Corporate Social Responsibility in Infosys Foundation
Sandhya Mishra
Dept of MBA, Gandhi Institute for Technology, Bubaneswar Corporate Social Responsibility (CSR) is viewed as a
comprehensive set of policies and programmes that are integrated into business operations, supply chains and decision-making processes throughout the company. The case deals with CSR initiatives of Indian IT major-Infosys Technologies Ltd. The company is actively involved in the areas of community involvement, human resource development, environmental contribution, product contribution and customer relations, rural development, and shareholders relations. The paper also provides an insight into the expected role of companies in CSR in the times of recession.
Keywords: Corporate Social Responsibility, Community Involvement, Human Resources, Environmental Contribution, Product Contribution and Customer Relations, Shareholders’ Relations, Rural Development
Introduction
During the year 2008-09, Infosys Technologies, the Indian software giant won ‘Hitachi Data Systems’
Diamond Award for Best Virtualization Strategy and
‘Platinum Award’ for Best Green Strategy for a Data Centre. The company also received NASSCOM (National Association of Software and Service Companies) Award for excellence in gender inclusivity at the NASSCOM IT Women Leadership Summit 2008 in Bangalore (Annual Report ‘Infosys Technologies Ltd.’, 2008-09).
Awareness of the impact of business on society and environment has grown along with the increasing socio- regulatory pressures. This evolution has gradually led business to return the displaced social orientation. Many firms are assuming increased Responsibility for both social and environmental well- being. Corporate response to environmental and social issues is progressing through three stages of evolution: profit maximization management, trusteeship management, and quality of life management (Hay and Gray, 1977).
The business depends on society for its existence, sustenance and encouragement. Being too much dependent on society, business has definite responsibility towards different segments of society which is depicted in the figure 1.
Though profit making is one of the main objectives of business but it has to satisfy its various stakeholders, viz., employees, consumers, government, community, and shareholders. Over the past few decades, a growing
number of companies have recognized the business benefits of Corporate Social Responsibility (CSR) policies and practices. CSR is defined as “A concept
Source: Joshi and Kapoor (2004), p. 358 (Modified) Figure 1: Business Responsibility towards Different Sections of Society
whereby companies integrate social and environment concerns in their business operations and in their interaction with their stakeholders on a voluntary basis, as they are increasingly aware that responsible behaviour leads to sustainable business success”
Commission of the European Communities (2002). A growing body of empirical studies demonstrates that CSR has a positive impact on business economic performance. Companies going for CSR activities have experienced a range of bottom line benefits, namely, improved financial performance and reduced operating costs (Centre for Corporate Research and Training, 2003; Agarwal, 2008), enhanced brand image and reputation (Krishna, 1992; Rashid and Ibrahim, 2002;
Centre for Corporate Research and Training, 2003;
Agarwal, 2008), increased sales and customer loyalty (Creyer and William, 1997), increased ability to recruit and retain employees (Turban and Greening, 1996; Luce et al., 2001; Centre for Corporate Research and Training, 2003), easier access to capital (Spicer, 1978; Centre for Corporate Research and Training, 2003) etc.
In Indian context, CSR is not a new concept and can be easily seen in the form of magnificent temples, high mosques, large dharamshalas and great educational institutions (Agarwal, 2008). In 1965, the Prime Minister of India presided over a national meeting that issued the following declaration on the social responsibilities of business: “...business has responsibility to itself, to its customers, workers,
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shareholders, and the community…every enterprise, no matter how large or small, must, if it is to enjoy confidence and respect, seek actively to discharge its responsibilities in all directions... and not to one or two groups, such as shareholders or workers, at the expense of community and consumer. Business must be just and humane as well as efficient and dynamic” (Brown, 2001). The increasing relevance of CSR in India has stemmed from the fact that a business cannot succeed by ignoring the human and social needs of our society. In this age of widespread communication and growing emphasis on transparency, customers of any product or service are not likely to feel satisfied in buying from a company that violates the expectations of ethical and socially responsible behaviour. Therefore, the companies that pay genuine attention to the principles of socially responsible behaviour are favoured by the public and preferred for their goods and services (Sarkar, 2005).
Company Profile
Infosys Technologies Ltd. provides consulting and IT services to clients worldwide. Founded in 1981, by N.R.
Narayan Murthy and six of his colleagues. The corporate headquarters are based in Bangalore, India. However, Infosys offices span the globe. In 1987 Infosys got its first foreign client, Data Basics Corporation from the United States and opened its first office in the USA. In 1993, Infosys became a public limited company and successfully completed IPO (Initial Public Offer) in India. In the same year Infosys received ISO 9001/TickIT certification. Infosys set up its first office in Europe in Milton Keynes, UK in 1996. In 1999, Infosys crossed $100 Million in annual revenue and was listed on NASDAQ. It was Indian company to be listed on NASDAQ. In the same year Infosys opened offices in Germany, Sweden, Belgium, and Australia. In 2000, Infosys crossed $200 Million in annual revenue. In 2004, Infosys crossed US $1 Billion in annual revenue.
In 2006, Infosys completed 25 years of its existence and its revenues crossed $ 2 billion. Today Infosys has more than 50,000 employees and has presence in more than 20 countries across the world. Its corporate headquarters is in Bangalore. The company vision is to be the best globally, commercially and ethically. As such, Infosys has developed a C-Life principle of core values that it aims to honour in all aspects of its business conduct. C- LIFE: The Core Values of Infosys are: Customer Delight, Lead by Example, Integrity and Transparency, Fairness, and Excellence (www.Infosys.com)
CSR at Infosys Technologies Ltd
Infosys Foundation, the philanthropic arm of Infosys Technologies Ltd. came into existence on 4th December 1996 with the objective of fulfilling the social responsibility of the company by supporting and encouraging the underprivileged sections of society (www.IndianNGOs.com). N. R. Narayana Murthy (Chairman and Chief Mentor, Infosys) defines Infosys Foundation as “For benefits of globalization and technology to reach the poor, the private sector,
philanthropic institutions and committed individuals should co-operate and establish partnerships with the government institutions. This would lift millions of our people out of poverty, provide them with opportunities and make them participate in the process and progress of globalization.” Promoted by Infosys Technologies Ltd., the Foundation began its work in Karnataka, India, gradually extending its activities to the states of Tamil Nadu, Andhra Pradesh, Maharashtra, Orissa and Punjab.
The Foundation supports the programmes and organizations devoted to the cause of the destitute, the rural poor, the mentally challenged and the economically disadvantaged sections of the society. The Foundation also helps in preserving certain cultural forms and dying arts of India. The foundation got the prestigious ET Corporate Citizens Award (2000-2001) (www.karnataka.com/ngos/infosys). The grants made by Infosys to the Foundation for the last three years are shown in the table 1.
Table 1: Grants to the Foundation
Year Grants (Rs. in Crores)
2008 20.00
2007 19.00
2006 13.25
Source: Annual Report ‘Infosys Technologies Ltd.’, 2007-08
Various CSR dimensions, viz., Community Involvement, Human Resource Development, Environmental Contribution, Product Contribution and Customers’
Relations, Rural Development, and Shareholders’
Relations have been considered in order to observe the initiatives of Infosys Technologies Ltd. in CSR. These dimensions have been considered in the various studies conducted in past (e.g. Krishna, 1992; Brown, 2001;
Confederation of Indian Industry, 2002; Centre for Corporate Research and Training, 2003) for examining the CSR involvement of companies operating in India.
In addition to the above mentioned dimensions, Infosys’
adherence to UN Global Compact Programme has also been observed.
The dimensions of CSR and Infosys’s initiatives (i.e.
details of CSR activities under different CSR dimensions undertaken by the company) during 2006-07 to 2007-08 are shown in the table 2 and are explained as follows:
Community Involvement Education
“Basic education links the children, whether of the cities or villages, to all that is best and lasting in India”, said Mahatma Gandhi (www.karmayog.org/
csr500companies). The following steps have been taken by Infosys Foundation in this field:
• Constructed and donated to the school buildings for poor and orphaned students in Orissa, Tamil Nadu, Pondicherry, Kerala and Karnataka.
• Constructed class rooms at the Wayanad Girijan
Seva Trust which works for Girijan students in Kerala.
• Donated books on the topics such as engineering, medicine, mathematics, science, history, economics, etc. to the book banks in Karnataka. These
‘book banks’ are tremendously useful for the poor students who use these books for reference.
• Through company’s Computers@Classrooms initiative launched in January 1999, the company donated 2,567 computers to various institutions across India.
• Sponsored ‘Vijanana Sammelana’ at Shimoga, Karnataka to impart knowledge of science to students and teachers.
• Donated computers and laptops to Gulbarga University, Athani University, Mangalore University and to the All India Vayu Sainik Camp in Bangalore.
• Launched OASIS, a training program for students
in government schools.
• Collaborated with Ichalkaranji Seva Bharathi, Mumbai; Vidya Prasarak Mandal, Lucknow;
Yogakshema, Hyderabad Karnataka Sikshana Samithi, Kota Vidya Samste and Arunachal Pradesh Vidya Kendra to provide education for underprivileged children.
• Worked with the Karavir Nagar Vachan Mandir in Kolhapur, Maharashtra to convert the library into an e-library and then connected it to other libraries around the world.
Healthcare
Making high-quality healthcare the norm is an ongoing challenge (www.karmayog.org/csr500companies). The Foundation has undertaken the following CSR actions in this area.
Table 2: Dimensions of CSR and Infosys’s Initiatives CSR Dimension Infosys’s Initiatives
Community
Involvement This shows the responsibility of business towards society in terms of spending a part of its profits towards civic and educational facilities (Joshi and Kapoor, 2004).
Infosys is performing its responsibility towards community by being engaged in providing educational facilities, healthcare facilities and contributing towards art and culture.
Human Resource Development
The business enterprises are under moral threats to satisfy the needs and aspirations of the workers engaged by them and this is very important since in the present era of socio-economic set up, the employees cannot be treated as the mere means to certain
ends (Sarkar, 2005).
Infosys is engaged in its human resource development by being engaged in providing health and safety measures for its employees, providing retirement fund benefit plans, spending for their welfare, undertaking training programmes, profit-sharing programmes for employees etc.
Environmental
Contribution Reducing the consumption of resources or reducing polluting emissions can reduce environmental impact (European Communities, 2001) which is one of the major responsibilities of an enterprise.
Infosys is contributing towards environment in terms of using recycled products, conservation of energy, waste management etc.
Product Contribution and Customers’
Relations
Business must satisfy customers’ key buying criteria-such as product price, quality, appearance, taste, availability, Safety and convenience (Centre for Corporate Research & Training, 2003). Infosys is providing better services to its customers by providing and by investing in R&D for quality services.
Shareholders’
Relations
Shareholders put their capital in business and therefore, the companies should be managed in their interest. In other words, the primacy of treatment given to the shareholders is being justified on the grounds of ownership and shareholding (Centre for Corporate Research & Training, 2003).
Infosys, having investor grievance committee gives due consideration to the interest/complaints of the shareholders.
Rural Development
Rural development implies both the economic betterment of people as well as greater social transformation of the people living in rural areas (www.rural.nic. in).
Infosys is contributing towards rural development in terms of education to the rural poor, helping the under- privileged women, helping the self help women groups and donating to floods victims living in rural areas.
• Donated ‘Radiant Warmer with Electrical Slow Suction and Apgar Timer’ to Sargur
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Hospital, H.D. Kote, where tribal patients are treated free of cost.
• Supplied free medicines for diabetic children through Jnanasanjeevini, Bangalore.
• Donated medical equipment, chairs, and an x-ray unit to Northern Bihar Hospital, Bangalore Hospital and Jammu Hospital, where poor patients receive treatment free of cost.
• Donated medical equipments to Pavagada Eye Hospital, Karnataka and Kakinada Eye Hospital, Andhra Pradesh.
• Constructed an advanced Pediatric Block for Wenlock Hospital, Mangalore.
• Paid Rs. 3 crore to buy ‘Linear Accelerator’ for Chennai Cancer Insitute, Chennai.
• Donated Computed Tomography (CT) scan machine to Government Hospital, Bhubaneswar.
The firm is also helping poor patients through Little Drops Public Charitable Trust, Chennai and Ramakrishna Sarada Mission Matri Bhavan, Kolkata.
Arts and Culture
Traditional art and culture are fast disappearing due to globalization and economic development. Preserving India’s rich heritage and honoring its artisans are some of the ways Infosys Foundation contributes to this space.
In specific, the following actions have been undertaken by Infosys Foundation to promote Art and Culture of the country:
• Sponsored Kala Darshan, a musical program in rural areas, through Bhartiya Vidya Bhavan.
• Sponsored a folk fest in Bangalore to provide direct market opportunities for rural artisan communities and promote culture. Approximately 100 craftsmen from 20 states participated in the fest.
• Sponsored more than 5,000 students, through NGOs like Prerna and Vidya Poshak, for the study and documentation of Karana Viniyoga, to preserve and encourage the art. Karana is a dance form defined and described in great detail by sage Bharatha in his work Natyashastra.
• Supported the Bhandarkar Oriental Research Institute in researching ancient Indian manuscripts.
• Sponsored Uppina Kudru Kamath Memorial Yakshagana Gombeyatta puppet shows in Karnataka to preserve the art of puppetry.
Besides, the above mentioned activities, the firm felicitates physically challenged musicians, artists and Yakshagana artists from rural areas.
Human Resource Development Employees’ Health and Safety
A good and healthy human resource is the gateway of success and the harbinger of progress of any organization as cock is to the dawn (Sarkar, 2005).
The firm is also engaged in creating and implementing a health and safety management system, and monitoring the performance regularly. The Occupational Health and Safety Assessment sequence 18001 (OHSAS 18001) specifications ensure that all objectives and targets are measured. During the year 2008, the company introduced Health Assessment and Lifestyle Enrichment (HALE) Plan which focuses on increasing the emotional value- add of the employees, by optimizing their health, quality of life and work environment. The goal is to ensure healthy and happy employees who will be more productive in the long term and will add to the competitive edge in the business. The HALE Health Week, comprising yearly master health check- ups and focused health and stress campaigns, was conducted in the campuses during March 2008. Over 6,000 employees underwent medical check-ups and specialists’
consultations. Approximately, 10,000 employees used the online interventions related to the Health Week which included an online health hunt, a health quiz and specialist doctors’ discussions on Infy TV. Workshops and discussion by experts on first aid and trauma handling helped the employees in case of emergencies.
Over 12,000 employees were benefited by these workshops (Annual Report ‘Infosys Technologies Ltd.’, 2007-08).
Welfare
In 1994, the company issued 7,50,000 warrants to the Infosys Technologies Limited Employees Welfare Trust (the Trust), for the benefit of the employees, by creating a stock option plan, namely, the 1994 Employees Stock Offer Plan. The Trust has successfully completed the administration of the 1994 Stock Offer Plan, which expired in September 2004. As of date, the Trust has in its ownership, 28,33,600 shares which are unutilized. These shares have been irrevocably granted to the Trust and are to be used for the benefit and welfare of the employees (Annual Report ‘Infosys Technologies Ltd.’, 2006-07). Staff welfare expenditure was Rs. 52 crores in 2008 as compared to 44 crores in 2007.
Retirement benefits to employees
• Gratuity
Infosys provides for gratuity, a defined benefit retirement plan the ‘Gratuity Plan’ covering eligible employees. In accordance with the Payment of Gratuity Act, 1972, the Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment of an amount based on the respective employee’s salary and the tenure of employment.
• Provident fund
Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employee and the Company make monthly contributions to the Infosys Technologies Limited Employee’s Provident Fund Trust that is equal to a specified percentage of the covered employee’s salary. Infosys also contributes to a government administered pension fund on the behalf of its employees.
Training and awareness
The training needs of all employees are identified and relevant training is provided accordingly. While identifying the training needs, the role of the department (e.g. production) and the impact of its activities on the Health, Safety and Environment (HSE) system of the campus are considered. E-module training is provided to help reach out to the ever-growing employees located across geographies. The e-learning module on environment management system (EMS) has been organized to include content on the standards and specific initiatives at Infosys in managing the environment. Modules relevant to occupational health and safety are also included. The objective tests at the end of each module are designed to capture the knowledge gain of the learner. For the second consecutive year in 2007, the company won the BEST award from the American Society for Training and Development (ASTD) (Annual Report ‘Infosys Technologies Ltd.’, 2007-08).
Environmental Contribution
The development centers of Infosys were certified ISO 14001:1996 compliant in March 2004. Since then, each location has been subject to surveillance audits every year on a rotational basis.
Recycling
The company’s employees are encouraged to use best practices like double side printing, smaller fonts etc. to reduce utilization of paper as much as possible. Usage of copier machines is normally discouraged. Most development centers work with paper recyclers to recycle waste paper. Notepads made from such recycled paper are used for office stationery. The usage of plastic and thermocol has been reduced by 90% in the campuses. In order to be water positive, the company has created sleeve wells and bunds to trap storm water and charge the water table. The per capita consumption of water at 2.9 KL per month reduced by 5% in 2008 as compared to the previous year i.e. 2007. 100% of water is recycled and reused. The company is planning to introduce initiatives to reduce water consumption in the near future. The consumption of paper has been reduced by 8% and the company is planning to reduce it by 25%.
Rainwater harvesting is a vital part in the design of the new campuses.
Conservation of Energy
Though the company’s operations are not energy- intensive, however, significant measures are taken to reduce energy consumption by using energy-efficient computers and by purchasing energy-efficient equipment. Currently, the company uses Compact Fluorescent Light (CFL) fixtures and electronic ballast to reduce the power consumption in the illumination system. A building automation system is in place to control the working of air conditioners and to make them more energy-efficient by installing ‘Variable Frequency Drives.’ Centralized Air conditioners with energy-efficient Centrifugal Variable Speed Drive (VSD) System & Screw compressors are installed. In addition, air-conditioning with Variable Refrigerant Volume (VRV) system and split air conditioners with scroll compressors are used for independent cooling. In the company’s staff hotels, solar water heating system is used for water heating.
Waste Management
There is a system for segregation of waste at source.
Every development center has a dedicated waste segregation and processing yard. Solid waste management at Infosys is based on the triple R (Reduce, Reuse and Recycle) principle. Plastic is used judiciously.
Food vendors at Infosys are urged not to use disposable plastic. Suppliers are encouraged to take back package material. Of the inevitable waste that is generated, innovative ways and means to reuse are explored. Wood waste for instance is used in carpentry. Paper printed on one side is stapled together and used as scribbling pads.
Paper, plastic, bottles and steel scrap is sent to the approved recyclers. Hazardous waste is restricted to used batteries and used oil. Used batteries are returned to suppliers in accordance with ‘The Pollution Control Board’ (PCB) norms. Used oil is also sent to the approved oil recyclers. E-waste is handled as per the norms laid out by the PCB. At present, the legislation applicable to hazardous waste management applies to e- waste as well. Disposal of waste is done as per these norms. Biomedical waste generated from the medical centers on campus are segregated at the center and then sent to the approved agencies for incineration. Food waste is sent to nearby piggeries and vermi-compost pits (Annual Report ‘Infosys Technologies Ltd.’, 2006-07).
Product Contribution and Customers’ Relations The company is investing in Research and development of new services, designs, frameworks, processes and methodologies. The Intellectual Property (IP) created has led to enhanced quality, productivity and customer satisfaction. The company has received the certifications, namely, SEI-CMMI Level 5, CMM Level 5, PCMM Level 5, TL 9000 and ISO 9001-2000.
Rural Development Rural Reach Programme
• The Rural Reach Program is a one-day program
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delivering basic knowledge of computers to the students of classes 5, 6 and 7 in rural schools. In 2007, about 7,742 students from 56 schools across India benefited from the program.
• Conducted relief work for the flood victims in Kerala and Orissa.
• Donated teaching aids and an uninterrupted power supply unit for the visually challenged in Snehankit Association, Pune. Helped self help women groups in Gujarat. Donated a vehicle to Akshaya Patra Foundation that helps to supply food to various schools in Bangalore and a vehicle to Sri Kottal Basweshware Bharatiya Shikshana Samiti, which helps to travel to rural areas.
• Sponsored the construction of a suspension foot bridge in Mundaje in Mangalore, Karnataka.
The firm is presently working with Kalika India, a trust in rural Bangalore that works with underprivileged women and children, providing education and aiding economic development. It is engaged in helping under- privileged women, through RAPID, an organization in rural Karnataka that works in the rehabilitation of such groups, renovated Chitra Poor Home, an orphanage in Thiruvananthapuram, donated sewing machines to destitute women in Haliyala and Athani, and enabling their financial security. Helping the children in Deena Bandhu, an orphanage in Chamrajanagar with the mid- day meal program.
Shareholders’ Relations
The company has set up investor grievance committee to examine and redress shareholders’ and investors’
complaints. Investors’ grievances like non-receipt of dividend warrants/ bonus shares are settled within a period of 10 days.
Infosys and UN Global Compact Programme
On August 27, 2001, the company adopted UN Global Compact Programme and became a partner with the UN in this initiative. The company adheres to the principles of the UN Global Compact Programme (Sustainability Report ‘Infosys Technologies Ltd.’, 2007-08). These ten principles under four categories are:
Human Rights
• Support and respect the protection of internationally proclaimed human rights.
• Make sure they are not complicit in human rights abuses.
Labour
• Uphold the freedom of Association and the effective recognition of the right tocollective bargaining.
• Ensure the elimination of all forms of force and compulsory labour.
• Ensure the effective abolition of child labour.
• Eliminate discrimination in respect of employment and occupation.
Environment
• Support a precautionary approach to environmental challenges.
• Undertake initiatives to promote greater environmental responsibility.
• Encourage the development and diffusion of environment-friendly technologies.
Anti-Corruption
• Business should work against all forms of corruption including extortion and bribery (www.
unglobalcompact.org).
Global Compact Programmes undertaken by Infosys are shown in the Table 3.
During the President’s (Smt. Pratibha Devisingh Patil) visit in Infosys headquarters, she gave the statement,
“Infosys is a leader in its field. Its principles of ethics and social responsibility contribute to the growth of the country’s economy and society” (http://news.gol.
com/News).
CSR: Need of the Hour in Times of Recession
There is now widespread acceptance of the fact that improper regulation (e.g. failure of international banking system) along with widespread un-ethical
Table 3: Infosys’s Global Compact Programmes Field Programme Undertaken
Human
Rights The company provides training to the employees, suppliers and vendors on human rights.
Labour The company doesn’t employ child labour or forced labour and have enforced this policy on all the company’s suppliers/vendor partners who operate out of all company’s campuses. The company has built a robust survey mechanism to capture employee satisfaction feedback.
To encourage a healthy lifestyle, the company has built facilities such as gymnasium, swimming pools and sports complexes in the company’s development centers. The company has set up occupational health and safety committee at each development center.
Environmen t
All the company’s development centers in India are ISO 14001:2004 certified. The company’s existing environmental initiatives are being streamlined into six focus areas; energy, water, biodiversity, waste management, paper and emissions.
Anti Corruption
The company operates across geographies and encourages the employees to report on corrupt practices or unethical behaviour under the whistleblower policy.
The company has established control systems for complying with local laws on corruption in the geographies the company operates.
behaviour (e.g. corporate misgovernance in Satyam Computer Services Ltd.) in the corporate sector has been the main reason of current deadlock. In present scenario where deviant corporate behaviour is highlighted immediately and information about it is spread through the instant communication channels, the misbehaviour by corporates cannot be excused (Pachauri, 2009). The time has come for corporate organizations to realise the importance of in-depth scrutiny of all their actions by civil society and their own interest in implementing a genuine programme of corporate social responsibility.
Though the current economic downturn will surely raise concerns around the budget for CSR activities and the extent to which companies will tend to invest in CSR activities yet investment in CSR activities is for the own benefit of the companies. Like the employees are attracted to stay with socially responsible companies and want to see commitment to corporate social initiatives continue through tough times. Moreover, the consumers are willing to pay price premiums for products and services marketed by companies with proven and sustained track record of doing good (http://blogs.hbr.org). In other words, CSR involvement enables the companies in gaining the trust of people in long run. Therefore, the right approach is to come up with more creative ways to implement cost-effective CSR activities rather than pulling back. In this present scenario of economic downturn, the companies (irrespective of their size) recognize and are performing their social responsibility. Like, Nokia Malaysia’s
‘Integrated Nokia Kiosk’ (INK) is first of its kind kiosk which provides customer a really a simple way to recycle their old mobile phones and accessories. As an added incentive for recycling for each mobile phone dropped off, the customer will have a tree planted in his of her name via the Nokia New Trees Programme. For this initiative, INK snagged the inaugural ‘Green Mobile Award’ at the GSM Association’s (GSMA) Asia Mobile Awards 2008 held. This award is the recognition of Nokia’s ongoing commitment to the environment (http://pressbulletinboard.nokia. com). Likewise, Exide Industries as a part of its CSR programme, joined hands with ‘United Nations International Children Emergency Fund’ (UNICEF) to support them in their
‘Child Environment Programme’ that involves creating better environmental conditions for underprivileged children. The support to UNICEF from Exide is linked to the number of used batteries that Exide return from its existing customers. For every returned battery, a particular sum of money would go to customers as well as to UNICEF which provides incentive to the company’s customers to return their used batteries to
Exide Industries (www. exideindustries.com). Similarly, Hindustan Lever Ltd. (HLL) through its Surf Excel brand came out with campaign of education to poor children (http://living. oneindia.in). Likewise, IDEA Cellular Ltd. on 26th Nov. 2009 (on the first anniversary of the first terror bullet which ruined calm in Mumbai on 26th Nov. 2008) initiated the movement titled the ‘Talk for India Hour’. Approximately 5.5 crore Idea subscribers were made aware, that for every call they made between
8.36 p.m. and 9.36 p.m. that evening, the net revenue generated would be handed over by Idea Cellular to the cause of protective gear for police personnel. At its result, approximately Rs. 1.25 crore was generated as revenue from subscriber calls. Idea Cellular doubled the amount, and contributed a total sum of Rs. 2.50 crores for Prime Minister’s National Defence Fund (www.indiaprline.com). Hence, even in times of recession, smart companies are undertaking corporate social activities in one form or another.
Conclusion
CSR, now a days has moved beyond indulgence in pure philanthropy. CSR activities vary-ranging from donation to charitable institutions, providing educational and health facilities, contributing towards environment, serving the customers in the best way, women empowerment, rural development and many more.
Companies do such activities as internal projects or in association with some government bodies or NGOs. A number of companies in India are engaged in and are demonstrating their CSR initiatives. In a survey conducted by Centre for Social Markets in 2001, the respondents mentioned the name of certain Indian and International companies as their role models in CSR sector. Birla Group of Companies, BSES, DSP Merril Lynch, Hindustan Lever, Infosys, ITC, Larsen and Toubro, Mahindra BT, Mitsui, Reliance as Indian role models and IBM, EDS, Goodyear and Conagra Inc. in U.S.A. as international role models (Brown, 2001). The companies, by being engaged in CSR activities gain immeasurable public image. On the other hand, there have been in recent times many examples of well established and successful organizations losing their public trust and market strength on account of carelessness of social norms. Nike has suffered huge damages to its image by being associated with oppressive labour practices. In contrast Avon gains amazing and free publicity through its cancer awareness activities (Ping, 2002). Through the analysis of CSR initiatives of Infosys Technologies Ltd., the present study reveals that the company is actively engaged in different areas of social responsibility. Infosys Technologies, through Infosys Foundation is contributing towards the improvement of health, education, rural development and art and culture. The company is also performing its responsibility towards its shareholders and customers. In addition to this, the company is also adhering to the principles of UN Global Compact Programme. The study makes it clear that in
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the period of recession, most of the companies are still going for corporate social initiatives as goodwill and transparency are crucial for a company to keep blooming especially in the times of economic downturn (Datta, 2009). Therefore, the companies irrespective of their size (large, medium or small enterprises) should try to get advantage from CSR activities rather than focusing on immediate cost cutting or forgoing their responsibility towards the society at large.
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14. Ping, A. C. (2002), Understanding Corporate Social Responsibility (www.insight-works.com, accessed on 15 October 2004).
15. Rashid, Z. A. and Ibrahim, S. (2002),
“Executive and Management Attitudes towards Corporate Social Responsibility in Malaysia”, Corporate Governance, Vol. 2 (4), pp. 10-16.
16. Sarkar, C. R. (2005), Corporate Social Responsibility of Business Enterprises, New Century Publications, New Delhi.
17. Spicer, B. H. (1978), “Investors, Corporate Social Performance and Information Disclosure: An Empirical Study”, The Accounting Review, Vol. 53 (1), pp. 94-111.
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Reports and Web Links
1. Annual Report ‘Infosys Technologies Ltd.’, 2006-07 Annual Report ‘Infosys Technologies Ltd.’, 2007-08 Annual Report ‘Infosys Technologies Ltd.’, 2008-09
2. Sustainability Report ‘Infosys Technologies Ltd.’, 2007-08
3. http://blogs.hbr.org http://living.oneindia.in 4. http://news.gol.com/News
http://pressbulletinboard.nokia.com www.exideindustries.com
www.indiaprline.com www.IndianNGOs.com www.infosys.com
www.karmayog.org/csr500companies www.karnataka.com/ngos/infosys
www.rural.nic.in www.unglobalcompact.org
