PROJECTREPORT

ON

CORPORATESOCI
ALRESPONSI
BILI
TIESADOPTEDBY

BANKI
NG&I
NSURANCESECTOR

Submi
tt
edi
npar
ti
alf
ulf
il
lmentofr
equi
rementofBachel
orofBusi
nessAdmi
nist
rat
ion
(
B.B.
A)Gener
al

BBAVISemest
er(
B)(
M)

Bat
ch2010-
2013

Submi
tt
edt
o: Submi
tt
edby
:

Ms.NehaGupt
a Shwet
aMav
i

Assi
stantPr
ofessor 13214101710

JAGANNATHI
NTERNATI
ONALMANAGEMENTSCHOOL.

1
 KALKAJI

TABLEOFCONTENTS

S.
NO DESCRI
PTI
ON PAGENO.

1 ACKNOWLEDGEMENT 3

2 CERTI
FICATEOFCOMPLETI
ON 4

3 STUDENT’
SDECLARATI
ON 5

4 EXECUTI
VESUMMARY 6-
8

5 CHAPTER-
1 9-
36

- I
NTRODUCTI
ON
- HI
STORI
CALBACKGROUND
- CURRENTSTATEOFTHEFI
ELD
6 CHAPTER-
2 37

- OBJECTI
VES
7 CHAPTER-
3 38-
42

- RESEARCHMETHODOLOGY
8 CHAPTER-
4 43-
77

2
 - ANALYSI
S
9 CHAPTER-
5 78

- RECOMMENDATI
ONS&LI
MITATI
ONS
10 CHAPTER-
6 79

- CONCLUSI
ON
11 CHAPTER-
7 80

- REFERENCES

ACKNOWLEDGMENT

It
aket
hisoppor
tuni
tyt
oexpr
essmypr
ofoundgr
ati
tudeanddeepr
egar
dst
omygui
de
Ms.NehaGupt
aforherexempl
arygui
dance,moni
tor
ingandconst
antencour
agement
t
hroughoutt
hecour
seoft
hist
hesi
s.Thebl
essi
ng,
hel
pandgui
dancegi
venbyhert
ime
t
oti
meshal
lcar
rymeal
ongwayi
nthej
our
neyofl
i
feonwhi
chIam aboutt
oembar
k.

 
Ial
sot
aket
hisoppor
tuni
tyt
oexpr
essadeepsenseofgr
ati
tudet
omycol
l
ege,HOD
(
Ms.RashmiBhat
ia)
,mycl
asscoor
dinat
or(
Dr.RuchiSi
nghal
),andal
lot
herf
acul
ti
esf
or
t
hei
rcor
dialsuppor
t,v
aluabl
einf
ormat
ionandgui
dance,
whi
chhel
pedmei
ncompl
eti
ng
t
hist
askt
hroughv
ari
ousst
ages.

Last
ly,It
hankal
might
y,mypar
ent
s,br
other
,si
ster
sandf
ri
endsandat
lasbutnott
he
l
eastf
ort
heconst
antencour
agementandbl
essi
ngswi
thoutwhi
cht
hispr
ojectwoul
d
notbepossi
ble.

3
SHWETAMAVI

CERTI
FICATEOFCOMPLETI
ON

Thi
sist
ocer
ti
fyt
hatShwet
aMav
i,pur ngBBA6thsem (
sui B)(
M)f
rom JI
MSKALKAJI
,

hascompl
etedhi
spr
ojectont
het c“
opi CORPORATESOCI
ALRESPONSI
BILI
TIES

ADOPTEDBYBANKI NSURANCESECTOR”undermygui
NG&I dance.

Herwor
kisappr
eci
abl
e.

Pr
ojectGui
de:

Ms.NehaGupt
a

4
Assi
stantPr
ofessor

STUDENT’
SDECLARATI
ON

I her
eby decl
are t
hat t
he pr
oject r
epor
t t
it
led – “
CORPORATE SOCI
AL
RESPONSI
BILI
TIESADOPTEDBYBANKI NSURANCESECTOR“ i
NG&I smyownwor
k
andhasbeen car
ri
edoutundert
het
abl
egui
danceofMs.NehaGupt
a(Assi
stant
Pr
ofessoratJI
MS Kal
kaj
i
).Al
lcar
ehasbeent
akent
okeept
hispr
ojecter
rorf
reeandI
si
ncer
elyr
egr
etf
oranyuni
ntendeddi
scr
epanci
est
hatmi
ghthav
ecr
epti
ntot
hisr
epor
t.

ThankYou

(
SHWETAMAVI
)

BBA6thSem (
B)(
M)

5
Jagannat
hInt
ernat
ional
ManagementSchool

(
KALKAJI
)

(
shwet
amav
i20@y
ahoo.
in)

Dat
e:-
13/
03/
2013

Pl
ace-
Del
hi

EXECUTI
VESUMMARY

CORPORATESOCI
ALRESPONSI
BILI
TY

Cor
por
ate soci
alr
esponsi
bil
i
ty 
i
saf
orm of
 cor
por
ate 
sel
f-
regul
ati
on 
i
ntegr
ated i
nto
a 
busi
ness model
.CSR pol
i
cy f
unct
ions as a bui
l
t-i
n,sel
f-
regul
ati
ng mechani
sm
wher
ebyabusi
nessmoni
tor
sandensur
esi
tsact
ivecompl
i
ancewi
thi
nthespi
ri
toft
he
l
aw,et
hicalst
andar
ds,and i
nter
nat
ional
 
nor
ms.CSR i
sapr
ocesswi
tht
heai
m t
o
embr
acer
esponsi
bil
i
tyf
ort
hecompany
'sact
ionsandencour
ageaposi
ti
vei
mpact
t
hrough i
ts act
ivi
ti
es on t
he env
ironment
,consumer
s,empl
oyees,communi
ti
es,
st
akehol
der
s andal
lot
hermember
soft
he 
publ
i
cspher
e whomayal
sobeconsi
der
ed
asst
akehol
der
s.

Thet
erm"
cor
por
atesoci
alr
esponsi
bil
i
ty"camei
ntocommonusei
nthel
ate1960sand
ear
ly 1970s af
termany mul
ti
nat
ionalcor
por
ati
ons f
ormed t
he t
erm 
stakehol
der
,
meani
ngt
hoseonwhom anor
gani
zat
ion'
sact
ivi
ti
eshav
eani
mpact
.Itwasusedt
o
descr
ibecor
por
ateowner
sbey
ond 
shar
ehol
der
s asar
esul
tofani
nfl
uent
ialbookby
 R.
[
2]
Edwar
dFr St
eeman,
  r
ategi
cmanagement
:ast
akehol
derappr
oach 
i
n1984.  
Proponent
s
ar
guet
hatcor
por
ati
onsmakemor
elongt
erm pr
ofi
tsbyoper
ati
ngwi
thaper
spect
ive,

6
whi
l
ecr
it
icsar
guet
hatCSRdi
str
act
sfr
om t
heeconomi
crol
eofbusi
nesses.Ot
her
s
ar
gue CSR i
s mer
ely
 wi
ndow-
dressi
ng,or an at
tempt t
o pr
e-empt t
he r
ole of
gov
ernment
sasawat
chdogov
erpower
ful
 
mul
ti
nat
ional
cor
por
ati
ons.

BANKI
NG&I
NSURANCESECTOR

The economi
cref
orms under
taken i
nthe l
ast15 y
ear
s hav
e br
oughtabouta
consi
der
abl
eimpr
ovementi
ntheheal
thofbanksandf
inanci
ali
nst
it
uti
onsi
nIndi
a.The
banki
ngsect
ori
sav
eryi
mpor
tantsect
oroft
heI
ndi
aneconomy
.Thesect
orhasmadea
mar
kedi
mpr
ovementi
nthel
i
ber
ali
zat
ionper
iod.Thel
i
mitf
orf
orei
gndi
recti
nvest
ment
i
npr
ivat
ebankshasbeeni
ncr
easedf
rom 49%t
o74%.
I
n addi
ti
on,t
he l
i
mitf
orf
orei
gn i
nst
it
uti
onali
nvest
menti
n pr
ivat
e banksi
s49%.
Li
ber
ali
zat
ionandgl
obal
i
zat
ionhav
ecr
eat
edamor
echal
l
engi
ngenv
ironmenti
nthe
banki
ngsect
oraswel
lasi
ntheot
hersegment
soft
hef
inanci
alsect
orsuchasmut
ual
f
unds,Non Banki
ng Fi
nance Compani
es,postof
fi
ces,capi
talmar
ket
s,v
ent
ure
capi
tal
i
sts,et
c.Now t
hechal
l
engesf
acedbyt
hesect
orwoul
dbegai
ningpr
ofi
tabi
l
ity
,
r
einf
orci
ngt
echnol
ogy
,mai
ntai
ninggl
obalst
andar
ds,
cor
por
ategov
ernance,
shar
peni
ng
ski
l
ls,
riskmanagementand,
themosti
mpor
tantofal
l
,toest
abl
i
sh'
Cust
omerI
nti
macy
'.

Newpl
ayer
shav
econt
ri
but
edt
othel
aunchofi
nnov
ati
vepr
oduct
s,ser
vicesandv
alue-
addedbenef
it
s.Maj
orf
orei
gnpl
ayer
shav
eent
eredt
hecount
ryandannouncedj
oint
v
ent
uresi
nbot
hli
feandnon-
li
fear
eas.Thesei
ncl
udeNew Yor
kLi
fe,Av
iva,Toki
o
Mar
ine,
All
i
anz
,St
andar
dLi
fe,
Lombar
dGener
al,
AIG,
AMPandSunLi
feamongot
her
s. 

7
CSRADOPTEDBYBANKI
NGANDI
NSURANCESECTOR

CSRhasbeeni
dent
if
iedasat
oolt
ocont
ri
but
edi
rect
lyori
ndi
rect
lyt
othecompany
’s
bot
tom-
li
neandal
soensur
esi
tsl
ong-
ter
m sust
ainabi
l
ity
.Ithel
pscompani
esemer
geas
t
ruecor
por
ateci
ti
zens.CSRmeansi
nit
sessencet
ober
esponsi
blet
oone’
svar
ious
st
akehol
der
sandnotj
ustchar
it
y.
Atpr
esent
,thewor
ldov
er,t
her
eisani
ncr
easi
ngawar
enessaboutCor
por
ateSoci
al
Responsi
bil
i
ty(
CSR)
,Sust
ainabl
eDev
elopment(
SD)andNon-
Financi
alRepor
ti
ng(
NFR)
.
Consequent
ly,t
her
eisaconcer
tedef
for
tamongal
lty
pesofor
gani
zat
ions,t
oensur
e
t
hatsust
ainabl
edev
elopmenti
snotl
ostsi
ghtof
,int
hepur
sui
toft
hei
rrespect
ivegoal
s
-pr
ofi
tmaki
ng,
soci
alser
vice,
phi
l
ant
hropy
,et
c.CSRent
ail
sthei
ntegr
ati
onofsoci
aland
env
ironment
alconcer
ns by compani
es i
nthei
rbusi
ness oper
ati
ons as al
so i
n
i
nter
act
ionswi
tht
hei
rst
akehol
der
s.
Thecont
ri
but
ionoff
inanci
ali
nst
it
uti
onsi
ncl
udi
ngbankst
osust
ainabl
edev
elopmenti
s
par
amount
,consi
der
ing t
he cr
uci
alr
olet
heypl
ayi
nfi
nanci
ng t
he economi
c and
dev
elopment
alact
ivi
ti
esoft
hewor
ld.I
nthi
scont
ext
,theur
gencyf
orbankst
oactas
r
esponsi
blecor
por
ateci
ti
zensi
nthesoci
ety
,especi
all
yinadev
elopi
ngcount
ryl
i
keour
s,
needbehar
dlyov
eremphasi
zed.Thei
ract
ivi
ti
esshoul
dref
lectt
hei
rconcer
nforhuman
r
ight
sandenv
ironment
.
St
udi
esov
ert
her
ecentt
imeshav
erev
eal
edt
hator
gani
sat
ionsi
nvol
vedi
nCSRact
ivi
ti
es

8
cont
inuedt
osust
ainf
ormuchl
ongerdur
ati
onsi
ncompar
isont
othosenoti
nvol
vedi
n
suchact
ivi
ti
es.Thi
sist
her
easonwhymor
eandmor
eor
gani
sat
ionsacr
osssect
orsar
e
i
ncr
easi
ngl
yget
ti
ngi
nvol
vedi
nCSRact
ivi
ti
es.
CSRhasbeeni
dent
if
iedasat
oolt
ocont
ri
but
edi
rect
lyori
ndi
rect
lyt
othecompany
’s
bot
tom-
li
neandal
soensur
esi
tsl
ong-
ter
m sust
ainabi
l
ity
.Ithel
pscompani
esemer
geas
t
ruecor
por
ateci
ti
zens.CSRmeansi
nit
sessencet
ober
esponsi
blet
oone’
svar
ious
st
akehol
der
sandnotj
ustchar
it
y.

CHAPTER-
1

I
NTRODUCTI
ON

CORPORATESOCI
ALRESPONSI
BILI
TY

9
Cor
por
ate soci
alr
esponsi
bil
i
ty 
i
saf
orm of
 cor
por
ate 
sel
f-
regul
ati
on 
i
ntegr
ated i
nto
a 
busi
ness model
.CSR pol
i
cy f
unct
ions as a bui
l
t-i
n,sel
f-
regul
ati
ng mechani
sm
wher
ebyabusi
nessmoni
tor
sandensur
esi
tsact
ivecompl
i
ancewi
thi
nthespi
ri
toft
he
l
aw,et
hicalst
andar
ds,and i
nter
nat
ional
 
nor
ms.CSR i
sapr
ocesswi
tht
heai
m t
o
embr
acer
esponsi
bil
i
tyf
ort
hecompany
'sact
ionsandencour
ageaposi
ti
vei
mpact
t
hrough i
ts act
ivi
ti
es on t
he env
ironment
,consumer
s,empl
oyees,communi
ti
es,
st
akehol
der
s andal
lot
hermember
soft
he 
publ
i
cspher
e whomayal
sobeconsi
der
ed
asst
akehol
der
s.

Thet
erm"
cor
por
atesoci
alr
esponsi
bil
i
ty"camei
ntocommonusei
nthel
ate1960sand
ear
ly 1970s af
termany mul
ti
nat
ionalcor
por
ati
ons f
ormed t
he t
erm 
stakehol
der
,
meani
ngt
hoseonwhom anor
gani
zat
ion'
sact
ivi
ti
eshav
eani
mpact
.Itwasusedt
o
descr
ibecor
por
ateowner
sbey
ond 
shar
ehol
der
s asar
esul
tofani
nfl
uent
ialbookby
 R.
[
2]
Edwar
dFr St
eeman,
  r
ategi
cmanagement
:ast
akehol
derappr
oach 
i
n1984.  
Proponent
s
ar
guet
hatcor
por
ati
onsmakemor
elongt
erm pr
ofi
tsbyoper
ati
ngwi
thaper
spect
ive,
whi
l
ecr
it
icsar
guet
hatCSRdi
str
act
sfr
om t
heeconomi
crol
eofbusi
nesses.Ot
her
s
ar
gue CSR i
s mer
ely
 wi
ndow-
dressi
ng,or an at
tempt t
o pr
e-empt t
he r
ole of

10
gov
ernment
sasawat
chdogov
erpower
ful
 
mul
ti
nat
ional
cor
por
ati
ons.

CSRi
sti
tl
edt
oai
danor
gani
zat
ion'
smi
ssi
onaswel
lasagui
det
owhatt
hecompany
st
andsf
orandwi
l
luphol
dtoi
tsconsumer
s.Dev
elopment
 busi
nesset
hics 
i
soneoft
he
f
ormsof
 appl
i
edet
hics 
thatexami
neset
hicalpr
inci
plesandmor
aloret
hicalpr
obl
ems
t
hatcanar
isei
nabusi
nessenv
ironment
. 
ISO 26000 
i
sther
ecogni
zedi
nter
nat
ional
st
andar
dforCSR.Publ
i
csect
oror
gani
zat
ions(
theUni
tedNat
ionsf
orexampl
e)adher
e
t
othe 
tr
ipl
e bot
tom l
i
ne 
(TBL)
.Iti
s wi
del
yaccept
ed t
hatCSR adher
es t
o si
mil
ar
pr
inci
plesbutwi
thnof
ormalactofl
egi
slat
ion.The 
UN 
hasdev
elopedt
he 
Pri
nci
plesf
or
Responsi
bleI
nvest
ment
 asgui
del
i
nesf
ori
nvest
ingent
it
ies.

Appr
oaches

Somecomment
ator
shav
eident
if
ied adi
ff
erencebet
weent
heCanadi
an(
Mont
real
schoolofCSR)
,theCont
inent
alEur
opean 
andt
he 
Angl
o-Saxonappr
oachest
oCSR.
 And
ev
enwi
thi
nEur
opet
hedi
scussi
onaboutCSRi
sver
yhet
erogeneous.

Amor
ecommonappr
oacht
oCSRi
scor
por
atephi
l
ant
hropy
.Thi
sincl
udesmonet
ary
donat
ionsandai
dgi
vent
olocal
andnon-
local
nonpr
ofi
tor
gani
zat
ionsandcommuni
ti
es,
i
ncl
udi
ngdonat
ionsi
nar
eassuchast
hear
ts,
educat
ion,
housi
ng,
heal
th,
soci
alwel
far
e,
and t
he env
ironment
,among ot
her
s,but excl
udi
ng pol
i
ticalcont
ri
but
ions and
commer
cial
sponsor
shi
pofev
ent
s. 

Someor
gani
zat
ions 
donotl
i
keaphi
l
ant
hropy
-basedappr
oachasi
tmi
ghtnothel
pbui
l
d
ont
heski
l
lsofl
ocalpopul
ati
ons,wher
eascommuni
ty-
baseddev
elopmentgener
all
y
l
eadst
omor
esust
ainabl
edev
elopment
.

Anot
herappr
oacht
oCSRi
stoi
ncor
por
atet
heCSRst
rat
egydi
rect
lyi
ntot
hebusi
ness
st
rat
egyofanor
gani
zat
ion.Fori
nst
ance,
procur
ementof
 Fai
rTr
ade 
teaandcof
feehas
beenadopt
edbyv
ari
ousbusi
nessesi
ncl
udi
ng 
KPMG.I
tsCSRmanagercomment
ed,
"
Fai
rtr
adef
it
sver
yst
rongl
yint
oourcommi
tmentt
oourcommuni
ti
es.
"

Anot
herappr
oach i
s gar
ner
ing i
ncr
easi
ng cor
por
ater
esponsi
bil
i
tyi
nter
est
.Thi
sis
cal
l
ed 
Creat
ingShar
edVal
ue,
orCSV.Theshar
edv
aluemodeli
sbasedont
hei
deat
hat
cor
por
atesuccessandsoci
alwel
far
ear
eint
erdependent
.
11
A busi
nessneedsaheal
thy
,educat
edwor
kfor
ce,sust
ainabl
eresour
cesandadept
gov
ernmentt
ocompet
eef
fect
ivel
y.Forsoci
etyt
othr
ive,pr
ofi
tabl
eandcompet
it
ive
busi
nessesmustbedev
elopedandsuppor
tedt
ocr
eat
eincome,weal
th,t
axr
evenues,
and oppor
tuni
ti
es f
orphi
l
ant
hropy
.CSV r
ecei
ved gl
obalat
tent
ion i
nthe Har
var
d
Busi
nessRev
iew ar
ti
cl
e St
rat
egy&Soci
ety
:TheLi
nkbet
weenCompet
it
iveAdv
ant
age
andCor
por
ateSoci
alResponsi
bil
i
ty 

[
1]byMi
chaelE.Por
ter
,al
eadi
ngaut
hor
it
yoncompet
it
ivest
rat
egyandheadoft
he
I
nst
it
utef
orSt
rat
egyandCompet
it
ivenessatHar
var
dBusi
nessSchool
;andMar
kR.
Kr
amer
,Seni
orFel
l
ow att
heKennedySchoolatHar
var
dUni
ver
sit
yandco-
founderof
FSG Soci
alI
mpactAdv
isor
s.Thear
ti
clepr
ovi
desi
nsi
ght
sandr
elev
antexampl
esof
compani
est
hathav
edev
elopeddeepl
i
nkagesbet
weent
hei
rbusi
nessst
rat
egi
esand
cor
por
atesoci
alr
esponsi
bil
i
ty.Manyappr
oachest
oCSRpi
tbusi
nessesagai
nstsoci
ety
,
emphasi
zi
ngt
hecost
sandl
i
mit
ati
onsofcompl
i
ancewi
thext
ernal
l
yimposedsoci
aland
env
ironment
alst
andar
ds.CSVacknowl
edgest
rade-
off
sbet
weenshor
t-
ter
m pr
ofi
tabi
l
ity
and soci
alorenv
ironment
algoal
s,butf
ocuses mor
e on t
he oppor
tuni
ti
es f
or
compet
it
iveadv
ant
agef
rom bui
l
dingasoci
alv
aluepr
oposi
ti
oni
ntocor
por
atest
rat
egy
.
CSV hasal
i
mit
ati
oni
nthati
tgi
vest
hei
mpr
essi
ont
hatonl
ytwost
akehol
der
sar
e
i
mpor
tant-shar
ehol
der
sandconsumer
s-andbel
i
est
hemul
ti
-st
akehol
derappr
oachof
mostCSRadv
ocat
es.

Manycompani
esuset
hest
rat
egyofbenchmar
kingt
ocompet
ewi
thi
nthei
rrespect
ive
i
ndust
ri
esi
nCSR pol
i
cy,i
mpl
ement
ati
on,andef
fect
iveness.Benchmar
kingi
nvol
ves
r
evi
ewi
ngcompet
it
orCSRi
nit
iat
ives,aswel
lasmeasur
ingandev
aluat
ingt
hei
mpact
t
hatt
hosepol
i
cieshav
eonsoci
etyandt
heenv
ironment
,andhowcust
omer
sper
cei
ve
compet
it
orCSRst
rat
egy
.Af
teracompr
ehensi
vest
udyofcompet
it
orst
rat
egyandan
i
nter
nalpol
i
cyr
evi
ewper
for
med,acompar
isoncanbedr
awnandast
rat
egydev
eloped
f
orcompet
it
ionwi
thCSRi
nit
iat
ives.

Soci
alaccount
ing,
audi
ti
ng,
andr
epor
ti
ng

12
Fora busi
nesst
otake r
esponsi
bil
i
tyf
ori
tsact
ions,t
hatbusi
nessmustbe f
ull
y
account
abl
e. 
Soci
alaccount
ing,aconceptdescr
ibi
ngt
hecommuni
cat
ionofsoci
aland
env
ironment
alef
fect
sofacompany
'seconomi
cact
ionst
opar
ti
cul
ari
nter
estgr
oups
wi
thi
nsoci
etyandt
osoci
etyatl
arge,
ist
husani
mpor
tantel
ementofCSR.

Soci
alaccount
ing emphasi
zes t
he not
ion ofcor
por
ate 
account
abi
l
ity
.D.Cr
owt
her
def
inessoci
alaccount
ingi
nthi
ssenseas"
anappr
oacht
orepor
ti
ngaf
ir
m’sact
ivi
ti
es
whi
ch st
resses t
he need f
ort
he i
dent
if
icat
ion ofsoci
all
yrel
evantbehav
ior
,the
det
ermi
nat
ionoft
hoset
owhom t
hecompanyi
saccount
abl
efori
tssoci
alper
for
mance
andt
hedev
elopmentofappr
opr
iat
emeasur
esandr
epor
ti
ngt
echni
ques.
" 
Anexampl
e
ofsoci
alaccount
ing,t
oal
i
mit
edext
ent
,isf
oundi
nanannual
 
Dir
ect
or'
sRepor
t,under
t
her
equi
rement
sofUKcompanyl
aw.

A numberofr
epor
ti
ng gui
del
i
nesorst
andar
dshav
e been dev
eloped t
o ser
ve as
f
ramewor
ksf
orsoci
alaccount
ing,
audi
ti
ngandr
epor
ti
ngi
ncl
udi
ng:

 Account Abi
l
ity
's 
AA1000 
standar
d, based on 
John El
ki
ngt
on'
s 
tr
ipl
e bot
tom
l
i
ne 
(3BL)r
epor
ti
ng

 ThePr
ince'
sAccount
ingf
orSust
ainabi
l
ityPr
oject
's 
Connect
edRepor
ti
ngFr
amewor
k

 The 
Fai
rLaborAssoci
ati
on 
conduct
s audi
ts based on i
ts Wor
kpl
ace Code of
Conductandpost
saudi
tresul
tsont
heFLAwebsi
te.

 The 
Fai
rWearFoundat
ion 
takesauni
queappr
oacht
over
if
yingl
abourcondi
ti
onsi
n
compani
es'
suppl
ychai
ns,
usi
ngi
nter
disci
pli
nar
yaudi
ti
ngt
eams.

 Gl
obal
Repor
ti
ngI
nit
iat
ive'
sSust
ainabi
l
ityRepor
ti
ngGui
del
i
nes

 GoodCor
por
ati
on'
s 
Standar
d dev
elopedi
nassoci
ati
onwi
tht
heI
nst
it
uteofBusi
ness
Et
hics

 Sy
ner
gyCodet
hic26000[
2] 
Soci
alResponsi
bil
i
tyand Sust
ainabi
l
ityCommi
tment
ManagementSy
stem (
SRSCMS)Requi
rement
s—Et
hicalBusi
nessBestPr
act
icesof
Or
gani
zat
ions-t
henecessar
ymanagementsy
stem el
ement
stoobt
ainacer
ti
fi
abl
e

13
 et
hical
commi
tmentmanagementsy
stem.

 Thest
andar
dschemehasbeenbui
l
dar
oundI
SO26000andUNCTADGui
danceon
GoodPr
act
icesi
nCor
por
ateGov
ernance.Thest
andar
disappl
i
cabl
ebyanyt
ypeof
or
gani
zat
ion.
;

 Ear
thcheck 
www.
ear
thcheck.
orgCer
ti
fi
cat
ion/St
andar
d

 Soci
alAccount
abi
l
ityI
nter
nat
ional
'
s SA8000 
standar
d

 St
andar
dEt
hicsAei
 
gui
del
i
nes

 The 
ISO14000 
env
ironment
almanagementst
andar
d

 The 
Uni
tedNat
ionsGl
obalCompact
 r
equi
rescompani
est
o communi
cat
eont
hei
r
pr
ogr
ess 
(ort
opr
oduceaCommuni
cat
iononPr
ogr
ess,COP)
,andt
odescr
ibet
he
company
'si
mpl
ement
ati
on of t
he Compact
'st
en uni
ver
salpr
inci
ples.Thi
s
i
nfor
mat
ion shoul
d be f
ull
yint
egr
ated i
nthe par
ti
cipant
’s mai
n medi
um of
st
akehol
der communi
cat
ions, f
or exampl
e a cor
por
ate r
esponsi
bil
i
ty or
sust
ainabi
l
ityr
epor
tand/
orani
ntegr
atedf
inanci
alandsust
ainabi
l
ityr
epor
t.I
fa
companydoesnotpubl
i
shf
ormalr
epor
ts,aCOPcanbecr
eat
edasast
and-
alone
document
.

 The 
Uni
tedNat
ions 
Int
ergov
ernment
alWor
kingGr
oupofExper
tsonI
nter
nat
ional
St
andar
dsofAccount
ingandRepor
ti
ng(
ISAR)
prov
idesv
olunt
aryt
echni
calgui
dance
on 
eco-
eff
ici
ency i
ndi
cat
ors,
 
cor
por
ate r
esponsi
bil
i
ty r
epor
ti
ng, and 
cor
por
ate
gov
ernancedi
scl
osur
e.

The 
FTSEGr
oup 
publ
i
shest
he 
FTSE4GoodI
ndex
,anev
aluat
ionofCSRper
for
manceof
compani
es.

I
nsomenat
ions,l
egalr
equi
rement
sforsoci
alaccount
ing,audi
ti
ngandr
epor
ti
ngexi
st
(
e.g.i
nthe Fr
ench 
bil
an soci
al)
,though i
nter
nat
ionalornat
ionalagr
eementon
meani
ngf
ulmeasur
ement
sofsoci
alandenv
ironment
alper
for
mancei
sdi
ff
icul
t.Many
compani
es now pr
oduce ext
ernal
l
y audi
ted annualr
epor
tst
hatcov
er 
Sust
ainabl
e

14
Dev
elopment
 andCSRi
ssues(
"Tr
ipl
eBot
tom Li
neRepor
ts"
),butt
her
epor
tsv
arywi
del
y
i
nfor
mat
,st
yle,and 
eval
uat
ion 
met
hodol
ogy
 (ev
enwi
thi
nthesamei
ndust
ry)
.Cr
it
ics
di
smi
sst
heser
epor
tsas 
l
ipser
vice,ci
ti
ngexampl
essuchas 
Enr
on'
syear
ly"
Cor
por
ate
Responsi
bil
i
tyAnnual
Repor
t"andt
obaccocor
por
ati
ons'
soci
alr
epor
ts.

I
nSout
hAf
ri
ca,asofJune2010,al
lcompani
esl
i
stedont
he 
Johannesbur
gSt
ock
Exchange 
(JSE)wer
erequi
redt
opr
oduceani
ntegr
atedr
epor
t 
inpl
aceofanannual
f
inanci
alr
epor
tandsust
ainabi
l
ityr
epor
t.
 Ani
ntegr
atedr
epor
tincl
udesenv
ironment
al,
soci
alandeconomi
cper
for
manceal
ongsi
def
inanci
alper
for
mancei
nfor
mat
ionandi
s
expect
edt
opr
ovi
deuser
swi
thamor
ehol
i
sti
cov
erv
iew ofacompany
.Howev
er,t
his
r
equi
rementwasi
mpl
ement
edi
ntheabsenceofanyf
ormalorl
egalst
andar
dsf
oran
i
ntegr
atedr
epor
t.AnI
ntegr
atedRepor
ti
ngCommi
tt
ee(
IRC)wasest
abl
i
shedt
oissue
gui
del
i
nesf
orgoodpr
act
icei
nthi
sfi
eld.

Pot
ent
ial
busi
nessbenef
it
s

Thescal
eandnat
ureoft
hebenef
it
sofCSRf
oranor
gani
zat
ioncanv
arydependi
ngon
t
henat
ureoft
heent
erpr
ise,
andar
edi
ff
icul
ttoquant
if
y,t
hought
her
eisal
argebodyof
l
i
ter
atur
eexhor
ti
ngbusi
nesst
oadoptmeasur
esbey
ondf
inanci
alones(
e.g.
,
 Demi
ng'
s
Four
teenPoi
nts,
 
bal
ancedscor
ecar
ds)
.Or
li
tzky
,Schmi
dt,
andRy
nes 
foundacor
rel
ati
on
bet
ween soci
al/
env
ironment
alper
for
mance and f
inanci
alper
for
mance.Howev
er,
busi
nessesmaynotbel
ooki
ngatshor
t-
runf
inanci
alr
etur
nswhendev
elopi
ngt
hei
rCSR
st
rat
egy
.Int
elempl
oysa5-
yearCSRpl
anni
ngcy
cle.

Thedef
ini
ti
onofCSRusedwi
thi
nanor
gani
zat
ioncanv
aryf
rom t
hest
ri
ct"
stakehol
der
i
mpact
s"def
ini
ti
on used bymanyCSR adv
ocat
esand wi
l
lof
ten i
ncl
ude 
char
it
abl
e
ef
for
ts 
and 
vol
unt
eer
ing.

CSR may be based wi

thi
nthe 
human r
esour
ces,
 
busi
ness dev
elopment
 or
 publ
i
c
r
elat
ions 
depar
tment
sofanor
gani
sat
ion,
 
ormaybegi
venasepar
ateuni
trepor
ti
ngt
o
t
he 
CEO 
ori
nsomecasesdi
rect
lyt
othe 
boar
d.Somecompani
esmayi
mpl
ementCSR-
t
ypev
alueswi
thoutacl
ear
lydef
inedt
eam orpr
ogr
amme.

15
The 
busi
nesscase 
forCSR 
wit
hinacompanywi
l
lli
kel
yrestononeormor
eoft
hese
ar
gument
s:

Tr
ipl
eBot
tom-
Line

Peopl
epl
anetpr
ofi
t,i
sal
soknownas 
theTr
ipl
eBot
tom Li
ne 
arewor
dst
hatshoul
dbe
usedandpr
act
icedi
nev
erymov
eanor
gani
zat
ionmakes.
 Peopl
e r
elat
est
ofai
rand
benef
ici
albusi
ness pr
act
ices t
owar
dlabour
,the communi
ty and r
egi
on wher
e
cor
por
ati
onconduct
sit
sbusi
ness.
 Pl
anet
 r
efer
stosust
ainabl
eenv
ironment
alpr
act
ices.
At
ri
plebot
tom l
i
necompanydoesnotpr
oducehar
mfulordest
ruct
ivepr
oduct
ssuchas
weapons,t
oxi
c chemi
cal
s or bat
ter
ies cont
aini
ng danger
ous heav
y met
alsf
or
exampl
e. 
Prof
it
 i
stheeconomi
cval
uecr
eat
edbyt
heor
gani
zat
ionaf
terdeduct
ingt
he
costofal
linput
s,i
ncl
udi
ngt
hecostoft
hecapi
talt
iedup.I
tther
efor
edi
ff
ersf
rom
t
radi
ti
onal
account
ingdef
ini
ti
onsofpr
ofi
t.

Humanr
esour
ces

A CSR pr
ogr
am can be an ai
dto 
recr
uit
ment
 and 
ret
ent
ion,
 
par
ti
cul
arl
y wi
thi
nthe
compet
it
ive 
graduat
e st
udentmar
ket
.Pot
ent
ialr
ecr
uit
sof
tenaskaboutaf
ir
m'sCSR
pol
i
cydur
ingani
nter
view,andhav
ingacompr
ehensi
vepol
i
cycangi
veanadv
ant
age.
CSRcanal
sohel
pimpr
ovet
heper
cept
ionofacompanyamongi
tsst
aff
,par
ti
cul
arl
y
when st
aff can become i
nvol
ved t
hrough 
pay
rol
lgi
vi
ng,f
undr
aisi
ng 
act
ivi
ti
es or
communi
tyv
olunt
eer
ing.CSR has been f
ound t
o encour
age cust
omeror
ient
ati
on
amongf
ront
li
neempl
oyees.

Ri
skmanagement

Managi
ng 
ri
sk 
i
sacent
ralpar
tofmanycor
por
atest
rat
egi
es.Reput
ati
onst
hatt
ake
decadest
o bui
l
d up canber
uined i
nhour
sthr
oughi
nci
dent
ssuchascor
rupt
ion
scandal
sorenv
ironment
alacci
dent
s.Thesecanal
sodr
aw unwant
edat
tent
ionf
rom
r
egul
ator
s,cour
ts,
gov
ernment
sandmedi
a.Bui
l
dingagenui
necul
tur
eof'
doi
ngt
her
ight
16
t
hing'
wit
hinacor
por
ati
oncanof
fsett
heser
isks.

Br
anddi
ff
erent
iat
ion

I
ncr
owdedmar
ket
places,compani
esst
ri
vef
ora 
uni
quesel
l
ingpr
oposi
ti
on 
thatcan
separ
atet
hem f
rom t
hecompet
it
ioni
nthemi
ndsofconsumer
s.CSRcanpl
ayar
olei
n
bui
l
ding cust
omerl
oyal
tybased ondi
sti
nct
iveet
hicalv
alues.
 Sev
eralmaj
or 
brands,
such as 
TheCo-
oper
ati
veGr
oup,
 
TheBodyShop 
and 
Amer
ican Appar
el 
arebui
l
ton
et
hical
val
ues.Busi
nessser
viceor
gani
zat
ionscanbenef
itt
oof
rom bui
l
dingar
eput
ati
on
f
ori
ntegr
it
yandbestpr
act
ice.

EngagementPl
an

Anengagementpl
anwi
l
lassi
sti
nreachi
ngadesi
redaudi
ence.A cor
por
atesoci
al
r
esponsi
bil
i
ty t
eam, or i
ndi
vi
dual i
s needed t
o ef
fect
ivel
y pl
an
t
he 
goal
s and 
obj
ect
ives 
oft
heor
gani
zat
ion.Det
ermi
ninga 
budget
 shoul
dbeofhi
gh
pr
ior
it
y.Thef
unct
ionofcor
por
atesoci
alr
esponsi
bil
i
typl
anni
ng:

1.Toadddi
scussi
onandanal
ysi
sofanewsetofr
isksi
ntocor
por
atedeci
sion-
maki
ng.
2.Tor
epr
esenti
ssueswi
thi
nthecor
por
ati
ont
hatwat
chdogs,NGOsandadv
ocat
es
r
epr
esentwi
thi
nsoci
ety
.

3.Toassesst
hef
utur
e.Anor
gani
zat
ionsl
ongt
erm andshor
tter
mfut
ureneedst
obe
t
houghtof
.

4.Tohel
ppr
ior
it
izeconsi
der
ati
onofsoci
all
yandenv
ironment
all
yfr
iendl
ypr
oject
sthat
mi
ghtot
her
wisel
ackacor
por
ateadv
ocat
e.

5.Tokeepcor
por
ati
onsawar
eofpot
ent
ial
maj
orsoci
etal
impact
sev
enwhenanegat
ive
i
mpactmaynotbei
mmedi
ate,
andt
husl
essenl
i
abi
l
ity
.

6.Toposi
ti
vel
yinf
luencedeci
sionmaki
ngwher
esoci
etali
mpact
sar
emaxi
mized,
whi
l
st
ensur
ingef
for
tsar
ewi
thi
nagi
ven 
budget
.

Dev
elopi
nganEngagementPl
an
17
Commi
ttocomi
ngupwi
thandi
mpr
ovi
ngony
ourcompani
esgoal
s.CSRcommi
tment
s
communi
cat
ethenat
ureanddi
rect
ionoft
hef
ir
m'ssoci
alandenv
ironment
alact
ivi
ti
es
and,wi
l
lhel
pot
her
sunder
standhowt
heor
gani
zat
ioni
sli
kel
ytobehav
einapar
ti
cul
ar
si
tuat
ion

1.Doa 
scan 
ofCSRcommi
tment
s

2.Hol
ddi
scussi
onswi
thmaj
or 
stakehol
der
s 

3.Cr
eat
eawor
kinggr
oupt
odev
elopt
hecommi
tment
s

4.Pr
epar
eapr
eli
minar
ydr
aft

5.Consul
twi
thaf
fect
edst
akehol
der
s

6.Rev
iseandpubl
i
sht
hecommi
tment
s

7.Consi
derwhati
sfeasi
blewi
thi
nthe 
budget
 

 Toensur
eempl
oyeebuy
-i
n,i
ncl
udeempl
oyeesi
nthepr
ocessofdev
elopi
ngt
he
v
isi
onandv
alues.Tospar
kthepr
ocess,cr
eat
eaCSRwor
kinggr
ouporhol
da
cont
est f
or t
he best suggest
ions, encour
agi
ng empl
oyees and t
hei
r
r
epr
esent
ati
vest
oputsomet
houghti
ntot
hei
rsubmi
ssi
ons.

 Hostav
isi
oni
ngsessi
onandaskpar
ti
cipant
stot
hinkaboutwhatt
hef
ir
m coul
d
l
ookl
i
kei
nthef
utur
easa 
CSRl
eader
.

 Rev
iewt
heCSR 
pri
ori
ti
es 
todet
ermi
newhi
chcodesof
 et
hics 
orconductf
itbest
wi
tht
hef
ir
m'sgoal
s.

Consul
tant
s ar
erecommended when pl
anni
ng f
orCSR act
ivi
ti
es i
nvol
vi
ng smal
l
,
medi
um andl
argesi
zedcor
por
ati
ons.Al
llev
elsofmanagementshoul
dbeonboar
d,
andt
hesuppor
tofhi
ghr
anki
ngcor
por
ateof
fi
cial
sshoul
dbegi
ven.

Li
censet
ooper
ate

Cor
por
ati
ons ar
e keen t
o av
oid i
nter
fer
ence i
n t
hei
r busi
ness
t
hrough 
taxat
ion 
or 
regul
ati
ons.By t
aki
ng subst
ant
ivev
olunt
ary st
eps,t
hey can

18
per
suadegov
ernment
sandt
hewi
derpubl
i
cthatt
heyar
etaki
ngi
ssuessuchas 
heal
th
andsaf
ety
,di
ver
sit
y,ort
heenv
ironmentser
iousl
yasgoodcor
por
ateci
ti
zenswi
th
r
espectt
olabourst
andar
dsandi
mpact
sont
heenv
ironment
.

Suppl
i
erRel
ati
ons

Busi
nessesar
econst
ant
lyr
ely
ingonsuppl
i
erst
oreduceov
eral
lcost
s,whi
l
eimpr
ovi
ng
t
he 
qual
i
ty 
of t
hei
r goods or ser
vices.Many Nor
th Amer
ican compani
es hav
e
downgr
adedt
hev
olumeofsuppl
i
erst
heydobusi
nesswi
th,andawar
dcont
ract
stoa
sel
ectf
ew,i
nor
dert
oloweroper
ati
ngcost
s.Byest
abl
i
shi
ngast
rong 
suppl
ychai
n,
compani
esar
eabl
etopushf
orcont
inuousqual
i
tyi
mpr
ovement
s,andpr
icer
educt
ions.
Thel
ong-
ter
m benef
it
soft
hel
i
stedabov
ecr
eat
eabet
terv
aluef
orst
akehol
der
s.

Somemul
ti
-nat
ionalcompani
esl
i
ke 
Gener
alMot
ors 
canshi
ftsuppl
i
ers,i
fal
owerof
fer
i
smadebyt
hecompet
it
ion.Asar
esul
t,compet
it
iveness,
andgr
eat
erpr
ofi
tsar
ecr
eat
ed,
i
ntur
ncont
ri
but
ingt
oast
rongermar
ket

Thest
rat
egi
cuseofsuppl
i
err
elat
ionscanbenef
itsi
ngl
e,doubl
eandt
ri
ple 
bot
tom-
li
nes.
Cor
por
ati
ons excel
l
ing i
n suppl
y r
elat
ions i
ncl
ude 
Wal
-Mar
t,
 For
d, 
Gener
al
Mot
ors,
 
Toy
ota 
and 
Nest
le.Al
lcompani
esl
i
stedabov
ehav
egai
nedt
angi
bler
esul
ts
t
hrough t
he pr
act
ice ofensur
ing sound suppl
y chai
ns,and sour
cing mat
eri
als
f
rom 
ethi
cal
 
sour
ces.

Emphasi
zi
ngt
hei
mpor
tanceofpr
act
ici
ngCSRt
osuppl
i
ers,r
esear
chi
ngt
hei
rexi
sti
ng
suppl
ychai
n,andsendi
ngoutCSRcheck-
sheet
stoexi
sti
ngsuppl
i
ersi
simpor
tantt
o
st
ayi
ngon-
tr
ackofacompany
’si
mpl
ement
edCSRact
ivi
ty.

Cr
it
ici
smsandconcer
ns

Cr
it
icsofCSRaswel
laspr
oponent
sdebat
eanumberofconcer
nsr
elat
edt
oit
.These
i
ncl
udeCSR'
srel
ati
onshi
ptot
hef
undament
alpur
poseandnat
ureofbusi
nessand
quest
ionabl
emot
ivesf
orengagi
ngi
nCSR,i
ncl
udi
ngconcer
nsabouti
nsi
ncer
it
yand
hy
pocr
isy
.

19
Nat
ureofbusi
ness

Mi
l
tonFr
iedman 
andot
her
shav
ear
guedt
hatacor
por
ati
on'
spur
posei
stomaxi
mize
r
etur
nst
oit
sshar
ehol
der
s,andt
hatsi
nceonl
ypeopl
ecanhav
esoci
alr
esponsi
bil
i
ties,
cor
por
ati
onsar
eonl
yresponsi
blet
othei
rshar
ehol
der
sandnott
osoci
etyasawhol
e.
Al
thought
heyacceptt
hatcor
por
ati
onsshoul
dobeyt
hel
awsoft
hecount
ri
eswi
thi
n
whi
cht
heywor
k,t
heyasser
tthatcor
por
ati
onshav
enoot
herobl
i
gat
iont
osoci
ety
.
Some peopl
e per
cei
ve CSR as i
n-congr
uentwi
tht
he v
erynat
ure and pur
pose of
busi
ness,and i
ndeed a hi
ndr
ance t
ofr
ee t
rade.Those who asser
tthatCSR i
s
cont
rast
ingwi
th 
capi
tal
i
sm 
andar
einf
avoroft
he 
fr
eemar
ket
 ar
guet
hati
mpr
ovement
s
i
n heal
th,
 
longev
ity
 and/
or 
i
nfant mor
tal
i
ty 
hav
e been cr
eat
ed by
 economi
c
gr
owt
h at
tri
but
edt
o f
reeent
erpr
ise.

Cr
it
icsoft
hisar
gumentper
cei
vet
hef
reemar
ketasopposedt
othewel
l
-bei
ngof
soci
etyandahi
ndr
ancet
ohumanf
reedom.Theycl
aimt
hatt
het
ypeofcapi
tal
i
sm
pr
act
icedi
nmanydev
elopi
ngcount
ri
esi
saf
orm ofeconomi
cand 
cul
tur
ali
mper
ial
i
sm,
not
ingt
hatt
hesecount
ri
esusual
l
yhav
efewerl
abourpr
otect
ions,
andt
hust
hei
rci
ti
zens
ar
eatahi
gherr
iskofexpl
oit
ati
onbymul
ti
nat
ional
cor
por
ati
ons.

A wi
dev
ari
etyofi
ndi
vi
dual
sandor
gani
zat
ionsoper
atei
nbet
weent
hesepol
es.For
exampl
e,t
he Leader
shi
p Al
l
iance asser
tst
hatt
he busi
ness ofl
eader
shi
p(be i
t
cor
por
ateorot
her
wise)i
stochanget
hewor
ldf
ort
hebet
ter
. 
Manyr
eli
giousandcul
tur
al
t
radi
ti
onshol
dthatt
heeconomyexi
stst
oser
vehumanbei
ngs,
soal
leconomi
cent
it
ies
hav
eanobl
i
gat
iont
osoci
ety
.

Mor
eov
er,as di
scussed abov
e,many CSR pr
oponent
s poi
ntoutt
hatCSR can
si
gni
fi
cant
lyi
mpr
ovel
ong-
ter
m cor
por
atepr
ofi
tabi
l
itybecausei
treducesr
isksand
i
nef
fi
cienci
eswhi
l
e of
fer
ing a hostofpot
ent
ialbenef
it
ssuch asenhanced br
and
r
eput
ati
onandempl
oyeeengagement
.

Mot
ives

Somecr
it
icsbel
i
evet
hatCSRpr
ogr
amsar
eunder
takenbycompani
essuchas 
Bri
ti
sh

20
Amer
ican Tobacco 
(BAT)
, 
the pet
rol
eum gi
ant
 BP 
(wel
lknown f
ori
ts hi
gh-
prof
il
e
adv
ert
isi
ngcampai
gnsonenv
ironment
alaspect
sofi
tsoper
ati
ons)
,and 
McDonal
d'
s t
o
di
str
actt
hepubl
i
cfr
om et
hicalquest
ionsposedbyt
hei
rcor
eoper
ati
ons.Theyar
gue
t
hatsomecor
por
ati
onsst
artCSR pr
ogr
amsf
ort
hecommer
cialbenef
itt
heyenj
oy
t
hroughr
aisi
ngt
hei
rreput
ati
onwi
tht
hepubl
i
corwi
thgov
ernment
.Theysuggestt
hat
cor
por
ati
onswhi
chexi
stsol
elyt
omaxi
mizepr
ofi
tsar
eunabl
etoadv
ancet
hei
nter
est
s
ofsoci
etyasawhol
e.

Anot
herconcer
nist
hatsomet
imes compani
es cl
aim t
o pr
omot
e CSR and be
commi
tt
edt
o sust
ainabl
edev
elopment
 butsi
mul
taneousl
yengagei
nhar
mfulbusi
ness
pr
act
ices.Forexampl
e,si
ncet
he1970s,
the 
McDonal
d'
sCor
por
ati
on'
sassoci
ati
onwi
th
Ronal
dMcDonal
dHouse 
hasbeenv
iewedasCSRandr
elat
ionshi
pmar
ket
ing.Mor
e
r
ecent
ly,asCSR hasbecomemai
n st
ream,t
hecompanyhasbeef
ed up i
tsCSR
pr
ogr
ams r
elat
ed t
oit
slabor
,env
ironment
aland ot
herpr
act
ices. 
Allt
he same,
i
n McDonal
d'
sRest
aur
ant
svMor
ri
s&St
eel
,Lor
dJust
icesPi
l
l,MayandKeaner
uledt
hat
i
twasf
aircommentt
osayt
hatMcDonal
d'
sempl
oyeeswor
ldwi
de'
dobadl
yint
ermsof
payandcondi
ti
ons'
 
andt
ruet
hat'
i
foneeat
senoughMcDonal
d'
sfood,one'
sdi
etmay
wel
lbecomehi
ghi
nfatet
c.,
wit
hthev
eryr
eal
riskof
 hear
tdi
sease.
'

Roy
alDut
chShel
l
 hasamuch-
publ
i
cizedCSRpol
i
cyandwasapi
oneeri
n t
ri
plebot
tom
l
i
ne 
repor
ti
ng,butt
hisdi
dnotpr
eventt
he2004scandalconcer
ningi
tsmi
srepor
ti
ng
of
 oi
lreser
ves,
whi
chser
iousl
ydamagedi
tsr
eput
ati
onandl
edt
ochar
gesofhy
pocr
isy
.
Si
ncet
hen,
theShel
lFoundat
ionhasbecomei
nvol
vedi
nmanypr
oject
sacr
osst
hewor
ld,
i
ncl
udi
ngapar
tner
shi
pwi
th 
Mar
ksandSpencer
 (
UK)i
nthr
eef
lowerandf
rui
tgr
owi
ng
communi
ti
esacr
ossAf
ri
ca.

Cr
it
icsconcer
nedwi
thcor
por
atehy
pocr
isyandi
nsi
ncer
it
ygener
all
ysuggestt
hatbet
ter
gov
ernment
aland i
nter
nat
ionalr
egul
ati
on and enf
orcement
,rat
hert
han v
olunt
ary
measur
es,ar
enecessar
ytoensur
ethatcompani
esbehav
einasoci
all
yresponsi
ble
manner
.A maj
orar
eaofnecessar
yint
ernat
ionalr
egul
ati
oni
sther
educt
ionoft
he
capaci
ty of cor
por
ati
ons t
o sue st
ates under
 i
nvest
or st
ate di
sput
e
set
tl
ement
 pr
ovi
si
onsi
ntr
adeori
nvest
mentt
reat
iesi
fot
her
wisenecessar
ypubl
i
c
heal
thorenv
ironmentpr
otect
ionl
egi
slat
ionhasi
mpededcor
por
atei
nvest
ment
s. 
Other
s,

21
suchasPat
ri
ciaWer
hane,ar
guet
hatCSRshoul
dbeconsi
der
edmor
easacor
por
ate
mor
alr
esponsi
bil
i
ty,andl
i
mitt
her
eachofCSRbyf
ocusi
ngmor
eondi
recti
mpact
sof
t
heor
gani
zat
ionasv
iewedt
hroughasy
stemsper
spect
ivet
oident
if
yst
akehol
der
s.For
acommonl
yov
erl
ookedmot
ivef
orCSR,seeal
so 
Cor
por
ateSoci
alEnt
repr
eneur
shi
p,
wher
ebyCSRcanal
sobedr
ivenbyempl
oyees'
per
sonalv
alues,
inaddi
ti
ont
othemor
e
obv
iouseconomi
candgov
ernment
aldr
iver
s.

Pr
inci
plesofCor
por
ateSoci
alResponsi
bil
i
ty

The mai
n pr
inci
ples i
nvol
vi
ng cor
por
ate soci
al r
esponsi
bil
i
ty
i
nvol
ve 
economi
c,
 l
egal
,
 et
hical
 
and 
discr
eti
onar
y aspect
s. A cor
por
ati
on needs t
o
gener
atepr
ofi
ts,whi
l
eoper
ati
ngwi
thi
nthel
awsoft
hest
ate.The 
cor
por
ati
on 
also
needst
obeet
hical
,buthast
her
ightt
obedi
scr
eti
onalaboutt
hedeci
sionsi
tmakes.
Lev
elsofcor
por
atesoci
alr
esponsi
venesst
oani
ssuei
ncl
udebei
ng 
react
ive,
 
def
ensi
ve,
r
esponsi
ve 
and 
i
nter
act
ive.Al
lter
msar
eusef
uli
nissuesmanagement
.Sel
ect
ingwhen
andhowt
oactcanmakeadi
ff
erencei
ntheout
comeoft
heact
iont
aken.

Et
hical
consumer
ism

Ther
isei
npopul
ari
tyof
 et
hicalconsumer
ism 
overt
hel
astt
wodecadescanbel
i
nkedt
o
t
her
iseofCSR.Asgl
obalpopul
ati
oni
ncr
eases,
sodoest
hepr
essur
eonl
i
mit
ednat
ural
r
esour
ces r
equi
red t
o meetr
isi
ng consumerdemand.I
ndust
ri
ali
zat
ion,i
n many
dev
elopi
ngcount
ri
es,
isboomi
ngasar
esul
tofbot
htechnol
ogyandgl
obal
i
zat
ion.

Consumer
sar
ebecomi
ngmor
eawar
eoft
heenv
ironment
alandsoci
ali
mpl
i
cat
ionsof
t
hei
rday
-to-
dayconsumerdeci
sionsandar
ether
efor
ebegi
nni
ngt
omakepur
chasi
ng
deci
si
onsr
elat
edt
othei
renv
ironment
alandet
hicalconcer
ns.
 Howev
er,t
hispr
act
icei
s
f
arf
rom consi
stentoruni
ver
sal
.

Gl
obal
i
zat
ionandmar
ketf
orces

As cor
por
ati
ons pur
sue gr
owt
hthr
ough 
global
i
zat
ion,t
hey hav
e encount
ered new
chal
l
enges t
hati
mpose l
i
mit
stot
hei
rgr
owt
h and pot
ent
ialpr
ofi
ts.Gov
ernment

22
r
egul
ati
ons,
 
tar
if
fs, env
ironment
al r
est
ri
cti
ons and v
ary
ing st
andar
ds of what
const
it
utes"
laborexpl
oit
ati
on"ar
epr
obl
emst
hatcancostor
gani
zat
ionsmi
l
li
onsof
dol
l
ars.Somev
iewet
hicali
ssuesassi
mpl
yacost
lyhi
ndr
ance,whi
l
esomecompani
es
useCSRmet
hodol
ogi
esasast
rat
egi
ctact
ict
ogai
npubl
i
csuppor
tfort
hei
rpr
esencei
n
gl
obalmar
ket
s,hel
pingt
hem sust
ainacompet
it
iveadv
ant
agebyusi
ngt
hei
rsoci
al
cont
ri
but
ionst
opr
ovi
deasubconsci
ousl
evelofadv
ert
isi
ng.(
Fry
,Kei
m,Mei
ner
s1986,
105)Gl
obalcompet
it
ionpl
acesapar
ti
cul
arpr
essur
eonmul
ti
nat
ionalcor
por
ati
onst
o
exami
nenotonl
ythei
rownl
aborpr
act
ices,
butt
hoseoft
hei
rent
ir
esuppl
ychai
n,f
rom a
CSRper
spect
ive.t
hatal
lgov
ernmenti
scont
rol
l
ing.

Soci
alawar
enessandeducat
ion

Ther
oleamongcor
por
atest
akehol
der
sist
owor
kcol
l
ect
ivel
ytopr
essur
ecor
por
ati
ons
t
hatar
echangi
ng.Shar
ehol
der
sandi
nvest
orst
hemsel
ves,t
hrough 
soci
all
yresponsi
ble
i
nvest
ing 
areexer
ti
ngpr
essur
eoncor
por
ati
onst
obehav
eresponsi
bly
.Theext
ensi
onof
SRIbodi
esdr
ivi
ngcor
por
ati
onst
oincl
udeanel
ementof‘
ethi
cali
nvest
ment
’int
othei
r
cor
por
ateagenda’
sgener
atessoci
all
yembeddedi
ssues.Themai
nissuecor
rel
atest
o
t
he dev
elopmentand ov
eral
lidea of‘
ethi
cali
nvest
ing’orSRI
,a conceptt
hati
s
const
ruct
edasagener
alsoci
alper
spect
ive.
 Thepr
obl
em becomesdef
ini
ngwhati
s
cl
assi
fi
edas‘
ethi
cali
nvest
ing’
.Theet
hicsorv
aluesofoneSRIbodywi
l
lli
kel
ydi
ff
erent
f
rom t
henextsi
nceet
hicalopi
nionsar
einher
ent
lypar
adoxi
cal
.Forexampl
e,some
r
eli
giousi
nvest
orsi
ntheUShav
ewi
thdr
awni
nvest
mentf
rom compani
est
hatf
ailt
o
f
ulf
il
lthei
ret
hical
expect
ati
ons.
 

The 
Non-
gov
ernment
alor
gani
zat
ions 
areal
sot
aki
ngani
ncr
easi
ngr
ole,l
ever
agi
ngt
he
poweroft
hemedi
aandt
heI
nter
nett
oincr
easet
hei
rscr
uti
nyandcol
l
ect
iveact
ivi
sm
ar
ound cor
por
ate behav
ior
.Thr
ough educat
ion and di
alogue,t
he dev
elopmentof
communi
ty awar
eness i
n hol
ding busi
nesses r
esponsi
blef
or t
hei
r act
ions i
s
[
36]
gr
owi
ng.  Inr
ecenty
ear
s,t
het
radi
ti
onalconcept
ionofCSRi
sbei
ngchal
l
engedbyt
he
mor
e communi
ty-
consci
ous Cr
eat
ing Shar
ed Val
ue 
concept (
CSV)
,and sev
eral
compani
esar
eref
ini
ngt
hei
rcol
l
abor
ati
onwi
thst
akehol
der
saccor
dingl
y.

23
Et
hicst
rai
ning

Ther
iseofet
hicst
rai
ningi
nsi
decor
por
ati
ons,someofi
trequi
redbygov
ernment
r
egul
ati
on,i
s anot
herdr
ivercr
edi
ted wi
th changi
ng t
he behav
iorand cul
tur
e of
cor
por
ati
ons.Theai
m ofsucht
rai
ningi
stohel
pempl
oyeesmakeet
hicaldeci
sions
whent
heanswer
sar
euncl
ear
.Tul
l
ber
gbel
i
evest
hathumansar
ebui
l
twi
tht
hecapaci
ty
t
ocheatandmani
pul
ate,av
iew t
akenf
rom Tr
iver
s(1971,1985)
,hencet
heneedf
or
l
ear
ningnor
mat
ivev
aluesandr
ulesi
nhumanbehav
ior
. 
Themostdi
rectbenef
iti
s
r
educi
ngt
hel
i
kel
i
hoodof"
dir
tyhands"
,fi
nesanddamagedr
eput
ati
onsf
orbr
eachi
ng
l
awsormor
alnor
ms.Or
gani
zat
ionsal
soseesecondar
ybenef
iti
nincr
easi
ngempl
oyee
l
oyal
ty and pr
ide i
nthe or
gani
zat
ion.
 Cat
erpi
l
lar
 and 
Best Buy
 ar
e exampl
es of
or
gani
zat
ionst
hathav
etakensuchst
eps.

I
ncr
easi
ngl
y,compani
esar
ebecomi
ngi
nter
est
edi
npr
ocessest
hatcanaddv
isi
bil
i
tyt
o
t
hei
rCSRpol
i
ciesandact
ivi
ti
es.Onemet
hodt
hati
sgai
ningi
ncr
easi
ngpopul
ari
tyi
sthe
useofwel
l
-gr
oundedt
rai
ningpr
ogr
ams,wher
eCSR i
samaj
ori
ssue,and 
busi
ness
si
mul
ati
ons 
canpl
ayapar
tint
his.

Oner
elev
antdocument
aryi
s TheCor
por
ati
on,t
hehi
stor
yofor
gani
zat
ionsandt
hei
r
gr
owt
hinpoweri
sdi
scussed.Cor
por
atesoci
alr
esponsi
bil
i
ty,whatacompanydoesi
n
t
ryi
ngt
obenef
itsoci
ety
,ver
suscor
por
atemor
alr
esponsi
bil
i
ty(
CMR)
,whatacompany
shoul
dmor
all
ydo,
arebot
himpor
tantt
opi
cst
oconsi
derwhenl
ooki
ngatet
hicsi
nCSR.
Forexampl
e,RayAnder
son,
i TheCor
n  por
ati
on,t
akesaCMRper
spect
ivei
nor
dert
odo
whati
smor
alandhebegi
nst
oshi
fthi
scompany
'sf
ocust
owar
dst
hebi
ospher
eby
ut
il
izi
ngcar
pet
sinsect
ionssot
hatt
heywi
l
lsust
ainf
orl
ongerper
iods.

Thi
sisAnder
sont
hinki
ngi
nter
msofGar
retHar
din'
s"TheTr
agedyoft
heCommons,
"
wher
eifpeopl
edo notpayat
tent
iont
othepr
ivat
eway
sinwhi
chweusepubl
i
c
r
esour
ces,
peopl
ewi
l
lev
ent
ual
l
yloset
hosepubl
i
cresour
ces.

Geogr
aphy

I
nageogr
aphi
calcont
ext
,CSRi
sfundament
all
yani
ntangi
blepopul
i
sti
deawi
thouta
concl
usi
ve def
ini
ti
on.
 Cor
por
ati
ons who empl
oy CSR behav
ior
s ar
e empi
ri
cal
l
y

24
di
ssi
mil
ari
nvar
iouspar
tsoft
hewor
ld.
 Thei
ssueofCSRdi
ver
sit
yispr
oducedt
hrough
t
heper
pet
ualdi
ff
erencesembedded i
nthesoci
al,pol
i
tical
,cul
tur
al,and economi
c
st
ruct
ureswi
thi
nindi
vi
dualcount
ri
es.
 Thei
mmensegeogr
aphi
calsepar
ati
onsf
easi
bly
cont
ri
but
etot
hel
oosel
ydef
inedconceptofCSRanddi
ff
icul
tyf
orcor
por
ater
egul
ati
on.

Publ
i
cpol
i
cies

CSRhasi
nspi
rednat
ionalgov
ernment
stoi
ncl
udeCSRi
ssuesi
ntot
hei
rnat
ionalpubl
i
c
pol
i
cyagendas.Thei
ncr
easedi
mpor
tancedr
ivenbyCSR,
haspr
ompt
edgov
ernment
sto
pr
omot
esoci
all
yandenv
ironment
all
yresponsi
blecor
por
atepr
act
ices.Ov
ert
hepast
decadegov
ernment
shav
econsi
der
edCSR asapubl
i
cissuet
hatr
equi
resnat
ional
gov
ernment
ali
nvol
vementt
oaddr
esst
hev
eryi
ssuesr
elev
antt
oCSR.Thehei
ght
ened
r
oleofgov
ernmenti
nCSRhasf
aci
l
itat
edt
hedev
elopmentofnumer
ousCSRpr
ogr
ams
and pol
i
cies.Speci
fi
cal
l
y,v
ari
ousEur
opean gov
ernment
shav
eimpl
ement
ed publ
i
c
pol
i
cies on CSR enhanci
ng t
hei
rcompet
ence t
o dev
elop sust
ainabl
e cor
por
ate
pr
act
ices.
 CSR cr
it
icssuchas 
Rober
tRei
ch 
arguet
hatgov
ernment
sshoul
dsett
he
agendaf
orsoci
alr
esponsi
bil
i
tybyt
hewayofl
awsandr
egul
ati
ont
hatwi
l
lal
l
ow a
busi
nesst
oconductt
hemsel
vesr
esponsi
bly
.Act
orsengagedi
nCSR:

 gov
ernment
s

 cor
por
ati
ons

 ci
vi
lsoci
eti
es

Recent
ly,15 
Eur
opeanUni
on 
count
ri
eshav
eact
ivel
yengagedi
nCSR r
egul
ati
onand
[
42]
publ
i
cpol
i
cydev
elopment
.  Recogni
zabl
y,t
heCSR ef
for
tsand pol
i
ciesar
evast
ly
di
ff
erentamongstcount
ri
esr
esul
tantt
othecompl
exi
tyanddi
ver
sit
yofgov
ernment
s’,
cor
por
ati
ons’
,and ci
vi
lsoci
eti
es’r
oles.Schol
ars hav
e anal
yzed each body t
hat
pr
omot
esCSRbasedpol
i
ciesandpr
ogr
amsconcl
udi
ngt
hatt
her
oleandef
fect
iveness
oft
hese act
ors ar
e case-
speci
fi
c. 
Globali
ssues so br
oadl
ydef
ined such as CSR
gener
atenumer
ousr
elat
ionshi
psbet
weent
hedi
ff
erentsoci
o-geogr
aphi
cpl
ayer
s.
25
A keydebat
ein CSR i
s det
ermi
ning whatact
ors ar
eresponsi
blet
o ensur
ethat
cor
por
ati
on’
s ar
e behav
ing i
n a soci
o-economi
c and env
ironment
all
y sust
ainabl
e
manner
.

Regul
ati
on

Thei
ssuessur
roundi
ngcor
por
ater
egul
ati
onposesev
eralpr
obl
ems.Theconceptof
r
egul
ati
on i
sinher
ent
lydi
ff
icul
tto addr
ess because oft
he numer
ous amountof
cor
por
ati
onst
hatexi
star
evast
lydi
ssi
mil
ari
nter
msofcor
por
atebehav
iorandnat
ure.
Thus,r
egul
ati
oni
nit
sel
fisunabl
etocov
erev
eryaspecti
ndet
ailofacor
por
ati
on'
s
oper
ati
ons.Forexampl
e,Thi
sleadst
obur
densomel
egalpr
ocessesboggeddowni
n
i
nter
pret
ati
ons of t
he l
aw and debat
abl
e gr
ey ar
eas (
Sacconi 2004)
. For
exampl
e,
 Gener
alEl
ect
ri
c f
ail
edt
ocl
eanupt
heHudsonRi
ver
 af
tercont
ami
nat
ingi
twi
th
or
gani
c pol
l
utant
s.The company cont
inues t
o ar
gue v
iat
he l
egalpr
ocess on
assi
gnmentofl
i
abi
l
ity
,whi
l
ethecl
eanupr
emai
nsst
agnant
.(Sul
l
ivan&Schi
afo2005)
.
Gov
ernment r
egul
ati
on or publ
i
cinst
it
uti
onalr
egul
ati
on i
s di
ff
icul
tto achi
eve.
Dependi
ng on t
he pol
i
tical r
egi
me and f
orm of gov
ernment
– 
democr
acy
, 
par
li
ament
ary
, 
presi
dent
ial
 
–issuesofgov
ernment
ali
nef
fect
ivenessmay
t
ranspi
re.Asar
esul
t,at
tempt
satCSRpol
i
cydev
elopmentandi
mpl
ement
ati
onmaybe
unat
tai
nabl
e.

Thesecond i
ssuei
sthef
inanci
albur
den t
hatr
egul
ati
on can pl
aceon a nat
ion'
s
economy
.Thi
svi
ewshar
edbyBul
kel
ey,whoci
test
heAust
ral
i
anf
eder
algov
ernment
's
act
ions t
o av
oid compl
i
ance wi
tht
he 
Kyot
o Pr
otocol
 
in 1997,on t
he concer
ns of
economi
clossandnat
ional
int
erest
.

TheAust
ral
i
angov
ernmentt
ookt
heposi
ti
ont
hatsi
gni
ngt
heKy
otoPactwoul
dhav
e
causedmor
esi
gni
fi
canteconomi
clossesf
orAust
ral
i
athanf
oranyot
herOECDnat
ion.
On t
he change ofgov
ernmentf
oll
owi
ng t
he el
ect
ion i
n Nov
ember2007,Pr
ime
Mi
nist
er 
Kev
inRudd 
signed t
her
ati
fi
cat
ioni
mmedi
atel
yaf
terassumi
ng of
fi
ceon3
December2007,j
ustbef
oret
hemeet
ingoft
heUNFr
amewor
kConv
ent
iononCl
i
mat
e
Change.Cr
it
icsofCSRal
sopoi
ntoutt
hator
gani
zat
ionspayt
axest
ogov
ernmentt
o
ensur
ethatsoci
etyand t
he env
ironmentar
e notadv
ersel
yaf
fect
ed bybusi
ness

26
act
ivi
ti
es.

Thegov
ernmentofCanadahasadopt
edanat
ionalposi
ti
ont
hatexpect
sCanadi
an
cor
por
ati
onst
opr
act
icebehav
ior
spar
all
elt
oCSR.I
n2007,
 
Pri
meMi
nist
erHar
per
 was
awar
eofCanada’
sabundanti
nvest
menti
ntot
her
esour
ce/
miner
alext
ract
ivesect
orand
encour
agedt
heCanadi
anmi
ningcompani
est
omeetCanada’
snewl
ydev
elopedCSR
st
andar
dsandexpect
ati
ons.
 Themet
hodofdev
elopi
ngandi
mpl
ement
ingCSRpol
i
cies
wasachi
evedt
hroughgov
ernment
-companyconsul
tat
ionandgov
ernmentst
akehol
der
cooper
ati
on.
 The successf
ulr
elat
ionshi
p bet
ween t
he CSR act
ors wi
thi
n Canada’
s
gov
ernmentandcout
ry,mayadv
ocat
ethatcooper
ati
onamongstconst
it
uenci
esi
sthe
mosti
mper
ati
veel
ementt
oCSRr
egul
ati
on.

TheEur
opeanUni
onhasr
ecent
lydoneext
ensi
vewor
ktot
ryandf
indt
hebestf
orm of
r
egul
ati
on.Some cr
it
ics ar
gue t
hatt
he cr
eat
ion ofa CSR or
gani
zat
ion wi
tha
democr
ati
cal
l
yappoi
ntedmi
nist
erf
ocusedsol
elyonmoni
tor
ingandenf
orci
ngsoci
all
y
r
esponsi
blebehav
iourwi
l
lbeext
remel
yef
fect
ive.

Laws

Thel
awsl
egal
l
ybi
ndi
ngt
hecor
por
ati
on’
sbehav
iorandact
ivi
tyar
equi
tei
nsi
gni
fi
canti
n
r
elat
iont
othegl
obalconsequences.Onl
yrecent
lyhav
ecount
ri
esi
ncl
udedCSRpol
i
cies
i
ngov
ernmentagendasl
egi
slat
ure.
 Commont
ypesofcount
ri
eswhohav
eimpl
ement
ed
l
egi
slat
ion and CSR l
aws gener
all
y consi
st of soci
o-economi
c and pol
i
tical
l
y
sophi
sti
cat
edcount
ri
es.Thel
evelofpol
i
ticalst
abi
l
ityandef
fect
ivenessi
sinext
ri
cabl
y
l
i
nkedt
oacount
ri
escapaci
tyt
oensur
enat
ional
CSRpol
i
cies.

Thei
ncr
easi
ngabi
l
ityandi
nfl
uencecor
por
ati
onshav
eont
heeconomi
c,pol
i
tical
,and
soci
aldy
nami
csofsoci
etycor
rel
atet
other
ecentst
udi
esbyt
he 
UN Commi
ssi
onon
HumanRi
ght
s. 
Mor
eresear
chandi
nter
nat
ionalpol
i
ticali
nst
rument
sar
ebei
ngex
plor
ed
t
opr
otectandpr
eventcor
por
ati
onsf
rom v
iol
ati
nghumanr
ight
s.

Denmar
k hasal
awonCSR.On16December2008,
theDani
shpar
li
amentadopt
edabi
l
l
maki
ngi
tmandat
oryf
ort
he1100l
argestDani
shcompani
es,
inv
est
orsandst
ate-
owned
compani
est
oincl
udei
nfor
mat
ion on cor
por
atesoci
alr
esponsi
bil
i
ty(
CSR)i
nthei
r

27
annualf
inanci
alr
epor
ts.Ther
epor
ti
ngr
equi
rement
sbecameef
fect
iveon1Januar
y
[
46]
2009.  Ther
equi
redi
nfor
mat
ioni
ncl
udes:

 i
nfor
mat
ion on t
he compani
es’ pol
i
cies f
or CSR or
 soci
all
y r
esponsi
ble
i
nvest
ment
s (
SRI
)

 i
nfor
mat
iononhowsuchpol
i
ciesar
eimpl
ement
edi
npr
act
ice,
and

 i
nfor
mat
ion on what r
esul
ts hav
e been obt
ained so f
ar and management
expect
ati
onsf
ort
hef
utur
ewi
thr
egar
dtoCSR/
SRI
.

CSR/
SRIi
sst
il
lvol
unt
aryi
nDenmar
k,buti
facompanyhasnopol
i
cyont
hisi
tmust
st
atei
tsposi
ti
oni
ngonCSRi
nthei
rannualf
inanci
alr
epor
t.Mor
eont
heDani
shl
awcan
bef
oundat
 CSRgov
.dk

Cr
isesandt
hei
rconsequences

Of
teni
ttakesacr
isi
stopr
eci
pit
ateat
tent
iont
oCSR.Oneoft
hemostact
ivest
ands
agai
nstenv
ironment
almi
smanagementi
sthe CERES 
Pri
nci
plest
hatr
esul
ted af
ter
t
he 
ExxonVal
dez 
i
nci
denti
nAl
askai
n1989(
GraceandCohen2006)
.Ot
herexampl
es
i
ncl
udet
he 
l
eadpoi
soni
ng 
pai
ntusedbyt
oygi
ant
 Mat
tel
,whi
chr
equi
redar
ecal
lof
mi
l
li
onsoft
oysgl
obal
l
yandcausedt
hecompanyt
oini
ti
atenewr
iskmanagementand
qual
i
tycont
rolpr
ocesses.I
nanot
herexampl
e,
 Magel
l
anMet
als 
i
ntheWestAust
ral
i
an
t
ownofEsper
ancewasr
esponsi
blef
orl
eadcont
ami
nat
ionki
l
li
ngt
housandsofbi
rdsi
n
t
hear
ea.Thecompanyhadt
oceasebusi
nessi
mmedi
atel
yandwor
kwi
thi
ndependent
r
egul
ator
ybodi
est
oexecut
eacl
eanup.

Odwal
l
aal
soexper
iencedacr
isi
swi
thsal
esdr
oppi
ng90%,andt
hecompany
'sst
ock
pr
icedr
oppi
ng34%duet
osev
eralcasesof
 E.col
i
 spr
eadt
hroughOdwal
l
a appl
e j
uice.
Thecompanyor
der
edar
ecal
lofal
lappl
eor
 car
rot
 j
uicepr
oduct
sandi
ntr
oducedanew
pr
ocesscal
l
ed"
fl
ashpast
eur
izat
ion"aswel
lasmai
ntai
ningl
i
nesofcommuni
cat
ion
const
ant
lyopenwi
thcust
omer
s.

28
St
akehol
derpr
ior
it
ies

I
ncr
easi
ngl
y,cor
por
ati
onsar
emot
ivat
edt
obecomemor
esoci
all
yresponsi
blebecause
t
hei
rmosti
mpor
tantst
akehol
der
sexpectt
hem t
ounder
standandaddr
esst
hesoci
al
and communi
tyi
ssuest
hatar
erel
evantt
othem.Under
standi
ng whatcausesar
e
i
mpor
tantt
oempl
oyeesi
susual
l
ythef
ir
stpr
ior
it
ybecauseoft
hemanyi
nter
rel
ated
busi
nessbenef
it
sthatcanbeder
ived f
rom i
ncr
eased empl
oyeeengagement
.Key
ext
ernal
stakehol
der
sincl
udecust
omer
s,consumer
s,i
nvest
ors(
par
ti
cul
arl
yinst
it
uti
onal
i
nvest
ors)
,communi
ti
esi
nthear
easwher
ethecor
por
ati
on oper
atesi
tsf
aci
l
iti
es,
r
egul
ator
s,academi
cs,
andt
hemedi
a.

Br
anco and Rodr
igues(
2007)descr
ibet
hest
akehol
derper
spect
iveofCSR ast
he
i
ncl
usi
onofal
lgr
oupsorconst
it
uent
s(r
athert
hanj
ustshar
ehol
der
s)i
nmanager
ial
deci
si
on maki
ng r
elat
ed t
othe or
gani
zat
ion’
s por
tfol
i
o of soci
all
yresponsi
ble
act
ivi
ti
es.
 Thi
s nor
mat
ive modeli
mpl
i
est
hatt
he CSR col
l
abor
ati
onsar
e posi
ti
vel
y
accept
edwhent
heyar
eint
hei
nter
est
sofst
akehol
der
sandmayhav
enoef
fectorbe
det
ri
ment
alt
otheor
gani
zat
ioni
ftheyar
enotdi
rect
lyr
elat
edt
ost
akehol
deri
nter
est
s.
Thest
akehol
derper
spect
ivesuf
fer
sfr
om awheelandspokenet
wor
kmet
aphort
hat
doesnotacknowl
edget
hecompl
exi
tyofnet
wor
kint
eract
ionst
hatcanoccuri
ncr
oss
sect
orpar
tner
shi
ps.I
tal
sor
elegat
escommuni
cat
iont
oamai
ntenancef
unct
ion,
simi
l
ar
t
otheexchangeper
spect
ive.

HI
STORI
CALBACKGROUND

29
I
nthel
ate18t
hcent
uryaScot
ti
shphi
l
osopherandeconomi
stnamedAdam Smi
thwr
ote
numer
ousar
ti
cl
esont
hesesubj
ect
s,hi
smagnum opusbei TheWeal
ng  thofNat
ions 
i
n
whi
chheespousedt
heconcept
soff
reet
radeandt
hef
reemar
ketonwhi
cht
hecl
assi
c
mar
keteconomywasbased.

Smi
th’
spr
inci
pleswer
ebor
neout
.Byt
heear
ly19t
hCent
ury
,newt
echnol
ogysawj
obs
bei
ng cr
eat
ed and l
i
ving st
andar
dsi
mpr
oved.Unchecked byr
egul
ati
onbusi
nesses
f
lour
ishedandi
ndust
ri
ali
stsi
nEur
opeandt
heUSAamassedhugef
ort
unes.

30
Howev
erf
ewoft
heseweal
thynewi
ndust
ri
ali
stswer
econcer
nedaboutt
hewel
l
bei
ngof
t
hei
rempl
oyees,soci
etyort
heenv
ironment
.Theappal
l
ingcondi
ti
onsunderwhi
ch
peopl
ewor
kedwer
edocument
edi
nthenov
elsofChar
lesDi
ckensandi
nspi
redr
adi
cal
t
heor
ist
ssuchasKar
lMar
xandFr
iedr
ichEngel
stowr
it
eaboutnewconcept
sonl
abour
,
soci
ali
sm andcommuni
sm.
  

Byt
hest
artoft
he20t
hcent
ury
,power
fulcor
por
ati
onssuf
fer
edabackl
ashagai
nstt
hei
r
wi
despr
eadexpl
oit
ati
on.Labouruni
onswer
efor
med,
giv
ingav
oicet
othewor
ker
s,and
gov
ernment
s began t
o assume mor
eresponsi
bil
i
tyf
orwel
far
e and i
nfr
ast
ruct
ure,
gr
adual
l
yint
roduci
ngant
i-
tr
ustl
egi
slat
ion.
 

I
nthe1950s,emer
ging‘
consumerpower
’sawcompani
esst
artt
aki
nganewi
nter
esti
n
t
hesoci
alandhumanaspect
soft
hei
rmar
ket
s–i
twasataboutt
hist
imesci
ent
ist
sand
env
ironment
ali
stsst
art
ednot
ici
ngsomewor
ryi
ngchangest
otheenv
ironment
.

The 1960s saw a shi

fti
n at
ti
tudes t
owar
ds gov
ernmentand busi
ness.I
n 1962
Pr
ofessor Mi
l
ton Fr
iedman, Nobel Pr
ize-
winni
ng economi
st, publ
i
shed hi
s
cont
rov
ersi
alCapi
  tal
i
sm andFr
eedom.I
nithemakest
hecasef
oreconomi
cfr
eedom
asapr
econdi
ti
onf
orpol
i
tical
freedom.

The 1980s and 1990s saw communi

sm col
l
apse,gl
obal
i
zat
ion emer
ge and t
he
i
nfor
mat
ion r
evol
uti
on change t
he way t
he wor
ld di
d busi
ness.As gl
obal
i
zat
ion
i
ntensi
fi
ed,so di
d env
ironment
alawar
eness and t
he emer
gence ofr
esponsi
ble
busi
ness pr
act
ice.Key dev
elopment
sincl
ude:t
he Br
undt
land Commi
ssi
on,t
he
f
ormat
ionoft
heWor
ldBusi
nessCounci
lforSust
ainabl
eDev
elopment
,andt
heUni
ted
Nat
ionsGl
obal
Compact
.

CURRENTSTATEOFTHEFI
ELD

31
Byanycount
,thewor
ldi
schangi
ngf
ast
ert
hanev
erbef
ore.Humannumber
sar
e
gr
owi
ngf
ast
er,andt
hei
mpactofouract
ivi
ti
esi
sbei
ngf
elti
nmor
eandmor
eway
s.
Thi
schangehaspr
ofoundi
mpl
i
cat
ionsf
orbusi
ness,
andmeanst
hatt
hewor
ldofCSR-
orhowbusi
nessesr
espondt
osoci
ety
'sexpect
ati
ons-i
satt
hef
oref
rontoft
hischange.
Soi
t'
swor
thl
ooki
ngf
orwhatar
ethecur
rentt
rendsandwher
ear
etheyheadi
ng.
Whatdr
ivest
rendsi
nanar
eal
i
keCSR?

Thr
eet
hings.

One-at
ti
tudest
obusi
nessandi
tsr
elat
ionshi
pwi
thsoci
etyar
echangedandshapedby

32
out
sideev
ent
s.Thesecanbedemonst
rat
ionsofsoci
alpr
obl
emst
hatsubst
ant
ial
l
y
changet
heenv
ironmentwi
thi
nwhi
chcompani
esdobusi
ness,whi
char
epar
ti
all
yor
whol
l
ycausedbybusi
nessact
ivi
ti
es,orwhi
chbusi
nessesar
eli
kel
ypar
tner
sinf
indi
ng
sol
uti
ons.
Thesecanbeasdi
ver
seasext
remecl
i
mat
eev
ent
srai
singt
hepr
ofi
l
eandpubl
i
c
concer
n aboutcl
i
mat
e change,r
ightt
hrough t
oar
un ofi
nci
dencesofcor
por
ate
cor
rupt
ion.Busi
nesses ar
e cal
l
ed upon t
o change behav
iour
s orsol
ve pr
obl
ems
becauseofsomet
hingext
ernal
tot
hem.

Two-exper
tpr
act
it
ioner
shav
eav
isi
onf
orhow sust
ainabl
ebusi
nessshoul
doper
ate,
anddev
elopnewi
deas,ori
ncr
easeexper
ti
seonpastexper
ience,andi
mpl
ementt
hese
wi
thi
nthe busi
ness.Thi
sdef
ineshow busi
nessesf
ocust
hei
rat
tent
ion when t
he
spot
li
ghti
sn'
tpar
ti
cul
arl
yont
hem.Dot
heydef
ineCSRasbei
ngaboutphi
l
ant
hropy
,or
env
ironment
almanagement
,orcor
epur
poseandt
hebusi
nessmodel
?

Thr
ee-out
sideagenci
escr
eat
eav
isi
onf
ort
heachi
evementoff
utur
egoal
s,and
act
ivel
yrecr
uitbusi
nesses and par
tner
s.So i
nrecenty
ear
s,t
he i
nvol
vementof
busi
nessesi
nfi
ndi
ngway
stomeett
hemi
l
leni
um dev
elopmentgoal
shasbeenan
exampl
e.

TheTop10Tr
endsi
nCSRf
or2012

 
1.Goi
ngGl
obal
:
 Ther
elent
lessmar
cht
owar
dgl
obal
i
zat
ionwi
l
lcont
inuet
ost
ret
cht
he

33
scopeofcor
por
ater
esponsi
bil
i
ty.Fori
nst
ance,
thenewconf
li
ctmi
ner
alsr
equi
rementi
n
t
heDodd-
FrankFi
nanci
alRef
orm Actbr
eaksnew gr
oundf
ort
hescopeofcor
por
ate
r
esponsi
bil
i
ty,
byr
equi
ri
ngmanyt
ypesofbusi
nessest
otr
ackf
ourmi
ner
alsbackt
othei
r
sour
cest
oensur
etheydon’
tfuelconf
li
cti
nthemi
nef
iel
dsofCent
ralAf
ri
ca.Ast
hisand
si
mil
arr
equi
rement
sar
ise,
thet
rendi
scl
ear
:Cor
por
atesoci
alr
esponsi
bil
i
tyl
eader
swi
l
l
bei
ncr
easi
ngl
yaccount
abl
eforr
esponsi
blebehav
ioral
lal
ongt
hei
rsuppl
ychai
ns.

2.TheTr
iumph(
orTy
ranny
)ofTr
anspar
ency
: 
Thepr
essur
eforev
eri
ncr
easi
ngl
evel
sof
t
ranspar
ency and di
scl
osur
e wi
l
l bui
l
d i
n 2012. Last y
ear
, accor
ding t
o
Cor
por
ateRegi
ster
.com, mor
e t
han 5,
500 compani
es ar
ound t
he wor
ld
i
ssued 
sust
ainabi
l
ityr
epor
ts,upf
rom about800adecadeago.Al
so,t
he“
Rat
ethe
Rat
ers”r
epor
tfr
om 
conf
ound t
hatmor
ethan 100 set
sofr
ati
ngsmeasur
e whi
ch
compani
esar
ethemostr
esponsi
ble.Al
lthebi
gfouraccount
ingf
ir
msar
eexpandi
ng
t
hei
rpr
act
icest
oaudi
tal
loft
hesedi
scl
osur
esandar
eal
sosponsor
ingt
heexpanded
f
our
th edi
ti
on of t
he Gl
obal Repor
ti
ng I
nit
iat
ive Gui
del
i
nes, whi
ch out
li
ne
st
andar
d CSR 
discl
osur
es.I
n2012apr
omi
singnew i
nit
iat
ive,t
heGl
obalI
nit
iat
ivef
or
Sust
ainabi
l
ityRat
ings,wi
l
lendeav
ort
ost
andar
dizet
her
ati
ngsf
ramewor
k,butbey
ond
t
hatt
her
eisl
i
ttl
erel
i
efi
nsi
ghtf
ort
hesur
vey
-fat
iguedCSRmanager
.

3. Empl
oyee Engagement Emer
ges:
 
The connect
ion bet
ween 
CSR 
and engaged
empl
oyeescont
inuest
ogr
ow.AHewi
tt&Associ
ates 
study l
ookedat230wor
kpl
aces
wi
th mor
ethan 100,
000 empl
oyeesand f
ound t
hatt
hemor
ea companyact
ivel
y
pur
sueswor
thyenv
ironment
alandsoci
alef
for
ts,t
hemor
eengagedi
tsempl
oyeesar
e.
TheSoci
etyf
orHumanResour
cesManagement
 compar
edcompani
es 
thathav
est
rong
sust
ainabi
l
itypr
ogr
amswi
thcompani
est
hathav
epooronesandf
oundt
hati
nthe
f
ormermor
alewas 
55%bet
ter
,busi
nesspr
ocesswer
e43%mor
eef
fi
cient
,publ
i
cimage
was43%st
ronger
,andempl
oyeel
oyal
tywas38%bet
ter
.

4.Pol
i
ticalPi
tf
all
s:Theel
ect
ionswi
l
ldomi
nat
ethepubl
i
cconv
ersat
ioni
ntheU.
S.i
n
2012,andcor
por
ati
onswi
l
lbeal
ter
nat
elydescr
ibedasgr
eedy
,pol
l
uti
ng,unt
rust
wor
thy
pol
i
ticalpuppetmast
ersandj
ob-
creat
ingpar
agonsofv
irt
ue—wi
thl
i
ttl
eroom i
nthe

34
mi
ddl
e.Bey
ondt
her
het
ori
c,candi
dat
eswon’
tbeabl
etor
esi
sthi
ghl
i
ght
ingcompany
successst
ori
esf
eat
uri
ngeconomi
c,env
ironment
alandsoci
albenef
it
s. 
CSR 
l
eader
s
shoul
dchoosewhatt
heypr
omot
ewi
sel
yandsetcl
earboundar
iest
oav
oidbecomi
ng
pol
i
tical
foot
bal
l
s.

5.Col
l
abor
ati
ti
on:
 
As CSR becomes mor
e ofa di
ff
erent
iat
or,compani
es wi
l
lbot
h
compet
eandcol
l
abor
ateonCSRi
ssues.Idev
isedt
het
erm col
l
abor
ati
ti
on 
i
na2011
speecht
odescr
ibehowcompani
esbot
hcompet
eandcol
l
abor
ateonCSRatt
hesame
t
ime.Thenumer
ousCSRr
ati
ngs,t
oget
her
 wi
thdat
afr
om t
heReput
ati
onI
nst
it
ute’
s
2011 
“Pul
seSur
vey
,” 
whi
chi
ndi
cat
ethatCSRi
sresponsi
blef
ormor
ethan40% ofa
company
’sr
eput
ati
on,
layt
hebasi
sforCSRcompet
it
ion.Ont
heot
herhand,
ther
ear
ea
pl
ethor
aofassoci
ati
onsandmul
tist
akehol
dernet
wor
kst
hatf
ost
ercol
l
abor
ati
onon
CSRt
opi
cs.Gr
oupsl
i
ket
heEl
ect
roni
csI
ndust
ryCi
ti
zenshi
pCoal
i
tiondemonst
rat
ehow
compet
it
orscanpar
tneronCSRi
ssuesl
i
keconf
li
ctmi
ner
als.Whywoul
dthey
?Such
i
ssuesar
esomassi
vet
hatwor
kingt
oget
heri
scl
ear
lymor
eef
fi
cient
.
Ont
heot
herendoft
hespect
rum ar
eini
ti
ati
vesl
i
ke 
GE’
secomagi
nat
ion 
progr
am,
whi
ch
f
urt
her
scompet
it
iveadv
ant
age.
 “Col
l
abor
ati
ti
on”meanst
hatcompani
escanandwi
l
l
col
l
abor
ateonCSRef
for
tswhent
hati
smor
eef
fi
cient
,whi
l
econt
inui
ngt
ocompet
eon
t
hei
rsi
gnat
ureCSRpr
ogr
ams.

6.Sust
ainabi
l
ityShopper
s: 
Consumer
sar
eincr
easi
ngl
y t
unedi
ntosust
ainabi
l
itywhen
maki
ngt
hei
rbuy
ingdeci
sions.“
Greenl
abel
s”hav
ebeenar
oundf
oral
ongt
ime,
butWal
-
Mar
t’
s 
sust
ainabi
l
ityi
ndex 
i
staki
ngi
tupanot
ch. 
Alr
eadydr
ivi
ngWMTsuppl
i
erst
o
i
mpr
oveper
for
mance,i
nthef
utur
ethei
ndexcoul
dappearonapoi
nt-
of-
sal
elabelf
or
pr
oduct
s.Expectgr
eenmar
ket
ingi
n2012t
oupt
heant
ebasedont
hesuccessesof
campai
gnsl
i
keTi
mber
land’
sEar
thkeeper
sli
ne 
(“
Nat
ureNeedsHer
oes”
).Per
hapst
he
hi
ghwat
ermar
kforeco-
mindedadv
ert
isi
ngwasPat
agoni
a’
sbr
il
li
ant
 “
Don’
tBuyThi
s
Jacket
” 
messagi
ng.
 
I
ts 
CommonThr
eads 
Ini
ti
ati
veaskscust
omer
stopl
edget
oonl
ybuywhatt
heyneed
andi
nst
eadr
epai
r,r
euse,
andr
ecy
clet
hei
rcl
othi
ng.Not
hingi
nspi
resconf
idencei
nyour
eco-
val
ues mor
ethan t
ell
i
ng cust
omer
s nott
o buy y
ourpr
oduct
s.I
ndependent

35
cer
ti
fi
cat
ionschemesl
i
ket
he 
GoodGui
de 
wil
lcont
inuet
opr
oli
fer
ate,aswi
l
l“cause
mar
ket
ing,
”fort
hesi
mpl
ereasont
hati
twor
ks.
  
ConeCommuni
cat
ions 
repor
tsi
nit
s
2010 Cause Ev
olut
ion St
udy t
hat“
even as cause mar
ket
ing cont
inues t
o gr
ow,
consumer
sar
eeagerf
ormor
e.I
nfact
,83per
centofAmer
icanswantMOREoft
he
pr
oduct
s,ser
vicesandr
etai
l
erst
heyuset
osuppor
tcauses.
”

7.OccupyFr
om t
heI
nsi
de:
 
Pri
ceWat
erhouseCooper
s hasf
oundt
hat88%ofmi
l
lenni
als,
or“
echoboomer
s,”chooseempl
oyer
sbasedonst
rongCSRv
alues,and86% woul
d
consi
derl
eav
ingi
fthecompani
es’CSRv
aluesnol
ongermett
hei
rexpect
ati
ons.Asa
new gener
ati
ongoest
owor
kincor
por
ateAmer
ica,i
tisbr
ingi
ngst
rongsoci
alj
ust
ice
v
alueswi
thi
t.Att
hesamet
ime,
compani
esar
eunderi
ncr
easi
ngpr
essur
eto“
gogr
een.
”
Sodespi
tet
hepopul
arv
iewt
hatcor
por
ati
onsar
einar
acet
othebot
tom,
2012wi
l
lsee
mor
ejobscr
eat
edf
orCSRpr
ofessi
onal
swhowantt
ochangebusi
nessf
rom t
hei
nsi
de
out
.
Compani
esofal
lki
ndsar
elooki
ngf
orpeopl
etohel
pimpr
ovet
hei
renv
ironment
al,
soci
al,andet
hicalper
for
mancet
hroughoutt
hei
rval
uechai
ns.
 Ther
ear
erecr
uit
ers
l
i
ke 
Ell
enWei
nreb 
and 
Mar
thaMont
agBr
ownwhospeci
ali
zei
nCSRj
obs,andt
hebi
g
r
ecr
uit
ershav
ecaughtont
oo.

8.
 Soci
alMedi
a Rul
es:
 Iwi
l
ladmi
tthatIor
igi
nal
l
ygotaFacebookaccountj
ustt
oannoy
mychi
l
dren.Now FacebookandTwi
tt
erar
eessent
ialcommuni
cat
ionst
ool
sforany
ser
iousCSRpr
ogr
am.Soci
almedi
aisnotar
epl
acementf
orhef
tyannualCSRr
epor
ts,
butt
hoser
epor
tsar
eincr
easi
ngl
yst
ati
cref
erencedocument
s,usedmai
nlyf
orl
ooki
ng
upf
act
sandgr
adi
ngper
for
mance.Soci
almedi
aopensawayf
orst
akehol
der
sto
i
nter
actdi
rect
lywi
thacompany
’sCSRpr
ogr
am.Thr
oughsoci
almedi
a,compani
esgai
n
af
oll
owi
ngofpeopl
ewhoar
eint
erest
edi
nthei
rCSRper
for
manceandcankeept
abson
st
akehol
dersent
imentonanyemer
gingi
ssue.

9.HumanRi
ght
s:Si
ncet
he2008publ
i
cat
ionoft
he 
“Ruggi
eRepor
t” 
onhumanr
ight
s
andt
ransnat
ional
cor
por
ati
ons,
compani
eshav
ebeenwaki
ngupt
ohumanr
ight
sissues

36
acr
osst
hei
rval
ue chai
ns.Forexampl
e,t
he maj
orI
nter
netsear
ch compani
esar
e
embr
oil
edi
nbasi
chumanr
ight
squest
ionsr
angi
ngf
rom t
hepr
otect
ionoff
reespeech
dur
ingt
he“
ArabSpr
ing”t
obei
ngcompel
l
edt
oident
if
ydi
ssi
dent
sinr
epr
essi
ver
egi
mes.
I
nat
imeofgl
obal
i
zat
ion,hy
per
-t
ranspar
ency
,and i
ncr
easi
ng expect
ati
onsamong
i
nfor
medst
akehol
der
s,t
her
iski
nev
ent
aci
tcompl
i
cit
yinhumanr
ight
svi
olat
ionsi
s
gr
owi
ng.Wi
secompani
eswi
l
ltakeahar
dlookatt
hei
rhumanr
ight
spol
i
ciesand
pr
act
icesi
n2012andactt
omi
ti
gat
eanyl
i
abi
l
iti
es.

10.Ear
thatSev
enBi
l
li
onandGr
owi
ng:
 
In2011t
he 
wor
ld’
spopul
ati
ont
oppedsev
en
bi
l
li
onpeopl
e.Ev
enatsev
enbi
l
li
onwehav
eav
ert
edaMal
thusi
ancat
ast
rophe—sof
ar.
Butasmor
epeopl
ecompet
efort
heEar
th’
sresour
ces,
theneedt
obemor
eef
fi
cientwi
l
l
cont
inuet
oincr
ease.Ev
ery
thi
ngf
rom ener
gyef
fi
cientsemi
conduct
orst
oel
ect
ri
ccar
s
t
owat
erconser
vingpl
ant
swi
l
lfi
ndnewmar
ket
sin2012andbey
ond.Thei
mper
ati
vet
o
st
ret
chr
esour
cesev
erf
urt
herwi
l
lmakesust
ainabi
l
ityacent
raldesi
gnpr
inci
plef
ort
he
wi
nni
ngcor
por
ati
onsoft
hef
utur
e.

CHAPTER-
2

37
 OBJECTI
VES

- TOKNOW WHATI
SCSR(
CORPORATESOCI
ALRESPONSI
BILI
TY)

- TOKNOW ABOUTWHATI
SBANKI
NGANDI
NSUARNCESECTORANDHOW I
T
WORKS.

- CSRACTI
VITI
ESDONEBYCORPORATES

- WHATARETHERECENTTRENDSI
NCSR

- ANDWHATI
STHECONTRI
BUTI
ONOFBANKI
NGANDI
NSURANCESECTORI
N
CSR

CHAPTER-
3

38
 RESEARCHMETHODOLOGY

I
NTRODUCTI
ONTORM

Mar
ket
ingr
esear
chi
sthef
unct
ionwhi
chl
i
kest
heconsumer
s,cust
omer
s&publ
i
cto
t
hemar
ket
ert
hroughi
nfor
mat
ionwhi
chi
susedt
oident
if
y& def
inemar
ket
ing
oppor
tuni
ti
es& pr
obl
ems,gener
ate,r
efi
ne& ev
aluat
emar
ket
ingact
ion;moni
tor
mar
ket
ingper
for
mances&i
mpr
oveunder
standi
ngofmar
ket
ingasapr
ocess.

I
thasf
oll
owi
ngst
eps:

I
: PROBLEM DEFI
NITI
ON

I
I:DEVELOPMENTOFANAPPROACHTOTHEPROBLEM

I
II
:RESEARCHDESI
GNFORMULATI
ON

I
V:FI
ELDWORKORDATACOLLECTI
ON

V:DATAPREPARATI
ONANDANALYSI
S

VI
:REPORTPREPRATI
ONANDPRESENTATI
ON

2.
1 RESEACHDESI
GN:
I
tisf
ramewor
korbl
uepr
intf
orconduct
ingt
hemar
ketr
esear
chpr
oject
.Itspeci
fi
es
t
he det
ail
s ofpr
ocedur
es necessar
yforobt
aini
ng t
he i
nfor
mat
ion needed t
o
st
ruct
ureand/
orsol
vemar
ket
ingr
esear
chpr
obl
em.

39
 Resear
chdesi
gnbr
oadl
ycl
assi
fi
edi
ntot
wopar
ts:

Expl
orat
oryResear
ch

Concl
usi
veResear
ch

 EXPLORATORYRESEARCH:

Expl
orat
oryr
esear
ch l
ooks f
orhy
pot
hesi
sin wel
l
-est
abl
i
shed f
iel
ds ofst
udy
.
Hy
pot
hesi
susual
l
ycomesf
rom i
deasdev
eloped i
npr
evi
ousr
esear
chesorar
e
del
i
ver
edf
rom t
heor
y.Hy
pot
hesi
sist
ent
ati
veanswert
othequest
iont
hatser
vesas
gui
def
ormostoft
her
esear
chpr
oject
s

I
tseekst
odi
scov
ernewr
elat
ionshi
ps.Al
lmar
ket
ingr
esear
chpr
oject
sst
artwi
thi
t.
Thi
sisapr
eli
minar
yphase&i
sabsol
utel
yessent
iali
nor
dert
oobt
ainapr
oper
def
ini
ti
onofpr
obl
emsathand.Themaj
oremphasi
sisont
hedi
scov
eryofi
deas&
i
nsi
ght
.

 CONCLUSI
VERESEARCH:

Concl
usi
ver
esear
chpr
ovi
desi
nfor
mat
iont
hathel
pst
heexecut
ivesot
hathecanmake
ar
ati
onaldeci
si
on.Thi
sst
udyhasdonewel
lwhi
l
eat
tempt
ingt
oar
ri
veatamor
ecl
ear
descr
ipt
ionofanappar
entpr
obl
em.

2.
2TARGETPOPULATI
ON:

Thecol
l
ect
ion ofel
ement
sorobj
ectt
hatpossesst
hei
nfor
mat
ion soughtbyt
he
r
esear
cherandaboutwhi
chi
nfer
encear
etobemadeTar
getpopul
ati
onshoul
dbe
def
inedi
nter
m ofEl
ementandSampl
i
nguni
t.

 ELEMENT:
Obj
ectt
hatpossess t
he i
nfor
mat
ion soughtby t
he r
esear
cherand aboutwhi
ch
i
nfer
encesar
etobemade.

 SAMPLI
NGUNI
T:

40
Thebasi
cuni
tcont
aini
ngt
heel
ement
soft
hepopul
ati
ont
obesampl
ed.

2.
3SAMPLESI
ZE:

Sampl
esi
zer
efer
stot
henumberofel
ement
stobeusedi
nast
udy
.

2.
4SAMPLI
NGTECHNI
QUES:

Sampl
i
ngTechni
quesar
eoft
wot
ypes:

Nonpr
obabi
l
ity(
nonr
andom)
Pr
obabi
l
itysampl
i
ng(
random sampl
i
ng)
Thesampl
i
ngt
echni
queusedi
nthi
sresear
chi
sNon-r
andom sampl
i
ngt
echni
quesi
n
whi
chIhav
echooseconv
eni
encesampl
i
ngt
echni
quebecausei
tisl
eastexpensi
veand
l
eastt
imeconsumi
ngofal
lsampl
i
ngt
echni
ques.

Conv
eni
encesampl
e:

I
tisal
soknownas"
acci
dent
al"sampl
eor"
man-
in-
the-
str
eet
"sampl
es.

 SCOPEOFSTUDY:
Thescopeoft
hest
udywi
l
lbeusef
uli
nfut
ure.Thr
ought
hisst
udywecanknowwhati
s
CSR,
howBanki
ng&I
nsur
ancesect
orwor
ksandwhatar
etheCSRact
ivi
ti
esadopt
edby
Banki
ng & I
nsur
ance Sect
or.Thr
ough t
his st
udywe wi
l
lfi
nd outt
he f
act
ors of
awar
enessf
orCSRbycor
por
ates.

Hencebyi
mpl
ement
ingal
ltheabov
ewecananal
yzet
heCSRi
nit
iat
ivesbyBanki
ng&
I
nsur
ancesect
or.

41
2.
6DATACOLLECTI
ONMETHOD:

Thedat
acol
l
ect
ionpr
ocesscanber
elat
ivel
ysi
mpl
edependi
ngont
het
ypeofdat
a
col
l
ect
ion t
ool
srequi
red and used dur
ing t
he r
esear
ch.Dat
a col
l
ect
ion t
ool
s ar
e
i
nst
rument
susedt
ocol
l
ecti
nfor
mat
ionf
orper
for
manceassessment
s,sel
f-
eval
uat
ions,
andext
ernalev
aluat
ions.Thedat
acol
l
ect
iont
ool
sneedt
obest
rongenought
osuppor
t
whatt
heev
aluat
ionsf
inddur
ingr
esear
ch.Her
ear
eaf
ewexampl
esofdat
acol
l
ect
ion
t
ool
susedwi
thi
nthr
eemai
ncat
egor
ies.

Secondar
ypar
ti
cipat
ion:Secondar
ypar
ti
cipat
ion r
equi
re no di
rectcont
actt
o Dat
a
col
l
ect
iont
ool
susedi
nper
sonalcont
actobser
vat
ionsar
eusedat
heri
nfor
mat
ion.I
t
i
nvol
ve:

Post
almai
l
El
ect
roni
cmai
l
Tel
ephone
Web-
basedsur
vey
s

I
n-per
sonobser
vat
ionswhent
her
eisf
acet
ofacecont
actwi
tht
hepar
ti
cipant
s.Some
exampl
esoft
hist
ypeofdat
acol
l
ect
iont
ool
woul
dincl
ude:

I
n-per
sonsur
vey
s–usedt
ogai
ngener
alanswer
stobasi
cquest
ions

Di
rectorpar
ti
cipat
oryobser
vat
ions–wher
ether
esear
cheri
sdi
rect
lyi
nvol
vedwi
tht
he
st
udygr
oup

I
nter
views–usedt
ogai
nmor
eindept
hanswer
stocompl
exquest
ions

Focusgr
oups–wher
ecer
tai
nsampl
egr
oupsar
easkedt
hei
ropi
nionaboutacer
tai
n
subj
ectort
heor
y.

42
  CaseSt
udi
esAndCont
entAnal
ysi
s:

Casest
udi
esandcont
entanal
ysi
sar
edat
acol
l
ect
iont
ool
swhi
char
ebaseduponpr
e-
exi
sti
ngr
esear
chorasear
chofr
ecor
dedi
nfor
mat
ionwhi
chmaybeusef
ult
othe
r
esear
cheri
ngai
ningt
her
equi
redi
nfor
mat
ionwhi
chf
il
lsi
nthebl
anksnotf
oundwi
th
t
heot
hert
wot
ypesdur
ingt
hedat
acol
l
ect
ionpr
ocess.Someexampl
esoft
hist
ypeof
dat
acol
l
ect
iont
ool
woul
dincl
ude:

Exper
topi
nions–l
eader
sint
hef
iel
dofst
udy

Casest
udi
es–pr
evi
ousf
indi
ngsofot
herr
esear
cher
s

Li
ter
atur
esear
ches–r
esear
char
ti
clesandpaper
s

Ihav
eusedcasest
udi
es,r
efer
redbooksandi
nter
netsi
tes,pr
evi
ousy
earr
epor
tsand
newspaper
sforpr
epar
ingt
hepr
ojectr
epor
t.

43
CHAPTER-
4

ANALYSI
S

BANKI
NG&I
NSURANCESECTOR

BANKI
NGSECTOR:

ThebankinginIndi
ast art
edwi t
htheestabl
ishmentoft heGeneralBankofIndiain1786.
LatertheBankofHi ndustanwasal soestabli
shed.Howev er,bot
hthebanksar enotin
funct
ionalst
atecurr
ently
.It'
stheStateBankofIndia,whichiscurr
entl
ytheoldestbanki
n
Indi
ainexist
ence,
establi
shedin1806.

Sincethebeginning,duetohugemarketpotenti
al,anumberofbankingcompani eshave
comeupi nIndia,
whi chi
ncl
udebot
h,publi
csectoraswellaspr
ivat
esectorbanks.However
,
theli
stoftop10banki ngcompani
esinIndi
ahasmost lybeendominat
edbyt heStateBank
ofIndi
a(SBI).

Sincetheini
ti
alday
s,theStateBankofIndi
ahasdominatedtheI
ndi
anbanki
ngi
ndust
ry
accounti
ngfornearl
y20% oft heIndi
anbanki
ngsy
stem'sdeposi
tbase.I
tal
sohasgot
al
most20%oft hecredi
tpor
tfol
io.

Therecenteconomicslowdown,l
ikemanyotheri
ndustr
ies,
alsoaf
fect
edt
heI
ndi
anbanki
ng
i
ndustry
.Howev er
,itshowedresi
l
iencet
otheglobal
recessi
on.

44
Fol
l
owi
ngi
sthel
i
stoft
op10banki
ngcompani
esi
nIndi
a:

1.St
ateBankofI
ndi
a

 
(Fi
gur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 11447

No.ofempl
oyees 205896

Busi
nessperempl
oyee(
in ̀ 
l
akh) 556.
00

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 4.
74

Capi
tal
andReser
ves&sur
plus 57948

Deposi
ts 742073

I
nvest
ment
s 275954

Adv
ances 542503

I
nter
esti
ncome 63788

Ot
heri
ncome 12691

I
nter
estexpended 42915

Oper
ati
ngexpenses 15649

CostofFunds(
CoF) 5.
85

Ret
urnonadv
ancesadj
ust
edt
oCoF 3.
83

Wagesas%t
otot
alexpenses 16.
64

45
 Ret
urnonAsset
s 1.
04

CRAR 14.
25

NetNPAr
ati
o 1.
76

2.HDFCBANK

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 1400

No.ofempl
oyees 52687

Busi
nessperempl
oyee(
in ̀ 
l
akh) 446.
00

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 4.
18

Capi
tal
andReser
ves&sur
plus 14652

Deposi
ts 142812

I
nvest
ment
s 58818

Adv
ances 98883

I
nter
esti
ncome 16332

Ot
heri
ncome 3291

I
nter
estexpended 8911

Oper
ati
ngexpenses 5533

CostofFunds(
CoF) 6.
83

Ret
urnonadv
ancesadj
ust
edt
oCoF 8.
12

46
 Wagesas%t
otot
alexpenses 15.
50

Ret
urnonAsset
s 1.
28

CRAR 15.
69

NetNPAr
ati
o 0.
63

3.AXI
SBANK

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 786

No.ofempl
oyees 20624

Busi
nessperempl
oyee(
in ̀ 
l
akh) 1060.
00

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 10.
02

Capi
tal
andReser
ves&sur
plus 10215

Deposi
ts 117374

I
nvest
ment
s 46330

Adv
ances 81557

I
nter
esti
ncome 10835

Ot
heri
ncome 2897

I
nter
estexpended 7149

Oper
ati
ngexpenses 2858

CostofFunds(
CoF) 5.
88

47
 Ret
urnonadv
ancesadj
ust
edt
oCoF 4.
69

Wagesas%t
otot
alexpenses 9.
97

Ret
urnonAsset
s 1.
44

CRAR 13.
69

NetNPAr
ati
o 0.
40

4.BANKOFI
NDI
A

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 2934

No.ofempl
oyees 40155

Busi
nessperempl
oyee(
in ̀ 
l
akh) 833.
00

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 7.
49

Capi
tal
andReser
ves&sur
plus 13495

Deposi
ts 189708

I
nvest
ment
s 52607

Adv
ances 142909

I
nter
esti
ncome 16347

Ot
heri
ncome 3052

I
nter
estexpended 10848

Oper
ati
ngexpenses 3094

48
 CostofFunds(
CoF) 5.
79

Ret
urnonadv
ancesadj
ust
edt
oCoF 4.
00

Wagesas%t
otot
alexpenses 13.
90

Ret
urnonAsset
s 1.
49

CRAR 13.
01

NetNPAr
ati
o 0.
44

5.PUNJABNATI
ONALBANK

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 4323

No.ofempl
oyees 54780

Busi
nessperempl
oyee(
in ̀ 
l
akh) 654.
92

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 5.
64

Capi
tal
andReser
ves&sur
plus 14654

Deposi
ts 209760

I
nvest
ment
s 63385

Adv
ances 154703

I
nter
esti
ncome 19326

Ot
heri
ncome 2920

49
 I
nter
estexpended 12295

Oper
ati
ngexpenses 4206

CostofFunds(
CoF) 6.
05

Ret
urnonadv
ancesadj
ust
edt
oCoF 4.
62

Wagesas%t
otot
alexpenses 17.
72

Ret
urnonAsset
s 1.
39

CRAR 14.
03

NetNPAr
ati
o 0.
17

6.BANKOFBARODA

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 2916

No.ofempl
oyees 36838

Busi
nessperempl
oyee(
in ̀ 
l
akh) 914.
00

50
 Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 6.
05

Capi
tal
andReser
ves&sur
plus 12836

Deposi
ts 192397

I
nvest
ment
s 52446

Adv
ances 143986

I
nter
esti
ncome 15092

Ot
heri
ncome 2758

I
nter
estexpended 9968

Oper
ati
ngexpenses 3576

CostofFunds(
CoF) 5.
36

Ret
urnonadv
ancesadj
ust
edt
oCoF 3.
58

Wagesas%t
otot
alexpenses 17.
34

Ret
urnonAsset
s 1.
09

CRAR 14.
05

7.I
CICIBANKLI
MITED

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 1408

No.ofempl
oyees 34596

Busi
nessperempl
oyee(
in ̀ 
l
akh) 1154.
00

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 11.
00

51
 Capi
tal
andReser
ves&sur
plus 49883

Deposi
ts 218348

I
nvest
ment
s 103058

Adv
ances 218311

I
nter
esti
ncome 31093

Ot
heri
ncome 7604

I
nter
estexpended 22726

Oper
ati
ngexpenses 7045

CostofFunds(
CoF) 5.
97

Ret
urnonadv
ancesadj
ust
edt
oCoF 4.
09

Wagesas%t
otot
alexpenses 6.
62

Ret
urnonAsset
s 0.
98

CRAR 13.
96

NetNPAr
ati
o 2.
09

8.UNI
TEDBANKOFI
NDI
A

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 2569

No.ofempl
oyees 29014

52
 Busi
nessperempl
oyee(
in ̀ 
l
akh) 694.
00

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 6.
28

Capi
tal
andReser
ves&sur
plus 8740

Deposi
ts 138703

I
nvest
ment
s 42997

Adv
ances 96534

I
nter
esti
ncome 11889

Ot
heri
ncome 1483

I
nter
estexpended 8076

Oper
ati
ngexpenses 2214

CostofFunds(
CoF) 6.
15

Ret
urnonadv
ancesadj
ust
edt
oCoF 4.
27

Wagesas%t
otot
alexpenses 11.
19

Ret
urnonAsset
s 1.
27

CRAR 12.
01

NetNPAr
ati
o 0.
34

9.CI
TIBANK

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

No.ofof
fi
ces 41

53
 No.ofempl
oyees 4795

Busi
nessperempl
oyee(
in ̀ 
l
akh) 1880.
10

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 45.
12

Capi
tal
andReser
ves&sur
plus 11518

Deposi
ts 51677

I
nvest
ment
s 24519

Adv
ances 39920

I
nter
esti
ncome 6840

Ot
heri
ncome 3582

I
nter
estexpended 2429

Oper
ati
ngexpenses 2587

CostofFunds(
CoF) 3.
57

Ret
urnonadv
ancesadj
ust
edt
oCoF 9.
04

Wagesas%t
otot
alexpenses 17.
56

Ret
urnonAsset
s 2.
12

CRAR 13.
23

NetNPAr
ati
o 2.
63

10.
CANARABANK

(
Figur
es(
2008-
09)ar
eincr
ore,
unl
essspeci
fi
edot
her
)

54
No.ofof
fi
ces 2740

No.ofempl
oyees 44090

Busi
nessperempl
oyee(
in ̀ 
l
akh) 780.
17

Pr
ofi
tperempl
oyee(
in ̀ 
l
akh) 4.
97

Capi
tal
andReser
ves&sur
plus 12208

Deposi
ts 186893

I
nvest
ment
s 57777

Adv
ances 138219

I
nter
esti
ncome 17119

Ot
heri
ncome 2311

I
nter
estexpended 12401

Oper
ati
ngexpenses 3065

CostofFunds(
CoF) 6.
75

Ret
urnonadv
ancesadj
ust
edt
oCoF 3.
69

Wagesas%t
otot
alexpenses 12.
14

Ret
urnonAsset
s 1.
06

CRAR 14.
1

NetNPAr
ati
o 1.
09

55
I
NSURANCESECTOR:

I
nsur
ance 
i
sasubj
ectl
i
stedi
ntheUni
onl
i
sti
ntheSev
ent
hSchedul
etot
heConst
it
uti
on
ofI
ndi
awher
eonl
ycent
recanl
egi
slat
e.Thei
nsur
ancesect
orhasgonet
hrougha
numberofphases by al
l
owi
ng pr
ivat
e compani
es t
o sol
i
citi
nsur
ance and al
so
al
l
owi
ng 
for
eign di
recti
nvest
ment
 ofup t
o 26% ear
li
erand 49% f
rom 2012,t
he
i
nsur
ancesect
orhasbeen a boomi
ng mar
ket
.Howev
er,t
hel
argestl
i
fe-
insur
ance
companyi
nIndi
aisst
il
lownedbyt
hegov
ernment
.

Hi
stor
y

I
nIndi
a,i
nsur
ancehasadeep-
root
edhi
stor
y.I
nsur
ancei
nvar
iousf
ormshasbeen
ment
ionedi
nthewr
it
ingsofManu(
Manusmr
it
hi)
,Yagnav
alky
a(Dhar
mashast
ra)and
Kaut
il
ya(
Art
hashast
ra)
.Thef
undament
albasi
soft
hehi
stor
icalr
efer
encet
oinsur
ance
i
ntheseanci
entI
ndi
ant
ext
sist
hesamei
.e.pool
i
ngofr
esour
cest
hatcoul
dber
e-
di
str
ibut
edi
nti
mesofcal
ami
ti
essuchasf
ir
e,f
loods,epi
demi
csandf
ami
ne.Theear
ly
r
efer
encest
oInsur
ancei
ntheset
ext
shav
eref
erencet
omar
inet
radel
oansandcar
ri
ers'

56
cont
ract
s.

I
nsur
ancei
nit
scur
rentf
orm hasi
tshi
stor
ydat
ingbackunt
il1818,whenOr
ient
alLi
fe
I
nsur
anceCompanywasst
art
edbyAni
taBhav
sari
n Kol
kat
a t
ocat
ert
otheneedsof
Eur
opeancommuni
ty.Thepr
e-i
ndependenceer
ainI
ndi
asaw di
scr
imi
nat
ionbet
ween
t
hel
i
vesoff
orei
gner
s(Engl
i
sh)andI
ndi
answi
thhi
gherpr
emi
umsbei
ngchar
gedf
ort
he
l
att
er.I
n1870,
BombayMut
ual
Lif
eAssur
anceSoci
etybecamet
hef
ir
stI
ndi
ani
nsur
er.

Att
hedawnoft
het
went
iet
hcent
ury
,manyi
nsur
ancecompani
eswer
efounded.I
nthe
y
ear1912,t
heLi
feI
nsur
anceCompani
esActandt
hePr
ovi
dentFundActwer
epassed
t
oregul
atet
hei
nsur
ancebusi
ness.TheLi
feI
nsur
anceCompani
esAct
,1912madei
t
necessar
ythatt
hepr
emi
um-
rat
etabl
esandper
iodi
calv
aluat
ionsofcompani
esshoul
d
becer
ti
fi
edbyan 
act
uar
y.Howev
er,
thedi
spar
it
yst
il
lexi
stedasdi
scr
imi
nat
ionbet
ween
I
ndi
anandf
orei
gncompani
es.Theol
destexi
sti
ngi
nsur
ancecompanyi
nIndi
aist
he
Nat
ional
Insur
anceCompanyLt
d.,
whi
chwasf
oundedi
n1906.I
tisi
nbusi
ness.

TheGov
ernmentofI
ndi
aissuedanOr
dinanceon19Januar
y1956nat
ional
i
singt
heLi
fe
I
nsur
ancesect
orandLi
feI
nsur
anceCor
por
ati
oncamei
ntoexi
stencei
nthesamey
ear
.
TheLi
feI
nsur
anceCor
por
ati
on(
LIC)absor
bed154I
ndi
an,16non-
Indi
ani
nsur
ersas
al
so75pr
ovi
dentsoci
eti
es—245I
ndi
anandf
orei
gni
nsur
ersi
nal
l
.In1972wi
tht
he
Gener
alI
nsur
anceBusi
ness(
Nat
ional
i
sat
ion)Actwaspassedbyt
heI
ndi
anPar
li
ament
,
andconsequent
ly,Gener
alI
nsur
ancebusi
nesswasnat
ional
i
zedwi
thef
fectf
rom 1
Januar
y1973.107 i
nsur
erswer
eamal
gamat
ed and gr
ouped i
ntof
ourcompani
es,
namel
yNat
ionalI
nsur
anceCompanyLt
d.,t
heNewI
ndi
aAssur
anceCompanyLt
d.,t
he
Or
ient
alI
nsur
anceCompanyLt
dandt
heUni
tedI
ndi
aInsur
anceCompanyLt
d.The
Gener
alI
nsur
anceCor
por
ati
onofI
ndi
awasi
ncor
por
atedasacompanyi
n1971andi
t
commencebusi
nessonJanuar
y1,
1973.

TheLI
Chadmonopol
yti
l
lthel
ate90swhent
heI
nsur
ancesect
orwasr
eopenedt
othe
pr
ivat
esect
or.Bef
oret
hat
,thei
ndust
ryconsi
sted ofonl
ytwo st
atei
nsur
ers:Li
fe
I
nsur
ers(
Lif
eInsur
ance Cor
por
ati
on ofI
ndi
a,LI
C)and Gener
alI
nsur
ers(
Gener
al
I
nsur
anceCor
por
ati
onofI
ndi
a,GI
C).GI
Chadf
oursubsi
diar
ycompani
es.

Wi
thef
fectf
rom December2000,t
hesesubsi
diar
ieshav
ebeende-
li
nkedf
rom t
he
par
entcompany and wer
e setup as i
ndependenti
nsur
ance compani
es:
 
Ori
ent
al

57
I
nsur
ance Company Li
mit
ed,
 
New I
ndi
a Assur
ance Company Li
mit
ed,
 
Nat
ional
I
nsur
anceCompanyLi
mit
ed 
and 
Uni
tedI
ndi
aInsur
anceCompanyLi
mit
ed.

I
ndust
ryst
ruct
ure

Cur
rent
lyI
ndi
aisa 
US$41bi
l
li
oni
ndust
ry.Cur
rent
ly,i
nIndi
aonl
ytwomi
l
li
onpeopl
e
(
0.2% oft
het
otalpopul
ati
onof1bi
l
li
on)ar
ecov
eredunderMedi
clai
m,wher
easi
n
dev
elopednat
ionsl
i
keUSAabout75%oft
het
otalpopul
ati
onar
ecov
eredundersome
i
nsur
ancescheme.Wi
thmor
eandmor
epr
ivat
ecompani
esi
nthesect
or,t
hesi
tuat
ion
maychangesoon.

Speci
ali
sat
ion

ECGC,ESI
CandAI
Cpr
ovi
dei
nsur
anceser
vicesf
orni
chemar
ket
s.So,t
hei
rscopei
s
l
i
mit
edbyl
egi
sl
ati
onbutenj
oysomespeci
alpower
s.

Act
s

Thei
nsur
ancesect
orwentt
hroughaf
ullci
rcl
eofphasesf
rom bei
ngunr
egul
atedt
o
compl
etel
yregul
atedandt
hencur
rent
lybei
ngpar
tl
yder
egul
ated.I
tisgov
ernedbya
numberofact
s.

TheI anceActof1938[1] 
nsur wast
hef
ir
stl
egi
slat
iongov
erni
ngal
lfor
msofi
nsur
ancet
o
pr
ovi
dest
ri
ctst
atecont
rol
overi
nsur
ancebusi
ness.

Li
fei
nsur
ancei
nIndi
awascompl
etel
ynat
ional
i
zedonJanuar
y19,1956,t
hrought
he
Li
feI
nsur
anceCor
por
ati
onAct
.Al
l245i
nsur
ancecompani
esoper
ati
ngt
heni
nthe
count
rywer
emer
gedi
ntooneent
it
y,t
he 
Lif
eInsur
anceCor
por
ati
onofI
ndi
a.

TheGener
alI
nsur
anceBusi
nessActof1972wasenact
edt
onat
ional
i
set
heabout100
gener
ali
nsur
ancecompani
est
henandsubsequent
lymer
gingt
hem i
ntof
ourcompani
es.
Al
lthecompani
eswer
eamal
gamat
edi
ntoNat
ionalI
nsur
ance,New I
ndi
aAssur
ance,
Or
ient
alI
nsur
anceandUni
tedI
ndi
aInsur
ance,
whi
chwer
eheadquar
ter
edi
neachoft
he
f
ourmet
ropol
i
tanci
ti
es.

Unt
il1999,t
her
ewer
enopr
ivat
einsur
ancecompani
esi
nIndi
a.Thegov
ernmentt
hen
i
ntr
oducedt
heI
nsur
anceRegul
ator
yandDev
elopmentAut
hor
it
yActi
n1999,
ther
ebyde-
58
r
egul
ati
ngt
hei
nsur
ancesect
orandal
l
owi
ngpr
ivat
ecompani
es.

Fur
ther
mor
e,f
orei
gni
nvest
mentwasal
soal
l
owedandcappedat26% hol
dingi
nthe
I
ndi
ani
nsur
ancecompani
es.

I
n2006,t
heAct
uar
iesActwaspassedbypar
li
amentt
ogi
vet
hepr
ofessi
onst
atut
ory
st
atus on parwi
th Char
ter
ed Account
ant
s,Not
ari
es,Cost& Wor
ks Account
ant
s,
Adv
ocat
es,
Archi
tect
sandCompanySecr
etar
ies.

Ami
nimum capi
talof
 US$80mi
l
li
on(
Rs.
400Cr
ore)i
srequi
redbyl
egi
slat
iont
osetupan
i
nsur
ancebusi
ness.

Aut
hor
it
ies

Thei
ndust
ryr
ecogni
sesexami
nat
ionsconduct
edbyI
AI(
foract
uar
ies)
,II
I(f
oragent
s,
br
oker
sand 
thi
rd-
par
tyadmi
nist
rat
ors)andI
II
SLA(
forsur
vey
orsandl
ossassessor
s).
TACi
sthesol
edat
areposi
tor
yfort
henon-
li
fei
ndust
ry.

I
BAIgi
vesv
oicef
orbr
oker
swhi
l
eGICounci
landLICounci
lar
epl
atf
ormsf
ori
nsur
ers.

AI
GIEA,AI
IEA,AI
IEF,AI
LICEF,AI
LIEA,FLI
COA,GI
EAI
A,GI
EUandNFI
FWIcat
ert
othe
empl
oyeesoft
hei
nsur
ers.

I
naddi
ti
on,
ther
ear
eadozenOmbudsmanof
fi
cest
oaddr
esscl
i
entgr
iev
ances.

I
nsur
anceeducat
ion

Nat
ionalI
nsur
anceAcademy
,Pune,
hasa32acr
ecampus&50-
plusf
acul
ty,
speci
ali
zed
i
nteachi
ng,conduct
ingr
esear
chandpr
ovi
dingconsul
ti
ngser
vicesi
nthei
nsur
ance
sect
or.NI
Aof
fer
sat
woy
earPGDM pr
ogr
am i
ninsur
ance.NI
Awasf
oundedasMi
nist
ry
ofFi
nancei
nit
iat
ivewi
thcapi
talsuppor
tfr
om t
het
henpubl
i
cinsur
ancecompani
es,
bot
hLi
fe(
LIC)andNon-
Lif
e(GI
C,Nat
ional
,Or
ient
al,
Uni
ted&NewI
ndi
a).

Ami
tySchoolofI
nsur
anceBanki
ngandAct
uar
ialsci
ence(
ASI
BAS)
 ofAmi
tyUni
ver
sit
y,
l
ocat
edi
nNoi
daandest
abl
i
shedi
n2000,
off
ersMBApr
ogr
amsi
nInsur
ance,
Insur
ance

59
andBanki
ng,
andM.
Sc.
/B.
Sc.act
uar
ial
sci
ences.

TheI
nst
it
uteofI
nsur
anceandRi
skManagement(
II
RM)i
sani
nter
nat
ionaleducat
ion
andr
esear
chor
gani
zat
ion.TheI
nst
it
utewassetupj
oint
lybyt
heI
nsur
anceRegul
ator
y
and Dev
elopmentAut
hor
it
y(I
RDA)ofI
ndi
a and t
he St
ate Gov
ernmentofAndhr
a
Pr
adesh,i
n2002f
orpr
omot
ionofI
nter
nat
ionalPostGr
aduat
eDi
plomaCour
sesi
n
I
nsur
ance/Ri
skManagement
(Regul
arandDi
stancel
ear
ning).I
nter
nat
ionalSchoolof
Act
uar
ialSci
ences(
ISAS)openedon6t
hAugust2007l
eadi
ngt
oaPostGr
aduat
e
Di
plomai
nAct
uar
ial
Sci
ences.

Bi
rl
aInst
it
uteofManagementTechnol
ogy
n a gr
aduat
ebusi
nessschooll
ocat
ed i
n
Gr
eat
erNoi
da,est
abl
i
shedi
n1988,of
fer
saPGDM-
IBM pr
ogr
am i
ninsur
ancebusi
ness
management
.Thi
spr
ogr
am wasl
aunchedi
n2000byt
heCent
ref
orI
nsur
anceandRi
sk
Managementandi
saccr
edi
tedbyt
he 
Insur
anceRegul
ator
yandDev
elopmentAut
hor
it
y.
Li
feOf
fi
ceManagementAssoci
ati
on(
LOMA)
,USAi
sBI
MTECH'
seducat
ional
par
tnerand
BI
MTECHi
sanappr
ovedcent
ref
orLOMAexami
nat
ion.

The 
Char
ter
edI
nsur
anceI
nst
it
ute(
CII
),UKhasaccor
dedr
ecogni
ti
on(
bywayofcr
edi
ts)
t
otheBI
MTECH PGDM-
IBM pr
ogr
am.Thei
rtwo y
earPGDM pr
ogr
am i
ninsur
ance
busi
nesshasbeenr
ecogni
zedasequi
val
entt
otheAssoci
atel
eveloft
he 
Insur
ance
I
nst
it
uteofI
ndi
a,Mumbai
.

NLU,Jodhpur
,of
fer
sat
woy
earMBA andoney
earMS(
forengi
neer
inggr
aduat
es)
pr
ogr
am i
ninsur
ance.

I
RDA cont
rol
sal
lthe I
nsur
ance busi
nessi
nIndi
a.Theyar
e set
ti
ng st
ruct
ure and
boundar
ies f
ort
he i
nsur
ance compani
es t
o actwi
thi
n.St
art
ing f
rom l
i
censi
ng t
o
appr
ovi
ng t
he pr
oduct
s,I
RDA di
rect
sthe compani
es i
nIndi
a.They al
so pr
otect
cust
omeri
nter
est
sint
hecount
ry.

 Aspercur
rentgui
del
i
nesi
ssuedbyI
RDA,
Insur
anceCompani
esar
enotper
mit
tedt
o

60
 i
nvesti
nIndi
anDeposi
tor
yRecei
pts(I
DR)
,whi
l
etheyar
eper
mit
tedt
oinv
esti
n
Equi
tyshar
es/Bonds/Debent
ures.I
RDAneedst
oremov
ethi
sdi
spar
it
ytoopenup
i
nvest
mentoppor
tuni
tybyI
nsCompani
esandt
her
ebyal
soenhancet
hel
i
qui
dit
yof
I
DRs(Cont
ri
but
edbySanj
ayBanka,
FCAFCS)

To become an i
nsur
ance adv
isori
nIndi
ainsur
ance act1938 mandat
es t
hatt
he
i
ndi
vi
dualhast
obeMaj
orwi
thsoundmi
nd.Af
tert
headv
entofI
RDA asI
nsur
ance
Regul
atorI
RDAhasf
ramedv
ari
ousr
egul
ati
onsv
izt
rai
ninghour
s,exami
nat
ion,f
eeet
c.
whi
char
eamendedf
rom t
imet
oti
me.Si
nceNov
ember2011I
RDA t
heI
nsur
ance
Regul
atori
nIndi
ahasi
ntr
oducedanewsy
ll
abus(
IC-
33)concei
vedanddev
elopedbyCI
I,
London.

Compl
eteLi
stofI
nsur
anceCompani
esi
nIndi
a(Mar
ch2012)
 

I
nsur
ancei
ndust
ry,
ear
li
ercompr
isedofonl
ytwost
atei
nsur
ers.

Li
feI
nsur
ersi
eLi
feI
nsur
anceCor
por
ati
onofI
ndi
a(LI
C)andGener
alI
nsur
ersi
eGener
al
I
nsur
anceCor
por
ati
onofI
ndi
a(GI
C)GI
Chadf
oursubsi
dar
ycompani
es.

Wi
thef
fectf
rom Dec'
2000,
thesesubsi
dar
ieshav
ebeende-
li
nkedf
rom par
entcompany
andmadeasani
ndependenti
nsur
ancecompani
es.Or
ient
alI
nsur
anceCompany

Li
mit
ed,
NewI
ndi
aAssur
anceCompanyLi
mit
ed,
Nat
ional
Insur
anceCompanyLi
mit
ed
andUni
tedI
ndi
aInsur
anceCompanyLi
mit
ed.
 
Thef
ir
stbat
chofl
i
censeswer
eissuedbyt
heI
nsur
anceRegul
ator
yandDev
elopment
Aut
hor
it
y(I
RDA)i
n2001.AsonDecember2012f
oll
owi
ngar
ethepl
ayer
sint
heI
ndi
an
Mar
ket
: 

Todayt
her
ear
e24gener
ali
nsur
ancecompani
esi
ncl
udi
ngt
heECGCandAgr
icul
tur
e
I
nsur
anceCor
por
ati
onofI
ndi
aand23l
i
fei
nsur
ancecompani
esoper
ati
ngi
nthe
count
ry.
 

61
LI
FEI
NSURERSI
NINDI
A

-Baj
ajAl
l
ianzLi
feI
nsur
anceCompanyLi
mit
ed
-Bi
rl
aSunLi
feI
nsur
anceCo.Lt
d 
-HDFCSt
andar
dLi
feI
nsur
anceCo.Lt
d 
-I
CICIPr
udent
ial
Lif
eInsur
anceCo.Lt
d 
-I
ndi
aFi
rstLi
feI
nsur
anceCompanyLt
d 
-I
NGVy
syaLi
feI
nsur
anceCompanyLt
d.
-Li
feI
nsur
anceCor
por
ati
onofI
ndi
a 
-MaxNewYor
kLi
feI
nsur
anceCo.Lt
d 
-MetLi
feI
ndi
aInsur
anceCompanyLt
d.
-Kot
akMahi
ndr
aOl
dMut
ual
Lif
eInsur
anceLi
mit
ed 
-SBILi
feI
nsur
anceCo.Lt
d 
-Tat
aAI
GLi
feI
nsur
anceCompanyLi
mit
ed 
-Rel
i
anceLi
feI
nsur
anceCompanyLi
mit
ed.
-Av
ivaLi
feI
nsur
anceCompanyI
ndi
aLi
mit
ed
-Sahar
aIndi
aLi
feI
nsur
anceCo,
Ltd.
 
-Shr
ir
am Li
feI
nsur
anceCo,
Ltd.
 
-Bhar
tiAXALi
feI
nsur
anceCompanyLt
d. 
-Fut
ureGener
ali
Indi
aLi
feI
nsur
anceCompanyLi
mit
ed
-I
DBIFor
ti
sLi
feI
nsur
anceCompanyLt
d.
-Canar
aHSBCOr
ient
alBankofCommer
ceLi
feI
nsur
anceCompanyLt
d. 
-AegonRel
i
gar
eLi
feI
nsur
anceCompanyLi
mit
ed
-DLFPr
amer
icaLi
feI
nsur
anceCompanyLi
mit
ed 
-St
arUni
onDai
-I
chi
Lif
eInsur
anceCompanyLi
mit
ed 
-I
ndi
aFi
rstLi
feI
nsur
anceCompanyLi
mit
ed
-Edel
wei
ssToki
oLi
feI
nsur
anceCo.Lt
d.

REI
NSURERSI
NINDI
A:

62
-GENERALI
NSURANCECORPORATI
ONOFI
NDI
A.

BANKI
NG&I
NSURANCESECTOR-ANOVERVI
EW

The economi
cref
orms under
taken i
nthe l
ast15 y
ear
s hav
e br
oughtabouta
consi
der
abl
eimpr
ovementi
ntheheal
thofbanksand
f
inanci
ali
nst
it
uti
onsi
nIndi
a.Thebanki
ngsect
ori
sav
eryi
mpor
tantsect
oroft
he
I
ndi
aneconomy
.Thesect
orhasmadeamar
kedi
mpr
ovementi
nthel
i
ber
ali
zat
ion
per
iod.Ther
ehasbeenext
raor
dinar
ypr
ogr
essi
nthef
inanci
alheal
thoft
hecommer
cial
bankswi
thr
espectt
ocapi
tal
adequacy
,pr
ofi
tabi
l
ity
,assetqual
i
tyandr
iskmanagement
.
Der
egul
ati
onhasopenednew door
sforbankst
oincr
easer
evenuesbyent
eri
ngi
nto
i
nvest
ment banki
ng, i
nsur
ance, cr
edi
t car
ds, deposi
tor
y ser
vices, mor
tgage,
secur
it
izat
ion,
etc.
Thel
i
mitf
orf
orei
gndi
recti
nvest
menti
npr
ivat
ebankshasbeeni
ncr
easedf
rom 49%t
o
74%.I
naddi
ti
on,t
hel
i
mitf
orf
orei
gni
nst
it
uti
onali
nvest
menti
npr
ivat
ebanksi
s49%.
Li
ber
ali
zat
ionandgl
obal
i
zat
ionhav
ecr
eat
edamor
echal
l
engi
ngenv
ironmenti
nthe
banki
ngsect
oraswel
lasi
ntheot
hersegment
soft
hef
inanci
alsect
orsuchasmut
ual
f
unds,Non Banki
ng Fi
nance Compani
es,postof
fi
ces,capi
talmar
ket
s,v
ent
ure
capi
tal
i
sts,et
c.Now t
hechal
l
engesf
acedbyt
hesect
orwoul
dbegai
ningpr
ofi
tabi
l
ity
,
r
einf
orci
ngt
echnol
ogy
,mai
ntai
ninggl
obalst
andar
ds,
cor
por
ategov
ernance,
shar
peni
ng
ski
l
ls,
riskmanagementand,
themosti
mpor
tantofal
l
,toest
abl
i
sh'
Cust
omerI
nti
macy
'.

63
Thei
nsur
ancebusi
nessi
soneoft
hemostr
api
dlygr
owi
ngar
easi
nthef
inanci
alsect
or.
Asaneconomygr
owsov
ert
hey
ear
s,i
nsur
ancesect
ori
ntensi
fi
esandbr
oadensi
ts
r
each.Ev
erypr
act
icalandf
utur
ist
ici
ndi
vi
dualwoul
dwanthi
msel
f,hi
sfami
l
yandhi
s
asset
stobei
nsur
ed.I
nsur
ancedeal
smai
nlywi
thl
i
feandgener
ali
nsur
ance.I
ndi
ahasa
l
arge i
nsur
ance mar
ketcommensur
ate wi
thi
ts popul
ati
on.The I
RDA Act1999
(
Insur
ance Regul
ator
y and Dev
elopmentAut
hor
it
y ofI
ndi
a Act
)has gi
ven new
oppor
tuni
ti
est
opr
ivat
epl
ayer
stoent
eri
ntot
hemar
ketont
hef
ulf
il
lmentofcer
tai
n
pr
erequi
sit
es.The I
RDA i
sthe l
i
censi
ng aut
hor
it
yint
he sect
or;t
he cur
rentFDI
cap/
Equi
tyi
nthesect
orst
andsat26per
cent
.Ther
eisnodoubtt
hechal
l
engesahead
wi
l
lbecomet
ougherwi
thmor
ecompani
escompet
ingbot
hingener
alandl
i
feI
nsur
ance.
Al
somor
tgagei
nsur
ancewi
l
lsoonbecomi
ngi
ntot
hei
ndust
ry.

Newpl
ayer
shav
econt
ri
but
edt
othel
aunchofi
nnov
ati
vepr
oduct
s,ser
vicesandv
alue-
addedbenef
it
s.Maj
orf
orei
gnpl
ayer
shav
eent
eredt
hecount
ryandannouncedj
oint
v
ent
uresi
nbot
hli
feandnon-
li
fear
eas.Thesei
ncl
udeNew Yor
kLi
fe,Av
iva,Toki
o
Mar
ine,
All
i
anz
,St
andar
dLi
fe,
Lombar
dGener
al,
AIG,
AMPandSunLi
feamongot
her
s. 

Commer
cial
banksar
ecomi
ngupwi
thmor
eandmor
ejobs,
andt
hebanki
ngsect
ornow
hasmor
enew j
obst
hananyot
hersect
or.Ri
ghtf
rom t
hebr
anchl
evelt
othehi
ghest
l
evel
,ther
eist
remendousr
angeofoppor
tuni
ti
esav
ail
abl
eint
hesect
or.Jobsi
nthi
s
sect
orcanbebot
hrewar
dingandenj
oyabl
e,asy
ougetoppor
tuni
ti
est
olear
nabout
busi
ness,i
nter
actwi
th peopl
eand bui
l
d up cl
i
ent
ele.Thesamei
sthecasewi
th
i
nsur
ance,as i
tist
he f
ast
estgr
owi
ng i
ndust
ryundert
he f
inanci
alsect
or.Bot
h
gov
ernmentandpr
ivat
epl
ayer
sar
ecur
rent
lyof
fer
ingapl
ent
yofj
obsi
nthi
ssect
or.So,
t
hisi
sgr
eatnewsf
ory
oui
fyouar
ethi
nki
ngt
ogoi
ntot
hebanki
ng&i
nsur
ancest
reams.

64
CSRADOPTEDBYBANKI
NG&I
NSURANCESECTOR

THEI
MPACTOFCSRONPERFORMANCEANDI
MAGEOFBANKSI
NINDI
A

Pur
pose–
Thepur
poseoft
hispaperi
stomapt
heCor
por
ateSoci
alResponsi
l
ity(
CSR)pr
act
ices
ofmaj
orpl
ayer
sinI
ndi
anBanki
ngSect
orandt
ofi
ndoutt
hei
mpactofsuchpr
act
ices
ont
heper
for
manceandi
mageofsuchpl
ayer
s.

Desi
gn/
Met
hodol
ogy
/Appr
oach-
Thepaperi
sbasedont
hepubl
i
shedr
ecor
dsofsomemaj
orpl
ayer
sbot
hint
hepubl
i
c
sect
oraswel
lasi
nthepr
ivat
esect
orbanksoft
hecount
rywhi
chhasbeenl
i
nkedt
o
t
hei
rpubl
i
shed f
inanci
alper
for
mance,and i
mage f
ort
he l
astf
ew y
ear
s wi
tht
he
obj
ect
iveofassessi
ngt
hei
mpactoft
heCSRpr
act
icesont
heper
for
manceandi
mage.

Fi
ndi
ngs–
Thef
indi
ngssuggestt
hatbanksi
nIndi
aar
eincr
easi
ngt
hei
ract
ivi
ti
esundercor
por
ate
soci
alr
esponsi
bil
i
tywhi
chi
sal
soi
mpact
ingt
hei
rbusi
nessi
ntheposi
ti
vedi
rect
ion,
apar
tfr
om i
mpr
ovi
ngt
hei
rimageandgoodwi
l
l.

65
Resear
chLi
mit
ati
ons/
Impl
i
cat
ions–
Thest
udywasconduct
edt
hroughsecondar
ydat
asi
nceCSR act
ivi
ti
esar
emai
nly
per
for
medt
hrought
heCent
ral
/HeadOf
fi
ceoft
heBanksandt
heyar
elocat
edi
nmaj
or
met
ropol
i
tancent
resoft
hecount
ry.ButasCSRi
mpr
ovest
heper
for
manceofbanksi
n
t
ermsofgoodwi
l
l,i
mage,andbusi
ness,t
hismaybeagoodexampl
eforot
herser
vice
sect
orsaswel
l

Or
igi
nal
i
ty/
Val
ue–
Thi
spaperobser
vest
hatt
hewor
kdonef
orsoci
etymaypassont
headv
ant
agest
othe
cor
por
atewor
ldandi
nit
iat
ivesi
nthi
sar
eamayenhancet
hei
rval
ue.
Key
wor
ds:Banks i
nIndi
a,Cor
por
ate Soci
alResponsi
bil
i
ty,Per
for
mance,Busi
ness,
I
mage.

I
NTRODUCTI
ONABOUTCSRADOPTEDBYBANKI
NGANDI
NSURANCESECTOR

CSRhasbeeni
dent
if
iedasat
oolt
ocont
ri
but
edi
rect
lyori
ndi
rect
lyt
othecompany
’s
bot
tom-
li
neandal
soensur
esi
tsl
ong-
ter
m sust
ainabi
l
ity
.Ithel
pscompani
esemer
geas
t
ruecor
por
ateci
ti
zens.CSRmeansi
nit
sessencet
ober
esponsi
blet
oone’
svar
ious
st
akehol
der
sandnotj
ustchar
it
y.
Atpr
esent
,thewor
ldov
er,t
her
eisani
ncr
easi
ngawar
enessaboutCor
por
ateSoci
al
Responsi
bil
i
ty(
CSR)
,Sust
ainabl
eDev
elopment(
SD)andNon-
Financi
alRepor
ti
ng(
NFR)
.
Consequent
ly,t
her
eisaconcer
tedef
for
tamongal
lty
pesofor
gani
zat
ions,t
oensur
e
t
hatsust
ainabl
edev
elopmenti
snotl
ostsi
ghtof
,int
hepur
sui
toft
hei
rrespect
ivegoal
s
-pr
ofi
tmaki
ng,
soci
alser
vice,
phi
l
ant
hropy
,et
c.CSRent
ail
sthei
ntegr
ati
onofsoci
aland
env
ironment
alconcer
ns by compani
es i
nthei
rbusi
ness oper
ati
ons as al
so i
n

66
i
nter
act
ionswi
tht
hei
rst
akehol
der
s.
Thecont
ri
but
ionoff
inanci
ali
nst
it
uti
onsi
ncl
udi
ngbankst
osust
ainabl
edev
elopmenti
s
par
amount
,consi
der
ing t
he cr
uci
alr
olet
heypl
ayi
nfi
nanci
ng t
he economi
c and
dev
elopment
alact
ivi
ti
esoft
hewor
ld.I
nthi
scont
ext
,theur
gencyf
orbankst
oactas
r
esponsi
blecor
por
ateci
ti
zensi
nthesoci
ety
,especi
all
yinadev
elopi
ngcount
ryl
i
keour
s,
needbehar
dlyov
eremphasi
zed.Thei
ract
ivi
ti
esshoul
dref
lectt
hei
rconcer
nforhuman
r
ight
sandenv
ironment
.
St
udi
esov
ert
her
ecentt
imeshav
erev
eal
edt
hator
gani
sat
ionsi
nvol
vedi
nCSRact
ivi
ti
es
cont
inuedt
osust
ainf
ormuchl
ongerdur
ati
onsi
ncompar
isont
othosenoti
nvol
vedi
n
suchact
ivi
ti
es.Thi
sist
her
easonwhymor
eandmor
eor
gani
sat
ionsacr
osssect
orsar
e
i
ncr
easi
ngl
yget
ti
ngi
nvol
vedi
nCSRact
ivi
ti
es.
CSRhasbeeni
dent
if
iedasat
oolt
ocont
ri
but
edi
rect
lyori
ndi
rect
lyt
othecompany
’s
bot
tom-
li
neandal
soensur
esi
tsl
ong-
ter
m sust
ainabi
l
ity
.Ithel
pscompani
esemer
geas
t
ruecor
por
ateci
ti
zens.CSRmeansi
nit
sessencet
ober
esponsi
blet
oone’
svar
ious
st
akehol
der
sandnotj
ustchar
it
y.
The‘
Emer
gingCSRModel
’showshow t
hemeani
ngofCSRi
schangi
ngbot
hini
ts
essenceandappl
i
cat
ion.Theobj
ect
ivesofCSRhav
epr
ogr
essedbey
ondt
heobv
ious
andhav
etr
ansgr
essedi
ntogoal
sli
ke:
a)I
mageMakeov
er
b)Bui
l
dingRel
ati
onshi
ps
c)Account
abi
l
ity
d)Maxi
mizi
ngGai
ns
e)Maxi
mizi
ngPr
ofi
ts
f
)Long-
ter
m Sust
ainabi
l
ity
.
CSRi
smuchmor
ebey
ondchar
it
yandmuchmor
ethanmer
econst
ruct
ionofschool
s,
hospi
tal
sandt
empl
es.The‘
Emer
gingCSRModel
’consi
der
sthatt
hecor
por
atehav
e
t
hei
rshar
e ofr
esponsi
bil
i
tyt
owar
ds t
hei
rvar
ious st
akehol
der
s wi
th an ul
ti
mat
e
obj
ect
ivedi
rect
edt
owar
dst
hebot
tom-
li
neandl
ong-
ter
m sust
ainabi
l
ity
.
Soci
alr
esponsi
bil
i
tyr
efer
stomanagement
’sobl
i
gat
ionst
omakechoi
cesandt
ake
act
ionst
hatwi
l
lcont
ri
but
etot
hewel
far
eandi
nter
est
sofsoci
etyaswel
last
othoseof
t
heOr
gani
zat
ionandi
tsSt
akehol
der
s(Shar
ehol
der
s,Empl
oyees,Suppl
i
ers,Consumer
s

67
andSoci
ety
).

RBIGUI
DELI
NESONCSR
The Reser
ve BankofI
ndi
a(RBI
)di
rect
ed banksi
n December
,2007 t
o under
take
cor
por
atesoci
alr
esponsi
bil
i
ty(
CSR)i
nit
iat
ivesf
orsust
ainabl
edev
elopment
.
Ther
egul
atoral
soaskedbankst
obegi
nnon-
fi
nanci
alr
epor
ti
ng,whi
chwi
l
lgi
vean
accountoft
hebanks’
int
angi
bleasset
s.
“
Ther
eisi
nsuf
fi
ci
entawar
enessonani
ssuesuchasgl
obalwar
mingandcl
i
mat
e.
Maj
ori
tyoft
heAsi
ancompani
esar
enotawar
eoft
her
iskst
hatcl
i
mat
echangecan
poset
othei
rbusi
nessmodel
sandenv
ironmenti
ngener
al.
I
nthi
scont
ext
,theneedf
orsust
ainabl
edev
elopment
alef
for
tsbyf
inanci
ali
nst
it
uti
ons
i
nIndi
aassumesur
gencyandbanks,i
npar
ti
cul
ar,canhel
pcont
ri
but
etot
hisef
for
tby
pl
ayi
ngameani
ngf
ulr
ole,
’
’sai
dtheRBIi
naci
rcul
ari
ssuedt
obanks.
CSRent
ail
sthei
ntegr
ati
onofsoci
alandenv
ironment
alconcer
nsbycompani
es,
int
hei
r
busi
nessoper
ati
onsandi
nter
act
ionswi
thst
akehol
der
s,accor
dingt
othecent
ralbank.
Sust
ainabl
edev
elopmenti
saboutmai
ntai
ningt
hequal
i
tyofenv
ironment
alandsoci
al
sy
stemsi
nthepur
sui
tofeconomi
cdev
elopment
.
Non-
fi
nanci
alr
epor
ti
ngi
sasy
stem wher
ebyor
gani
zat
ionsr
epor
tont
hei
ract
ivi
ti
es,
especi
all
ythoseper
tai
ningt
oenv
ironment
al,
soci
alandeconomi
caccount
ing.
Ther
egul
ator
yaut
hor
it
yhasdi
rect
edbankst
oputi
npl
aceaboar
d-appr
ovedpl
anof
act
ionai
medatensur
ingsust
ainabl
edev
elopment
.
Thebankswi
l
lhav
etokeept
hemsel
vesabr
eastofdev
elopment
sandmodi
fyt
hei
r
st
rat
egi
esandpl
ansi
nthel
i
ghtofchangi
ngsi
tuat
ions.Bankswi
l
lhav
etopl
acet
hei
r
CSRi
nit
iat
ivesi
nthepubl
i
cdomai
n,al
ongwi
tht
hei
rannual
account
s.
“
Non-
fi
nanci
alr
epor
ti
ngi
sanoppor
tuni
tyt
ocommuni
cat
einanopenandt
ranspar
ent
waywi
tht
hest
akehol
der
s.Thenon-
fi
nanci
alr
epor
tsal
l
owf
ir
mst
opr
ovi
deanov
erv
iew
oft
he env
ironment
aland soci
ali
mpacti
nthe pr
evi
ous y
ear
.Thi
sinf
ormat
ion
cont
ri
but
est
owar
dsbui
l
dingacompany
’sr
iskpr
ofi
l
e.Thei
mpor
tanceofnon-
fi
nanci
al
di
scl
osur
eint
heov
eral
lassessmentofacompany
’sr
iskpr
ofi
l
eisst
eadi
l
ygai
ning
gr
ound,
’
’sai
dtheRBI
.
Thecent
ral
banksai
dthecont
ri
but
ionoff
inanci
ali
nst
it
uti
ons,
incl
udi
ngbanks,
iscr
uci
al

68
t
o sust
ainabl
e dev
elopment
,consi
der
ing t
hei
rrol
einf
inanci
ng t
he economi
c and
dev
elopment
alact
ivi
ti
eswor
ldwi
de.
Hence,t
heneedf
orbankst
oactasr
esponsi
blecor
por
ateci
ti
zens,especi
all
yina
dev
elopi
ng count
rysuch asour
s,need behar
dlyov
eremphasi
zed.Thei
ract
ivi
ti
es
shoul
dref
lectt
hei
rconcer
nforhumanr
ight
sandenv
ironment
.
CSRpr
act
icesbymaj
orbanksi
nIndi
a.

CSRI
NICI
CIBANK
I
CICIBankLt
d(NYSE:
IBN)(
www.
ici
cibank.
com)i
sIndi
a'
slar
gestpr
ivat
esect
orbank
andt
hesecondl
argestbanki
nthecount
ry,of
fer
ingawi
der
angeofbanki
ngpr
oduct
s
andf
inanci
alser
vicest
omor
ethan25mi
l
li
oncor
por
ateandr
etai
lcust
omer
s.I
CICI
Bank'
ssubsi
diar
iesi
ncl
udeI
ndi
a'
sleadi
ngpr
ivat
esect
ori
nsur
ancecompani
esand
amongi
tsl
argestsecur
it
iesbr
oker
agef
ir
ms,mut
ualf
undsandpr
ivat
eequi
tyf
ir
ms.
I
CICIBank'
spr
esencecur
rent
lyspans19count
ri
es,
incl
udi
ngI
ndi
a.
I
nli
newi
thi
tscommi
tmentt
oinv
est
ingi
nIndi
a'
sfut
ureandbui
l
dingt
henat
ion'
stal
ent
pool
,ICI
CIBankv
iewsi
tsCor
por
ateSoci
alResponsi
bil
i
ty(
CSR)i
nit
iat
ivesasi
ntegr
alt
o
i
tscor
emi
ssi
onofdel
i
ver
ingv
aluet
oit
sst
akehol
der
s.TheBank'
sCSRact
ivi
ti
eshav
e
t
aken t
hree br
oad st
rat
egi
cdi
rect
ions:CSR t
hrough commer
cialact
ivi
ti
es,CSR i
n
par
tner
shi
pwi
thci
vi
lsoci
etyandCSRt
hroughI
CICIFoundat
ionf
orI
ncl
usi
veGr
owt
h.

ELEMENTARYEDUCATI
ON
Pr
ogr
amme:
Readt
oLead
Readt
oleadi
sani
nit
iat
iveofI
CICIBankt
ofaci
l
itat
eaccesst
oel
ement
aryeducat
ionf
or
under
pri
vi
legedchi
l
dreni
ntheagegr
oupof3-
14y
ear
sincl
udi
nggi
rl
sandt
ri
balchi
l
dren
f
rom t
her
emot
erur
alar
eas.TheReadt
oLeadi
nit
iat
ivesuppor
tspar
tnerNGOst
o
desi
gnandi
mpl
ementpr
ogr
amst
hatmobi
l
isepar
entandcommuni
tyi
nvol
vementi
n
educat
ion,st
rengt
hen school
s and enabl
e chi
l
dren t
o ent
erand compl
etef
ormal
el
ement
aryeducat
ion.

69
Readt
oleadhasr
eachedoutt
o100,
000chi
l
drenacr
oss14st
atesofAndhr
aPr
adesh,
Bi
har
,Del
hi,Guj
arat
,Har
yana,Jhar
khand,Kar
nat
aka,Mahar
asht
ra,Or
issa,Raj
ast
han,
Tami
lNadu,
Tri
pur
a,Ut
tarPr
adeshandWestBengal
.

CSRI
NHDFCBANK
I
nkeepi
ngwi
tht
heHDFCGr
oupphi
l
osophy
,yourBankhasal
way
sbel
i
evedi
nmaki
nga
di
ff
erencet
osoci
etyatl
arge.Asar
esponsi
blecor
por
ateci
ti
zen,
ithasbeeny
ourBank’
s
v
isi
on t
o empower t
he communi
ty t
hrough soci
o-economi
c dev
elopment of
under
pri
vi
legedandweakersect
ionsofsoci
ety
.
Dur
ing2007-
08t
heBankf
urt
heri
ntensi
fi
edi
tsef
for
tsi
nthi
sdi
rect
ion.Mostoft
he
Bank’
ssoci
alact
ivi
ti
esr
evol
vear
oundeducat
ionali
nit
iat
ives(
incl
udi
ngschooladopt
ion
pr
oject
s,educat
ionalsponsor
shi
psofgi
rlchi
l
dren,
pri
mar
yeducat
iont
ofi
rstgener
ati
on
l
ear
ner
set
c.)andi
nit
iat
ivesi
nthef
iel
dofl
i
vel
i
hoodt
rai
ningandsuppor
t.I
nthel
att
er
ar
ea,t
heBankhasbeenwor
kingwi
thNGOsi
npr
ovi
dingnonf
ormalv
ocat
ionaland
t
echni
caleducat
ion pr
ogr
ams as wel
las ski
l
lup gr
adat
ion cour
ses t
o enabl
e
sust
ainabl
eempl
oymentandi
ncomegener
ati
onf
oreconomi
cal
l
yweakersect
ions.
Tof
urt
heri
ntegr
atesomeofi
tsCor
por
ateSoci
alResponsi
bil
i
ty(
CSR)i
nit
iat
iveswi
thi
ts
banki
ng oper
ati
ons,t
he Bankhasst
art
ed out
sour
cing some non-
cor
e backof
fi
ce
oper
ati
onst
ocer
tai
nsmal
lsemi
-ur
banl
ocat
ions.
Thi
scr
eat
esj
obsf
ort
hel
ocaleducat
edy
out
hint
hoset
ownswi
thobv
iousgai
nsf
ort
he
f
ami
l
ies(
ast
hey
out
hisgai
nful
l
yempl
oyedwi
thouthav
ingt
orel
ocat
etodi
stantci
ti
es)
andal
sogi
vesaboostt
othel
ocal
economyi
nthosel
ocat
ions.
Wher
erel
evant
,theBankcoor
dinat
esi
tsCSRact
ivi
ti
eswi
thi
tsmi
crof
inanceandsel
f–
hel
p gr
oup (
SHG)f
inanci
ng.The Bank has r
elat
ionshi
ps wi
th 110 mi
crof
inance
i
nst
it
uti
onsandhasext
endedcr
edi
tfaci
l
iti
es,wher
eby1.
61mi
l
li
onhousehol
dshav
e
beenbenef
ici
ari
esoff
inanci
ali
ncl
usi
on.I
nthi
sregar
d,y
ourBankhasal
soappoi
nted
ar
ound150NGOsacr
osst
hecount
ryasbusi
nesscor
respondent
s(BCs)t
opr
ovi
deSHG
–Bankl
i
nkaget
ohel
ptr
ibal
s,phy
sical
l
ychal
l
enged,beggar
s,et
c.t
oear
nal
i
vel
i
hood
andj
oint
hemai
nst
ream.
TheBankundert
hedi
rectSHGl
i
nkagepr
ogr
amme,hascr
edi
tli
nkedov
er32,
000SHGs
and t
her
ebyr
oughl
yanot
herhal
fa mi
l
li
on househol
ds hav
e been br
oughtunder

70
Fi
nanci
alI
ncl
usi
on.
Empl
oyeesar
eakeypar
tofy
ourBank’
ssoci
ali
nit
iat
ivesand ar
eencour
aged t
o
par
ti
cipat
eint
hese act
ivi
ti
es,cont
ri
but
ing t
hei
rti
me and ski
l
ls.The Bank al
so
admi
nist
ersapay
rol
l
-gi
vi
ngpr
ogr
ammewher
ebyempl
oyeesof
ferdeduct
ionsf
rom t
hei
r
sal
aryt
odonat
eforspeci
fi
edchar
it
iesorsoci
alcausesoft
hei
rchoi
ceandt
heBank
cont
ri
but
esanequi
val
entamount
.

CSRI
NIDBIBANK
I
DBI
,thepr
emi
erbanki
ngi
nst
it
uti
onoft
hecount
ry,j
oinst
heexcl
usi
vecl
ubofSoci
all
y
Responsi
bleCor
por
ateunderSmi
l
eFoundat
ion’
sCor
por
ateSoci
alResponsi
bil
i
ty[
CSR]
i
nit
iat
ive.
I
DBIhascomef
orwar
dtoj
oinhandswi
thSmi
l
eFoundat
ioni
nsoci
aldev
elopment
i
nit
iat
ives.Thebankhascont
ri
but
ed14per
sonalcomput
erst
oSmi
l
eFoundat
ionwhi
ch
hav
e been ut
il
ized i
nfourdi
ff
erentpr
oject
sbei
ng i
mpl
ement
ed t
hrough asmany
par
tner
sinDel
hiandNCR.
Det
ail
soft
hepr
oject
sandi
mpl
ement
ingpar
tner
sar
easf
oll
ow:

Pr
erna–6comput
ers.
Thecomput
erswi
l
lbeut
il
izedi
ntheongoi
ngpr
ojectf
or‘
Empower
ingCommuni
tyGi
rl
s
t
hroughEducat
ionand Ski
l
lsf
orLi
vel
i
hood’
.Thepr
ojectar
eacov
ers6 v
il
lagesi
n
Badar
purar
eaofDel
hi.Tar
getbenef
ici
ari
esoft
hepr
ojectar
e300communi
tygi
rl
s
Chi
l
dSur
viv
alI
ndi
a(CSI
)–4comput
ers.
I
twi
l
lbeaddedt
otheeducat
ionalpr
ogr
ammeundert
heongoi
ngi
ntegr
atedpr
oject
f
ocusedonunder
-pr
ivi
l
egedchi
l
dren,adol
escentgi
rl
sandv
il
lagewomen.Thepr
oject
bei
ngi
mpl
ement
edi
nKhdaKhur
dar
eai
nout
erDel
hi.Numberoft
argetbenef
ici
ari
esof
t
hepr
ojecti
sar
ound500.

NewOppor
tuni
tyf
orWomen(
NOW)–2comput
ers.
“
Educat
ion,Li
feSki
l
lsEnhancement& Vocat
ionalTr
aini
ngofAdol
escentGi
rl
sfr
om

71
UnderPr
ivi
l
egedCommuni
ty”i
sthepr
ojectwher
ebot
hthecomput
erswi
l
laddv
aluet
o
at
argetgr
oup of60 adol
escentgi
rl
sfr
om bel
ow pov
ert
yli
ne f
ami
l
ies f
rom t
he
nei
ghbour
hoodsl
um communi
ti
esnearAshr
am i
nDel
hi

NavShr
isht
i–2comput
ers.
Pr
ovi
dedbyI
DBI
,thesecomput
erswi
l
laddr
ealv
aluet
othepr
oject“
Educat
ion,Heal
th
Car
e,FLE/
LSE,Vocat
ionalTr
aini
ngonGi
rlChi
l
d”.Wi
that
argetgr
oupof300needy
adol
escentgi
rl
s,t
hepr
ojecthasbeent
akenupi
nFar
idabad,
Har
yana.

CSRI
NPUNJABNATI
ONALBANK
PNBFar
mer
s’Wel
far
eTr
ust
TheBankest
abl
i
shedPNBFar
mer
s’Wel
far
eTr
usti
nthey
ear2000f
orwel
far
eoft
he
f
armer
s,womenandy
out
hinr
uralar
eas.Undert
heaegi
soft
heTr
ust
,ei
ghtFar
mer
s’
Tr
aini
ngCent
res(
FTCs)ar
eoper
ati
onalatVi
l
lageSachaKher
a(Har
yana)
,Vi
disha(
MP)
,
Neemr
ana(
Raj
ast
han)
,
ShamsherNagar(
Punj
ab)
,Sai
fai(
UP)
,Labhandi(
Chhat
ti
sgar
h),Mehr
aj(
Punj
ab)&
Pi
l
lay
arpat
ti(
Tami
lNadu)
.Landhasbeenobt
ainedatJhal
araPat
an(
Raj
ast
han)wher
e
Tr
usti
ntendst
ost
art9t
hFar
mer
s’Tr
aini
ngCent
re.
Mobi
l
eVanatFTCSachaKher
aispr
ovi
dingof
f-
sit
etr
aini
ngoni
mpr
ovedpackage&
pr
act
icesofagr
icul
tur
alcr
ops&al
l
iedact
ivi
ti
es,
soi
ltest
ingandJat
rophacul
ti
vat
ion.I
n
addi
ti
on,
thev
ani
sact
ingasani
nfor
mat
ionki
osk.
Asamaj
orobj
ect
iveoft
heFar
mer
s’Wel
far
eTr
ustScheme,t
heseFTCshav
ebecome
t
rai
ninggr
oundf
ort
hef
armer
s,smal
ltr
ader
s,agr
i-
busi
nessmen,ent
repr
eneur
s,et
c.
TheseCent
respr
ovi
det
rai
ningFREEOFCOST.Theyi
mpar
tedt
rai
ningt
o1,
34,
646
f
armer
s&y
out
hsi
ncl
udi
ng18,
900woment
il
lMar
ch2008.Fur
ther
,dur
ing2007-
08,30
Human Heal
th Check-
up Camps and 88 Ani
malHeal
th Check-
up Camps wer
e
conduct
ed,i
naddi
ti
ont
oar
rangi
ng50v
isi
tst
oAgr
icul
tur
alUni
ver
sit
ies/Col
l
eges/
Fai
rs/Gov
t.Far
mset
c.EachFTChasal
soadopt
edonev
il
lagef
ordev
elopi
ngi
tasa
Model
Vil
l
ageatacostofRs5l
akh.

PNBCent
enar
yRur
alDev
elopmentTr
ust

72
TheBankhasest
abl
i
shedPNBCent
enar
yRur
alDev
elopmentTr
ustwi
thanobj
ect
iveof
assi
sti
ngr
uraly
out
hfort
aki
ngupgai
nfulempl
oymentandr
uraldev
elopment
.Thr
ee
uni
tsundert
heTr
ustar
ewor
king,v
iz.Soi
lTest
ingandAr
ti
fi
cialI
nsemi
nat
ionCent
reat
Vi
l
lageMat
kiJhar
oli
(UP)
,Tr
aini
ngCent
ref
orRur
alYout
hforSel
fEmpl
oymentatv
il
lage
Dhudi
ke(
Punj
ab)andPNB

Swar
ojgarVi
kasSanst
hanf
ort
rai
ningofunempl
oyedy
out
hatPat
na(
Bihar
).
AtMat
kiJhar
oliCent
re,31,
297 soi
lsampl
es hav
e been anal
yzed,7653 ani
mal
s
ar
ti
fi
cial
l
yinsemi
nat
edand63,
222di
seasedani
mal
shav
ebeent
reat
edt
il
lMar
ch2008.
Besi
des,
81,
211per
sonshav
eat
tendeddemonst
rat
ionsonv
ermicompost
ingandsol
ar
ener
gy.AtDhudi
keCent
re,t
hebi
rt
hpl
aceofShr
iLal
aLaj
patRai
,tr
aini
ngonsel
f
empl
oymentv
ent
uresl
i
ker
epai
randmai
ntenanceoff
arm machi
ner
y;cut
ti
ng,
tai
l
ori
ng&
embr
oider
y;comput
ercour
seset
c.hav
ebeeni
mpar
tedt
o555boy
sand526gi
rl
s.PNB
Swar
ojgarVi
kasSanst
han,Pat
na(
Bihar
)isaRur
alDev
elopmentandSel
fEmpl
oyment
Tr
aini
ngI
nst
it
uteest
abl
i
shedon15.
1.2007f
orchannel
i
singy
out
hpoweri
nweal
th
cr
eat
ion t
hrough ent
repr
eneur
shi
p dev
elopmentand i
mpar
ti
ng knowl
edgeand ski
l
l
r
equi
redf
ort
aki
ngupsel
fempl
oymentv
ent
ures.Ti
l
lMar
ch2008,t
rai
ninghasbeen
pr
ovi
dedt
o378per
sonsi
ncl
udi
ng330womenbyt
heI
nst
it
ute.

Mi
croCr
edi
t
TheBankcont
inuedt
opr
omot
eMi
croFi
nancet
hroughf
ormat
ion&cr
edi
tli
nkageof
Sel
fHel
pGr
oupswhi
chi
sanef
fect
ivei
nst
rumentf
ori
ncr
easi
ngt
hei
ncomel
eveland
r
educi
ngpov
ert
yandunempl
oyment
.Adequat
ethr
usti
sbei
nggi
vent
ofi
nanci
ngTenant
Far
mer
s’Gr
oups(
TFGs)
.Inaddi
ti
on,t
heBankhasl
aidemphasi
soncapaci
tybui
l
ding
andt
rai
ningofi
nter
medi
ari
es,
suchas
NGOs/Vol
unt
eerVahi
nisandt
heul
ti
mat
ebenef
ici
ari
es.Dur
ing2007-
08,t
heBank
cont
ri
but
edRs22.
75l
akht
othecor
pusf
ormedf
orpr
ovi
dingf
inanci
alassi
stance
t
owar
dsi
nfr
ast
ruct
uref
ort
heRUDSETIbei
ngr
unbyJ&K Gov
ernment
.Fur
ther
,the

73
Boar
dappr
ovedabudgetof
Rs13.
09l
akhf
orr
ecur
ri
ngexpensesofRUDSETIatDi
stt
.Sol
an,Hi
machalPr
adesh,
est
abl
i
shedi
nassoci
ati
onwi
thAmbuj
aCementFoundat
ion.AsatendMar
ch2008,
the
Bankhascr
edi
t-
li
nked1,
18,
952SHGs,
regi
ster
ingagr
owt
hof18.
2per
cent
.

CSRI
NBANKOFBARODA
Mostoft
heBank’
ssoci
alact
ivi
ti
esar
eli
nkedt
orur
almasses,i
.e.
,adopt
ionof101
v
il
lagesacr
ossI
ndi
afort
hei
ral
l
-ar
ounddev
elopmentandpr
ovi
dingf
inanci
alassi
stance
f
ordev
elopmentofi
nfr
ast
ruct
uref
aci
l
iti
esl
i
keset
ti
ngupv
il
lagel
i
brar
ies,communi
ty
hal
landsol
arl
i
ght
ingsy
stemsi
nvi
l
lages.TheBankhasal
soest
abl
i
shedSwar
ozgar
Vi
kasSanst
hanf
ori
mpar
ti
ngt
rai
ningt
ounempl
oyedy
out
h,f
reeofcostf
orgai
nfulsel
f
empl
oymentandent
repr
eneur
shi
pski
l
ldev
elopmentwhi
chhel
pthem i
mpr
ovet
hei
r
f
ami
l
yeconomi
cst
atusandal
sogi
vesaboostt
othel
ocaleconomyi
nthosel
ocat
ions.
TheBankhasest
abl
i
shed52Bar
odaGr
ami
nPar
amar
shKendr
aforpr
ovi
dingcr
edi
t
counsel
i
ngandf
inanci
all
i
ter
acyf
orr
uralmassesacr
osscount
ry.TheBankcoor
dinat
es
i
tsCSRact
ivi
ti
eswi
thi
tsMi
cro-
fi
nanceandSel
f-
Hel
pGr
oup(
SHG)f
inanci
ng.TheBank
hasdev
elopedr
elat
ionshi
pswi
th91,
536SHGandhasext
endedcr
edi
tfaci
l
iti
esofRs
636.
00cr
oret
hroughSHGs,wher
ebymi
l
li
onofhousehol
dshav
ebeenbenef
ici
ari
esof
f
inanci
ali
ncl
usi
on.TheBankhasal
soadopt
edDungar
purDi
str
icti
nRaj
ast
hanf
ort
otal
i
ntegr
atedr
ural
dev
elopmentand100%f
inanci
ali
ncl
usi
on.

CSRI
NCANARABANK
TRAM Campai
gn
TenRupeesaMont
h,popul
arl
yknownasTRAM Campai
gn,i
sint
endedt
oact
ivel
y
i
nvol
veal
lst
affmember
sint
hewel
far
eact
ivi
ti
es.Undert
hispr
ogr
ammest
udent
s,
pat
ient
ssuf
fer
ingf
rom maj
ordi
seases,di
sabl
edf
rom weakersect
ionsofsoci
etyar
e
assi
sted.Ev
eryy
earaboutRs.6.
00l
akhi
scont
ri
but
edf
rom t
heempl
oyeesf
orhel
ping

74
t
heneedypeopl
e.
Bl
oodDonat
ion
Wi
tht
heact
ivecooper
ati
onoft
hest
aff
,ev
eryy
earar
ound5000uni
tsofbl
oodi
s
donat
edbyst
affmember
sandabl
etosav
emanypr
eci
ousl
i
ves.
Heal
thCamps
Canar
aBankt
hroughi
tsbr
anchesi
sconduct
ingv
ari
oust
ypesofheal
thcampsbot
hin
r
ural
andsemi
urbanar
easwhi
chl
ackmedi
cal
faci
l
iti
es.
Wel
far
eAct
ivi
ti
esf
orSt
udent
s.
Ev
eryy
earmor
ethanOneMi
l
li
onRupeesi
sspentf
orPr
imar
yEducat
ionbypr
ovi
ding
Not
ebooks,SchoolBags,Uni
for
ms,Educat
ionalAi
ds,et
c.Poormer
it
ori
ousst
udent
sof
Gov
ernmentSchool
s ar
e honour
ed ev
eryy
ear
.Manyor
phan st
udent
s ar
e hel
ped
f
inanci
all
ytocont
inuet
hei
reducat
ion.Manyor
phanandsl
um st
udent
sar
esponsor
ed
f
orf
reecomput
ert
rai
ningt
ohel
pthem t
oear
nthei
rli
vel
i
hood.

Sel
fEmpl
oymentandCar
eerGui
dance
Forst
udent
sandunempl
oyedy
out
hthesepr
ogr
ammesar
econduct
edt
ogui
det
hem t
o
chooset
hei
rcar
eerpat
h.
Assi
sti
ngt
heVi
cti
msofNat
ural
Cal
ami
ti
es.
I
nit
iat
ingr
eli
efmeasur
est
othev
ict
imsofdr
ought
,fl
ood,ear
thquakecy
clonesby
pr
ovi
dingcl
othes,f
ood,ut
ensi
l
set
cthr
oughv
olunt
arycont
ri
but
ionsi
ncashandki
nd
f
rom ourempl
oyeesandal
soar
rangi
ngcont
ri
but
ionsf
rom t
heBank.
Assi
sti
ngt
heNGOs
CANARA BANK i
sal
way
sassi
sti
ngt
heNGOswor
kingf
ort
hewel
far
eofdi
sabl
ed,
or
phans,seni
orci
ti
zens,dest
it
utesandconduct
ingpr
ogr
ammesi
ncoor
dinat
ionwi
th
t
hem.

CSRI
NUNI
ONBANKOFI
NDI
A
TheBankf
ull
yreal
i
zesi
tssoci
alr
esponsi
bil
i
tyt
oimpr
ovet
hequal
i
tyofl
i
feoft
hel
ocal
communi
tyandsoci
etyatl
arge.TheBankhasmov
edast
epaheadi
nthi
sdi
rect
ion.I
n
or
dert
opayaf
ocusedat
tent
ion,t
heBoar
doft
heBankhasdeci
dedt
osetapar
t1%of
i
tsannualpubl
i
cpr
ofi
tst
ounder
takeCor
por
ateSoci
alResponsi
bil
i
tyAct
ivi
ti
est
hrough

75
i
tst
rustnamed“
Uni
onBankSoci
alFoundat
ion”
.
Thet
rustwoul
dpr
ovi
def
ori
nfr
ast
ruct
uref
aci
l
iti
esi
nrur
alar
easandcommi
tt
edt
o
under
taki
ngonemaj
orpr
ojecti
neachoft
he13l
eaddi
str
ict
sacr
osst
hecount
ry.
TheBankhasest
abl
i
shedVi
l
lageKnowl
edgeCent
res(
VKCs)i
nnear
ly200v
il
lages
acr
osst
hecount
ry,whi
chpr
ovi
desknowl
edgedi
ssemi
nat
ionandext
ensi
onser
vicest
o
t
her
uralcommuni
tyhel
pingt
hem i
nimpr
ovi
ngt
hei
rpr
oduct
ivi
ty.TheseVKCsar
enon-
pr
ofi
tent
it
ies,
ful
l
yfundedbyt
hebank.
TheBankhasal
soest
abl
i
shedt
woRur
alDev
elopmentandSel
f-
empl
oymentact
ivi
ti
esi
n
Per
ambav
ur(
Ker
ala)and Var
anasi(
U.P)f
unded j
oint
lybyt
heBank,NABARD and
r
espect
iveSt
ateGov
ernment
s.

CSRI
NORI
ENTALBANKOFCOMMERCE
Or
ient
alBankRur
alDev
elopmentTr
ust
Aspar
toft
hecor
por
atesoci
alr
esponsi
bil
i
ty,r
uralunempl
oyedy
out
handwomenar
e
pr
ovi
dedt
rai
ningonski
l
ldev
elopmentf
reeofchar
geundert
heaegi
sofOBC Rur
al
Dev
elopmentTr
ust
.
•
Arur
alcl
i
nichasbeenopenedi
nSi
vagangadi
str
ict
,Chennaif
orpr
ovi
dingmedi
cal
consul
tancyf
aci
l
ityf
reeofchar
get
other
ural
cust
omer
s.
•
PrabhatTar
a,anNGO,oper
ati
onalf
rom RK Pur
am,New Del
hiwaspr
ovi
dedwi
th
comput
ersbyt
hebankt
ofaci
l
itat
ethem f
orconduct
ingt
rai
ningf
ort
hei
rsel
fhel
pgr
oup
member
s.
•
In an ef
for
ttoi
ncl
ude peopl
efr
om t
he l
owerst
rat
aini
ncl
usi
ve par
ti
cipat
ory
dev
elopment
,thebankpl
anst
oinv
olv
ethepeopl
efr
om sl
um ar
eas,r
uralr
emot
ear
eas
byf
ormi
ngsel
fhel
pgr
oupsandmaki
ngf
inanci
alser
vicesav
ail
abl
etot
hem i
nsi
mpl
e
andef
fect
ivewaysot
hatt
heyar
eabl
etot
ast
ethef
rui
tsofgr
owi
ngI
ndi
aneconomy
.
•
Fori
ncr
easi
ngv
isi
bil
i
tyi
nrur
alv
il
lages,t
hebankpl
anst
oadoptoneort
wov
il
lagesi
n
et
hni
car
easl
i
kePunj
ab,
Har
yana,
Raj
ast
hanf
orov
eral
lvi
l
lagedev
elopmentl
i
kecr
eat
ion
ofpubl
i
cinf
rast
ruct
ureandut
il
it
yser
vicesl
i
kebusst
andshel
ter
,publ
i
cdr
inki
ngwat
er
t
aps,
cool
ers,
wat
ert
anksf
orschool
s,andi
mpr
int
ingt
hebank’
snameandl
ogoont
hem.
•
Iti
spr
oposedt
hatt
hemember
sofsel
fhel
pgr
oupsshal
lbegi
vent
rai
ningonski
l
l
dev
elopmentby engagi
ng t
he ser
vices ofNGO atB/
O Si
ngampunar
i,Chennai
.

76
Dependi
ngont
heout
come,
thesamemayber
epeat
edatot
hercent
resal
so.
Fi
nanci
alI
ncl
usi
on
Topr
ovi
debanki
ngf
aci
l
iti
est
othesect
ionsofsoci
etysof
ardepr
ivedf
rom t
hef
ormal
f
inanci
alsect
or,
thebankhasi
mpl
ement
edf
inanci
ali
ncl
usi
onpol
i
cy.Toaccompl
i
sht
he
obj
ect
ives,
thebankhasadopt
edt
hreest
rat
egi
esf
orf
inanci
ali
ncl
usi
on.
•Fi
nanci
alI
ncl
usi
oni
nvi
l
lagesal
l
ott
edbySLBC/
adopt
edbyr
ural
branchesoft
hebank.
•100percentf
inanci
ali
ncl
usi
oni
nleaddi
str
ict
s.
•Technol
ogybasedf
inanci
ali
ncl
usi
on.
Or
ient
alBankRur
alDev
elopmentTr
ust
TheOr
ient
alBankRur
alDev
elopmentTr
ust(
OBCRDT)i
sani
nit
iat
ivet
akenbyt
hebank
f
orset
ti
ngupRur
alDev
elopmentTr
aini
ng&Resour
ceCent
resatv
ari
ouspl
acesacr
oss
t
hecount
ryf
ori
mpar
ti
ngt
rai
ningf
orcapaci
tybui
l
dingi
nrur
alar
eas.I
nthef
ir
stphase,
t
het
rusthassetupRur
alDev
elopmentTr
aini
ng&Resour
ceCent
resatt
hef
oll
owi
ng
pl
aces:
•Fer
ozepur
,Punj
ab
•Sr
iganganagar
,Raj
ast
han
•Jai
pur
,Raj
ast
han

77
CHAPTER-
5

RECOMMENDATI
ONSANDLI
MITATI
ONS

LI
MITATI
ONS:

 Secondar
ydat
acanbegener
alandv
agueandmaynotr
eal
l
yhel
pcompani
es
wi
thdeci
si
onmaki
ng.
 Thei
nfor
mat
ionanddat
amaynotbeaccur
ate.Thesour
ceoft
hedat
amust
al
way
sbechecked.
 Thedat
amay
beol
dandoutofdat
e.
 Thesampl
eusedt
ogener
atet
hesecondar
ydat
amay
besmal
l
.
 Thecompanypubl
i
shi
ngt
hedat
amaynotber
eput
abl
e.

RECOMMENDATI
ONS:

 Thet
imedur
ati
onshoul
dbei
ncr
eased.
 Thesecondar
ydat
aweuseshoul
dbemor
eaccur
ate.
 Thepr
ojectshoul
dbebasedonpr
imar
yresear
chandcompanyv
isi
tsr
athert
han
secondar
ydat
a.

78
CHAPTER-
6

CONCLUSI
ON

Theconceptofcor
por
atesoci
alr
esponsi
bil
i
tyhasgai
nedpr
omi
nencef
rom al
lav
enues.
Or
gani
zat
ionsmustr
eal
i
zet
hatgov
ernmental
onewi
l
lnotbeabl
etogetsuccessi
nit
s
endeav
ort
oupl
i
ftt
hedownt
roddenofsoci
ety
.Thepr
esentsoci
etalmar
ket
ingconcept
ofcompani
esi
sconst
ant
lyev
olv
ingandhasgi
venr
iset
oanew concept
-Cor
por
ate
Soci
alResponsi
bil
i
ty.Manyoft
hel
eadi
ngcor
por
ati
onsacr
osst
hewor
ldhadr
eal
i
zed
t
hei
mpor
tanceofbei
ng associ
ated wi
th soci
all
yrel
evantcausesasa meansof
pr
omot
ingt
hei
rbr
ands.I
tst
emsf
rom t
hedesi
ret
odogoodandgetsel
fsat
isf
act
ioni
n
r
etur
naswel
lassoci
etal
obl
i
gat
ionofbusi
ness.

 
TheI
ndi
ancor
por
atesect
orspentUS$6.
31bi
l
li
ononsoci
alexpendi
tur
edur
ing2007-
08,
upf
rom US$3.
68bi
l
li
onspentdur
ingt
hepr
evi
ousf
iscal
.TheSt
eel
Aut
hor
it
yofI
ndi
a
Lt
d(SAI
L),t
hecount
ry'
slar
gestst
eelcompany
,spentUS$21.
05mi
l
li
ononCSRl
ast
y
ear
;Tat
aSt
eelLt
d,(
whi
chr
unsa850-
bedhospi
talandr
uralpr
oject
sin800v
il
lages
ar
oundJamshedpur
),spendsaboutUS$31.
58mi
l
li
onaspar
tofi
tsannualr
evenue
expendi
tur
e.Now t
her
ear
epl
anst
oal
soi
ntr
oduceCSR i
nthesmal
landmedi
um
ent
erpr
ises(
SME)sect
ort
oincr
easei
tsr
eachi
nremot
ear
eas.

Fi
nanci
ali
nst
it
uti
onscandoal
ott
oassi
stef
for
tsf
orcor
por
atesoci
alr
esponsi
bil
i
tyand
achi
evesust
ainabi
l
ity
.Int
ernalef
for
tst
omakeday
-to-
dayoper
ati
onscl
eaner
,mor
e
ef
fi
cient
,andsuppor
ti
veofsoci
alst
ruct
urescanhel
p.Soundf
inanci
ngofsust
ainabl
e
economycanbepr
omot
edbyt
hebanks.Al
otmor
ecanbedonebybankssoast
o
pr
act
ice t
he cor
por
ate soci
alr
esponsi
bil
i
ty.Ther
e woul
d be gener
alsoci
aland

79
economi
cbenef
it
sthatwoul
daccr
uet
osoci
ety
,ifbusi
nessr
ecogni
zedbr
oadersoci
al
goal
sini
tsdeci
si
ons.

CHAPTER-
7

REFERENCES

 Busi
nessSt
andar
ddat
ed21-
12-
2007

 Pal
azzi
,M &St
archer
,G.(
2006)“
Cor
por
ateSoci
alResponsi
bil
i
tyandBusi
ness
Success,
”TheEur
opeanBaha’
iBusi
nessFor
um

 Car
ol,A.B.(
1979)
,“A Thr
ee-
Dimensi
onalConcept
ualModelofCor
por
ate
Per
for
mance,
”AcademyofManagementRev
iew1979,
Vol
.4(
4).
pp.497-
5

 Moi
r,L.(
2001)
,“WhatDoWeMeanByCor
por
ateSoci
alResponsi
bil
i
ty?
”Corpo
rateGovernance,
Vol
.1(2)
,pp.16-
22

 Car
rol
l
,A,B,
,andBel
i
er,G,W.Landmar
ksi
ntheev
olut
ionoft
hesoci
alaudi
t.
AcademyotManagementJour
nai
1975J8(
3),
589-
599,

 Car
rol
l
,A,
B,(
Ed,
),Managi
ngcor
por
atesoci
alr
esponsi
bii
i
ty.Bost
on:
Lit
tl
e,Br
own,
1977,

 Fi
tch,G.Achi
evi
ngcor
por
atesoci
alr
esponsi
bil
i
ty.AcademyotManagement
Rev
iew,
1976,
/(1)
,38-
46.
Fr
iedman,M.Capi
tai
i
sm andf
reedom.Chi
cago:Uni
ver
sit
yofChi
cagoPr
ess,
1962.

 Manne,H.
,andWal
l
ich,H.C.Themoder
ncor
por
ati
onandsoci
air
esponsi
bii
i
ty.
Washi
ngt
on,
D.C:
Amer
icanEnt
erpr
iseI
nst
it
utef
orPubl
i
cPol
i
cyResear
ch,
1972.

 Pr
est
on,L.E.
,andPost
,J.E.Pr
ivat
emanagementandpubi
i
cpol
i
cy.Engl
ewood
Cl
i
ffs,
N.J.
:Pr
ent
ice-
Hal
l
,1975.

 Set
hi, S. P. Di
mensi
ons of cor
por
ate soci
al r
esponsi
bil
i
ty. Cai
i
for
nia

80
t
\AanagementRev
iew,
1975,
77(
3),
58-
64.

81