressing on

(i) Irrigation schemes: Land brought under irrigation with improved yield and multi-cropping

methods

(ii) Watershed development: Hydel towers, wells, drainage canals, check-dams, harvest tanks

and pedal pumps

(iii) Training: Train local farmers in advanced agricultural techniques for good crop yield,

introducing lac farming, post- crop harvest technology with safe grain storage space throughout

an included systematic pest-management system, horticulture and kitchen gardens,

floriculture, changing from mono to multi cropping patterns and giving out of high-yield seeds.

(B) CSR Initiatives of Grasim Industries Limited

(1) Health Care

More than 41,112 villagers were medically checked and those troubled treated for their illness.

From 26 schools 2,359 students benefited from health check up units. At eye camps conducted

2,414 cataract performed operations and 1,179 people were supplied with spectacles for better

eye sight. Aditya Cement (Chittor) is honoured to be first Industry in that area to successfully

completed each year 4,065 surgery at Mega Eye Surgery Camps oranged by company. 176

patients detected with tuberculosis were taken treatment and cured. To gave free ECG facility

for rural areas from more than 100 patients. These camps put the happiness back in the life of

260 children throughout cleft-lip surgery. On the artificial limb fitment medical Camp 170

physically harmed persons were supplied with artificial limbs fitment.

Indian Red Cross Society in collaboration with the camps of blood donation were organized 241

donors participated at the a range of plants. Oral health care was provided with 457 persons.

An MOU has been signed among Jan Kalyan Tryst and Gujarat State AIDS Control Society,

Kharach to start off a Counselling integrated and testing Centre at Jan Kalyan Hospital for AIDS/

HIV testing and counselling. Provided of safe drinking water in the course of water filter plants






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and In 16 villages water storage tanks was constructed. On the hospitals runs by Company at its

various industrial plants, more than 2.7 lacs of people are given medical treatment at very

subsidized rates.

(2) Mother and baby Care

Vaccinated 48,754 kids against to polio, 3,464 kids against other diseases including Hepatitis,

BP. Family planning awareness programme campaigns with free distribution of condom was

issued and undertaken in 25 slums in Nagda. 2,268 have go for for family planning operations.

Special care intended for lactating was provided for pregnant women, covering 26,000 women.

Prenatal and post natal care and nutrition programs were accorded by 776 women.

(3) Education

Due to the companies effort , the dropout rate has been reduced drastically from 40per cent to

15 per cent in Nagda area. More than 575 children were joined at Balwadis. 1,845 children are

presently learning in Balwadis run by the company. Kasturba Gandhi Balika Vidyalaya, hold by

Kagina Jan Seva Trust at Udgi, Selam is given that quality of education and shaping the life of

100 girl children’s from rural areas. 560 children from various schools participated in ‘Pratibha

Karanji’, a programme that identifies and supports talent of the rural school girl children.

On Kagina Industrial Training Centre, recognized by Government of Karnataka, department of

employment and Training, this year 102 students have been skilled in a variety of trades such as

electronic, electrical, fitter and Mechanic and were successfully located. At the Rural

Development Centre of Aditya Cement, imparted basic training in computers to strengthen

computer literacy by 72 girls. Capacity building and training was taken on up for 104 literacy

adult trainers. The Bal Sanskar Kendras at Birla Cellulosic are rising in number every year and

presently has 340 children enrolled. Midday meals are being given to all the school children’s in

the locale work by the Government with corporate active participation.

(4) Sustainable livelihood

Agriculture programmes keep up a two way force reducing and enhancing productivity of the

monsoon dependency. Through company initiatives over 6,000 farmers gained. Organic farming






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and sustainable living is appropriate a way of life with the building and taking up of biogas 100

units were created in the present year. Vaccinated 19,282 in animal husbandry camps and

treated 320 animals. Dairy at Nagda, 18 milk collection centres are maintained supplemented

and providing additional income to thousand rural families. Water harvesting structures were 8

created and the existing ones were maintained and repaired to sustain more than 50,000

individuals. 1,885 persons attended a variety development of skill and occupational training

courses to improve employment opportunities.

(5) Women Self-Help Groups

Tailoring training centres particularly catering to single mothers, scheduled castes physically

challenged and weaker sections women from the society has allowed over 1,535 women a

livelihood for themselves. Subsidized rates of has been provided several stitching machines.

Company formed 211 SHGs formed and empowered 2,550 women throughout savings, income

generation and skills training. On Ansuya Mahila Atma Gaurav Kendra, operations at Kharach,

210 women have been trained in the year 2012-13 in embroidery, tailoring and knitting skills.

(7) Infrastructure development

Company has supported infrastructure development throughout the repair and construction of

easy approach roads situation up drinking water, troughs structures, health centres and

amenities for the underserved community, as well as construction of less cost toilets. Further

43% of water stored in the 4 dams build by the company at Nagda, that was used for forming

and other social purpose for the township and rural community development. Under the 12th

finance commission company born 20% of the total cost was to create 3 village infrastructures

around Kharach. In joint venture with district administration and Company build 1,023 toilets

for BPL families for Arneeyapant Panchayat, Chittor. A bus stand to provide support and service

to more than 2,500 villagers around Khor was build. The Jal Nirmal venture, carried by the

World Bank was completed for around Malkhed with 2 Gram Panchayats covering 10 villages.

(C) CSR Initiatives of Aditya Birla Nuvo Group

(1) Health Care






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Rural medical camps ranged for general health checkups 42,382 rural people were

checkup. The company’s hospitals treatment extends to those who suffering with serious

disease. Intra-ocular lens surgery benefited by 1,488 cataract enduring at Renukoot, Veraval,

and Jagdishpur. 9,000 patients attended the Companies skin care centre at Jagdishpur. Over

5,000 lorry drivers, migrant workers and helpers were sensitized to the dangers of AIDS/ HIV.

(2) Mother and Child Care

Company was administered 3.9 lakh polio doses of vaccination to children at Hi-Tech Carbon,

Gummidipoondi; JayashreeTextiles, Rishra; Indo Gulf Fertilizers, Jagdishpur; Renukoot; Aditya

Birla Insulators, Halol and Indian Rayon, Veraval. Over 885 couples have been opted for family

planning and socially responsible parenting at Veraval. More than 5.3 lakh hopeful mothers

were given pre and post biological care at Indo Gulf Fertilizers, Jagdishpur. Almost 3 lakh

children were immunized against tuberculosis, tetanus, diphtheria and measles.

(3) Education

Company encourages to the education of the girl child. In the year 2012-13 were able to

influence the 725 girl’s parents who had dropped out from village schools to get back to their

education. These girls have been enlisted at the 8 Kasturba Gandhi Balika Vidyalaya supported

by corporate. On the Aditya Birla primary school (Renukoot), 160 tribal children getting free

education. Books, uniforms, and bags have been issued to 3,641 kids in the rural villages in

nearness to our plants. At Gummidipoondi and Veraval, 200 students were trained in Office

applications software (MS Office and Tally). Adult education centers at Gummidipoondi, Veraval

and Jagdishpur carry on providing informal education training to 217 adult women.

(4) Safe drinking water and sanitation

The good drinking water project implemented throughout the fitting of the reverse osmosis

plant in 14 government primary schools and high schools in Tamil Nadu, 9,547 children have

access to clean drinking water. Over 244 hand-pumps were installed at plants of the

Companies. The Nirmal Gram Puraskar 2009-10 taken a prestigious award. Nationwide award

has been conferring upon S. R. Khangittai, Tamil Nadu our model village. More than 200






186

individual household toilets were build in Papamkuppam and S. R. Khangittai, Tamil Nadu.

Vending sanitary machines in 6 government secondary schools installed by us at

Gummidipoondi, have been resulted in increased attendance of girls at schools.

(5) Infrastructure

To support agriculture and conserve water, check dams, 67 ponds, and bore-wells were build.

At Jagdishpur, the reformation of 110 primary schools and helping the setting up of the mid day

meal kitchen at Veraval has involved more children to schools. The setting up of 59 lamps of

solar at schools in Renukoot has been a boon to students. A community hall was constructed at

Gummidipoondi, community health centers at Rishra and Renukoot and a 75,000 liter storage

tank at Veraval with sufficient pipelines to the villages have been provided a welcome break in

these critical rural areas.

(6) Sustainable livelihood

At Jagdishpur, 43 students trained at the Birla Shaktiman professional education Centre, More

than 30 leprosy healed patients have been reformed. They have been included into the normal.

All of them have taken to dissimilar trades to a sustainable livelihood. Somewhere else in

Gummidipoondi and Jagdishpur, Bangalore, over 110 women skilled by company had set up

zardosi, tailoring, embroidery and provision stores. To support sustainable forming at Veraval,

17 farmer attention groups covering 160 farmers have been formed throughout a robust

connection with the forming technology management Agency (ATMA). On Renukoot, 150

farmers have been educated in advanced agricultural practices. Company connected 7,500

women throughout 500 SHGs 2012-13 in their efforts towards women empowerment. This

program has been take on at all the units of companies.

Conclusion

For carrying back and continuing the general balance in the economic development and social

field it is evidenced to think intensely and act sensibly about CSR. All corporate houses be

indebted social responsibility towards the society, national and international in common which

give it with all material, natural resources and human. In view of the long term sustainable






187

growth and following the CSR norms, planning new policies and implementation effectively is

UN predictable to bring out and sustain a equilibrium among society, corporate world, current

generation, future generation and nature. As much as the Adithya Birla Group is concerned, it

has a long way in fulfilling its responsibility and duty towards the nation and the society. It has

achieved the masses to raise their lives, to take care for their dreams and to sharpen their skills

mitigating the declaration of the founder .We do not state to be more generous, unselfish and

more charitable. Although, we ongoing to work on straightforward business philosophy.

References

1. Bassen, Alexander, Jastram, Sarah, Meyer, Katrin (2005), Corporate Social Responsibility.

A definition, in: zfwu 6/2, Hamburg, page 231-236, here page 231 and 232.

2. Bowen, Howard (1953). Social responsibility of the businessman, New York, pages 6, 45.

3. Freeman, R. Edward (1984). Strategic management: A stakeholder approach, pp.1.

4. Hempel, Martin, (2008), Corporal Social Responsibility, Landshut, pages 12f; cp.

5. Josef, Wieland, Jürgen,Volkert and Michael, Schramm, (2007). Corporate Social

Responsibility (CSR) and governance of network, Constance, pages 3f.

6. Katrin, Kubica (2007). The responsibility of transnational companies – The split between

moral and return, Potsdam, pages 2f; cp.

Documents

CORPORATE SOCIAL RESPONSIBILITY (CSR): A CASE · PDF fileHoward Bowen (1953) the USA economist noticed in his book ‘Social Responsibilities of the Businessmen’ those entrepreneurs