anil kumar tiwary desertation

DISSERTATION

On

“Impact of CSR Activities on Customer’s Perception about the Organization and sales of

their Products/services - A case study on HUL, ITC and P&G”

Report Submitted in partial fulfillment of Post Graduate Diploma in Management

Under Supervision of

Prof. NIDHI SHARMA

Faculty of GLBIMR

Submitted by

ANIL KUMAR TIWARY

Roll No - GM012

Batch 2010-12

Submitted to

G.L.Bajaj Institute Of Management and Research

Plot No. 2, Knowledge Park III, Greater Noida- 201306

Website: www.glbimr.org

http://www.glbimr.org/

CERTIFICATE

This is to Certify that the Project work done on Title ““Impact of CSR Activities on

Customer’s Perception about the Organization and sales of their

Products/services - A case study on HUL, ITC and P&G” is a confide

work had been carried out by ANIL KUMAR TIWRY a 2nd year student of G.L.Bajaj

Institute of Management and Research under my supervision towards partial fulfillment of

Post Graduate Diploma in Management.

I wish all the best for his future and Endeavour.

DATE

PLACE Prof. NIDHI SHARMA

ACKNOWLEDGEMENT

I consider my proud privilege to express deep sense of gratitude to Prof. NIDHI SHARMA for

her admirable and valuable guidance, keen interest, encouragement and constructive suggestions

during the course of the project.

I would also like to express my hearty gratitude to my other faculties of G. L. Bajaj Institute of

Management and Research, Greater Noida, U.P. for their valuable guidance and sincere

cooperation, which helped me in completing this final project.

I sincerely thank all the members of my Department for their immense support and assistance

extended during the course of this project and in making it a valuable experience.

ANIL KUMAR TIWARYANIL KUMAR TIWARY

ROLL NO-GMO12

TABLE OF CONTENTS

S. No. Page No.

1. EXECUTIVE SUMMARY………………………………………………………………1

2. INTRODUCTION………………………………………………………………………..2

3. BACKGROUND……………….…………………………………………………………3

4. SIGNIFICANCE OF THE STUDY…………………….………………………………...6

5. LITERATURE REVIEW…………………………………………………………………7

6. RESEARCH METHODOLOGY………….……………………………………………..16

7. SECONDARY DATA ANALYSIS……………………………………………………..17

8. DATA ANALYSIS AND INTERPRETATION………………………………………...29

9. FINDINGS AND CONCLUSION………………………………………………………50

10. BIBLIOGRAPHY………………………………………………………………………..51

11. ANNEXURE……………………………………………………………………………..52

EXECUTIVE SUMMARY

Indian FMCG companies are most actively engaged in responsible activities and rank on top in

the latest Associated Chambers of Commerce and Industry of India (ASSOCHAM) report on

CSR by Indian corporates. It has become important for every company to become socially

responsible. With Indian consumers becoming more cause conscious, their preferences keep on

changing. So CSR helps the companies to attach the consumers with them. Moreover social

responsibility is equally important for the economic development of the country. CSR is titled to

aid an organization's mission as well as a guide to what the company stands for and will uphold

to its consumers. Development business ethics is one of the forms of applied ethics that examines

ethical principles and moral or ethical problems that can arise in a business environment.

The aim of this project is to study the CSR initiatives taken by HUL, ITC and P&G and to know

the impact of these initiatives on customer’s perception towards the organization. It will provide

an insight on the awareness level of consumers about these initiatives.

This project has two parts explaining the Secondary Analysis on CSR initiatives by HUL, ITC

and P&G and Research on Impact of CSR Activities on Customer’s Perception about the

Organization and sales of their Products/services respectively. A Questionnaire will be used to

collect primary information from customers/general public. This project will help the researcher

to find out the reasons for change in perception of consumers due to CSR initiatives.

Objectives of the study

1. To study the CSR activities done by the FMCG companies

2. To study the favorable impact of CSR activities on the consumer’s perceptions.

3. To study the impact of CSR activities on the sales of products.

4. To analyze in what ways a company is benefited as a result of execution of CSR

activities.

http://en.wikipedia.org/wiki/Applied_ethics

http://en.wikipedia.org/wiki/Business_ethics

INTRODUCTION

A Statement of Intent generating wealth in a manner that is socially and environmentally

sustainable must be the common goal of domestic and international business. In this age of open

world economy, brand reputation, repositioning of government activities and privatization, it is

increasingly important to do business ethically, morally and with concern for the society.

Business today is realizing that the world is not made up of strangers. There is bondage- human

bondage. There are customers, employees, shareholders and the neighbors. The business class

should render their support to the general people. If they will be uplifted socially and

economically, the productivity of the corporate is also bound to increase

Social responsibility encompasses the sectors like health, education, employment, income and

quality of life. It should be binding on the corporate sector to work on the above aspects, which

are thought to be primary social indicators. They have enough money to serve the nation on the

above segments of the society. They should not forget that if general health of the mass were

good, they would have better buying capacity.

CSR is a concept where the company indulges in sustainable or responsible activities, which

point to its good intentions as a corporate citizen. This can be undertaken as a statutory

obligation to its shareholders, employees or society in general as part of good corporate

governance as defined in the Indian Companies Act or it can be used as a public relations tool to

gain an image, which the company in question feels is better than it enjoys before it undertakes a

major public relations exercise regarding corporate social responsibility. Therefore, CSR differs

from company to company and depends on how it is wielded.

In some organizations, corporate social responsibility practices talk about development at the

grassroots level through various public and private alliances. But the CSR theory is yet to be

comprehended by Indian stakeholders; the concept will take good time to come up in full swing

in India.

"India sets a realistic agenda of grassroots development through alliances and partnerships with

sustainable development approaches. At the heart of the solution lies intrinsic coming together of

all stakeholders in shaping up a distinct route for an equitable and just social order," said

Indu Jain, chairperson, The Times of India Group.

Although CSR is not a novel concept in India, but its essence is yet to be properly understood by

the stakeholders. Companies like Tata Steel (previously Tisco), Tata Motors (previously Telco),

the C K Birla group of companies and others of their ilk have been imbibing the case for social

good in their operations for decades long before CSR become a popular cause.

However, this activity was undertaken those days through non-governmental organizations

(NGOs) and not directly through the company's balance sheet or profit and loss account. Later in

many small family run businesses, this mode of money transfer became the norm for evading

corporate taxes.

"CSR in India is in a very nascent stage. It is the least understood initiative in the Indian

development sector. Though SR Foils is yet to have a dedicated CSR wing, but we do involve

ourselves in various CSR activities. We organize hygiene workshops with localities near our

office. We try to promote cleanliness and hygiene; we gift free tissues and sanitizers to various

schools," said Rakesh Gupta, managing director, SR Foils.

Noticeably, either the companies have recently introduced the concept or some MNCs or private

companies engage in CSR activities because the practice is followed by their mother branches in

their respective foreign countries. Hence, it's quite obvious that the emphasis on CSR practices is

due to the policy compulsions, and not because of an urge to serve the community.

Transnational have traditionally encountered a lot of opposition to their novel products and new

ways of doing business. They usually come under a lot of fire as they try to re-invent business

activities, which impinge on the daily life of age-old family run businesses.

Recently, Coca-Cola has been offering district football associations Rs 10,000 to conduct a full-

fledged football tournament with boys and girls in that district in India.

The company's objective clearly to gain brand mileage with cash starved football in India but all

they are achieving is a sense of deprivation by football players who can barely manage a

tournament with Rs 10,000 in the kitty. This would be a good example of misplaced corporate

social responsibility.

Some think tanks feel that the concept of corporate social responsibility was taken up by

companies after the petroleum company Shell was forced to take up benign activities after the

global public boycotted their products and outlets post Shell's mishandling the dismantling of the

Brent Spar off shore oil storage tank.

http://economictimes.indiatimes.com/tata-motors/stocks/companyid-12934.cms

http://economictimes.indiatimes.com/tata-steel/stocks/companyid-12902.cms

BACKGROUND

The corporate and the government should try to build up a relationship between the business and

the society. The concept of corporate social responsibility (CSR) has so far failed to take deep

root in India because the nomenclature is not properly defined. The CSR is in a nascent stage.

Much needs to be done to bring changes in attitude towards CSR and bring awareness among the

corporate about their social responsibilities. The corporate should be made aware about the

changing nature of business due to globalization, transformation of market environment and

deepening of competition. The market economy has paved the way for enterprise-led

development and a new cultural perspective is taking place in Indian business environment that

has a strong bearing on social responsibilities.

In 1970, Milton Friedman of New York Times rightly wrote: “the social responsibility of

business is to increase profits.” This view is often held and propounded by those who do not see

much merit in companies being engaged in issues of Social Responsibility other than the making

of profit. However, increasingly, the profit case, evident indicators that are tangible and the

altruistic/ philanthropic/ ethical case, evident in the intangibles are getting blurred. In this context

the purpose is to highlight the need for a paradigm shift in the importance of greater investment

in intangibles to enhance corporate value.

Significance of CSR for India The ideal corporate citizenship has ethical and philosophical

dimension, particularly in India here wide gap exists between people in terms of income and

living standards as well as social status. A latest survey by the Tata Energy Research Institute

(TERI) called ‘Altered Images: the 2001 State of Corporate Responsibility in India Poll’ Traces

Back The History Of CSR In India and suggests that there are four models of CSR.Ethical model

The origin of the first ethical model of corporate responsibility lie in the pioneering efforts of 19

th century corporate philanthropists such as the Cadbury brothers in England and the Tata family

in India. The pressure on Indian industrialists to demonstrate their commitment to social

development increased during the independence movement, when Mahatma Gandhi developed

the notion of ‘trusteeship’, whereby the owners of property would voluntarily manage their

wealth on behalf of the people.

Gandhi’s influence prompted various Indian companies to play active roles in nation building

and promoting socio-economic development during the 20th century. The history of Indian

corporate philanthropy has encompassed cash or kind donations, community investment in trusts

and provision of essential services such as schools, libraries, hospitals, etc. Many firms,

particularly ‘family-run businesses’, continue to support such philanthropic initiatives.

With Indian consumers becoming more 'cause' conscious, their brand preferences keep shifting

to favor the brand that is socially more responsible. The phenomenon directly creates a

connection between the sales and the CSR. The trend suggests, 'the better the CSR policy, the

more the sales.' The trend affects most product categories that are bought on a daily basis, with

consumers making a purchase decision almost every day. This could be one of the major reasons

why Indian FMCG companies are most actively engaged in responsible activities and rank on top

in the latest Associated Chambers of Commerce and Industry of India (ASSOCHAM) report on

CSR by Indian corporates. The report says that of 175 Indian companies studied, 52 companies

in the FMCG sector have taken the maximum of CSR initiatives. This was followed by the

chemical sector and then the IT sector.

Most of the initiatives taken by the companies primarily focus on welfare of the community.

Community welfare' ranks on top in the priority list in the ASSOCHAM study. The second most-

sought-out CSR initiative was providing education and enlightening the rural youth in the

country. With stringent norms, lure of carbon credits and growing consciousness, environment-

based CSR initiatives get the third place in the priority list of Indian corporates. Healthcare

follows environment and becomes priority number four.

Though there has been evidence of a paradigm shift from charity to a long-term strategy, the

concept is still believed to be strongly linked to philanthropy. There is a need to bring about an

attitudinal change in people about the concept by having more coherent and ethnically driven

discourses on CSR,' wrote Swati Piramal, president, ASSOCHAM, in one of her articles related

to the report.

It has to be understood that CSR is about how companies balance their business ethics and

behavior with business growth and commercial success along with a positive change in the

stakeholder community.

SIGNIFICANCE OF THE STUDY

The era of corporate organizations paying lip service to social responsibility is fast coming to an

end. The recent past has seen corporate social responsibility becoming a process from a concept

and also organizations deriving value from this initiative. In the light of the above the current

research will explore the CSR strategies and initiatives of various selected Indian companies.

The study will be based on extant literature and will draw examples from the current Indian

scenario. Some primary research is conducted for the Indian corporate houses through their web

pages containing information’s about their CSR initiatives. Based on this best practices will be

delineated and recommendations for using corporate social responsibility as a part of business

strategy by the organizations to leverage their perception among the stakeholders. The study will

be relevant for the industry as well as academia as it will discuss corporate social responsibility

as a strategic move that organizations can incorporate in their overall business strategy, thereby

achieving better all-round performance.

LITERATURE REVIEW

FMCG companies most active in CSR

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), recently released

a report saying that Indian companies engaged in FMCG and chemical sectors were most active

in CSR. Out of 175 Indian companies studied, 52 companies in the FMCG sector have taken the

most amount of CSR initiatives. This was followed by the chemical sector and then the IT sector.

Community welfare is the top CSR priority area for most Indian companies. The second most

sought out CSR initiative was providing education and enlightening rural youth in the country.

Environment based CSR initiatives placed third with big corporates placing importance on

carbon auditing and working towards reducing their impact. Finally, the corporate sector is

involved in health care by providing methods to eradicate diseases and educating rural people

about hygiene and disease prevention.

CSR forms an important tool in branding especially for FMCGs. The Indian FMCG sector is the

fourth largest sector in the economy and is set to grow to US$ 33.4 billion by 2015. It is

characterized by many MNCs operating out of India as well as good distribution networks. The

FMCG sector is also the sector that contributes most towards a growing waste problem within

the country and this is something that the sector must address. The food-processing industry

alone is set to grow by billions of dollars and this will create its own waste streams.

The potential for CSR in this sector is vast and hopefully companies galvanize on their growth

will continue to invest in CSR as well.

CSR in India: Community welfare, education and enlightening youth are

priorities

Corporate social responsibility (CSR) is not just charity. It is like an obligation and we owe it to

the next generation,' said Union Minister of State for Corporate Affairs and Ministry of Minority

Affairs Salman Khurshid while inaugurating a seminar 'Corporate sustainability: the driver of

innovation' in Chennai. The minister stressed that sustainability meant 'justice between

generations'. He said corporates should realize that they have a responsibility towards the next

generation. He agreed that the sustainability concept is taking shape in the country. Earlier, he

said, it was just a concern for environment, which is gradually expanding to other serious issues

as well. Highlighting the government's efforts, Kurshid said that despite the economic recession

and inflation, the government had not restricted the allocation for the social welfare sector.

Addressing the media, Kurshid said that the performance in terms of CSR was easily measurable

with regard to public sector units, as they had been directed to spend a specific portion of their

profit towards CSR. He also confirmed that certain voluntary guidelines would be introduced

with the launch of the new companies' bill. CauseBecause had reported last month that the

ministry of corporate affairs was revising the guidelines on corporate social responsibility (CSR)

issued last year and would be adding detailed norms on environmental sustainability. The new

rules will primarily prevent wasteful use of natural resources and ensure scientific treatment of

industrial waste. The present norms only urged companies to be environmentally conscious and

left it for them to take steps in that direction. They failed to provide a clear framework for

compliance, leading to companies not taking adequate measures. The participants at the event

included Sudha Raghunathan, founder and chairperson of Samudaya Foundation and an eminent

Carnatic musician. She highlighted the efforts of the organization towards sustainable

development.

MB Nirmal, founder-chairman, Exnora International, talked about environment-related worrying

issues and also stressed on conservation of farmland. He insisted that as part of their CSR,

corporates may grow paddy in place of landscaping as it can help in curbing the food problem. M

Rafeeq Ahmed, chairman, FICCI, Tamil Nadu State Council, said any business should be

'societally and economically responsible,' emphasising that 'people, planet and profit' are the

three pillars of corporate sustainability. (source : www.causebecause.com)

Corporate Social Responsibility and Inclusive Growth

Since the inception of the double bottom line after Shell’s PR nightmare with Greenpeace, and

now the triple bottom line, corporate social responsibility has become the favorite all-

encompassing term and budget for all corporate communication efforts to win over public

opinion. Suddenly everything from sponsoring sporting events like Premier League games to

building schools and cultural spaces falls within the scope of CSR. Viewed from another

direction, CSR is really not much different from buying ad space on billboards except that

even non-consumer corporations are doing it – i.e., large industrials like steel manufacturers.

In developing countries like India, CSR initiatives are even more amorphous, as many

corporations assume roles and responsibilities that are normally handled by the public

sector. When industries set up new manufacturing plants in a rural area, they inevitably also

bring economic growth as well as infrastructural development. For example, Visa Steel in Orissa

builds roads for the communities around its steel mills; Vedanta Aluminum and NALCO all have

health clinic initiatives for the surrounding rural villages; and of course, there is Tata Steel,

which outright adopts villages and takes over most municipal functions (my city, Jamshedpur

being case in point). It’s a strange niche that CSR fill in India that straddles the public and

private sectors as corporations to contribute to the community’s growth and fill in gaps where the

public sector fails.

What strikes me, however, about these CSR initiatives is how unrelated the various community

programs are to the core business of these industries. Each company sponsors a women skills

development program, a cultural sports and dance event, a basic health clinic, etc. The cookie-

cutter similarity of these programs seems to me to be an indication of the lack of internalization

of CSR as a core business activity, even though indirectly, they do contribute to the continued

success of the corporation. I was at the Confederation of Indian Industries’ CSR conference last

week, during which, each industrial panelist presented the exact same set of CSR initiatives. Of

the ten panelists, there was only one representative from POSCO Steel who expounded on why

CSR initiatives are crucial to the successful gaining the approval of the local community for

http://www.causebecause.com/

green field projects. In my opinion, ALL CSR representatives should have demonstrated why

and how their initiatives were contributing directly to the company’s bottom line. Otherwise,

CSR initiatives become an unsustainable fringe department of a corporation, subject to the

fancies of the budget allocator.

The good news is that there do exist progressive CSR programs, which are moving towards an

inclusive business model. At a subsequent International Business Leaders Forum last week, CSR

representatives and NGOs discussed how to internalize the benefits and impact of social

initiatives in the company’s bottom line. Roads that are constructed in a rural village benefits the

community, yes, but it also eases the transportation logistics for the industrial corporation. Even

sponsored cultural dances and sporting events help a core business operate by raising the

goodwill of the community and preventing bandhs (strikes). These “inclusive business models”

are focused on measuring and quantifying the benefits of seemingly normal CSR activity to

calculate it into the company’s P&L statement. The result is a more sustainable form of social

impact activity, which is unlikely to disappear when CSR goes out of fashion.

The bottom line is that whether it’s called corporate social responsibility or inclusive business,

all social initiatives taken up by a private corporation should have an impact that is measured and

shown to contribute to the core business. Only then, will CSR stop being seen as a form of

corporate philanthropy and be seen as a necessary part of doing business.

The challenge of corporate social responsibility in India

by John Quigley

The European Institute for Asian Studies (EIAS), on 29th November, held a lunch briefing with

Dr C. S. Venkata Ratnam on the challenges of corporate social responsibility (CSR) in India. Dr

Ratnam is the Director of the International Management Institute (IMI) in New Delhi and told

the meeting that contrary to widespread perceptions, CSR benefits a company more than it costs.

The meeting was chaired by Joern Keck, Administrative Board, EIAS. Dr Ratnam said the

concept of CSR had different meanings depending on the stakeholder and that depending on the

specific situation of the enterprises expectations can also vary. A CSR project can begin in

response to a crisis or adverse publicity that a company may suffer. The motive for launching

CSR can vary between philanthropy or notions of corporate citizenship. In India, over time, the

expectations of the public has grown enormously with demands focussing on poverty alleviation,

tackling unemployment, fighting inequality or forcing companies to take affirmative action.

The historical driver of CSR has been philanthropy or a sense of ethics. After the Second World

War, a variety of national and international regulations arose through bodies such as the

International Labour Organisation (ILO) emphasising the need for an active social policy for

transnational companies (TNC’s). This additional driver, international institutions, has relevance

for India through the work of the ILO, the OECD, Socially Responsible Investment (SRI), the

SA8000 Social Accountability scheme and through the work of the UN Commission on Human

Rights which tackled the human rights responsibilities of TNC’s. In India, some public sector

companies can spend up to 5% of their profits on CSR activities. Pressure groups have been

quite successful in inducing companies to fund CSR schemes, even to the point of using

kidnapping as a tactic! Forms of CSR differ according to the country or region. In Europe, for

example, notions of CSR probably developed out of the Church and a sense of ethics. In India,

CSR has evolved to encompass employees, customers, stakeholders and notions of sustainable

development or corporate citizenship. In transnational companies, the approach to CSR typically

emerges from one of three elements including a decentralised strategy (which might examine

human rights), a centralised strategy (which would be company-wide) or a globally integrated

strategy (which would include Coca Cola or oil companies - where local actions can impinge

globally).

Many large companies enter into CSR through acts of philanthropy including, for example, Bill

Gates or Warren Buffet. Often, for such companies, the tax advantages are attractive or it may

merely be a clever way to retain control of resources. India has been a major beneficiary from the

Gates Foundation, particularly in health care. One of the fall outs from the Enron scandal has

been that in India individuals have been reluctant to accept directorships of companies.

From the perspective of the employee, CSR has been hugely important in India. For example,

after 1945, TATA implemented social welfare provisions for its employeeshat have since

become the legislative norm. Equally, when companies announce they will reduce the number of

employees, the workers can be fearful that they benefits they have accrued will be lost. While

India has a large comparative demographic advantage with substantial numbers of graduate

engineers, for example, probably only one third are actually employable. There is also concern

from employees who wonder what would happen to the welfare ethos if an Indian company took

control of a European firm.

From the perspective of the customer, CSR initiatives can relate to issues of product quality. For

example, Sony recently recalled, on a global basis, batteries it used in Dell computers. In Japan,

allegations that a particular form of packaging promoted cancer equally led to huge product

safety concerns. The last 15 years has witnessed substantial developments in the area of

consumer rights. The Indian Supreme Court has declared that it would be better to lose 1000’s of

jobs in order to protect the health of millions through cleaner air and a better environment.

From the perspective of stakeholders in the community, the bigger the company the

greater the effort should be to protect the employees or the environment. There is some

recognition that it would be hard for smaller companies to undertake CSR initiatives at that kind

of level. Communities can pressure companies to provide and improve civic amenities. One

scheme, the Provision of Urban Amenities in Rural Areas (PURA) aims to prevent unnecessary

urbanisation and help tackle migration from rural areas. Larger companies might also be

interested in providing arts and culture activities as a service to the community as a measure to

protect local culture. Some companies have encouraged skilled employees to teach in a local

community. One of the arguments against CSR has been that it lowers company profits but the

IMI has shown that many companies say the benefits outweigh the costs. Another argument has

come from some employees who have been hesitant to demand more CSR, seeing a trade-off

between CSR spending and better employee welfare provision- although these would be in a

minority.

Bo Jonsson, Administrative Board, EIAS, acted as Discussant, noting the optimistic view of CSR

in India that had been outlined but questioned what concept of CSR had been presented. There

can be different concepts between countries or even within a specific business sector. Companies

can have a relationship to the local community without necessarily calling it CSR. EIAS, Mr

Jonsson said, wants to broaden the research focus between the EU and India on CSR in order to

help benefit business. Case studies examining current practice are important but CSR should also

be part of management training. Shareholders will have to be convinced of the value of CSR

when management is under pressure to deliver profits. To what extent would the Indian trade

union movement be strong enough to protect workers against any aggressive action by

companies seeking to divest themselves of their social responsibility to employees. Would

unions in India be capable of providing nationwide action at the policy level as the

implementation of legislation is severely lacking in India and the inspection regime system is an

embarrassment. This failure also lowers public expectations of what can be achieved.

CSR-Discovering New Markets

What is the benefit of CSR or, alternatively,what is the cost of not engaging in CSR? If

you ask the CEO of Hindustan Lever (HUL), he will tell you that without emphasising on CSR,

HUL would not be able to secure its market share, including 400 million costumers

living in villages with less than 5,000 inhabitants across India. Its proactive CSR policy

allowed the company to consolidate their market position in South Asia. HUL embarked on its

CSR programme, named ‘Shakti’, in 2001 when women Self Help Groups (SHG) emerged

around the country. In anticipation, HUL reached out to SHG members offering to sell HUL

brands in their respective villages. Soon, the so-called ‘Shakti Amma’s’ were selling

salt, soap, detergent and cream in small sized packages fit for consumers at the ‘Base of

the Pyramid’ (BoP). BoP refers to a socioeconomic group of customers who live on less than one

to three dollars per day and comprise nearly two-third of the world population. Without

doubt, the BoP market in Nepal holds the largest group of customers and is untouched for the

most part. For HUL, a single Shakti Amma covers approximately 500 BoP costumer and earns

about IRs 18,000 a month. Besides securing their livelihoods, it brought women self esteem and

a sense of empowerment. HUL created an extensive direct-sales-network, generating roughly

USD 250 million annual sales in an unlikely market. This was an ideal winwin situation. So,

taking it to the next stage, drawing on their capital of trust, HUL created interactive channels and

started adult literacy programmes to gain a better understanding of customer demand, securing

50 per cent of their revenue in India. What can we learn from HUL’s Shakti case?

First, it shows that CSR is more than ‘doing good’. It can effectively promote long term business

growth by ‘doing well’. Second, CSR opens the door to develop partnerships

(like HUL’s and SHG’s) that allows companies to enter markets that would be otherwise

uneconomic to serve. Third, companies have to move fast into BoP markets to build brand

affinity and loyalty, which are necessary to scale up and secure market share. Lastly, long term

benefits of CSR focused on the BoP lies in the ability to interact with the consumers. So, what

can your company do to make profit and end poverty?

CSR: Looking at the philanthropic side of HUL

It began its journey in India 75 years ago, today it is India’s number one fast moving consumer

goods (FMCG) company. Its brand touches the lives of two out of three Indians every single day,

its mission is to add vitality to life. It is Hindustan Unilever (HUL). Most of us begin our day

with an HUL product or when we are taking a chai break or cooling off on a hot summer day. A

portfolio of products that costs just 0.50 paise and go upto Rs 500, HUL’s brands touch 700

million consumers across India everyday. But this FMCG giant believes business must always

have a purpose beyond making money.

For HUL doing well is equal to doing good. For years now India’s largest FMCG giant has

believed that philanthropy is not corporate-social responsibility, so for them it has clearly been a

brand led strategy. They continue to focus on health nutrition, hygiene, the environment and

livelihood enhancement. It might look like any other processing unit, but the machine has been

designed to cut carbon emissions. This technology took four years to develop and today is being

used at eight HUL factories to manufacture the soaps. Like it has at some of its other plants,

HUL has adopted a community around its Silvassa plant. Uptill a decade ago, farmers here were

http://www.moneycontrol.com/india/stockpricequote/personal-care/hindustan-unilever/HU

able to grow just one crop during the monsoon months and then communities moved on mass to

neighbouring cities seeking petty jobs. HUL under its project Samruddhi, in partnership with

NGOs like Vanrai, has set up water shed management systems, check dams and the light to

increase water availability in the area. Today, farmers like Firoz Ratan Gowadia are able to

cultivate a second crop with their income rising from about Rs 36,000 to Rs 85,000. HUL and

Vanrai have also undertaken a forestation in the area bringing close to 40 hectares of land under

mango plantations.

RESEARCH METHODOLOGY

Marketing Research is the systematic design, collection and analysis of the data and reporting

of information and findings relevant to a specific marketing situation facing the company.

Research Technique

It is imperative to decide upon and document a research methodology well in advance to carry

out the research in a most effective and systematic way. This section describes the research

methodology adopted to serve the objectives of the study in an effective manner. Descriptive

Research technique is being used for this project. The study would be initiated by the pilot study.

Approach of the Project

Based on the analysis inferences would be drawn about best CSR practices and

recommendations would be made to develop CSR as a tool to leverage the perception of

organization among the stakeholders The study will be relevant for the industry as well as

academia as it will discuss corporate social responsibility as a strategic move that organizations

can incorporate in their overall business strategy, thereby achieving better all-round

performance.

Data Collection Tools

To study the CSR initiatives the methodology adopted is primary and secondary data analysis.

In-depth interviews will be conducted to determine the consumer’s views on the social

responsibility initiatives of the companies. CSR activities of fmcg companies will be studied

from company’s websites.

Sample size

A sample size of aprrox. 100 consumers would be surveyed to study the consumer’s perception

about the company. This would give us the clear picture of change in sales of product of

company due to CSR initiatives.

SECONDARY DATA ANALYSIS

CSR activities by HUL Greening Barriers:

Water Conservation and Harvesting (linked to product Pureit) :

HUL's Water Conservation and Harvesting project has two major objectives:

a. to reduce water consumption in its own operations and regenerate sub-soil water tables at its

own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew;

b. help adjacent villages to implement appropriate models of watershed

development.

Successful water conservation pilot projects :

Project Khamgaon

Seven years ago, our team from the Khamgaon factory started a pilot watershed management

project, on a five hectare plot, to prevent soil degradation and to conserve water. The selected

area was located in a dry and arid region of Maharashtra. The efforts have resulted in the creation

of a green belt, which is now a veritable forest with about 6,300 trees. Encouraged by the results,

we extended the model to a neighbouring village, Parkhed, in association with The Energy and

Resources Institute (TERI) and BAIF Development Research Foundation. The community at

Parkhed constructed 47 percolation bunds, 1,600 trenches, 6,000 running metres of continuous

contour trenching over 100 hectares and five permanent check dams. More than 350 families are

reaping the second crop, which is made possible by the check dams.

The total land under cultivation during the second crop season is approximately 470 acres. The

annual income of the farmers in the vicinity of the five check dams has increased from an

average of INR 36,000 to approximately INR 85,000, per farmer. This success has been

attributed to the availability of well water during the Rabi season and an increase in the water

level during the Kharif season. Hence, along with reaping a Rabi crop, the farmers have also

been able to almost double the yield of the Kharif crop. This initiative received appreciation at

the Johannesburg World Summit on Sustainable Development.

Project Silvassa

In April 2004, Vanarai and HUL started a project in Karchond and later in Dapada, Pati, Sindoni,

and Silvassa. Till March 2010, the project has made an impact on water and soil conservation.

The project has ensured sustainable development of water and land resources, locals have

attained self-sufficiency in basic needs of food, water, fodder and fuel, and local employment

opportunities have been generated through increased economic activity.

The other highlights are:

- More than 67 million litres of water have been harvested since 2004

- Additional income of INR 160 lakhs was accrued to villagers during project period

- 325 families have benefited under various programmes, 130 families now have

access to the public toilet facility

- Soil conservation treatment has been carried out on 282 hectares of land

- 12,000 mango seedlings have been planted

- 22 bore wells and 20 open wells were recharged

Project Puducherry

In 2008-09, HUL's Puducherry unit partnered with DHAN Foundation, Madurai and identified

eight village ponds for renovation to enhance the water availability. One of the unique aspects of

the project was to form social capital by organizing villagers into pond association and empower

them to execute the physical renovation work. The pilot project has improved water availability

in eight village ponds by harvesting monsoon run-off. Rainwater harvesting storage of 22300 cu.

meter has fulfilled the multiple domestic needs of 4519 households in eight hamlets and 346

acres are now irrigated due to the rejuvenation of ground water.

SHAKTI - Changing Lives in Rural India

Shakti is HUL's rural initiative, which targets small villages with population of less than 2000

people or less. It seeks to empower underprivileged rural women by providing income-

generating opportunities, health and hygiene education through the Shakti Vani programme, and

creating access to relevant information through the iShakti community portal.

In general, rural women in India are underprivileged and need a sustainable source of income.

NGOs, governmental bodies and other institutions have been working to improve the status of

rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised in

Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides

critically needed additional income to these women and their families, by equipping and training

them to become an extended arm of the company's operation.

Health & Hygiene Education

Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in

2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra,

Orissa) with the objective of spreading awareness about the importance of washing hands with

soap.

The need for a program of this nature arose from the fact that diarrhoeal diseases are a major

cause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10

seconds and one third of these deaths are in India. According to a study done by the London

School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and

water can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygiene

practices leads to high mortality rates in rural India.

Economic Empowerment of Women

The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of

women across India. It aims to achieve this through providing information, resources, inputs and

support in the areas of education, career and enterprise. It specifically targets women from low-

income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic

empowerment platform and the Foundation is an extension of this promise. The Foundation has

renowned Indian women, from various walks of life, as its advisors. Among them are

educationists, NGO activists, physicians. The Foundation is implementing its activities in

association with state governments.

Special Education & Rehabilitation

Under the Happy Homes initiative, HUL supports special education and rehabilitation of

children with challenges.

Ankur:

In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for special education of

challenged children. The centre takes care of children with challenges, aged between 5 and 15

years. Ankur provides educational, vocational and recreational activities to over 35 children with

a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral

palsy and severe learning difficulties.

Kappagam:

Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special education of

challenged children, was set up in 1998 on HUL Plantations in South India. It has 17 children.

The focus of Kappagam is the same as that of Ankur.

Anbagam:

Yet another day care center, Anbagam ("shelter of love"), has been started in 2003 also in the

South India Plantations. It takes care of 11 children. Besides medical care and meals, they too are

being taught skills such that they can become self-reliant and elementary studies.

Other Community initiatives:

Providing healthcare

Sanjivani Mobile Medical Facility:We started Sanjivani, a mobile medical service in 2003, to

offer effective medical care in villages surrounding our Doom Dooma factory in Assam. The

objective has been to meet the basic medical needs of people living in the remote villages in

Assam through a free mobile medical facility.

Apart from basic medical services, Sanjivani also spreads awareness about hygiene, child

immunisation, family planning etc. The project covers a radius of 40 km around the factory with

two mobile vans equipped with basic medical equipment and a specialised team comprising one

male and one female doctor, two nurses, a medical attendant and drivers. On an average, 400

Sanjivini medical camps are conducted every year in remote villages surrounding our factory.

The project is run in close co-ordination with the local administration and its progress is

reviewed every quarter.

Assisting women through education

Fair & Lovely Foundation:Scholarships of up to INR 1 lakh have been awarded to those women

who do not have the financial strength to realize their dreams, but have the aptitude, drive, and

ambition to carve a place of pride for themselves in society. The scholarship which was awarded

only to postgraduate studies has now been extended to graduate students as well. Since 2003,

more than 790 scholarships have been awarded to women across India.

Disaster relief and rehabilitation

Floods, Bihar, 2008:We contributed 10,000 kits worth INR 60 lakh as the first installment of

material for immediate relief of the flood affected families in Araria District in Bihar. The kit

contained essential items such as utensils, clothes, blankets, and other useful material.

In all, 12 truckloads of material were distributed to the affected families under the guidance of

the Araria District Magistrate. A sum of INR 84 lakh was contributed by HUL and our

employees to rehabilitate the underprivileged amongst the flood-affected families in the village

of Jorgama, Madhepura district, Bihar. The project aims at theconstruction of 100 disaster proof

houses for the purpose of rehabilitation.

Tsunami, South India, 2006:We contributed over INR 10 crores towards the relief and

rehabilitation of tsunami-affected families by way of providing relief material, land, and

construction of facilities. We distributed nutritional and personal hygiene products worth INR 5

crores for immediate relief to the needy soon after the tsunami hit the region. Later, pursuant to a

request from the Government of Tamil Nadu about the urgent need for housing the affected

families, we donated 5.27 acres of land (market value on a conservative basis is INR 4.5 crores)

at Tondiarpet, Chennai, to the government. The complex has 960 permanent houses spread over

5.27 acres of land. Our employees also made a contribution of INR 50 lakhs which was used to

construct the facilities in the complex.

Caring for the vulnerable

Asha Daan: In 1976, HUL provided a 72,500 sq. ft plot for setting up Asha Daan in the heart of

Mumbai. This home is supported by the Missionaries of Charity and cares for abandoned and

challenged children, victims of HIV, and the destitute. We bear the capital and revenue expenses

for maintenance, upkeep, and security of the premises.

The needs of the abandoned/challenged children are met by the Sisters of the Home. Special

classes are arranged that teach the children basic skills, physiotherapy, etc. Whenever necessary,

we also arrange for corrective surgery in city hospitals. In 1995, we were able to open a ward for

female HIV positive patients, which was one of Mother Teresa's dearest desires.

CSR Initiatives by P&G

The entry of P&G into the field of corporate social responsibility with project PEACE – an

environmental education programme followed by FUTURE FOCUS – first ever career guidance

service. P&G experimented Cause Related Marketing with different projects like Project

DRISHTI where Whisper helped to restore eyesight to 250 blind girls through corneal transplant

operations in which P&G contributed Re 1 for every pack of whisper sold Project OPEN

MINDS to support and educate children across the Australia, ASEAN and the India (AAI)

region. For every large size pack of Vicks VapoRub, Whisper, Ariel Power Compact, Head &

Shoulders and Pantene purchased by consumers during November 1999 to January 2000,

P&G on behalf of consumers contributed the cost of one day’s education of a working child to

the ‘OPEN MINDS’ fund. In India P&G raised Rs. 1.25 crore for ‘OPEN MINDS’ which was

donated to UNICEF in February 2000 Project POSHAN to combat malnutrition in India. P&G

raised Rs. 50 lakhs by contributing Re. 1/- from sales of large size packs of Ariel, Whisper, Head

& Shoulders and Pantene sold in the months of May, June and July 2000 and

Project SHIKSHA – a unique CRM initiative in association with Sony Entertainment Television.

By purchasing packs of Vicks, Whisper, Ariel, Tide, Head & Shoulders and Pantene between

21st April – 12th June 2003, this unique education promotion allowed a mother to win Rs. 2

lakhs towards Graduate Education Fee of one child (24 such Prizes), or Rs. 5,000 towards Next

Year’s Tuition fee for one child (96 such Prizes), and a number of Consolation Prizes, all

courtesy P&G.

Pampers and UNICEF working together for healthy babies:

Every year, 59,000 people die from maternal and neonatal tetanus—a completely preventable

disease. So for the fourth year running, Pampers is teaming up with UNICEF to deliver the

vaccines that vulnerable women and their children need.The effort gets our consumers involved.

With the purchase of one pack of Pampers, one dose of the vaccine is donated. Our campaign has

created the highest awareness ever for maternal and neonatal tetanus, helping put the disease

back on the agenda of health authorities.Since 2006, a total of 100 million women and their

babies have been protected against maternal and neonatal tetanus. P&G and UNICEF have also

teamed up to offer P&G employees in Western Europe the opportunity to take a three-month

paid sabbatical and work with UNICEF. The program is aimed at employees who have always

wanted to undertake humanitarian work but have not had the chance before.UNICEF benefits

from the diverse backgrounds of P&G employees as they apply such skills as communications,

promotion, leadership training, and supply chain management. Although resource requirements

for UNICEF are ever-changing, three to four assignments are expected per year.

P&G and Shiksha :

India has the world’s largest population of uneducated children, with nearly half of all children

there not attending school. The Shiksha program (Shiksha - Hindu for "Education") is dedicated

to fighting that trend, helping to provide access to education for more children. The program

funds NGO efforts to address the underlying causes of poor access to education, such as poverty,

health issues, and access to immunization. In cases where schools don’t exist, the program also

funds their construction. Each time a consumer bought a large pack of any P&G brand in India

between April and June of 2010, part of the proceeds went toward leading children on the path to

education. Shiksha also benefits from the direct involvement of P&G employees. Each year,

employees participate in a Shiksha Walk-a-thon, joining their families and others in raising

awareness for the cause.

P&G Children’s Safe Drinking Water Program

Almost one billion people in the developing world do not have access to clean drinking water.

As a result, thousands of children die every day. The P&G Children’s Safe Drinking Water

(CSDW) Program reaches these people through PUR packets, a water purifying technology

developed by P&G and the U.S. Centers for Disease Control and Prevention (CDC). One small

PUR packet quickly turns 10 liters of dirty, potentially deadly water into clean, drinkable water.

The packets can be used anywhere in the world, including areas affected by natural disaster. This

Live, Learn and Thrive program provides PUR packets on a not-for-profit basis. Since the

program began, more than 3 billion liters of purified drinking water in more than 60 countries

have prevented an estimated 120 million days of diarrheal illness and helped save more than

16,000 lives.

CSDW works with over 100 partners to provide PUR packets. The program responds to

emergencies including cholera outbreaks, earthquakes, floods and other natural disasters. CSDW

and its partners provide clean drinking water in schools, outreach to mothers in health clinics,

and clean drinking water for malnourished children, and also help people living with AIDS to

live positively.

Disaster Relief at P&G

Our global disaster response approach allows us to respond quickly and effectively. Our first

concern is for the safety and welfare of our employees. Within hours, we are also in contact with

our humanitarian partners to understand the scope and impact of the crisis, and how best to

respond. The most immediate way we often help is to provide PUR Purifier of Water packets.

Natural disasters can leave places that typically have safe drinking water suddenly without it.

These packets transform dirty, unsafe water into clean drinking water in 30 minutes, so they can

be very useful in times of crisis. We have worked closely with several of our partners to

strategically place depots of PUR packets around the world, making them more readily available

when needed.

In addition to cash donations, we often provide products. From our soap and personal hygiene

products to our laundry, diaper and cleaning products, our brands can help restore a sense of

normalcy to the disrupted lives of those caught in the aftermath of a disaster.

CSR Initiatives by ITC

E-Choupal rural digital-physical infrastructure

ITC's globally awarded e-Choupal initiative is a powerful illustration of a unique business

model that delivers large societal value by co-creating rural markets with local communities.

The e-Choupal digital infrastructure enables even small and marginalised farmers in rural

India, who are de-linked from the formal market, to access relevant knowledge, market prices,

weather information and quality inputs to enhance farm productivity, quality and command

better prices - making them more competitive in the national and global markets. Customized

agri-extension services and farmer training schools through a focused programme - "Choupal

Pradarshan Khet" - enable farmers to access best practices in agriculture and improve

productivity.

Social & Farm Forestry

ITC procures wood pulp for its Paper and Paperboards business from renewable plantations

cultivated by tribals and farmers on their private wastelands. ITC invested in extensive R&D to

create clonal saplings which apart from being disease resistant, grow much faster and in harsher

conditions. A large number of tribals and marginal farmers have benefited by growing these

pulpwood saplings on their private wastelands. ITC's paperboards business is a willing buyer of

their produce, whilst the growers are free to sell to the highest bidder in the open market.

ITC could have taken the easier route by importing pulp, rather than a more difficult route of

mobilising tribals and marginal farmers which involved long gestation and substantial

investment exposure. However, the adoption of this more challenging route has not only created

a source of sustainable livelihoods for a large number of disadvantaged sections of society, but

has also brought a multiplicity of benefits by creating a large green cover that contributes

significantly to groundwater recharge, soil conservation and carbon sequestration.

Recently, ITC's social forestry project in Andhra Pradesh was registered under the Clean

Development Mechanism of the United Nations Framework Convention on Climate Change.

The carbon credits earned will also be shared with the tribals and farmers, enabling them to

participate in an international carbon market mechanism.

Integrated Watershed Development

Recognising the vital role that irrigation and water play in the rural economy, ITC supports the

creation of watershed projects in water-stressed areas, providing precious water resources for

agriculture, rural communities and livestock. Based on a participatory approach that involves

local communities, the programme facilitates building, reviving and maintaining water

harvesting structures as well as management of water resources to reverse land degradation,

provide critical irrigation and increase agricultural productivity.

Providing Supplementary Education

ITC's Supplementary Learning Centers offer additional coaching that backs up school learning,

stemming drop-outs and enabling more children to complete school. ITC also supports outreach

projects, including mobile libraries that foster the reading habit and a 'roaming laptop'

programme that promotes computer skills and interactive learning.

Economic Empowerment of Women

ITC's initiatives provide sustainable economic opportunities to poor women in rural areas by

assisting them to form microcredit self-help groups that enable them to build up small savings

and finance self-employment and micro-enterprises. A large number of women earn income as

self-employed workers or as partners in micro-enterprises. The programme has demonstrated that

extra income in the hands of women leads to significant and positive changes in human

development since it is spent largely on children's education, health and nutrition, and is a

catalyst for gendering development.

Livestock Development

ITC's livestock development programme assists rural households to upgrade livestock quality

through cross-breeding by artificial insemination to boost milk productivity by a factor of 6-9

times, leading to a threshold increase in household incomes and thereby an improvement in

their poverty status. Currently, these initiatives reach out to nearly 2,600 villages in 5 states.

Renewable Energy at ITC

ITC has adopted a conscious strategy to lower its carbon footprint, which has brought immense

benefits: over 30% of the Company's total energy consumption is from renewable sources and

carbon neutral fuels.

In keeping with its commitment to utilise an increasing component of renewable energy, ITC has

set up a 14 MW wind energy facility to provide power to the Company's packaging unit in

Chennai. Additional investments in wind energy, totalling over 25 MW, are also being made to

supplement the power requirements of the ITC Hotels in Mumbai and Chennai.

ITC Green Building

Providing leadership in positive environmental action, the "ITC Green Centre" in Gurgaon,

certified by the US Green Building Council for Leadership in Energy & Environmental Design

(USGBC- LEED) is one of the first and one of the largest commercial "Platinum Rated"

buildings in the world and continues to provide inspiration to the "greener buildings" movement

in India. At ITC Green Centre, energy consumption has been reduced significantly through

design integration. The building has been designed to maximise the use of natural light during

the day, largely eliminating the need for artificial lighting. At the same time, glass used for the

windows allows light in, but does not allow heat. This not only keeps the building cool from the

inside during the day, but also decreases the load on air-conditioners. There is minimum use of

exterior lighting to limit night sky pollution. Water consumption has been reduced by 40% and

with a water recycling plant, the building is now a zero water discharge building

DATA ANALYSIS

1. Reliability Test (Applying Cronbach’s Alpha)

Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 100 100.0

Excludeda 0 .0

Total 100 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha N of Items

.704 9

Interpretation :

Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of

items are as a group. Here the alpha coefficient for the nine items is .704, suggesting that

the items have relatively high internal consistency

Frequencies and Mean

Statistics

Age Gender Ed. Qulf Occupation Location

N Valid 100 100 100 100 100

Missing 0 0 0 0 0

Mean 2.19 1.43 2.48 1.98 1.26

For Age:Values are : Below 20 = 1, 21-30 = 2, 31-40 = 3, 41-5 0= 4

Age

Frequency Percent Valid Percent

Cumulative

Percent

Valid 2 82 82.0 82.0 82.0

3 17 17.0 17.0 99.0

4 1 1.0 1.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above table we can infer that in a sample size of 100 respondents, Maximum number of respondents were between the age group of 21-30 and least number of respondents of age group 41-50.

For GenderValues are : 1=Male, 2=Female

Interpretation :

From the above frequency analysis we can infer that out of the total sample of 100 respondents, 57% of respondents were male and 43% of respondents were Female

For Education Qualification :

Values are : 1 = Undergarduate, 2 = Graduate, 3 = Post Graduate

Ed. Qulf


Cumulative

Percent

Valid 1 15 15.0 15.0 15.0

2 22 22.0 22.0 37.0

3 63 63.0 63.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100

respondents, Maximum of the respondents i.e. 63% of the respondents were post graduate.

Gender


Cumulative

Percent

Valid 1 57 57.0 57.0 57.0

2 43 43.0 43.0 100.0

Total 100 100.0 100.0

For Occupation

Values are : 1 = Service, 2 = Businessman, 3 = Housewife, 4 = Student, 5 = Unemployed

Occupation


Cumulative

Percent

Valid 1 59 59.0 59.0 59.0

2 9 9.0 9.0 68.0

3 11 11.0 11.0 79.0

4 17 17.0 17.0 96.0

5 4 4.0 4.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis we can infer that out of the total sample of 100 respondents,

around 60% of sample population is from service class.

For Location

Values are : 1 = Delhi, 2 = Gurgaon, 3 = Faridabad, 4 = Ghaziabad

Interpretation :

From the above frequency analysis we can infer that out of the total sample of 100 respondents,More than 80% of population were from delhi and rest from the NCR region.

Frequencies and mean

Statistics

fmcg pref. CSR must

Pref to Product

on basis of CSR CSR mkt tool

Prodct asso with

social cause

N Valid 100 100 100 100 100

Missing 0 0 0 0 0

Mean 2.31 2.04 2.32 2.38 2.67

Location


Cumulative

Percent

Valid 1 85 85.0 85.0 85.0

2 8 8.0 8.0 93.0

3 3 3.0 3.0 96.0

4 4 4.0 4.0 100.0

Total 100 100.0 100.0

Values for FMCG preference :

1 = HUL, 2 = ITC, 3 = P&G, 4 = DABUR, 5 = OTHERS

fmcg pref.


Cumulative

Percent

Valid 1 31 31.0 31.0 31.0

2 33 33.0 33.0 64.0

3 16 16.0 16.0 80.0

4 14 14.0 14.0 94.0

5 6 6.0 6.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 64% of sample population prefers the products of HUL and ITC. P&G and Dabur follows them.

CSR initiatives are must for every company? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

CSR must


Cumulative

Percent

Valid 1 28 28.0 28.0 28.0

2 47 47.0 47.0 75.0

3 18 18.0 18.0 93.0

4 7 7.0 7.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 75% of sample population agrees that CSR is must for every company as it contributes to the society.

Preference to products on the basis of CSR

Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

Pref to Product on basis of CSR


Cumulative

Percent

Valid 1 16 16.0 16.0 16.0

2 46 46.0 46.0 62.0

3 28 28.0 28.0 90.0

4 10 10.0 10.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 62% of sample population, while purchasing a product, gives preference to products on the basis of CSR initiatives taken by the parent company.

CSR is only a marketing tool?


CSR mkt tool


Cumulative

Percent

Valid 1 24 24.0 24.0 24.0

2 26 26.0 26.0 50.0

3 38 38.0 38.0 88.0

4 12 12.0 12.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 50% of sample population believes that FMCG companies use CSR as a marketing tool

Products that you buy must be associated with any social cause?


Prodct asso with social cause


Cumulative

Percent

Valid 1 8 8.0 8.0 8.0

2 27 27.0 27.0 35.0

3 55 55.0 55.0 90.0

4 10 10.0 10.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, more than 55% of sample population believes that product which they buy need not to be associated with any social cause.

Frequencies

Statistics

emotional

attachment

Aware of csr in

rural

Pref to company

doing CSR E-choupal Shakti

Project

khamgaon

N Valid 100 100 100 100 100 100

Missing 0 0 0 0 0 0

Mean 2.22 2.73 2.50 1.35 1.72 1.85

CSR initiatives make an emotional attachment with the consumer?


emotional attachment


Cumulative

Percent

Valid 1 16 16.0 16.0 16.0

2 53 53.0 53.0 69.0

3 24 24.0 24.0 93.0

4 7 7.0 7.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents around 70% of the sample population believes that CSR initiatives make an emotional attachment with the consumers.

Aware of CSR initiatives taken by FMCG companies n rural areas?


Aware of csr in rural


Cumulative

Percent

Valid 1 9 9.0 9.0 9.0

2 26 26.0 26.0 35.0

3 48 48.0 48.0 83.0

4 17 17.0 17.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents around 2/3rd of the sample population is not aware about the various CSR initiatives taken by the FMCG companies. This is the main reason, why consumer’s perception about the organization doesn not changes despite of CSR initiatives taken by them.

Company that you don’t prefer starts doing CSR initiatives, Will it change your preference?


Pref to company doing CSR


Cumulative

Percent

Valid 1 24 24.0 24.0 24.0

2 27 27.0 27.0 51.0

3 24 24.0 24.0 75.0

4 25 25.0 25.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 1/2 of the sample population(50%) believes their preference towards the companies will not change even if a company which they don’t prefer, starts doing CSR actitvities.

Awareness about the following initiatives

E-ChoupalValues are : 1 = Yes, 2 = No

E-choupal


Cumulative

Percent

Valid 1 65 65.0 65.0 65.0

2 35 35.0 35.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, nearly 2/3rd of sample population (65%) is aware about the famous initiative by ITC i.e. E-Choupal. But rest 1/3rd of the sample population is still not aware of the initiative.

Shakti Values are : 1 = Yes, 2 = No

Shakti


Cumulative

Percent

Valid 1 28 28.0 28.0 28.0

2 72 72.0 72.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 28% of sample population is aware about the famous initiative of HUL.

Project KhamgaonValues are : 1 = Yes, 2 = No

Project khamgaon


Cumulative

Percent

Valid 1 15 15.0 15.0 15.0

2 85 85.0 85.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only around 1/7 th of the sample population (15%) is aware about the famous initiative of the HUL.

Frequencies

Statistics

aware of shiksha

aware of

integrated

watershed

aware of

livestock

development

aware of

renewable

energy aware of silvassa

N Valid 100 100 100 100 100

Missing 0 0 0 0 0

Mean 1.48 1.69 1.81 1.74 1.75

Shiksha by P&GValues are : 1 = Yes, 2 = No

aware of shiksha

Frequency Percent Valid Percent Cumulative Percent

Valid 1 52 52.0 52.0 52.0

2 48 48.0 48.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only around 1/2 of the sample population (52%) is aware about the Shiksha initiative by P&G

Integrated Watershed Development by ITC

Values are : 1 = Yes, 2 = No

aware of integrated watershed


Cumulative

Percent

Valid 1 31 31.0 31.0 31.0

2 69 69.0 69.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 70% of the sample population is not aware of the initiative Integrated Watershed Development by ITC

Livestock DevelpomentValues are : 1 = Yes, 2 = No

aware of livestock development


Cumulative

Percent

Valid 1 19 19.0 19.0 19.0

2 81 81.0 81.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 19% of the sample population is aware of the initiative Livestock Development by ITC. Major portion of the population is not aware of the initiatives.

Renewable Energy by ITCValues are : 1 = Yes, 2 = No

aware of renewable energy


Cumulative

Percent

Valid 1 26 26.0 26.0 26.0

2 74 74.0 74.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 26% of the sample population is aware of the initiative Renewable Energy by ITC. Major portion of the population is not aware of the initiatives.

Project Silvassa by HULValues are : 1 = Yes, 2 = No

aware of silvassa


Cumulative

Percent

Valid 1 25 25.0 25.0 25.0

2 75 75.0 75.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, only 25% of the sample population is aware of the Project Silvassa by HUL. Major portion of the population is not aware of the initiatives.

CSR helps in economic develpment?


CSR helps in ECo Develop.


Cumulative

Percent

Valid 1 29 29.0 29.0 29.0

2 54 54.0 54.0 83.0

3 13 13.0 13.0 96.0

4 4 4.0 4.0 100.0

Total 100 100.0 100.0

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, more than 80% of sample population believes that CSR helps in economic development but they still are not aware of the various CSR initiatives taken by the companies

CSR helps in building a brand? Values are : 1 = Strongly Agree, 2 = Agree, 3 = Disagree, 4 = Strongly Disagree

Interpretation :

From the above frequency analysis, we can infer that out of the total sample size of 100 respondents, 70% of sample population believes that CSR is a good marketing tool and it helps in building a good brand value.

CSR builds a Brand


Cumulative

Percent

Valid 1 36 36.0 36.0 36.0

2 34 34.0 34.0 70.0

3 12 12.0 12.0 82.0

4 18 18.0 18.0 100.0

Total 100 100.0 100.0

Hypothesis Testing

Hypothesis 1

CSR activities do not impact the sales of the product..

Correlations

Pref to Product

on basis of CSR

Pref to company

doing CSR

Pref to Product on basis of

CSR

Pearson Correlation 1 .273**

Sig. (2-tailed) .006

N 100 100

Pref to company doing CSR Pearson Correlation .273** 1


N 100 100

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

From the above correlation we found that CSR does not impact the purchasing behavior of the consumers as they do not give preference to any of the company or product while purchasing a product. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.

2nd case

Interpretation:

From the above correlation we found that people consider CSR is only a marketing tool so many people do not give preference to any of the company or product while purchasing a product. The correlation is significant at 0.01 level. Therefore we accept the hypothesis.

Correlations

Pref to company

doing CSR CSR mkt tool

Pref to company doing CSR Pearson Correlation 1 .572**


N 100 100

CSR mkt tool Pearson Correlation .572** 1


N 100 100

**. Correlation is significant at the 0.01 level (2-tailed).

Hypothesis 2

CSR activities does not change the perception of consumer’s towards the organization

Correlations

Pref to Product

on basis of CSR

Aware of csr in

rural

Pref to Product on basis of

CSR

Pearson Correlation 1 .229*


N 100 100

Aware of csr in rural Pearson Correlation .229* 1


N 100 100

*. Correlation is significant at the 0.05 level (2-tailed).

Interpretation:

From the above correlation we found that people in urban areas are not aware of the CSR initiatives taken by various FMCG companies, thus their perception about the company or organization does not changes because of CSR. The correlation is significant at 0.05 level. Therefore we accept the hypothesis.

Hypothesis 3

People does not have the prior knowledge of the various CSR initiatives taken by the FMCG companies.

CSR Initiatives YES NO TOTALE-Choupal 65% 35% 100

Shakti 28% 72% 100

Project Khamgaon 15% 85% 100

Shiksha 52% 48% 100

Integrated Watershed Development

31% 69% 100

Livestock Development 19% 81% 100

Renewable Energy 26% 74% 100

Project Silvassa 25% 75% 100

Awareness Chart

Interpretation :

From the above analysis, we can see that in all the cases except E-choupal, people are not aware of all the initiatives asked. This is the main reason of why there is no change in consumer’s perception towards the organization. People are not aware of the CSR initiatives taken by FMCG companies in the rural areas. Thus our hypothesis is right.

T-Test on Gender and change in perception of consumer due to CSR activities

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Pref to company doing CSR 100 2.50 1.115 .111

Gender 100 1.43 .498 .050

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

Pref to company doing CSR 22.429 99 .000 2.500 2.28 2.72

Gender 28.740 99 .000 1.430 1.33 1.53

FINDINGS AND CONCLUSION

The study was conducted to find out the impact of CSR activities on customer’s perception about

the organization and sales of the product as well as to study the various CSR initiatives of HUL,

ITC and P&G. From the above report the finding comes to be that people are not aware of the

various initiatives taken by the companies. Companies are spending lots of money for the

welfare of the society but people of the society are not fully aware of it. This is the problem with

most of the consumers in urban areas because most of the initiatives and projects are undertaken

the companies in rural areas only. So the awareness level of people is very low in this case.

Another finding is that CSR initiatives put a very less impact on the consumer’s perception

towards the companies and sales of the products. The consumers are not able to recall any

initiatives thus their buying behavior does not change and they buy the product which they want.

On asking that will they buy a product of company which they don’t prefer, if it start doing CSR,

the response was the same. Although people do believe that CSR is good for economic

development but on the other side they also consider it as a good Marketing tool. On asking

about the famous CSR initiatives, people were unable to recall any except E-choupal, famous

initiative by ITC which has also won many awards. Amongst the three chosen FMCG

companies HUL, ITC and P&G, most of the sample population preferred the products of HUL

and ITC. Meeting and interacting with the consumers and collecting data was a real good

experience.

BIBLIOGRAPHY

1. Lara Balsara, www.orissadiary.com, Show Bussiness News, Monday,

November 22, 2010

2. India ta glance, Trends, Corporate social responsibility, www.ibef.org,

06 June 2010

3. Times of India, Feb 18, 2010

4. www.justmeans.com

5. News, CSR, causebecause.com, CauseBecause Citizen Bureau,

December 16, 2010

6. Semantics, Corporate Social Responsibility and Inclusive Growth

www.jeannechen.com, May 28, 2010

7. www.eias.org , EurAsia Bulletin, Volume 10 No. 11&12, Nov-December 2006

8. Willem Grimminck, Responsible Business

9. News, Business, CSR, www.moneycontrol.com, Fri, Aug 06, 2010

10. Society, Sustainability, www.hul.co.in

11. Social Responsibility, Sustainability, www.Pg.com

http://www.hul.co.in/

http://www.moneycontrol.com/

http://www.eias.org/

http://www.jeannechen.com/

http://www.justmeans.com/

http://www.ibef.org/

ANNEXURE

Questionnaire

To whom it may concern: This study is being conducted to analyze the on impact of CSR activities on Customer Perception. The responses provided by you would be purely used for research purposes only.

Q1.Which of the following FMCG company’s products do you prefer?

a. HUL b. ITC c. P&G d. Dabur e. Others

Q2. Do you think CSR initiatives are must for every company?

Strongly Agree /Agree / Disagree/ Strongly Disagree

Q3. Do you give preference to a particular company on the basis of its CSR initiatives while purchasing a product?


Q4. Do you think CSR is only a marketing tool?


Q5. Can you recall any of the CSR initiatives by any of the FMCG company?

Q6. Is it necessary for you that a product that you buy must be associated with any social cause?


Q7. Do you believe that CSR initiatives make an emotional attachment with the consumer?


Q8. Are you aware of the various CSR initiatives that companies are undertaking in rural areas?


Q9. If a company that you don’t prefer starts doing CSR initiatives, Will it change your preference ?


Q10. Are you aware of the following famous CSR initiatives?1. E-Chaopal Yes_____/No _____2. Shakti Yes_____/No _____3. Project Khamgaon Yes_____/No _____

Q11. Are you aware of SHIKSHA, an initiative by P&G? Yes_____/No _____

Q12. Are you aware of the Integrated Watershed Development, an initiative by ITC? Yes_____/No _____

Q13. Are you aware of the Livestock development initiative by ITC? Yes_____/No _____

Q14. Are you aware of the Renewable Energy initiative by ITC? Yes_____/No _____

Q15. Are you aware of the Project Silvassa by HUL? Yes_____/No _____

Q16. Do you believe that CSR helps in Economic Development?


Q17. Do you believe that CSR helps in building a Brand?


Personal information:

1. Name:2. Gender: Male_____ Female _____3. Age:4. Highest Education: ________________________5. City of residence: ________________________6. Occupation: ________________________7. Approximate current annual household income (in Rs.):

a. Under 2, 00,000 b. 2, 00,000-5, 00,000c. 5, 00,000 and above

Thank you for your time!

anil kumar tiwary desertation

Business

total sample size

companys bottom line

clean drinking water

corporate social responsibility

sample population believes

dont prefer starts

secondary data analysis

itc green centre