New Delhi Institute of Management Studies: Project Report Corporate Social Responsibility
New Delhi Institute of Management Studies: Project Report Corporate Social Responsibility
STUDIES
PROJECT REPORT
CORPORATE SOCIAL RESPONSIBILITY
SEMESTER I
BATCH 2019-21
Section- Alpha
PREPARED BY,
ACKNOWLEDGEMENT
DECLARATION
Name
Soumya Madan
Souvik Mallick
Srishti Mangal
Swati Menon
Tanushree Sharma
(Signature)
1 CHAPTER 1: INTRODUCTION
7 CHAPTER 7: CONCLUSION
Corporate Social Responsibility 4
8 REFERENCES
INTRODUCTION
India is the first country in the world to make corporate social responsibility
(CSR) mandatory, following an amendment to the Companies Act, 2013 in
Corporate
April SocialBusinesses
2014. Responsibilitycan invest their profits in areas such as education, 5
The amendment notified in the Companies Act, 2013 requires companies with a
net worth of INR 500 crore or more, or an annual turnover of INR 1000 crore or
more, or net profit of INR 5 crore or more, to spend 2 percent of their average
net profits of three years on CSR.
Listed companies in India spent INR 10,000 crore (US$1.4 billion) in various
programs ranging from educational programs, skill development, social welfare,
healthcare, and environment conservation, while the Prime Minister’s Relief
Fund saw an increase of 139 percent in CSR contribution over last one year.
The education sector received the maximum funding (38 percent of the total)
followed by hunger, poverty, and healthcare (25 percent), environmental
sustainability (12 percent), rural development (11 percent). Programs such as
Costs savings
By reducing resource use, waste and emissions, you can help the environment
and save money too. With a few simple steps, you may be able to lower your
utility billsSocial
Corporate andResponsibility
achieve savings for your business. 6
1. By acting in a sustainable, responsible way, you may also find it easier to:
2. access finance - investors are more likely to back a reputable business
3. attract positive media attention - eg when taking part in community
activities
4. reduce regulatory burden - good relationships with local authorities can
often make doing business easier
5. identify new business opportunities - eg for the development of new
products or services
CHAPTER 2
Research Objective:
Population:
-Sampling size- 5
1. Coca Cola
2. Tata Global Beverages.
3. PepsiCo
4. Amul
5. Nestle
INDUSTRY OVERVIEW:
The Fast-moving consumer goods (FMCG) sector is the 4th largest sector of the
Indian economy. It is characterised by high turnover consumer packaged goods,
i.e. goods that are produced, distributed, marketed and consumed within a short
Corporate Social Responsibility 8
span of time. FMCG products that dominate the market today are detergents,
toiletries, tooth cleaning products, cosmetics, etc. The FMCG sector in India
also includes pharmaceuticals, consumer electronics, soft drinks packaged food
products and chocolates. Since the sector encompasses a diverse range of
products, different companies dominate the market in various sub-sectors.
The FMCG industry in India is divided into the demographics of rural and
urban India. The urban market contributes 60% of the consumption revenue of
the FMCG market in India. In 2017, this sector recorded a market size of $ 29.4
bn. While urban areas have spearheaded the growth of the FMCG industry in
India, semi-urban and rural segments are growing at a rate that cannot be
ignored. Semi-urban and rural segments contribute over 40% of the overall
revenues of the FMCG sector in India. FMCG companies in India have
witnessed higher growth in rural areas compared to urban ones. And with 12.2%
of the world’s population living in the villages of India, the Indian rural FMCG
market cannot be ignored by investors. Dabur, one of the top FMCG companies
in India, generates over 45% of its domestic revenue through the sale of
packaged consumer goods in rural India. Hindustan Unilever, another name that
has consistently dominated the list of top FMCG companies in India, earns over
The FMCG sector is one of the largest sectors of the Indian economy.
According to an FMCG industry overview, revenues of the FMCG sector
reached $ 52.75 bn in FY18, and are estimated to reach $ 103.7 bn in 2020. As
consumption in India grows at an unprecedented rate, the FMCG industry
remains a key sector for investors. Acknowledging these trends in the FMCG
industry profile, the Government of India has undertaken various initiatives to
promote the sector. For instance, 100% FDI is permitted in SBRT and cash-and-
carry models of retail, and the minimum capitalisation for foreign FMCG
companies to invest in India is $ 100 mn. Even the implementation of GST in
India has had far-reaching consequences for the sector, as the highest selling
FMCG products such as soap, toothpaste and hair oil now come under the 18%
tax bracket (as opposed to the previous 24%)
Brief Introduction:
The Coca-Cola Company, American corporation founded in 1892 and today
engaged primarily in the manufacture and sale of syrup and concentrate for
Coca-Cola, a sweetened carbonated beverage that is a cultural institution in the
United States and a global symbol of American tastes. The company also
produces and sells other soft drinks and citrus beverages. With more than 2,800
products available in more than 200 countries, Coca-Cola is the largest beverage
manufacturer and distributor in the world and one of the largest corporations in
the United States. Headquarters are in Atlanta, Georgia.
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they
can be.
Mission Statement:
1. Our Roadmap starts with our mission, which is enduring. It declares our
purpose as a company and serves as the standard against which we weigh
our actions and decisions.
2. To refresh the world...
3. To inspire moments of optimism and happiness...
4. To create value and make a difference.
CSR Policy:
CSR Committee:
CSR Names of the Independent/Executive Age & Qualification
Committee Members Gender & Background
Alfonso Non-executive Director Male
Líbano
Daurella
Corporate Social Responsibility
Jan Bennink Non-executive Director Male 13
Francisco Non-Executive Director Male
Crespo
Benítez
Nathalie Non-Executive Director Female
Gaveau
Lord Mark Non-executive Director. Male
Price
CSR Expenditure:
CSR Activities
Brief Introduction:
Vision Statement:
“To be the most admired natural beverages company in the world by making a
big and lasting difference in Tea, Coffee, and Water.”
Mission Statement:
“We will focus on creating magical beverage moments for consumers and an
aternity of sustainable goodness for our communities. Our company values add
up to something unique that gives a sense of responsible irreverence in all that
we do.”
CSR Policy:
CSR Expenditure
1. Unnati Trust
2. Tata Communities Initiatives Trust
CSR Department
ASSOCIATE COMPANY
Monitoring Mechanism:
CSR Activities
Analysis:
Tata Global Beverages are doing good with their Csr Activities. They are
spending more than prescribed amount for the same each year. Also, they are
using multiple mediums for implementation of the activities.
Brief Introduction-Nestle India Ltd, one the biggest players in FMCG segment,
has a presence in milk & nutrition, beverages, prepared dishes & cooking aids
& chocolate & confectionery segments. The company is engaged in the food
business. The food business incorporates product groups, such as milk products
and nutrition, beverages, prepared dishes and cooking aids, chocolates and
Corporate Social Responsibility 25
confectionery. Nestle India manufactures products under brand names, such as
Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea.
The company has also introduced products of daily consumption and use, such
as Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera
Raita. The company's brands include milk products and nutrition, prepared
dishes and cooking aids, beverages, and chocolates and confectionery. Their
milk products and nutrition includes Nestle Everyday Dairy Whitener, Nestle
Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages
Include Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special
and Nescafe Cappuccino. Nestle India is a subsidiary of Nestle S.A. of
Switzerland
The company has presence across India with 8 manufacturing facilities and four
branch offices spread across the region. The four branch offices in the country
help facilitate the sales and marketing of its products. They are in Delhi,
Mumbai, Chennai and Kolkata. The company's head office is located in
Gurgaon, Haryana.
Nestlé is...
...the world's leading nutrition, health and wellness company. Our mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
Nestle India Limited spent more than the prescribed 2% in corporate social
responsibility programs in the financial year 2017-18. While the prescribed
CSR expenditure as per Section 135 of the Companies Act, 2013 was 26.88
crore rupees, actual expenditure incurred during the year amounted to INR
26.91 crores.
With its CSR Policy focus areas firmly embedded in its Purpose, in 2017, the
Company focused its activities on creating nutrition, health and breastfeeding
awareness, providing access to clean drinking water and sanitation, supporting
development of agricultural communities while helping them reduce water use,
enhancing the livelihood of street food vendors and encouraging the cause of
girl child education.
CSR Committee
CSR Expenditure
The Committee met thrice during the year on 15th February, 2017, 26th July,
2017 and 10th November, 2017. All the members attended the above meetings
except in one meeting held on 15th February, 2017, when Mr. Suresh
Narayanan was granted leave of absence and in another meeting held on 10th
November, 2017, when Dr. Swati A Piramal was granted leave of absence.
CSR Activities
Various CSR Activities in which the organization is engaged:
Analysis
Nestle India Ltd. is doing great in their Csr Activities. They are spending more
than prescribed amount for the same each year. Also, they are using multiple
mediums for implementation of the activities.
COMPANY D
PepsiCo India Ltd.
PepsiCo entered India in 1989 and has grown to become one of the largest food
and beverage businesses in India. PepsiCo India Holdings Private Ltd.
(“PepsiCo India”) has been consistently investing in the country and has built an
expansive beverage and snack food business supported by 10 beverage bottling
plants and 3 food plants. PepsiCo India’s diverse portfolio includes iconic
brands like Pepsi, Lay’s, Kurkure, Tropicana, Gatorade and Quaker. Within two
decades, the company has been able to organically grow eight brands each of
which generate Rs.1,000 crore or more in estimated annual retail sales and are
household names, trusted across the country.
Vision Statement:
As one of the largest food and beverage companies in the world, our mission is
to provide consumers around the world with delicious, affordable, convenient
and complementary foods and beverages from wholesome breakfasts to healthy
and fun daytime snacks and beverages to evening treats. We are committed to
investing in our people, our company and the communities where we operate to
help position the company for long-term, sustainable growth.
CSR Policy:
Corporate Social Responsibility 31
The program areas shall be aligned with the PepsiCo Performance with Purpose
philosophy which is in keeping with those in schedule VII of Section 135 of the
Companies Act 2013. PepsiCo India through its CSR will support
programs/projects and activities from among the following areas of action:
6.1. Contribution to the Prime Minister's National Relief Fund or any other fund
set up by the Central Government for socio-economic development and relief
and welfare of the Scheduled Castes, the Scheduled Tribes, and other backward
classes, minorities and women
CSR Expenditure
2017-18
2016-17
2015-16
In case of any surplus arising out of CSR projects, the same shall not form part
of business profits of PepsiCo India.
PepsiCo India shall institute a monitoring and review mechanism to monitor its
CSR project/programmes. The monitoring mechanisms shall include:
CSR Activities
Various CSR Activities in which the organization is engaged:
Analysis: In conclusion CSR analysis of PepsiCo was also conducted and it was
concluded that today Companies practicing Corporate Social Responsibility
need not be altruistic to be effective. The companies like PepsiCo and Coca-
Cola invest in projects like water treatment facilities and a zero waste footprint
for their products because it helps them reduce their resource use, which in turn
helps them become sustainable and achieve higher profits The firm of the future
is expected to have undergone significant transformation such that CSR no
COMPANY E
Amul India Pvt. Ltd
Amul spurred India's White Revolution, which made the country the world's
Corporate Social Responsibility 41
largest producer of milk and milk products. In the process Amul became the
largest milk brand in India and has ventured into markets overseas.
Vision Statement:
CSR Policy:
To meet with the CSR it is expected that a business in its entire procurement-
production-processing-marketing chain should focus on human development
involving the producer, the worker, the supplier, the consumer, the civil society,
and the environment.
Corporate Social Responsibility 42
Indeed, a very tough task. Most businesses would certainly flounder in not
being able to achieve at least one or many of those expectations. But AMUL has
shown the way.
CSR Committee:
CSR Committee Names of Independent/Executi Age & Qualificatio
the ve Gender n&
Members Backgroun
d
1 Dr. Preeti Independent 43 & (HR &
Shukla Female CSR)
2017-18 NA NA NA
2016-17 NA NA NA
2015-16 NA NA NA
District Rural Development Agency (DRDA): The Dairy with the support of
District Rural Development Agency (DRDA) will provide interest free loans to
its milk producers in Anand and Kheda districts to set up ‘pucca’ toilet blocks,
which will not only help women milk producers but will also ensure hygiene.
Indian Red Cross Society- Amul in association with the Indian Red Cross
Society aim to inspire, encourage and initiate humanitarian services to
Corporate Social Responsibility 43
minimize, alleviate and prevent human suffering at all times to contribute for
“Humanity to Peace”. Towards this objective Amul initiated blood donation
campaign since 1987. Blood donation camps are organized regularly in rural
areas through Village Dairy Co-operative Societies.
Local Farmers- In the year 2007, 21,000 saplings were planted by the farmers in
Kaira. Farmers have also created nurseries to produce saplings and almost 45
such nurseries have been created as of date. For better coordination and
sustainable success, Teams have been formed at various levels.
Inspired by this movement, whole dairy cooperative farmers of Gujarat under
Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) have so
far planted 312 lakh saplings.
Indian Red Cross Society- Amul in association with the Indian Red Cross
Society aim to inspire, encourage and initiate humanitarian services to
minimize, alleviate and prevent human suffering at all times to contribute for
“Humanity to Peace”. Towards this objective Amul initiated blood donation
campaign since 1987. Blood donation camps are organized regularly in rural
areas through Village Dairy Co-operative Societies.
Local Farmers- In the year 2007, 21,000 saplings were planted by the farmers in
Kaira. Farmers have also created nurseries to produce saplings and almost 45
such nurseries have been created as of date. For better coordination and
sustainable success, Teams have been formed at various levels.
Inspired by this movement, whole dairy cooperative farmers of Gujarat under
Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) have so
far planted 312 lakh saplings.
Corporate Social
Villagers- Responsibility Foundation is formed by Amul to provide basic
Tribhuvandas 44
Monitoring Mechanism:
Amul have not mentioned any details about their CSR committee on their
website. Also, Amul has failed to provide any details regarding the CSR
meetings.
CSR Activities
1. SWARNJAYANTI GRAM
Eradication of SWAROZGAR YOJANA (SGSY)-
hunger and The Swarnjayanti Gram Swarozagar
poverty Yojana is a holistic self-employment
program for the rural poor of India.
The basic objective of the program is
to bring below poverty line families
above poverty line by providing
them in generating assets to become
self-employed.
Corporate Social Responsibility 45
Analysis:
The amendment notified in the Companies Act, 2013 requires companies with a
net worth of INR 500 crore or more, or an annual turnover of INR 1000 crore or
more, or net profit of INR 5 crore or more, to spend 2 percent of their average
net profits of three years on CSR. Amul has posted 13 per cent increase in its
turnover at Rs 33,150 crore during 2018-19 from Rs 29,225 crore in the
previous fiscal but still the company fails to continue the practice of doing CSR.
Previously, when there was no law to perform CSR, Amul use to do few CSR
activities. There are few CSR activities reported by Amul from 1960-2012 on
there site. There is no proper mentioning of there CSR policy on there website.
Even after being such a huge company with high profit rates, Amul does not
1
Nestle
PepsiCo
0.8
Tata Global Beverages
Coca Cola
0.6
Amul
0.4
0.2
0
2017-2018 2016-2017 2015-2016
1
Nestle
0.8 PepsiCo
Tata Global Beverages
0.6 Coca Cola
Amul
0.4
0.2
0
2017-2018 2016-2017 2015-2016
Promoting Education
1.2
1
Nestle
0.8 PepsiCo
Corporate Social Responsibility 48
Tata Global Beverages
0.6 Coca Cola
Amul
0.4
0.2
0
2017-2018 2016-2017 2015-2016
1
Nestle
0.8 PepsiCo
Tata Global Beverages
0.6 Coca Cola
Amul
0.4
0.2
0
2017-2018 2016-2017 2015-2016
1
Nestle
0.8 PepsiCo
Corporate Social Responsibility 49
Tata Global Beverages
0.6 Coca Cola
Amul
0.4
0.2
0
2017-2018 2016-2017 2015-2016
1
Nestle
0.8 PepsiCo
Tata Global Beverages
0.6 Coca Cola
Amul
0.4
0.2
0
2017-2018 2016-2017 2015-2016
The companies should focus more on activities related to gender equality and women empowerment
alongside education
Corporate of poor children
Social Responsibility 50