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A report on
BUILDING CSR AN HR PERSPECTIVE
BY
SUSHRUTHAM
09251
2
A REPORT ON
BUILDING CSR AN HR PERSPECTIVE
SUSHRUTHAM
ROLL NO ndash 09251
BATCH XVII 2009-2011
Report submitted in partial fulfillment for the award of
Post Graduate Diploma in Management
VIGNANA JYOTHI INSTITUTE OF MANAGEMENT
(APPROVED BY AICTE MINISTRY OF HRD GOVT OF INDIA)
BACHUPALLY HYDERABAD
3
Table of Contents
EXECUTIVE SUMMARY 5
INTRODUCTION 6
OBJECTIVES OF THE STUDY 7
SCOPE OF THE STUDY 8
METHODOLOGY 8
LIMITATIONS OF THE STUDY 8
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A CSR
STRATEGY 8
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO INDIAN
CORPORATES 10
HRlsquoS ROLE IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY 13
HR STRATEGIC FOCUS 19
CHALLENGES IN HR INVOLVEMENT WITH CSR 21
CSR AS A KEY TO RETAIN 22
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE ADVANTAGE IN
ATTRACTING A QUALITY WORKFORCE 23
PERFORMANCE MANAGEMENT SYSTEMS 24
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION 24
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA 25
ANALYSIS 27
RECOMMENDATIONS 28
CONCLUSION 30
BIBILOGRAPHY 31
4
ACKNOWLEDGEMENT
I hereby convey my deep acknowledgement to all those who made it possible for me to
complete this project by extending their support and continuous co-operation
I would like to acknowledge the consistent encouragement extended by Dr Kamal Ghosh
Ray Director and Dr Ch S Durga Prasad Dean-Academic Planning of Vignana Jyothi
Institute of Management
My sincere gratitude to Col (Retd) Saeed Ahmad Associate Professor whose constant
guidance efforts heartfelt support suggestions and consideration helped me in the
successful completion of this project
Finally I would like to thank all my friends batch mates and staff members without
whom this dissertation work would not have been successfully completed
5
EXECUTIVE SUMMARY
Business organizations have waked up to the need for being committed towards
Corporate Social Responsibility But still majority have just been taking up some form of
philanthropic activities for its stakeholders Nurturing a strong corporate culture which
emphasizes Corporate Social Responsibility (CSR) values and competencies is required
to achieve the synergistic benefits The employees of an organization occupy a central
place in developing such a culture which underlines CSR values and competencies The
present study therefore is an attempt to explore the engagement of human resource
management professionals in undertaking Corporate Social Responsibility It also
suggests Human Resource Management to take a leading role in encouraging CSR
activities at all levels The combined impact of CSR and human resource activities which
reinforce desirable behavior can make a major contribution in creating long term success
in organizations
Successful programmes on social responsibility rely heavily on enlightened people
management practices In this context HR department is assumed to be the coordinator of
CSR activities in getting the employment relationship right which is a precondition for
establishing effective relationships with external stakeholders and thus can orient the
employees and the organization towards a socially responsible character Armed with a
strong and committed organizational culture reinforced by responsible Human Resource
Management practices the organizations can achieve heights of success by improved
profitability employee morale customer satisfaction legal compliance and societal approval
for its existence It is high time for all other organizations which have been paying only lip
service to CSR that they must capitalize upon the existing Human Resource Department in
framing such practices procedures and policies that ensure the internalization of quality
ethics and excellence in the whole system
6
INTRODUCTION
Corporate social responsibility is a powerful way of making sustainable competitive
profit and achieving lasting value for the share holder as well as for stake holders CSR
and the reporting there of is a win-win opportunity not just for companies and for
financial investors but for society at large Corporate social responsibility (CSR) also
known as corporate responsibility corporate citizenship responsible business
sustainable responsible business (SRB) or corporate social performance[1] is a form of
corporate self-regulation integrated into a business model Ideally CSR policy would
function as a built-in self-regulating mechanism whereby business would monitor and
ensure its support to law ethical standards and international norms Consequently
business would embrace responsibility for the impact of its activities on the environment
consumers employees communities stakeholders and all other members of the public
sphere Furthermore CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development and voluntarily eliminating
practices that harm the public sphere regardless of legality Essentially CSR is the
deliberate inclusion of public interest into corporate decision-making and the honoring of
a triple bottom line people planet profit
CSR is about how companies manage the business process to produce an over all
positive impact on society Increasingly corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(ie more loyalty improved recruitment increased retention higher productivity and so
on) Key external stakeholders include customers consumers investors (particularly
institutional investors) communities in the areas where the corporation operates its
facilities regulators academics and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment Corporate social responsibility involves a commitment by a
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
2
A REPORT ON
BUILDING CSR AN HR PERSPECTIVE
SUSHRUTHAM
ROLL NO ndash 09251
BATCH XVII 2009-2011
Report submitted in partial fulfillment for the award of
Post Graduate Diploma in Management
VIGNANA JYOTHI INSTITUTE OF MANAGEMENT
(APPROVED BY AICTE MINISTRY OF HRD GOVT OF INDIA)
BACHUPALLY HYDERABAD
3
Table of Contents
EXECUTIVE SUMMARY 5
INTRODUCTION 6
OBJECTIVES OF THE STUDY 7
SCOPE OF THE STUDY 8
METHODOLOGY 8
LIMITATIONS OF THE STUDY 8
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A CSR
STRATEGY 8
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO INDIAN
CORPORATES 10
HRlsquoS ROLE IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY 13
HR STRATEGIC FOCUS 19
CHALLENGES IN HR INVOLVEMENT WITH CSR 21
CSR AS A KEY TO RETAIN 22
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE ADVANTAGE IN
ATTRACTING A QUALITY WORKFORCE 23
PERFORMANCE MANAGEMENT SYSTEMS 24
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION 24
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA 25
ANALYSIS 27
RECOMMENDATIONS 28
CONCLUSION 30
BIBILOGRAPHY 31
4
ACKNOWLEDGEMENT
I hereby convey my deep acknowledgement to all those who made it possible for me to
complete this project by extending their support and continuous co-operation
I would like to acknowledge the consistent encouragement extended by Dr Kamal Ghosh
Ray Director and Dr Ch S Durga Prasad Dean-Academic Planning of Vignana Jyothi
Institute of Management
My sincere gratitude to Col (Retd) Saeed Ahmad Associate Professor whose constant
guidance efforts heartfelt support suggestions and consideration helped me in the
successful completion of this project
Finally I would like to thank all my friends batch mates and staff members without
whom this dissertation work would not have been successfully completed
5
EXECUTIVE SUMMARY
Business organizations have waked up to the need for being committed towards
Corporate Social Responsibility But still majority have just been taking up some form of
philanthropic activities for its stakeholders Nurturing a strong corporate culture which
emphasizes Corporate Social Responsibility (CSR) values and competencies is required
to achieve the synergistic benefits The employees of an organization occupy a central
place in developing such a culture which underlines CSR values and competencies The
present study therefore is an attempt to explore the engagement of human resource
management professionals in undertaking Corporate Social Responsibility It also
suggests Human Resource Management to take a leading role in encouraging CSR
activities at all levels The combined impact of CSR and human resource activities which
reinforce desirable behavior can make a major contribution in creating long term success
in organizations
Successful programmes on social responsibility rely heavily on enlightened people
management practices In this context HR department is assumed to be the coordinator of
CSR activities in getting the employment relationship right which is a precondition for
establishing effective relationships with external stakeholders and thus can orient the
employees and the organization towards a socially responsible character Armed with a
strong and committed organizational culture reinforced by responsible Human Resource
Management practices the organizations can achieve heights of success by improved
profitability employee morale customer satisfaction legal compliance and societal approval
for its existence It is high time for all other organizations which have been paying only lip
service to CSR that they must capitalize upon the existing Human Resource Department in
framing such practices procedures and policies that ensure the internalization of quality
ethics and excellence in the whole system
6
INTRODUCTION
Corporate social responsibility is a powerful way of making sustainable competitive
profit and achieving lasting value for the share holder as well as for stake holders CSR
and the reporting there of is a win-win opportunity not just for companies and for
financial investors but for society at large Corporate social responsibility (CSR) also
known as corporate responsibility corporate citizenship responsible business
sustainable responsible business (SRB) or corporate social performance[1] is a form of
corporate self-regulation integrated into a business model Ideally CSR policy would
function as a built-in self-regulating mechanism whereby business would monitor and
ensure its support to law ethical standards and international norms Consequently
business would embrace responsibility for the impact of its activities on the environment
consumers employees communities stakeholders and all other members of the public
sphere Furthermore CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development and voluntarily eliminating
practices that harm the public sphere regardless of legality Essentially CSR is the
deliberate inclusion of public interest into corporate decision-making and the honoring of
a triple bottom line people planet profit
CSR is about how companies manage the business process to produce an over all
positive impact on society Increasingly corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(ie more loyalty improved recruitment increased retention higher productivity and so
on) Key external stakeholders include customers consumers investors (particularly
institutional investors) communities in the areas where the corporation operates its
facilities regulators academics and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment Corporate social responsibility involves a commitment by a
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
3
Table of Contents
EXECUTIVE SUMMARY 5
INTRODUCTION 6
OBJECTIVES OF THE STUDY 7
SCOPE OF THE STUDY 8
METHODOLOGY 8
LIMITATIONS OF THE STUDY 8
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A CSR
STRATEGY 8
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO INDIAN
CORPORATES 10
HRlsquoS ROLE IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY 13
HR STRATEGIC FOCUS 19
CHALLENGES IN HR INVOLVEMENT WITH CSR 21
CSR AS A KEY TO RETAIN 22
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE ADVANTAGE IN
ATTRACTING A QUALITY WORKFORCE 23
PERFORMANCE MANAGEMENT SYSTEMS 24
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION 24
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA 25
ANALYSIS 27
RECOMMENDATIONS 28
CONCLUSION 30
BIBILOGRAPHY 31
4
ACKNOWLEDGEMENT
I hereby convey my deep acknowledgement to all those who made it possible for me to
complete this project by extending their support and continuous co-operation
I would like to acknowledge the consistent encouragement extended by Dr Kamal Ghosh
Ray Director and Dr Ch S Durga Prasad Dean-Academic Planning of Vignana Jyothi
Institute of Management
My sincere gratitude to Col (Retd) Saeed Ahmad Associate Professor whose constant
guidance efforts heartfelt support suggestions and consideration helped me in the
successful completion of this project
Finally I would like to thank all my friends batch mates and staff members without
whom this dissertation work would not have been successfully completed
5
EXECUTIVE SUMMARY
Business organizations have waked up to the need for being committed towards
Corporate Social Responsibility But still majority have just been taking up some form of
philanthropic activities for its stakeholders Nurturing a strong corporate culture which
emphasizes Corporate Social Responsibility (CSR) values and competencies is required
to achieve the synergistic benefits The employees of an organization occupy a central
place in developing such a culture which underlines CSR values and competencies The
present study therefore is an attempt to explore the engagement of human resource
management professionals in undertaking Corporate Social Responsibility It also
suggests Human Resource Management to take a leading role in encouraging CSR
activities at all levels The combined impact of CSR and human resource activities which
reinforce desirable behavior can make a major contribution in creating long term success
in organizations
Successful programmes on social responsibility rely heavily on enlightened people
management practices In this context HR department is assumed to be the coordinator of
CSR activities in getting the employment relationship right which is a precondition for
establishing effective relationships with external stakeholders and thus can orient the
employees and the organization towards a socially responsible character Armed with a
strong and committed organizational culture reinforced by responsible Human Resource
Management practices the organizations can achieve heights of success by improved
profitability employee morale customer satisfaction legal compliance and societal approval
for its existence It is high time for all other organizations which have been paying only lip
service to CSR that they must capitalize upon the existing Human Resource Department in
framing such practices procedures and policies that ensure the internalization of quality
ethics and excellence in the whole system
6
INTRODUCTION
Corporate social responsibility is a powerful way of making sustainable competitive
profit and achieving lasting value for the share holder as well as for stake holders CSR
and the reporting there of is a win-win opportunity not just for companies and for
financial investors but for society at large Corporate social responsibility (CSR) also
known as corporate responsibility corporate citizenship responsible business
sustainable responsible business (SRB) or corporate social performance[1] is a form of
corporate self-regulation integrated into a business model Ideally CSR policy would
function as a built-in self-regulating mechanism whereby business would monitor and
ensure its support to law ethical standards and international norms Consequently
business would embrace responsibility for the impact of its activities on the environment
consumers employees communities stakeholders and all other members of the public
sphere Furthermore CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development and voluntarily eliminating
practices that harm the public sphere regardless of legality Essentially CSR is the
deliberate inclusion of public interest into corporate decision-making and the honoring of
a triple bottom line people planet profit
CSR is about how companies manage the business process to produce an over all
positive impact on society Increasingly corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(ie more loyalty improved recruitment increased retention higher productivity and so
on) Key external stakeholders include customers consumers investors (particularly
institutional investors) communities in the areas where the corporation operates its
facilities regulators academics and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment Corporate social responsibility involves a commitment by a
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
4
ACKNOWLEDGEMENT
I hereby convey my deep acknowledgement to all those who made it possible for me to
complete this project by extending their support and continuous co-operation
I would like to acknowledge the consistent encouragement extended by Dr Kamal Ghosh
Ray Director and Dr Ch S Durga Prasad Dean-Academic Planning of Vignana Jyothi
Institute of Management
My sincere gratitude to Col (Retd) Saeed Ahmad Associate Professor whose constant
guidance efforts heartfelt support suggestions and consideration helped me in the
successful completion of this project
Finally I would like to thank all my friends batch mates and staff members without
whom this dissertation work would not have been successfully completed
5
EXECUTIVE SUMMARY
Business organizations have waked up to the need for being committed towards
Corporate Social Responsibility But still majority have just been taking up some form of
philanthropic activities for its stakeholders Nurturing a strong corporate culture which
emphasizes Corporate Social Responsibility (CSR) values and competencies is required
to achieve the synergistic benefits The employees of an organization occupy a central
place in developing such a culture which underlines CSR values and competencies The
present study therefore is an attempt to explore the engagement of human resource
management professionals in undertaking Corporate Social Responsibility It also
suggests Human Resource Management to take a leading role in encouraging CSR
activities at all levels The combined impact of CSR and human resource activities which
reinforce desirable behavior can make a major contribution in creating long term success
in organizations
Successful programmes on social responsibility rely heavily on enlightened people
management practices In this context HR department is assumed to be the coordinator of
CSR activities in getting the employment relationship right which is a precondition for
establishing effective relationships with external stakeholders and thus can orient the
employees and the organization towards a socially responsible character Armed with a
strong and committed organizational culture reinforced by responsible Human Resource
Management practices the organizations can achieve heights of success by improved
profitability employee morale customer satisfaction legal compliance and societal approval
for its existence It is high time for all other organizations which have been paying only lip
service to CSR that they must capitalize upon the existing Human Resource Department in
framing such practices procedures and policies that ensure the internalization of quality
ethics and excellence in the whole system
6
INTRODUCTION
Corporate social responsibility is a powerful way of making sustainable competitive
profit and achieving lasting value for the share holder as well as for stake holders CSR
and the reporting there of is a win-win opportunity not just for companies and for
financial investors but for society at large Corporate social responsibility (CSR) also
known as corporate responsibility corporate citizenship responsible business
sustainable responsible business (SRB) or corporate social performance[1] is a form of
corporate self-regulation integrated into a business model Ideally CSR policy would
function as a built-in self-regulating mechanism whereby business would monitor and
ensure its support to law ethical standards and international norms Consequently
business would embrace responsibility for the impact of its activities on the environment
consumers employees communities stakeholders and all other members of the public
sphere Furthermore CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development and voluntarily eliminating
practices that harm the public sphere regardless of legality Essentially CSR is the
deliberate inclusion of public interest into corporate decision-making and the honoring of
a triple bottom line people planet profit
CSR is about how companies manage the business process to produce an over all
positive impact on society Increasingly corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(ie more loyalty improved recruitment increased retention higher productivity and so
on) Key external stakeholders include customers consumers investors (particularly
institutional investors) communities in the areas where the corporation operates its
facilities regulators academics and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment Corporate social responsibility involves a commitment by a
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
5
EXECUTIVE SUMMARY
Business organizations have waked up to the need for being committed towards
Corporate Social Responsibility But still majority have just been taking up some form of
philanthropic activities for its stakeholders Nurturing a strong corporate culture which
emphasizes Corporate Social Responsibility (CSR) values and competencies is required
to achieve the synergistic benefits The employees of an organization occupy a central
place in developing such a culture which underlines CSR values and competencies The
present study therefore is an attempt to explore the engagement of human resource
management professionals in undertaking Corporate Social Responsibility It also
suggests Human Resource Management to take a leading role in encouraging CSR
activities at all levels The combined impact of CSR and human resource activities which
reinforce desirable behavior can make a major contribution in creating long term success
in organizations
Successful programmes on social responsibility rely heavily on enlightened people
management practices In this context HR department is assumed to be the coordinator of
CSR activities in getting the employment relationship right which is a precondition for
establishing effective relationships with external stakeholders and thus can orient the
employees and the organization towards a socially responsible character Armed with a
strong and committed organizational culture reinforced by responsible Human Resource
Management practices the organizations can achieve heights of success by improved
profitability employee morale customer satisfaction legal compliance and societal approval
for its existence It is high time for all other organizations which have been paying only lip
service to CSR that they must capitalize upon the existing Human Resource Department in
framing such practices procedures and policies that ensure the internalization of quality
ethics and excellence in the whole system
6
INTRODUCTION
Corporate social responsibility is a powerful way of making sustainable competitive
profit and achieving lasting value for the share holder as well as for stake holders CSR
and the reporting there of is a win-win opportunity not just for companies and for
financial investors but for society at large Corporate social responsibility (CSR) also
known as corporate responsibility corporate citizenship responsible business
sustainable responsible business (SRB) or corporate social performance[1] is a form of
corporate self-regulation integrated into a business model Ideally CSR policy would
function as a built-in self-regulating mechanism whereby business would monitor and
ensure its support to law ethical standards and international norms Consequently
business would embrace responsibility for the impact of its activities on the environment
consumers employees communities stakeholders and all other members of the public
sphere Furthermore CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development and voluntarily eliminating
practices that harm the public sphere regardless of legality Essentially CSR is the
deliberate inclusion of public interest into corporate decision-making and the honoring of
a triple bottom line people planet profit
CSR is about how companies manage the business process to produce an over all
positive impact on society Increasingly corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(ie more loyalty improved recruitment increased retention higher productivity and so
on) Key external stakeholders include customers consumers investors (particularly
institutional investors) communities in the areas where the corporation operates its
facilities regulators academics and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment Corporate social responsibility involves a commitment by a
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
6
INTRODUCTION
Corporate social responsibility is a powerful way of making sustainable competitive
profit and achieving lasting value for the share holder as well as for stake holders CSR
and the reporting there of is a win-win opportunity not just for companies and for
financial investors but for society at large Corporate social responsibility (CSR) also
known as corporate responsibility corporate citizenship responsible business
sustainable responsible business (SRB) or corporate social performance[1] is a form of
corporate self-regulation integrated into a business model Ideally CSR policy would
function as a built-in self-regulating mechanism whereby business would monitor and
ensure its support to law ethical standards and international norms Consequently
business would embrace responsibility for the impact of its activities on the environment
consumers employees communities stakeholders and all other members of the public
sphere Furthermore CSR-focused businesses would proactively promote the public
interest by encouraging community growth and development and voluntarily eliminating
practices that harm the public sphere regardless of legality Essentially CSR is the
deliberate inclusion of public interest into corporate decision-making and the honoring of
a triple bottom line people planet profit
CSR is about how companies manage the business process to produce an over all
positive impact on society Increasingly corporations are motivated to become more
socially responsible because their most important stakeholders expect them to understand
and address the social and community issues that are relevant to them Understanding
what causes are important to employees is usually the first priority because of the many
interrelated business benefits that can be derived from increased employee engagement
(ie more loyalty improved recruitment increased retention higher productivity and so
on) Key external stakeholders include customers consumers investors (particularly
institutional investors) communities in the areas where the corporation operates its
facilities regulators academics and the media
CSR is a concept where by companies decide voluntarily to contribute to a better society
and a cleaner environment Corporate social responsibility involves a commitment by a
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
7
company to manage its role I the society ndash as producer employer marketer customer
and citizen-in a responsible and sustainable manner Corporate responsibility integrates
these activities in to a single concept that can generate additional value by supporting
business objectives promoting dialogue with key stake holders and responding to
customer needs Now a days companylsquos are paying more attention on CSR activities
Reason can be because now they start realizing that with out firm policies on CSR they
cannot survive in this competitive environment
Every organization is trying to work on different aspects so that they can
differentiate themselves CSR activities with the other companies CSR has now become
another publicity tool for various organization especially for the ones which works with
international clients CSR implies that it is the duty of the corporate to ensure the safety
of all the share holders CSR is closely linked with the concept of sustainable
development where by not only financial concerns should drive the decisions of a firm
but also concerns of the society environment etc
OBJECTIVES OF THE STUDY
To understand HR Department role in promoting CSR
To understand the role of CSR in gaining competitive advantage to the
Organization
To understand different CSR activities in Indian corporates
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
8
SCOPE OF THE STUDY
Scope of the study is limited to study the role of HR department in building CSR and
mostly focusing on the different CSR activities carried out by Indian corporates
METHODOLOGY
The study was conducted using both primary and secondary data
Secondary data
It was collected from various books articles journals and blogs on CSR
LIMITATIONS OF THE STUDY
bull The study does not consider each and every company ie only few companylsquos
are taken as examples
bull The study deals more in terms of Indian corporates ie more focus is laid on how
CSR acitivities are carried out in Indian corporates
FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A
CSR STRATEGY
CSR is defined as operating a business that needs or exceeds the ethical legal
commercial and public expectations that society has of business Clarify organization
core values and principles Company should be aware of who their internal and external
stake holders are and which issues affect comapnys relation ship with them Get the top
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
9
team on board and know how to sell benefits of CSR to different stake holders Under
stand how CSR strategy is aligned to your business and HR practices
Building strategic relationship with customers suppliers employees stake holders and
particularly the community at large has become central to the sustainability of an
organization Organization must realize that government alone will not be able to get
success in its endeavour to uplift the down trodden of society
Following principles play an active role in spreading the CSR movement
Motivating companies to contribute to society by organizing seminars and
conferences on subjects of social concern and the role of corporate sector
Intergrating and synergizing the work done by various organizations NGOs
corporate sector government and international agencies
Participating in the developmental programmes by conceiving implementing or
monitoring various projects and programmes
Encouraging individuals and institutions to participate in social developments by
bestowing awards and recognizing their contribution
Empowering regional chapters of CSR to take up similar activities at the regional
level
A CSR strategy provides the opportunity to demonstrate the human face of
business Such a strategy requires engagement in open dialogue and constructive
partnership with the government at various levels IGOs NGOs other elements
of civil society and in particular local communities
In implementing their CSR strategies companies should recognize and respect
local and cultural differences whilst maintaining high and consistent global
standards and policies
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
10
Finallybeing responsive to local differences means taking specific initiatives
CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO
INDIAN CORPORATES
Indian companies are now expected to discharge their stakeholder responsibilities and
societal obligations along with their shareholder-wealth maximisation goal
Nearly all leading corporates in India are involved in corporate social responsibility
(CSR) programmes in areas like education health livelihood creation skill development
and empowerment of weaker sections of the society Notable efforts have come from the
Tata Group Infosys Bharti Enterprises ITC Welcome group Indian Oil Corporation
among others
The 2010 list of Forbes Asialsquos 48 Heroes of Philanthropylsquo contains four Indians The
2009 list also featured four Indians India has been named among the top ten Asian
countries paying increasing importance towards corporate social responsibility (CSR)
disclosure norms India was ranked fourth in the list according to social enterprise CSR
Asias Asian Sustainability Ranking (ASR) released in October 2009
According to a study undertaken by an industry body in June 2009 which studied the
CSR activities of 300 corporate houses corporate India has spread its CSR activities
across 20 states and Union territories with Maharashtra gaining the most from them
About 36 per cent of the CSR activities are concentrated in the state followed by about
12 per cent in Gujarat 10 per cent in Delhi and 9 per cent in Tamil Nadu
The companies have on an aggregate identified 26 different themes for their CSR
initiatives Of these 26 schemes community welfare tops the list followed by education
the environment health as well as rural development
Further according to a study by financial paper The Economic Times donations by
listed companies grew 8 per cent during the fiscal ended March 2009 The study of
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
11
disclosures made by companies showed that 760 companies donated US$ 170 million in
FY09 up from US$ 156 million in the year-ago period As many as 108 companies
donated over US$ 216199 up 20 per cent over the previous year
Although corporate India is involved in CSR activities the central government is
working on a framework for quantifying the CSR initiatives of companies to promote
them further According to Minister for Corporate Affairs Mr Salman Khurshid one of
the ways to attract companies towards CSR work is to develop a system of CSR credits
similar to the system of carbon credits which are given to companies for green initiatives
Moreover in 2009 the government made it mandatory for all public sector oil companies
to spend 2 per cent of their net profits on corporate social responsibility
Besides the private sector the government is also ensuring that the public sector
companies participate actively in CSR initiatives The Department of Public Enterprises
(DPE) has prepared guidelines for central public sector enterprises to take up important
corporate social responsibility projects to be funded by 2-5 per cent of the companys net
profits
As per the guidelines companies with net profit of less than US$ 225 million will
earmark 3-5 per cent of profit for CSR companies with net profit of between US$ 225
million - US$ 1125 million will utilise 2-3 per cent for CSR activities and companies
with net profit of over US$ 1125 million will spend 05-2 per cent of net profits for CSR
India Inc has joined hands to fine-tune all its activities falling under CSR For
this it has set up a global platform to showcase all the work done by Indian firms
Confederation of Indian Industry (CII) and the TVS Group collaborated to form
the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007
It provides consultancy services and technical assistance on social development
and CSR
According to a National Geographic survey which studied 17000 consumers in
17 countries Indians are the most eco-friendly consumers in the world India
topped the Consumer Greendex where consumers were asked about energy use
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
12
and conservation transportation choices food sources the relative use of green
products versus traditional products attitudes towards the environment and
sustainability and knowledge of environmental issues
Reliance Industries and two Tata Group firmsmdashTata Motors and Tata Steelmdashare
the countrys most admired companies for their corporate social responsibility
initiatives according to a Nielsen survey released in May 2009
As part of its Corporate Service Corps (CSC) programme IBM has joined hands
with the Tribal Development Department of Gujarat for a development project
aimed at of tribals in the Sasan area of Gir forest
As part of CSR Wipro for example inculcates CSR values amongst its workforce
right at the beginning during the induction process
Corporate presentations keeping employees updated through mails regular
newsletters are the instruments used to keep employees energized about the
organizationlsquos socially responsible initiatives
The training of employees through ―CSR Living Our Values Learning Tool at
Cadbury Schweppes (Young 2006) the major global beverage and confectionary
organization has been a good example of partnership between HR and CSR The
company has also included social responsibility in the latest management
development initiatives like the global ―Passion for People management skills
programme
Best Buy a fortune 100 company and the largest specialty retailer of consumer
electronics in the United States and Canada has initiated ethics training for its
employees Electronic Data Systems (EDS) has a global CSR strategy which is well
supported by HR function and the employees (Redington 2005) The HR
department of the company has also developed an e-learning course for its
employees built around the Department of Trade and Industry CSR Competency
framework
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
13
The financial services sector is going green in a steady manner With an eye on
preserving energy companies have started easing the carbon footprint in their
offices The year 2009 witnessed initiatives including application of renewable
energy technologies moving to paperless operations and recognition of
environmental standards Efforts by companies such as HSBC India Max New
York Life and Standard Chartered Bank have ensured that the green movement
has kept its momentum by asking their customers to shift to e-statements and e-
receipts
State-owned Navratna company Coal India Ltd (CIL) will invest US$ 675
million in 2010-11 on social and environmental causes
Companies like Wipro Infosys Dabur and ICICI have even framed whistle blowing
policy providing protection to the employees who come to know about any unethical
practice going on within the organization covering a whole gamut of subjects and
showing their positive approach towards unethical practices
Public sector aluminium company NALCO has contributed US$ 323 million for
development work in Orissas Koraput district as part of its Corporate Social
Responsibility (CSR)
HRrsquoS ROLE IN PROMOTING CORPORATE SOCIAL
RESPONSIBILITY
With the growing importance of CSR in companies HR professionals play a key role in
initiatingdeveloping and sustaining CSR activities in the organization While some
companies have separate CSR executives who are responsible for coordinating and
managing events most companies expect HR personnel and other employees to invest
their time and participate in such activities In todays corporate scenario employees
typically work for more than 8-10 hours a day and are expected to multitask in their
sphere of work Given this hectic pace of workitlsquos a challenge for any organization to
sustain CSR initiatives Therefore HR professionals have an indispensable role to play
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
14
in the areas of creating strong organizational culture aligning with core company values
fostering relation ship that is sensitive to the community cultureengaging every
employee in active community activitiesand assessing the environment inorder to
identify threats to the community
The world is a smaller place thanks to the Internet global trading and new
communication and technology advances More US companies are expanding overseas
and now manage a global workforce that has unique benefits ruleslaws and different
languages and currencies With this global expansion comes a ―responsibility
When companies are global an important challenge in garnering success is to respect
other cultures and workforce environments and start forming a global profile or social
consciousness Recognize these differences with a sound Corporate Social Responsibility
(CSR) plan that can simultaneously increase shareholder value boost employee
engagement and increase employer brand recognition
Hr professionals need to co-ordinate the CSR activities and demonstrate companylsquos
commitment to CSR Effective CSR depends on being seen as important through out an
organization HR professional need to include CSR in an organizational culture to make a
change to actions and attitudes and ensure the support of the top team which is critical
factor to success HR should communicate implement ideas policies cultural and
behavioural change across organization HR is also responsible for the key systems and
processes underpinning effective delivery
The way a company treats its employees contributes contributes directly to the company
being seen as willing to accept organizations wider responsibilities Building credibility
and trusting their employer are being increasingly seen as important by employees when
they choose who they want to work for HR manager should should instill individual
social responsibility in every employee in the organization He should make employees
aware that every single person in the society have responsibility to the society they
belong irrespective of the job class caste or gender HR should make employees think
that only when one fulfills or at least do the sincere attempts to do so one can lead a
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
15
complacent life in the society HR team can motivate the employees to contribute a
certain amount or few hours in a period of time to any organization worth Even one can
start with helping the needy in their neighbourhood
Human Resource Departments play a critical role in ensuring that the company adopts
Corporate Social Responsibility programs Furthermore HR can manage the CSR plan
implementation and monitor its adoption proactively while documenting (and
celebrating) its success throughout the company Human Resources technology can help
with a Corporate Social Responsibility program including reducing the companylsquos
carbon footprint to benefit the planet Start with these areas
Implement and encourage green practices
Foster a culture of social responsibility
Celebrate successes
Share and communicate the value of corporate social responsibility to employees
and the community
Implement and Encourage Green Practices for Corporate Social Responsibility
Implement green practices to assist in environmental waste reduction while
promoting and encouraging stewardship growth better corporate ethics and long-lasting
practices that promote both personal and corporate accountability The value inherent in
embracing green aspects of corporate responsibility is clearly understood given the direct
impact that rising energy and utility costs has on employeeslsquo pocketbooks Conservation
has become an accepted means of making our planet healthier Reducing each
employeelsquos carbon footprint is a great way of getting energy conservation and recycling
waste initiatives off the ground Here are suggestions to start
Recycle paper cans and bottles in the office recognize departmental efforts
Collect food and donations for victims of floods hurricanes and other natural
disasters around the globe
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
16
Encourage reduced energy consumption subsidize transit passes make it easy
for employees to car pool encourage staggered staffing to allow after rush hour
transit and permit telecommuting to the degree possible
Encourage shutting off lights computers and printers after work hours and on
weekends for further energy reductions
Work with IT to switch to laptops over desktop computers (Laptops consume up
to 90 less power)
Increase the use of teleconferencing rather than on-site meetings and trips
Promote brown-bagging in the office to help employees reduce fat and calories
to live healthier lives and reduce packaging waste too
Foster a Culture of Corporate Social Responsibility
Creating a culture of change and responsibility starts with HR Getting the younger
employees who are already environmentally conscious excited about fresh Corporate
Social Responsibility initiatives is a great way to begin A committed set of employees
who infuse enthusiasm for such programs would enable friendly competition and
recognition programs
Over the past few years major news organizations have reported on large trusted
companies that have failed employees shareholders and the public (ie Enron Lehman
WaMu) These failures created a culture of mistrust in the corporate world All too often
employees and employers at all levels who competed for advancement and recognition
in harsh workplaces were forced to accept corporate misconduct and waste as ―business
as usual
Employer brands are being eroded and the once sacred trust that employees had with
stable pensions defined benefits and lifelong jobs are being replaced with pay for
performance and adjustment to new learning goals In this environment Corporate Social
Responsibility can go a long way in rehabilitating the employer brand with potential new
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
17
hires and society at large It can help defeat the image that corporate objectives are rooted
in single minded profit at the expense of society and the environment
Social and community connections that are encouraged by employers give employees
permission to involve their companies in meaningful ways with the community
Employers can connect with their employees and the community through
Company matches to employee charitable contributions
Community programs and volunteer days
Corporate sponsorship of community events and
Encouraging employees to participate in walkathons food banks and so forth
Celebrate Corporate Social Responsibility Successes
Celebrating success is important to sustain the momentum of any CSR program
Involving company leaders and praising the success of these initiatives gives the
program real meaning In the rapidly expanding global workplace the celebration of
these successes not only drives the implementation of Corporate Social Responsibility
initiatives but also allows sound corporate HR practices to enable them
Additionally the publicity about these successes creates a mutual understanding of the
cultures within each region that the company serves The local population knows that in
addition to providing jobs the company takes an active interest in and participates in
local issues
Three Key Areas of Corporate Social Responsibility
Focusing on three key areas for Corporate Social Responsibility can help create a
cohesive map for the present and future
Community Relations
Training and Development and
A Cohesive Global Corporate Social Responsibility Platform
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
18
Encouraging Community Relations through your HR team includes implementing reward
programs charitable contributions and encouraging community involvement and
practices Examples of these programs include sending emails and company newsletters
to staff members that highlight employees and managers involved in community relations
or creating monthly reward programs to recognize efforts by individuals within the
company
Training and Development programs that explain the connection between the companylsquos
core products or services and the society at large their value to the local community and
ways in which employees can get involved in appropriate CSR projects would sustain
and direct these initiatives
Global Corporate Social Responsibility policy centrally managed is important to
acknowledge successes and measurements according to accepted standards Central to
measuring and communicating these results is the use of a Web-based Human Resources
Information System (HRIS) that is available globally to employees and managers with
any Web browser In order to encourage and maintain a clear and cohesive global
workplace it is critical for the entire global workforce of a company to be on a single
multi-functioning HR platform which allows for distributing a sound corporate
responsibility plan
Having a global HR solution that offers companies flexibility ease of use and the right
mix of tools is essential to the success of both employees and employers alike as they
manage and maintain work-life balance and thrive in a changing environment that
includes taking on social responsibility The success of your Corporate Social
Responsibility plan is possible with an HRIS that provides the capability to effectively
plan control and manage your goals achieve efficiency and quality and improve
employee and manager communications
The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate
Social Responsibility plan and a Web-based system provides an unparalleled level of
both scalability and accessibility to implement your Corporate Social Responsibility plan
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
19
at a global level This is an increasingly important endeavor as companies societies and
people coexist productively and in harmony across the planet we all inhabit
HR STRATEGIC FOCUS
As a HR professional the most important responsibility is to make the employees
aware of the companys commitment to CSR and the array of activities that they
could involve themselves in The employee has to be clearly informed about their
roles and whether they are expected to involve in the activities during the work
hours or spend their personal time towards this such clarity and direction is the
first step towards institutionalizing and integrating CSR in the fabric of
organization
To motivate the employees to participate in such activities HR professionals
could publish success stories of employees who have made a difference through
their participation and come up with a periodic CSR newsletter This would create
visibility and nudge others towards constructive action
The management should constantly be committed to promote and motivate
employees towards CSR by walking the talklsquo The top management needs to
model this behaviour for other employees to emulate
HR professionals can identify high impact projects orient employees and act as a
mediator between the organization and the NGO partner and hand hold the
relation ship until they mature to handle them on their own
CSR initiatives can be integrated in the philosophy of the organization and
assimilating it in the core values and mission statement of the company
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
20
HR practices should include CSR as one of the strategic imperative of the
companylsquos annual goals and therefore make CSR every bodylsquos business and not
relegate it to any specific group of employees
HR professionals need to play a more proactive role in defining implementing
adding value to and monitoring CSR policies and practices if they are to involve
and meet the expectations of the key stake holders is that employees
Organizations need to create structure and policies to provide assistance financial
and in kind as well as contribution of time and expertise emphasizing on
engaging employees in community program
The performance appraisal process can also measure the contribution of an
employee towards the community development and adequate weightage can be
given for providing rewards and promotions
HR can help provide the needs and flavor of the local society to make CSR
initiatives relevant and meaningful
A part from employees CSR activities should also involve business partners
stake holders and customers to amalgamate their involvement and make it
inclusive and far reaching
COMPANIES NEED to have better corporate social responsibility (CSR)
programs in place if they want to attract and engage quality staff a global report
has found
In addition to demonstrated high levels of corporate social responsibility
Australian companies must also offer employees good career and development
opportunities to retain and engage staff
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
21
―Employee retention is most strongly influenced by the behaviour of the
organisation and its senior leaders as well as the learning and career development
opportunities available for
―This includes concern for employeeslsquo wellbeing as well as a concern for the
environment
CHALLENGES IN HR INVOLVEMENT WITH CSR
HR has to understand how CSR strategy is aligned to business and HR practices
HR has to get endorsement for the CSR strategy from inside and outside the
organization and communicate consistently
Hr needs to ensure that their organization CSR can stand up to the inevitable
scrutiny by stake holders and that training and communication mean its
embedded through out the culture of an organization
HR needs to be an active business partner working with other functions like
finance public relations marketing etc
Hr has to implement CSR as a strategic opportunity which should be market-led
and I should be restrained by bureaucracy Because trust build through successful
CSR is hard to regain if lost
HR has to get the Top team on board and know how to sell benefits of CSR to
different stakeholders
HR has to develop CSR code based laws and regulations of the country and also
ensure that reporting systems are accountable and transparent
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
22
HR has to look for ways to leverage social responsibility initiatives internally
Communicate the contributions company is making in the community and get
employees involved
The separation of employees during mergers acquisitions downsizing etc should be
strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR AS A KEY TO RETAIN
Corporate social responsibility programs are linked to how committed an employee is to
an employer This finding holds true across all ages and job levels and is particularly
strong among women workers The higher an employee rates an organization on its
commitment to good corporate citizenship the more committed the employee is likely to
be to the organization
COMPANIES NEED to have better corporate social responsibility (CSR) programs in
place if they want to attract and engage quality staff Employee perceptions about
corporate social responsibility remained constant during the depth of the economic
decline Despite budget reductions and layoffs becoming commonplace employees were
bullish about at least one thing They believed their employers were committed to acting
responsibly in the community Though a good social responsibility program wonlsquot reduce
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
23
turnover it can impact how employees view your organization and the kind of
ambassadors they will be when they come in contact with your customers shareholders
and community members There are definitely positive benefits to be had
In addition to demonstrated high levels of corporate social responsibility companies must
also offer employees good career and development opportunities to retain and engage
staff ―Employee retention is most strongly influenced by the behaviour of the
organization and its senior leaders as well as the learning and career development
opportunities available for employees―This includes concern for employeeslsquo wellbeing
as well as a concern for the environment
CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE
ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE
Several researchers have suggested that a talented quality workforce will become a more
important source of competitive advantage for firms in the future Drawing on social
identity theory and signaling theory the authors hypothesize that firms can use their
corporate social performance (CSP) activities to attract job applicants Specifically
signaling theory suggests that a firmlsquos CSP sends signals to prospective job applicants
about what it would be like to work for a firm Social identity theory suggests that job
applicants have higher self-images when working for socially responsive firms over their
less responsive counterparts It is found that prospective job applicants are more likely to
pursue jobs from socially responsible firms than from firms with poor social performance
reputations A CSR programme can be an aid to recruitment and retention particularly
within the competitive graduate student market Potential recruits often ask about a firms
CSR policy during an interview and having a comprehensive policy can give an
advantage CSR can also help improve the perception of a company among its staff
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
24
particularly when staff can become involved through payroll giving fundraising activities
or community volunteering See also Corporate Social Entrepreneurship whereby CSR
can also be driven by employees personal values in addition to the more obvious
economic and governmental drivers
PERFORMANCE MANAGEMENT SYSTEMS
The designing of Performance bull Management System should be done in such a manner that it
measures the socially responsible initiatives taken by employees This becomes important as
the internalization of CSR in an organizational culture requires that appropriate behaviors get
appraised appreciated as well as rewarded Otherwise the organization might fail to
inculcate it amongst all employees due to lack of positive reinforcement The Human
Resource department should effectively measure and evaluate CSR activities The value
added by CSR in the form of direct results such as economic savings and indirect results
like increase in employee satisfaction less employee turnover measured by staff attitude
surveys shall indicate contribution to improved business performance There is also a need to
conduct periodic review of the CSR activities
CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION
In the present era of globalization the economy is changing because of recent economic
downturn credit crisis and collapse of big financial institutions Business confidence around
the world has diluted and pressures on company budgets are rising rapidly In these tough
times business enterprises are most probably thinking about how to survive rather than how
to concentrate and invest on CSR activities More closely a social issue is tied to a companylsquos
business the greater the opportunity to leverage the firms resources and benefit the society
Social and environmental benefits are seen as exciting opportunities for business rather than
as responsibilities Further irrespective of the nature of the organization CSR is considered to
be widen the market and narrow the competition
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
25
CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA
AVIVA India has rolled out its CSR programme focused on supporting the Asharan
Hope Foundation a children orphanage and St Josephs old age home In February 2003
It hosted a fund raising event for the Asharan Hope Foundation the theme was ― where
there is a life there is a hope and the evening supported an orphanage that houses 15
children including one family of five girls Aviva staff and business partners took an
active part in raising funds Donations and raffle ticket sales added to the total of $2382
raised during the evening More than 20 raffle prizes were donated by Aviva business
partners Donations were also received in the form of clothes and toys for children The
last quarter of 2003 saw several innovative community initiatives being undertaken at
Aviva India Diwalilsquo the festival of lights is one of the biggest festival in India and is
marker by celebrations across the country Aviva teams spent time with young children
at an orphanage A special Diwali Mela was organized at the corporate head quarters
where each department had a minimum of one stall the activities included food
itemsdecorations gifts and games The employees of the designate function contributed
all necessary items required for the activity at their stall What started off as a small idea
snow balled into a delightful participative activity that had the entire office involved
The money collected by selling the products along with an equal contribution from the
company was donated to Asaran hope Foundation
Employees were encouraged to actively participate in various activities for social cause at
several locations across the country each of these activities is assigned a team leader
Majority of the CSR activity at Aviva Life Insurance head office at Gurgoan is run on
Voluntary basis by the employees who normally visit slums on Sundays They meet
children from underprivileged back grounds living in the near by slum and talk to then
about the need to go and study in a school and educate them about basic hygiene The
level of involvement was from all levels every one brought some thing or the other for
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
26
the children whether it was clothes first aid boxes sweets food books pencils pens
erasers The children were informed about the importance of first aid and advantages of
living in a hygienic environment The most critical part of course was on talking to them
about the need for education and how they had to start looking beyond earning only a
daily living
At Asansol Aviva India has tied up with Cheshire Home of Burnpur amissionary
organization working for spastic and mentally challenged girls The Home has been
facing financial difficulties and is unable to sustain itself The Aviva India team decided
to help them by working out on a model which would ensure that they would be able to
sustain themselves over a longer period of time with out any outside helpThe first step
was initiated by providing them with a sewing machine from the contribution of
employees The machine will help the inmates generate income from the sale of
handicraft items manufactured by them with the help of the machine
At Vadodara Aviva Life Insurance associated with two NGOs- senior citizen Association
and Baroda citizen council Senior Citizen association which works with nearly one-third
of the people living in the slums of vadodara and Baroda Citizen Council has 300
members registered under charity commissioners office Aviva team has started spending
time with the elderly on a weekly basis The team is also planning to associate with All
India Development(AID) a non-profit organization established in 1996having the
specific aim of promoting safe environmental practices and sustainable development
AID promotes economical efficient environmentally friendly practices and sustainable
development AID promotes economical efficient environmentally friendly practices
through research seminars publications and awareness drives
At Banglore aviva Life Insurance associated with NGOs like New Horizan Trust for
disabled which works with disabled children and Old age Home Banglore which is
patronized by the Red Cross Society The Aviva Life Insurance team then contacted the
Rotary Club also for providing day meals to underprivileged school children Moreover
attempts to raise funds clothes and toys for children have also been activated with in
branch
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
27
At Patna The Aviva Life Insurance CSR team decided to start a night school for
working children so that they can work during the day and study at night Each sales
manager would work for one week in a month and his team will teach on a rotation basis
during that week This way each employee would be spending just a couple of hours in
a month with members giving more time as per their inclination willingness and
ability
At Kolkata Aviva Life Insurance is working for the benefit of te elderly ladies homeless
children and in association with an NGO called as CINI-―Child In Need Institute At
several other places the Aviva Life Insurance CSR team has donated books and clothes
to families and children They are also planning on giving them groceries medicines and
stationery The team would also be coaching and tutoring them on their basic education
ANALYSIS
CSR is about how companies manage the business process to produce an over all positive
impact on society CSR is a concept where by companies decide voluntarily to contribute
to a better society and a cleaner environment It is also an obligation of a company or an
organization to fulfill their responsibilities towards society and conducting their activities
with in the scope of ethical standards CSR speaking purely in technical terms is still in
its infancy in India but the concept as such and its core thinking is not new to the
country Companies like Tata and Birla for the last many decades have been promoting
similar causes at their own initiative They have made approaches of CSR an integral
part of their business model Long before the concept of CSR gained prominence in
corporate circles these companies have been intensely involved in social development
activities and movement in places where they have their presence CSR started to
become an important part of the universal strategy of the Indian Corporates wanting to
take their business to new heights at global level HR professionals have an indispensable
role to play in the areas of creating strong organizational culture aligning with core
company values fostering relationship that is sensitive to the community
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
28
cultureengaging every employee in active community and assessing the environment in
order to identify threats to the community
In HR perspective CSR acts a key factor for the company to retain employees attract
quality work force which directly influences organizational development and also
motivation levels of the employees All these factors indirectly increases the efficiency of
the organization by producing Quality work
RECOMMENDATIONS
The HR department should take the responsibility to develop a formal policy on
sustainable practices involving employees
The orientation programme of newly recruited candidates should be designed in a
manner that corporate philosophy about CSR gets highlighted The commitment of
top management towards CSR is very important which should be expressed in
tangible terms to reinforce the right kind of behavior in the organization
The Training facilities may also be bull made available to instill the CSR culture among
employees This becomes necessary to make employees learn and practice CSR
activities
Responsible Human Resource bull Management practices on equal opportunities
diversity management whistle blowing redundancy human rights harrasment shall
give credibility to the CSR initiatives of the organization It is beyond doubt that
protecting human rights such as denial or prevention of legal or social rights of
workers is a very important issue under CSR
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
29
The separation of employees during bull mergers acquisitions downsizing etc should
be strategically aligned with the business strategy as well as Corporate Social
responsibility Retraining retention redeployment of people can be worked out with
aggressive communication information campaigns and outplacement services in
place to assist the transition of people from the organization
The Human Resource department should bull effectively measure and evaluate CSR
activities The value added by CSR in the form of direct results such as economic
savings and indirect results like increase in employee satisfaction less employee
turnover measured by staff attitude surveys shall indicate contribution to improved
business performance There is also a need to conduct periodic review of the CSR
activities
CSR activities are generally designed by top management The HR role is only the
execution of those plans It is known that HR role in every organization is vitalso HR
role cannot be isolated from any other in organization So HR should take the job of
CSR activities Through HR CSR can be given credibility and aligned with how
business run
CSR can be integrated in to processes such as employer brand recruitment appraisal
retention motivation rewards internal communication diversity coaching and
training
CSR is a strategic opportunity which is market ndashled and is restrained by
bureaucracy It needs dynamism creativity imagination and even oppurtunitism
Indian companies has to be sensitized to CSR in the right perpective inorder to
facilitate and create an enabling environment for equitable partnership between
civil society and business
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
30
HR should make employees aware that every single person in the society have
responsibility to the society they belong irrespective of the job class caste or
gender
A part from individual efforts companies as part of the strategy are coordinating
with social organizations to take up projects like specialized medical care blood
bankslabsslum development programseducation endeavors environment
friendly projects etc
CONCLUSION
CSR activities undoubtedly enhance the reputation respect and the brand image of the
company in the place they operate This would inevitably improve their profitability
attract and retain talent increase savings institute diversity and establish their strong
foothold in their sphere of operation In a larger sense they ensure a better world for the
generations to come Moreover an individual can significantly grow and learn by
participating and connecting with the society Individuals gain self- confidence and self-
esteem by helping others The insights knowledge and tremendous satisfaction one
derives can be more enriching than monetary awards It is the HR Professionals who can
instill nourish and stress the importance of CSR activities to the employees and
management of the organization and make it a reality Other wise like in most
companies CSR unfortunately would only remain in the annals of discussions and
presentations
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
31
BIBILOGRAPHY
HRlsquos Role in Promoting Corporate Social Responsibility
BYShafiq Lokhandwala
Buiding CSR By S Riasudeen
CSR An Elixir for Business or a compulsive concept By Nidhi Sharma
CORPORATE SOCIAL RESPONSIBILITY THE KEY ROLE OF HUMAN
RESOURCE MANAGEMENT
Suparn Sharma (PhD)Joity Sharma (PhD) Arti Devi
httpwwwchrmglobalcomTopics461Corporate-Social-Responsibilityhtml
httpwwwibeforgindiaCSRaspx
