Executive summary and recommendations: CSR in India – perspectives for business May 2007 1 May 2007 Prepared for: Collage Article 13 56-58 Community Centre East of Kailash New Delhi – 110 065 INDIA Phone: +91 26436810 / +91 98 1007 1292 Email: [email protected] com Prepared by: Article 13 Group 71a The Grove London W5 5LL UNITED KINGDOM Phone: +44 20 8840 4450 Email: [email protected] com Registered in the United Kingdom No. 03624247 Registered Office: 52 High Street, Pinner, Middlesex, HA5 5PW
Introduction If the purpose of a company is to deliver profit to shareholders what role does Corporate Social Responsibility (CSR) play? Why has the topic risen up corporate agendas over the last 15 years? Why now? What does the term actually mean? CollageArticle 13 – a new joint venture consultancy considered these issues as part of this launch piece of research particularly focussing on India. There is little consensus on the definition of CSR.
A useful pointer is provided by the UK Department for Trade and Industry who define CSR as a company’s response to the issues on the sustainable development agenda. Sustainable development can be further defined as comprising the social, environmental and economic agendas (sometimes called the triple bottom line). The reason for sustainable development has been classically stated in the Brundtland Report as “meeting the needs of the present without compromising the choices available for the needs of the future”.
But why should this matter to business? What are the business drivers to take on the agenda? The World Business Council for Sustainable Development (WBCSD) defines CSR as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large”. Is this rhetoric or practice-based reality? In KPMG’s International Survey of Corporate (Social) Responsibility Reporting 2005, which surveyed more than ,600 companies worldwide and documented the top ten motivators driving corporations to engage in CSR for competitive reasons, the following emerged: • Economic considerations • Ethical considerations • Innovation and learning • Employee motivation • Risk management or risk reduction • Access to capital or increased shareholder value • Reputation or brand • Market position or share • Strengthened supplier relationships • Cost savings The report concluded that by creatively responding to these market forces, and others generated by the CSR movement, organisations can reap considerable benefits.
Collage Article13 used this finding as the start of a practice-based line of enquiry into what is actually going on in one of the countries included in the survey, namely India. The questions we asked were: what is actually going on in CSR (Being reported) in leading companies; and what are the benefits of this CSR activity to the business and do those benefits match up with what is being looked for by potential employees (graduate and post graduate students). We assess the implications of the findings of this study and the recommendations arising for the future. Collage Article13 2 Methodology There were three phases of the research: • Desk- and web-based research • Questionnaires with students (structured quantitative research) • Interviews with leading HR professionals in India (insight interviews) 1. Desk and web based research: • An initial search was conducted within the public domain to review the CSR reported practice of large Indian corporations, which are acknowledged to be at the forefront of the engine of economic growth in India.
This was established through selecting leading growth sectors and reviewing the leading company in each sector. • To augment this, a detailed search was conducted in business journals, market research sites, business newspapers, and publications to study their CSR activities, CSR strategy and identify metrics used by them (if any). • This was followed by comparing these leading companies across sectors with the selected benchmark of the Tata group of companies (Indian leadership company) and with BP (in the International arena). The companies reviewed ere: • Benchmarks: Tata and BP • Information Technology: Wipro, Infosys, • Two-wheelers: Hero Honda, Bajaj • FMCG: Dabur, Godrej • Rural Marketing: Hindustan Unilever, ITC • Telecom: Airtel, BSNL • Real Estate: DLF • Oil and Gas: ONGC, IOC 2. Questionnaires with students: • A structured questionnaire was prepared and distributed to four leading graduate and post graduate institutions in India. • The data from completed questionnaires was entered into a spreadsheet for analysis as to what leading potential employees were looking for from companies in their job and career selection and if CSR would influence their choice. . Insight interviews with HR practitioners from companies: • A select number (three) of interviews were carried out to gain insight into the HR (or employers) perspectives on what leading employees (current and future) were looking for from companies and how CSR influenced this. The complete research results including a breakdown of the student responses is available in Appendix 1 and 2 of this document. ©Collage Article13 3 Commentary and recommendations The perspective of the HR professionals provides insight to the implications of this research and the status of CSR in corporate India.
Their view of the challenge in future for CSR is: • “CSR is picking up now as an area where companies are showing interest. However, it is limited to the big players; if the small players are doing it…there is not enough publicity. Unless more visibility is given to these programmes, it would be difficult to make it popular amongst corporates. ” • “Social Consciousness is not priority for most corporates. To most organisations, it is a cosmetic tool to ward off regulatory scrutiny. Organisations which believe in it however, will vouch that it has stood them in good stead. • “Organisations are getting competitive in whatever they do. Moreover, companies are being closely monitored under provisions like corporate governance and RTI Act which bind organisations towards ethics and transparency. In such a scenario, future looks healthy and people in general can expect to derive benefits out of it. ” It is the last quote above which perhaps sheds light on the next driver towards CSR for Indian companies and the link with regulation and scrutiny. This echoes the combination of factors which has driven a step change in the development of CSR in other countries in the world.
What are the CSR issues in and for India? From the review of companies reporting, it is apparent that the following are issues that they are aware of: • A huge and growing population; • Mass urbanisation, and • A move away from a traditional agricultural based economy; • Massive poverty alongside increasing and booming wealth, with the spectre of HIV/AIDS alongside diseases of the world’s neediest people; • How to balance the needs and wants of a growing economy with the scale of the issues above?
The review of the findings (which follows on page 7) shows programmes in the community, education, environment and health areas but there are within those programmes four emerging themes as to how the companies reviewed are responding with CSR to the issues in India. They are: 1. Employees The desk and web research highlighted some explicit commitments to employees. This was not, however, evidenced in all the companies reviewed. This could be an issue particularly with skilled employees and ensuring the knowledge and skills are retained in the companies.
The student research shows CSR is a job critical issue for students. They are judging on more than community initiatives as environment goes up their agenda. This demonstrates signs of another driver towards CSR. The HR insight shows CSR can yield employee brand, employee motivation and corporate distinctiveness as well as governance, but raises the issue that it could be dismissed in the quest for economic growth. ©Collage Article13 4 2.
Community The desk and web research clearly illustrated the focus towards ‘community’. This seems to be a legacy of the philanthropic approach. What that term community means in practice differs from very local to the company initiatives to wider commitments to the masses. Work in education and in rural programmes tends to predominate. There is some work enabling women to develop their own programmes and have access to micro finance. What is not clear is how much the stakeholders in these programmes are involved in the ecision making as to what their issues are and how they might be best addressed. This is reflected generally in the lack of explicit links between employees and the community commitments. Perhaps this is an area for a quick win? 3. Environment – a tipping point The environment is considered ‘covered’ through the certification to ISO14001, where it has been gained. Where it is well covered there is some mention of cost savings. Is this an opportunity that is being missed by other companies?
The lack of a reported strategic approach to the environment perhaps demonstrates a serious risk for companies as other countries face up to the challenge of natural resource shortages and the effects of climate change. With the growth in the economy of India the companies operating within it will come under increasing scrutiny by the rest of the world. 4. Stakeholder perspective – is it missing Although stakeholders are mentioned in some reports there does not seem to be a strategic approach to involving the stakeholders, understanding the impacts on them.
This could mean companies missing emerging signs of risks and losing out on valuable insights to business strategy (and as shown in other global companies the ‘granting of a licence to operate and grow’). Overall there appears to be a potential lack of a strategic approach to these programmes, linking mission, vision, business objectives to the corporate impacts and therefore the stakeholders and integrating their views and issues into corporate planning.
At best this could yield governance and reputation and early risk identification at a minimum this could improve the effectiveness of the varied initiatives and potentially corporate reputation. Linking back to the KPMG checklist of drivers (and opportunities for companies using CSR), the findings of this research suggest CSR in India is focused on the ethical considerations area supported by brand considerations (philanthropy). It can be deduced that the other areas/drivers are either not being considered by the companies and as such present emerging risk and missed opportunity. • • Economic considerations – the main driver of business in India, not evidenced in CSR responses Ethical considerations – the main driver of CSR in business in India Innovation and learning – focused towards community as opposed to CSR enabling innovation and new product and service development within an organisation Employee motivation – in one case, but the student perspective shows this is a missed opportunity Risk management or risk reduction – CSR rovides early warnings and acts as a tool in identifying risk – this is a missed opportunity • • ©Collage Article13 5 • • • • • Access to capital or increased shareholder value – lack of CSR strategies and programmes have reduced shareholder value at times of societal shifts in expectations e. g.
Shell, Monsanto Reputation or brand – this appears to be an important issue for Indian companies but it is not clear if they have realised how CSR programmes and strategies can help build their values and value as a brand Market position or share – a longer term missed opportunity Strengthened supplier relationships – missed opportunity especially up the supply chain to American and European markets and customer demands Cost savings – Missed opportunity to build business efficiency and effectiveness
Recommendations The findings and analysis suggest key recommendations: • • • • • Review approach of the company against the KPMG survey of global responses From that, develop a strategic approach to CSR based on understanding of the impacts and the tipping points in resource shortage or price rises Recognition that the environment is a tipping point and natural resources such as water and fertile land are potential business threatening issues Realisation that the world is watching India and China and brand reputation and image can be made or destroyed in a single action Understand that CSR presents an opportunity to demonstrate corporate values, distinctiveness, and employee brand as well as deliver governance. This could propel companies into the coveted ‘world class’ status The opportunity for partnership in sectors, across sectors, across the corporate, voluntary divide • ©Collage Article13 6
The findings in summary Corporate reporting – desk and web based review In summary the review highlighted the following: Community ITC HLL Airtel BSNL Infosys Wipro IOC ONGC Godrej Dabur Bajaj Hero Honda DLF Tata BP The companies have been ranked high, medium or low based on their focus as reflected by the financials and organizational resources devoted to CSR causes, along with the number and size of initiatives. Environment Education Health High Med Low Specifically reviewing how the other companies have picked up on these issues the following highlights emerge: 1. The need to address employee issues: The Tata Group has more than 245,000 employees. Tata were the pioneers in employee benefits that were later mandated through legislation in India and elsewhere in the world.
The eight-hour working day, free medical aid, welfare departments, grievance cells, leave with pay, provident fund, accident compensation, training institutes, maternity benefits, bonus and gratuity were introduced by the group before any legal rules were framed on them. Tata has created cities and towns – Jamshedpur, Mithapur, Babrala and Mathigiri – around industrial facilities. Tata Steel maintains Jamshedpur’s public utilities such as the local municipality and takes care of road maintenance, water and electricity supply, streetlights, healthcare and sanitation. Considering the good standard of the maintenance facilities, Tata Steel has floated Jusco as a separate entity, to share its knowledge and expertise, which is unparalleled in the country.
Bajaj Auto provides interesting and explicit commitments to employees through its company’s policies: • The Company believes that equal opportunity in employment for all sections of the society is a component of its growth and competitiveness. • It recognises that diversity to reflect socially disadvantages sections of the society in the workplace has a positive impact on business. ©Collage Article13 7 • • • • The Company is not biased against employing people from disadvantaged sections of the society, if the applicant possesses competitive skills and job credentials. Its selection of business partners is not based on any considerations other than normal business parameters. In case of equal business offers, the Company will select a business partner belonging to a socially disadvantaged section of society.
The Company makes all efforts for upgrading the skills and continual training of all its employees to enhance their capabilities and competitive skills. No discrimination of any type is shown in this process. It plans to have a partnership program with educational institution/s to support and aid students from socially disadvantaged sections of the society. For HLL, approximately 9% of the company’s resources for community involvement come in the form of employee time. Their time is ranged from their involvement in Ashadaan to the disaster affected Yashodadham village near Bhuj. HLL management trainees spend approximately four weeks on Project Shakti in rural areas with NGOs or Self Help Groups.
At Infosys employees are encouraged to report workplace hazards and incidents to the concerned officials and contribute to implementing solutions. Infosys implemented health clubs and health programmes, such as health week, nutrition programmes and ergonomics training. It also implemented safety programs to improve awareness about precautions and measures to improve road and personal safety. 2. The need to be responsible for the community (local or disadvantaged): Tata Chemicals set up the Tata Chemicals Society for Rural Development (TCSRD) in 1980 to promote its social objectives for the communities in and around Mithapur and Babrala, where its facilities are located.
Some of the initiatives of TCSRD are: agricultural development, education, women’s programmes, animal husbandry, rural energy, training, watershed development, relief work and infrastructure. TCCI, in collaboration with the United Nations Development Program (India), created the Tata Index for Sustainable Human Development. This was aimed at directing, measuring and enhancing the community work that group enterprises undertake. According to Bharat Sanchar Nigam Limited (BSNL), the company is committed to provide quality Telecom Services at affordable price to the citizens of the remotest part of India, since it is of utmost importance for achievement of the country’s social and economic goals.
BSNL is the only telecommunication service provider offering rural telephony as part of its social responsibility. Bharat Sanchar Nigam Limited does not have any direct subsidy schemes/ programmes for public. However, BSNL, is the only service provider offering rural telephony as part of its social responsibility. BSNL plans to provide broadband to 20,000 villages that are already connected through optical fibre. BSNL with support from government plans to provide broadband to all gram panchayats, secondary and higher secondary schools and public health care centres by end of 2007. BSNL is offering special tarifs for rural subscribers by providing lower rental and higher free calls as compared to urban area subscribers.
Bharti Airtel founded the Bharti Foundation in 2000, with the vision: “To help underprivileged children and young people of our country realise their potential. ” Through the foundation, several initiatives were started such as the Bharti Computer Centers, which have provided computer learning to more than 130,000 children in five states; the Bharti Library Programme, aimed to encourage reading habits of children; and the Mid-day Meal Programme, in which Bharti Foundation has supported Akshaya Para in providing meals to 43,000 children per day in 292 government schools. For the coming years, the Foundation has plans to start a large number of primary schools in rural areas across the country.
It will also provide teachers’ training facilities. ©Collage Article13 8 Bajaj Auto’s philanthropic activities among the rural poor are carried out by a Trust, the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS). Established in 1987 by Ramkrishna Bajaj in memory of his mother, Jankidevi Bajaj, this Trust acts as a catalyst to development at the grass root level in 32 villages around its plants in Pune and Aurangabad. The trust initiates sustainable, integrated development through long term projects in rural health, hygiene and sanitation, education and adult literacy, improving agricultural and livestock yield, watershed development and women’s empowerment.
Through its poverty alleviation schemes, the Trust provides micro-credit and income generation opportunities for the poor. These projects have a positive impact on the quality of rural living standards Hero Honda are committed to community as “We must do something for the community from whose land we generate our wealth”. (Quote from Chairperson Brijmohan Lall Munjal) Godrej funds the NAZ foundation which has evolved and implemented a holistic approach to fight HIV, focusing on prevention as well as treatment. In 2004, Parmeshwar Godrej, wife of Chairman Adi Godrej, launched a three-year Heroes Project which seeks to develop coordinated campaigns to address the spread of HIV/AIDS and reduce stigma and discrimination by educating the public.
To fight AIDS, Godrej & Boyce has opened a clinic at its Godrej Memorial Hospital in Mumbai. Dabur has a vision of being a company dedicated to the health and well being of every household, drawing inspiration from its founder Dr. S. K. Burman, who said, “What is that life worth which cannot bring comfort to others”. In 1993, Dabur India Ltd established Sustainable Development Society (SUNDESH), a registered voluntary organisation, integrating various aspects such as health, literacy, employment, and empowerment. Through this, the company addresses the most deprived and weaker sections of the society including women, children, illiterates, and the unemployed.
Healthcare: The company organises camps, which include general OPDs, antenatal checkup, vaccination for children aged 0-5 years, family welfare, health awareness through meetings, eye screening and eye operation camps. HLL launched Project Shakti in 2001 to create income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity, and to improve rural living standards through health and hygiene awareness. The project has been extended to 15 states covering 80,000 villages. The company has launched ‘i-Shakti’ kiosks – an IT-based rural information service developed to provide information and services to meet rural needs in agriculture, education, vocational training, health, and hygiene.
To improve business skills of the rural population, especially women, extensive training programmes are held. The total strength of Shakti Entrepreneurs has reached over 30,800. Quoting ITC Chairman, Mr. Y. C. Deveshwar, “Envisioning a larger societal purpose (‘a commitment beyond the market’) has always been a hallmark of ITC. The Company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. The challenge lies in fashioning a corporate strategy that enables realisation of these goals in a mutually reinforcing and synergistic manner”. The groups focus is on rural development. ITC’s e-Choupal empowers 3. million farmers by enabling them to access customised crop-specific information in their native village, habitat and language. Vernacular websites relating to each agricultural crop that the company deals in provide ready and real time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop, expert knowledge on best farming practices, and micro level weather forecast. ©Collage Article13 9 Women Empowerment: ITC aims at micro-credit and skills training to generate alternate employment opportunities for women to facilitate better nutrition, healthcare and education for their children. DLF’s major CSR focus is on the welfare of masses but does not report much on how and where.
Wipro believes in two fundaments that have guided its engagement: “One, Wipro is a socioeconomic citizen. Two, if you can do good, you must. ” Its major thrust for CSR is education. Wipro Applying Thought in Schools: This initiative is aimed to rekindle the spirit of curiosity in children, in order to develop critical, creative and caring citizens. The project ranges from training programmes for teaches and principals to concerted efforts for transforming entire schools. It started in 2001 and it has reached over 4,500 teaches and principals from 241 schools in 4 states. Its Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalisation of education.
Infosys Foundation, the philanthropic arm of Infosys Technologies Ltd, came into existence on 4 December 1996. Its main objective was to fulfill the social responsibility of the company by supporting and encouraging the underprivileged sections of society. The Foundation has been working on initiatives such as: training destitute woman in tailoring and donation of sewing machines and material to them to improve their livelihood; counselling centers to rehabilitate marginalised devadasis in North Karnataka; relief work conducted after natural disasters; donation of aid equipment to the physically challenged in rural areas of Karnataka; and construction of orphanages in rural areas. 3.
The emerging recognition of the role of the environment and the potential as a tipping point: Tata Steel has laid great emphasis, over the years, on creating a green environment in and around its plants and on utilising the waste generated in the process of manufacturing steel. The company generates roughly 700 kg of various wastes (excluding fly ash) in the process of producing one tonne of crude steel. Of this, 83. 16% is utilised either through recycling and reuse in the company’s own processes or is sold as raw material to other industries. The rest is sent for land filling. For Airtel, 5,000 sites are using a green-shelter system that provides cooling for four hours in the Base Transceiver Station. This system saves cost and reduces pollution. A question from the research team is around the use of ISO14001 systems to help take these initiatives further?
Bajaj Auto’s has an Environmental management system, which is an integral part of the overall management system at Bajaj Auto’s Aurangabad plant, was awarded ISO 14001 certification in 1997 Hero Honda is certified for its Environmental Management Systems according to ISO 14001. The Green Rating conducted by the Centre for Science & Environment, New Delhi, for all automobile companies in India, ranked Hero Honda as No. 1 for its environmental performance. 1999: Environment Management System of Dharuhera Plant was certified with ISO-14001 by DNV Holland and in 2000: Environment Management System of Gurgaon Plant was certified with ISO-14001 by DNV Holland. A different approach to the environment is demonstrated by Corporate Social Responsibility in Godrej which “covers many aspects and areas, the greenery and mangroves are just one of them,” according to the company.
Godrej has been a key player in aiding education, environment and the health verticals besides looking after its own employees. The company ©Collage Article13 10 strongly believes that the green environment enhances productivity and quality which has been appreciated by all employees and visitors. The company has a mission of “Enriching quality of life everyday everywhere”. The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek, the single largest mangrove belt in Mumbai. The Sohrabji Godrej Green Business Centre launched the Green Business Initiative in December 2005, which was aimed at facilitating the development of corporate greenhouse gas inventories and subsequent investments in greenhouse gas mitigation projects.
Dabur works towards developing sustainable cultivated source for herbal ingredients, which would help in reducing the strain on natural habitat of these herbs. The company is also involved in reforestation in the Himalayan range. HLL is also committed to extending its efforts on water management to the larger community, and engages in community projects in water adjacent to manufacturing sites. The company has a management system conforming to ISO 14001. ITC focuses on the use of renewable energy such as biomass and solar energy. A number of units have installed solar thermal systems mainly for use in canteens and kitchens. It claims it endeavours to be a carbon positive corporation.
Its efforts in the field of energy conservation, use of carbon neutral fuels and large scale tree plantations through social and farm forestry have resulted in sequestering 85. 6% of the Carbon Dioxide (CO2) emitted by its operations. The Watershed Project, Government of Rajasthan and the ITC Rural Development Trust, have signed a memorandum of understanding (MoU) for the project in Kalyanpura village, over 250 km from the state capital, Jaipur. ITC’s watershed development seeks to achieve two critical objectives: water conservation and soil enrichment. All ITC Units and the four hotel properties owned by ITC (Maurya Sheraton, Mughal Sheraton, Chola Sheraton and Grand Maratha Sheraton) have obtained ISO 14001 certification for their Environment Management Systems.
Indian Oil Corporation has been an active founder-member of the United Nations Global Compact (UNGC), an international initiative that brings companies together with UN agencies, labour and civil society to support universal environmental and social principles. Indian Oil has included CSR in its vision and mission statement and has built its corporate strategies around it. Environmental initiatives include: development of cleaner fuels such as diesel with low sulphur content and biodegradable lube formulations; pollution control programme, in which all refineries are provided with facilities to control pollution from different sources; and ecological parks, which are scientifically designed green belts that have been developed at Gujarat Panipat refineries, to serve as a pollution sink and to enhance the aesthetic look of the refinery area.
Indian Oil won the TERI Corporate Environmental Award 2002-03 in category III (companies with an annual turnover exceeding Rs. 500 crore p. a. ). This award has been presented to Indian Oil for installation of Flue Gas scrubbing (BELCO) system to treat flue gas from RFCC unit of Barauni Refinery to remove particulate matter and sulphur di-oxide. Seven refineries and the IndianOilResearch & Development Centre at Faridabad have achieved the ISO 14001:1996 accreditation for Environment Management System. In 1998-99, the Salaya-Mathura Pipeline and the Koyali-Ahmedabad Pipeline became the first oil pipelines in the world to be accredited with ISO-14001 for Environment Management System.
IndianOil’s Mathura Refinery has been certified for “Occupational Health and Safety Management System (OHSMS)” by DNV – the first refinery worldwide to receive this certification and Mathura Refinery was the first Refinery in Asia, and the third in the world in the Petroleum Sector, to be certified ISO-14001 for its efficient Environmental Management System. ©Collage Article13 11 ONGC has all its operational facilities certified for Quality, Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001, OHSAS 18001, ISRS and ISO 14001. Infosys programmes on environment are being evaluated through the Ozone initiative, in which Infosys Environmental Management System (EMS) is subject to third party surveillance audits. In 2005, it was found to conform to the EMS Standard ISO 14001:2004. 4.
The stakeholder perspective – is it missing? BP provides an interesting global counterpoint, particularly in the area of stakeholders which is not necessarily explicit in the other reviews. The company engages itself in dialogue with a wide variety of groups to create strong and lasting relationships with them. Employees maintain a dialogue with key groups, such as national NGOs, in different ways and make recommendations for the company on the social and environmental impacts. ESIA (Environmental and Social Impact Assessments) studies are carried out to help BP and its stakeholders understand the potential impact of a proposed project on environment or society.
Airtel: According to the company, “Corporate Social Responsibility is a way of life at Bharti. ” Airtel has been looking after the needs and interest of its stakeholders, including employees, consumers, and communities, along with the environment. Its mission recognises stakeholders: “Airtel is strongly committed to being a responsible corporate citizen. Providing a platform to leverage the potential of the citizens of tomorrow and concern for the environment are our top priorities. ” (Sunil Bharti Mittal – Chairman and Managing Director, quoted from the 2005-06 annual report) Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots.
The company believes it has managed to bring an economically- and socially-backward region in Dharuhera, Haryana, into the national economic mainstream. HLL’s CSR philosophy is embedded in its commitment to all stakeholders, including consumers and employees, the environment, and the society the company operates in. ONGC is playing an important role in strengthening India’s corporate world with a tuned sense of moral responsibility towards the community of people where it operates and the country at large. In its vision/mission and the philosophy regarding CSR it claims that the company feels responsible not only for wealth creation but also for social and environmental good.
It also aspires to abiding commitment to safety, health and environment to enrich quality of community life and to imbibe high standards of business ethics and organisational values. Its approach to CSR is summarised as “an approach to business that exemplifies transparency and ethical behaviour, respect for stakeholder groups and a commitment to add economic, social and environmental value”. Dr. Ashok Kumar Balyan, joined the Board of ONGC as Director (Human Resources) on August 23, 2003 and is currently responsible for formulation and implementation of policies in tune with the strategies of ONGC. He is actively leading the continuous change journey of ONGC called ‘Corporate Rejuvenation Campaign’. ©Collage Article13 12 Students’ perspectives Q7: In your view which is the most “responsible” company/companies in India? Figures based on numbers of mentions rather than ranking figures. ) 50 45 Number of mentions 40 35 30 25 20 15 10 5 0 rte l h In fo sy s IT C LF re j ja j sa ls on da le ve r ab u BS N ut c ch U ni te 60 An G od D H er o Question 8: What are the top of m ind issues that corporate India needs to take care of? Community Upliftment Human Rights Children/Women Health and Education Health Related (cancer, HIV) Environment Education 0 10 20 30 40 50 70 Top of mind issues H Company in d ©Collage Article13 us ta n H Num ber of responses U ni W ip Ba Ai D H ro L r 13 The students’ responses demonstrate their view of what is required. Why should companies take notice?
The results from what students are looking for from prospective employees provide the answer: Q5: Would a high CSR involvem ent of the com pany influence your decision to join the com pany? Not applicable/no answ er 5% No 40% Yes 55% Q1: What are the parameters on which you would choose a company for employment? Company’s location and benefits they provide Parameters for choosing company Company’s products or services Company’s support of the community and environment Company’s values Image of company (Brand name in t he market) Job Description Learning and Development opport unities Profitability Salary 0 10 20 30 40 50 60 70 Num ber of responses
HR Insight If students are claiming the views shown above, is this experience reflected in the HR practitioner’s experience? “It does to an extent. Organisations of late are laying focus on CSR having realised the importance of giving back to the society in some form or the other, what they have accrued from them. This also throws some light on the ethics which the organisation practices and hence it also in a way contributes to their brand building strategy. Candidates, before joining make a holistic assessment of the company that they are likely to join. In my opinion, it may be irrespective of levels. ” ©Collage Article13 14 And does the approach to CSR deliver other benefits? Companies which believe in it, view it as an integral component of their business model. The best examples of course are companies like the TATA Group, Infosys and Wipro. ” Interestingly “It reflects on good corporate governance”. companies post Enron and WorldCom. This is an increasing issue for Their view of the challenge in future for CSR provides perspective: • “CSR is picking up now as an area where companies are showing interest. However, it is limited to the big players; if the small players are doing it…there is not enough publicity. Unless more visibility is given to these programmes, it would be difficult to make it popular amongst corporates. ” “Social Consciousness is not priority for most corporates.
To most organisations, it is a cosmetic tool to ward off regulatory scrutiny. Organisations which believe in it however, will vouch that it has stood them in good stead. ” “Organisations are getting competitive in whatever they do. Moreover, companies are being closely monitored under provisions like corporate governance and RTI Act which bind organisations towards ethics and transparency. In such a scenario, future looks healthy and people in general can expect to derive benefits out of it. ” • • ©Collage Article13 15 Appendix 1: CSR Practices in India The full research document on which the summary and recommendations were based, 10 April 2007.
Table of Contents Executive Summary Reason of choosing Tata and BP as benchmarks Methodology and Analyst Commentary Methodology Analyst Commentary Appendix Case Studies Details of the Survey 17 21 29 29 29 30 30 68 ©Collage Article13 16 Executive Summary What is CSR? There is no unanimity on the definition of what constitutes Corporate Social Responsibility (CSR). Most definitions describe CSR as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (CEC: Green Paper for Promoting a European Framework for Corporate Social Responsibility).
The World Business Council for Sustainable Development defines CSR as “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large. ” According to a global study by CSR network, a UK based CSR consultancy, released in 2004, the top 10 benefits of engaging in Corporate Social Responsibility are: • Increased profit • Access to capital • Reduced operating costs/increased operational efficiency • Enhanced brand image and reputation • Increased sales and customer loyalty • Increased productivity and quality • Increased ability to attract and retain employees • Potentially, reduced regulatory oversight • Reducing risk, and increased risk management • ‘Keeping up’ with competitors and where the market is Measurability and merging metrics – Triple Bottom Line (TBL) An increasing number of companies are adopting a new way of operationaling the intangible concepts of ‘corporate social responsibility’ and ‘sustainability’. Triple Bottom Line or TBL focuses on data collection, analysis and decision making using economic, environmental and social performance information. In this concept, the company is judged on the basis of its triple bottom-line: its returns to shareholders, communities and the environment. Under this concept, the company will have to look at not just what it should do with its profits, but how it made its profits in the first place. This implies looking at impacts on all its stakeholders.
This view, which is gaining ground, implies that CSR has to be seen as an essential part of business — not something divorced from business. Companies like Tata group and ITC are at the forefront of adopting the triple bottom-line approach in India. CSR and Indian Experience The CSR framework of companies in India has evolved over a period of time. For business conglomerates like Tata, Birla or the Godrej family, their specific approaches and strategies are mainly based and driven by the ethical beliefs of the founding fathers. However, of late, the companies have been influenced by several factors including business areas in which the companies operate, the socio-economic environment, and the emerging opportunities.
The basic objective of CSR these days is to maximize the company’s overall impact on the society and stakeholders. An increasing number of companies are viewing CSR as a comprehensive set of policies, practices and programs that are integrated throughout the business operations, processes that are supported and rewarded by the top management. A growing number of corporates feel that CSR is not just another cost to the bottom line but is critical for protecting the reputation, defending attacks and building a competitive edge. If integrated in the overall business strategy, CSR could be a remedy for protection against sudden corporate downfall. ©Collage Article13 17
Although there is a growing realization among corporates about the necessity of CSR, there is very slow progress seen. A 2002-study by an NGO ‘Partners in Change’ showed that corporate involvement in development tends to be ad hoc and CEO-driven. • Only 11% of the companies had a written policy though more than 85% of the companies agreed that they have a responsibility towards society. • Companies that work with communities do not necessarily distinguish between the privileged and the under privileged among them. • While a few companies and business groups have taken a lead in promoting CSR in India, the role of the industry associations must be recognized as significant.
While the CII has various committees for social development activities and have even developed a voluntary social code for its members, chambers like FICCI, PHDCCI and the Bharat Chamber of Commerce have set up foundations for this purpose. • The overall approach still seems to be driven by philanthropy rather than integrating it with business as evident in the west. In the case studies, we tried to seek the vision that drives the CSR initiatives of the companies and how they channelise their organizational resources to carry out the same. Most companies do not have very clearly defined CSR guidelines. Education, rural welfare and environment are the most common CSR initiatives taken by companies.
Without having a clearly demarcated budget and exclusive personnel support for CSR activities, most companies function on a rather adhoc basis. The most common award that was awarded to companies for their CSR initiatives were the Golden Peacock Award awarded by the Institute of Directors and TERI-CSR Special Award for initiatives in sustainable development. Most of the companies that we surveyed were Quality, Occupational Health & Safety and Environment Management based on SA 8000, ISO 9001, OHSAS 18001, ISRS and ISO 14001 compliant. HLL also uses a metrics called “Priority Action Radar” whereby it ranks its initiatives on different parameters such as consumers, communities, suppliers, partners, leadership, investors, government, employees, and employment. ©Collage Article13 18
Evaluation of Categories on the 3 stakeholders and their CSR initiatives Category Evaluation No. of CSR Initiatives Telecom No. of Stakesholders Addressed Oil & Gas Real Estate Automotive IT FMCG Rural Note: The IT and telecom sectors have equal number of initiatives and are addressing same number of stakeholders. The above diagram has the category wise number of CSR initiatives on the Y axis and the number of stakeholders (customers, employees and business partners) taken care of by the initiatives on the X axis- e. g. automotive or telecom, is the summation of number of activities undertaken and stakeholders addressed by the companies (studied in this report) representing the sector.
For the real estate sector, we have included only DLF in our analysis, due to paucity of information regarding other players in this sector. • • • Companies in rural marketing space have undertaken most CSR initiatives, followed closely by FMCG, automotive and oil & gas space. The real estate sector has the minimum number of initiatives. Most companies are not addressing more than two shareholders (customers and employees) with majority of them only addressing the concerns of customers. Only ITC and HLL have programs aimed towards their business partners e. g. e-choupal and Project Shakti respectively. Companies in the service space e. g. telecom and IT lay greater importance on employee motivation and retention.
On the other hand, companies in the old economy space, with the exception of Godrej, don’t have any programs aimed at their employees. ©Collage Article13 19 Evaluation of CSR Themes of companies: As per the case studies, the 4 key themes for Indian CSR programs are related to Community, followed by education, environment and Health. Community ITC HLL Airtel BSNL Infosys Wipro IOC ONGC Godrej Dabur Bajaj Hero Honda DLF Tata BP The companies have been ranked high, medium or low based on their focus as reflected by the financials and organizational resources devoted to CSR causes, along with the number and size of initiatives. Environment Education Health High Med Low • • • • •
While Tatas have a high focus and level of involvement in community development, education and environment space, they have relatively fewer initiatives in health compared to the global benchmark BP, which has initiatives in all four themes, with special focus on community and health and education initiatives. After Tatas, the other companies that score high on CSR initiatives in India are ITC and Godrej. ITC lays great stress on community and environmental initiatives, but is low on the initiatives taken in education and health. Godrej focuses on environment and health initiatives, while it has low involvement in community development and education.
Also, ITC is the only company in India which works on CSR programs related to climate change. BSNL and DLF have the least number of CSR initiatives, with both focusing on community initiatives. DLF is involved in the field of education but BSNL doesn’t have presence in any other category. Companies in the automobile and oil & gas space have undertaken very few initiatives in addressing the environmental concerns. Indian companies seem to be spending most of their time and effort on community initiatives followed by education and environment. Health sector has the least number of initiatives with four companies having no involvement in that category. ©Collage Article13 20
Reason for choosing Tata and BP as benchmarks Tata Group The Tata group is known for aggressively pursuing several CSR initiatives in India. It has adopted social responsibility as one of its integral values and has made concerted efforts to link it with its overall strategy for achieving business excellence. The group has always laid great importance on CSR and is evident from its mission as stated by JRD Tata, “No success or achievement in material terms is worthwhile unless it serves the needs or interests of the country and its people. ” The group’s strong resolve regarding CSR shows as some of its companies such as Tata Steel, do not buy from or sell to companies that do not measure up to its social responsibility standards.
Institutionalizing the Concept The Tata group has integrated its CSR initiatives through its trusts and group companies. To institutionalize the concept, it has drawn up the CSR charter that has been inserted into the group’s ‘Code of Conduct. ‘ All the group companies are signatories to this code under which they have to actively assist in improving the quality of life in the communities in which they operate. Since inception, the Tata group has placed equal importance on maximizing financial returns as on fulfilling its social and environmental responsibilities – Triple Bottom Line (TBL). After decades of corporate philanthropy, the efforts of the group in recent years have been directed towards synchronization of the TBL.
Through this, the group has aimed at harmonizing environmental factors by reducing the negative impact of its commercial activities and initiating drives, which encourage environment-friendly practices. In order to build social capital in the community, the group has encouraged its employees to share their skills with others and work with community-based organizations. Setting Benchmarks The group has been actively involved in facilitating the development of this concept in India by setting standards and benchmarks. The group companies have shown the way by establishing a Tata Council for Community Initiatives to provide benchmarks for the enterprises of the group, which help to quantify their efforts.
Financial Outlay The group has played an active role in nation building and socio-economic development since the early 1900s. A survey conducted by the website www. indianngos. com revealed that Tatas spent Rs. 1. 5 billion on community development and social services during the fiscal 2001-02 – the highest by any corporate house in India. Despite adverse economic conditions e. g. in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1. 36 billion in 1999-2000. Recognition The dedicated CSR efforts by various Tata group companies have been globally recognized. The different group companies have received several awards for their fulfillment of social responsibility.
The Tata Group case study shows how it is integrating CSR with its business processes in the organization’s journey towards business excellence, translated into vision into action. BP As one of the leading energy providers in the world, BP believes in being pro-active to minimize the environmental impact of their quest for oil and gas. Predominantly guided by environmental and social concerns, BP’s CSR initiatives have evolved over time – from taking on social responsibility for entire local communities in Iran to investing millions of dollars in renewable energy. BP’s endeavors have always been more than mere philanthropy. ©Collage Article13 21
Initiatives BP gives prime importance to the safety of its employees and contractors along with the integrity and security of the plants and equipment. A new organizational structure has been designed by the company to deliver better safety performance. BP has put Health, Safety and Environmental (HSE) management systems and processes in place to ensure that there are no accidents, no harm to people and no damage to the environment. BP takes active measures to develop community relations, entrepreneurship and educational facilities. It supports the Universal Declaration of Human Rights (UDHR) and follows the UDHR’s statement that “every organ of society” shall strive to promote respect for the rights and freedom outlined.
BP has framed its code of conduct to protect and promote the human rights of its employees. Financial Outlay In 2005, BP community investment touched $95. 5 million with nearly $50 million spent on education. Since 2002, the budget for education investment has doubled and BP continues to invest around 50% of its annual commitment on education. In 2004, BP made a commitment to spend around $500 million towards community investment in each five-year cycle. ©Collage Article13 22 Benchmarking: In order to compare the CSR performance of the companies with the leaders (Tatas and BP) in CSR, parameters such as the number of initiatives, spectrum of stakeholders addressed and the financial outlay on CSR was studied.
Company TATA’s BP Number of Initiatives Community Environment Education 8 8 3 1 3 2 Health 1 3 Stakeholders it addresses through CSR Customers Employees Business Partners 14 12 Rural Marketing 1 1 Outlay (in Rs) 380 cr (05-06) $2914 mn (2005) 1 ITC HLL 4 4 4 1 1 2 1 6 8 Telecom 3 46. 91 crore (03-04) NA Airtel BSNL 3 3 1 1 2 6 2 IT 1 1 200 cr (2006-08) NA Infosys Wipro 3 1 1 1 1 2 1 5 3 Oil & Gas 1 1 13. 25 cr (05-06) 3 cr (02) IOC ONGC 2 5 1 2 1 1 2 1 6 9 FMCG 25. 87 cr (03-04) 108 cr (06-07) (0. 75% of Net Profit) Godrej Dabur 1 2 5 1 1 2 3 1 9 6 Automobiles 1 70 cr (every year) NA Bajaj Hero Honda 2 3 1 1 1 3 2 2 6 9 Real Estate 10 cr (every year) NA DLF 1 5 NA Tata Group Tata Group investment on CSR in 2005-06 was estimated to be Rs. 380 crore, spread across education, health, environment, rural development, sports, arts and employee relations. Tata Group contributes to environmental initiatives by the direct involvement of Tata companies to preserve the environment and formation of Tata Trusts, which support non-governmental organizations. Community initiatives include formation of: • educational institutions • sports facilities • art and culture centers Tata’s other initiatives encompass setting up of rural development societies and organizations like Rallilove ACTS and Voltas for Women.
It has created towns and cities around industrial facilities for employee benefits. Tata group’s work has been lauded over the years and has received numerous awards including the ‘Award for Corporate Social Responsibility in Public Health – 2007 by USIBC’, ‘Golden Peacock Global Award for Corporate Social Responsibility (Asia)– 2007’, ‘Civil Society Award 2006 by UNAIDS. ’ The Tata Council for Community Initiatives in collaboration with the United Nations Development Program, created the Tata Index for Sustainable Human Development aimed at directing, measuring and enhancing the community work that group enterprises undertake. It is a set of guidelines for Tata companies looking to fulfill their social responsibilities.
British Petroleum The firm’s CSR theme is centered on environment and society with its activities focused on responsible operations, climate change and development with systems and processes put in place to ©Collage Article13 23 ensure that there are no accidents or damage to the environment. BP contributes to enterprise development, education and community relations by initiatives like ‘Black Economic Empowerment’ (BEE) strategy, Environmental Educators’ Initiative and centers for primary, adult and cross-cultural education. BP has won several awards for its endeavors in the fields of energy and employee benefits e. g. Catalyst Award for Advancing Women in the Workplace, Climate Action Champion Award, Energy Company of the Year and “Gold Award” winner in the Renewable Energy category.
All major sites of BP achieved ISO 140001 international standard on environmental management, by independent auditors. Airtel With primary CSR focus on education and environment, Bharti Airtel has committed Rs 200 crore to support CSR initiatives over the 2006-08 period. Bharti Airtel founded the Bharti Foundation to provide facilities like computer education, library, mid-day meals etc. to help underprivileged children. Airtel launched the CII-Bharti Woman Exemplar Award in 2005 to promote women’s empowerment at the grassroots. The company has won several awards including India’s Most Customer Responsive Telecom Company Award and the Golden Peacock Award for Corporate Social Responsibility.
Bharat Sanchar Nigam Limited BSNL focuses its CSR activities primarily in the field of employee’s welfare activities, assistance during natural calamities and offering rural broadband plans. BSNL implements welfare programs and awards such as Bharat Sanchar Sarathy and Sanchar Seva Padak. It also offers its employees corporate group Life Insurance Policy. BSNL, with government support, plans to provide broadband to all gram panchayats, secondary and higher secondary schools and public health care centers by the end of 2007. BSNL is the only service provider offering rural telephony as part of its social responsibility. It received the ‘Golden Peacock National Award 2005’ for its contribution to the field of CSR, in connecting India’s remote areas and adhering to best labor practices.
The company has an ISO 9000 certified Telecom Training Institute. Bajaj Bajaj’s CSR policy focuses on women empowerment, income generation, health programs, agricultural extension, animal husbandry, watershed development, drinking water schemes, sanitation and education. The company set up the Jankidevi Bajaj Gram Vikas Sanstha (JBGVS) to provide employment opportunities at grass-root level, Samaj Seva Kendra to undertake social activities in the semi-urban areas and Kamalnayan Bajaj Hospital in Aurangabad. Bajaj was awarded the Meritorious Performance in Industrial Safety Award, consequently for three years (1998-2001) by the National Safety Council.
The Environmental management system at Bajaj Auto’s Aurangabad plant, was awarded ISO 14001 certification in 1997. Hero Honda Hero Honda’s CSR focus is in the fields of education, rural healthcare, vocational training, adult literacy and social support to girls of backward classes. Hero Honda has set up an Integrated Rural Development Centre on the outskirts of Delhi. The company’s other initiatives include construction of educational institutes, rural hospitals, sports complex and vocational training centres. In 2006, Hero Honda was ranked No. 1 in the automobile industry by TNS Corporate Social Responsibility Award. Godrej Godrej’s major CSR initiatives include education, environment and health donations and it spends more than Rs 70 crore annually.
It has set up establishments like Godrej Technical Institute at Bordi, Pirojsha Godrej Research Laboratory, and the Centre for Excellence at Pirojshanagar under its education initiatives. The Soonabai Pirojsha Godrej Foundation has been maintaining the western bank of the Thane Creek, the single largest mangrove belt in Mumbai. Godrej supports the Foundation for Medical Research, Mumbai for the cure of leprosy and funds the NAZ foundation which works for HIV. Jamshed Godrej, Chairman and MD, Godrej and Boyce Manufacturing Company Limited looks after all the CSR. The Awareness program for Godrej and Boyce, Vikroli, Mumbai was given the ISO 14001 certification.
Dabur Dabur’s CSR policy is focused on healthcare, education, skill development and income generation training, empowerment and environment issues. Dabur established the Sustainable Development ©Collage Article13 24 Society (SUNDESH), a voluntary organization, integrating various aspects such as health, literacy, employment, and empowerment. Dabur was among the ‘Top 10 Great Places To Work’ in 2004. Indian Oil Corporation Most of the Indian Oil Corporation’s CSR initiatives focus on provision of drinking water and sanitation, health and family welfare, education, and empowerment of women and other marginalised groups in rural and backward areas. IOC invested Rs. 25. 87 crore in CSR in 2003-04. It has set up the IndianOil Foundation to preserve and promote national heritage.
It is working with the Bill and Melinda Gates Foundation to spread awareness about HIV/AIDS. IndianOil’s Mathura Refinery won the 2006 National Energy Conservation Award. In February 2007, the Forum of Women in Public Sector (WIPS) conferred the Best Enterprise Award on IndianOil for the Corporation’s pioneering efforts towards Women development and related issues. Oil and Natural Gas Corporation Limited ONGC promotes education, healthcare and entrepreneurship in the community and supports water management and disaster relief in the country. From 2003, ONGC decided to allocate 0. 75% of its net profits towards Social and Economic Development programs.
Under its project PURA, it undertakes initiatives for system for management of schools, healthcare units, vocational training centers and regional industrial units. An Institute of Petroleum Safety, Health and Environment management (IPSHEM) was set up in 1989. ONGC was awarded the Golden Jubilee Award for Corporate Social Responsibility in merging Economies in 2006. ONGC has all its operational facilities certified for Quality, Occupational Health& Safety and Environment Management (QHSE) based on ISO 9001, OHSAS 18001, ISRS and ISO 14001. DLF DLF’s CSR policy focuses on welfare of masses. The company organized fire safety drill and women self defense programs for welfare of the masses.
The company along with DLF City residents, Gurgaon, organized an exhibition to create awareness among the residents and highlight various measures that need to be undertaken to ensure utmost safety. HLL HLL CSR initiatives primarily encompass areas like health and hygiene, education, women empowerment, rehabilitation of special or underprivileged children, care for the destitute, HIV-positive, and rural development. The company’s philanthropic donations include donation of Rs 80 million for tsunami-hit areas in 2005 and Rs 10 million for Mumbai flood relief in 2005. HLL launched project Shakti in 2001 to encourage rural entrepreneurship and set up ‘i-shakti’ kiosks to provide information and services to meet rural needs.
Other initiatives include inception of rural education programs, education centers for the handicapped, health and hygiene programs in villages and women empowerment programs. Approximately 9% of the company’s resources for community involvement come in the form of employee time. HLL has won awards including Bombay Chamber of Commerce and Industry Civic Award for Community Development 2005, Exemplary Safety Performance from National Safety Council and the Government of Tamil Nadu for Tatapuram and am Tindiindivanam factories in 2005 and 2003 TERI-CSR Special Award for initiatives in sustainable development. ITC ITC is involved in CSR initiatives like environmental performance, primary education, agriculture, women empowerment.
But the group’s focus is on rural development initiatives which include echaupal – aiming to provide agriculture-related information through IT, wasteland management and livestock development. ITC provides infrastructure facilities to select government schools under its “Project Classmate”. Its environment initiatives focus on renewable energy, watershed project and energy conservation. In 2003-04, an estimated Rs. 46. 91 crore was spent on its CSR initiatives. The company has received several awards such as the Golden Peacock Award for ‘Corporate Social Responsibility (Asia)’ in 2007, award for ‘CSR in Emerging Economies 2005’, and the inaugural ‘World Business Award’, instituted by the UNDP.
Wipro Wipro’s CSR focus is on education and it invested Rs. 3 crore on education programs in 2002. Wipro’s initiative- ‘Applying thought in schools’ is aimed at wholesome development of school children. ©Collage Article13 25 ‘Wipro Cares’ is another endeavor aimed to rehabilitate calamity-affected people and provide education to underprivileged children. Wipro’s Chairman Azim Premji has launched his own Foundation – Azim Premij Foundation – with a focus on universalization of education. In 2003, Wipro received a certificate of honor from the BusinessWorld FICCI-SEDF Corporate Social Responsibility Award for its contributions in the field of CSR.
Infosys The key areas of Infosys Foundation’s CSR drive are healthcare, social rehabilitation and rural upliftment; learning and education; art and culture. In 2006, Rs 13. 25 crore was spent on construction of specialty hospitals and donation of ambulances, equipment and medicines. Other initiatives include construction of orphanages, vocational training centers for women, libraries for rural schools and donation of aid equipment to the physically challenged. Infosys also has programs for paper/water conservation and waste management. Infosys was declared the ‘Best Company to Work for In India 2005’ by the BT-Mercer-TNS survey and was awarded the Economic Times Corporate Citizenship Award in 2001. ©Collage Article13 26
Talent Acquisition and CSR Survey among students A survey was conducted to seek the opinion of students on CSR to analyze if CSR could be a differentiating factor for any student to apply to a company or accept a job opportunity. Parameters for Choosing Companies 61. 9% 64. 9% 60. 8% 57. 7% 26. 8% 20. 6% 25. 8% 12. 4% 16. 5% Learning Values Salary Job Location Description and benefits Image CSR Company’s Profitability Products or Services Salary appeared to the most important criteria’s for choosing the future employer, with almost 65% of the respondents choosing it. It was followed by the learning and development opportunities that the company, just ahead of the Job Description. The other important factor considered by most of the students was the company’s image in the market.
Surprisingly only about 26% of the respondents felt that company’s support of the