Unit -5

Corporate Social Responsibility

• CSR & Its Driver
• True Meaning of CSR
• CSR, employer Branding & millennial (Social Identity theory, Signaling Theory, Social
Exchange Theory )
• Conscious Capitalism
• CSR performance , Theory , & strategic CSR
• CSR & Corporate Strategy

https://csr.gov.in/content/csr/global/master/home/home.htm
• The Corporate Social Responsibility concept in India is governed by
Section 135 of the Companies Act, 2013 (‘Act’), Schedule VII of the
Act and Companies (CSR Policy) Rules, 2014 wherein the criteria has
been provided for assessing the CSR eligibility of a company,
Implementation and Reporting of their CSR Policies.
• India having the most elaborated CSR mechanism and
implementation strategy has started its journey to set a benchmark in
attaining sustainability goals and stakeholder activism in nation
building.
CSR Defined
• World Business Council for Sustainable Development (1999): “The continuing
commitment by business to behave ethically and contribute to economic development
while improving the quality of life of the workforce and their families as well as of the
local community and society at large”.
• “CSR is the commitment of business to contribute to sustainable economic
development-working with employees, their families, the local community and society at
large to improve the quality of life in ways that are both good for business and good for
development” (World Bank, 2008).
• “CSR is a commitment to improve community well-being through discretionary business
practices and contributions of corporate resources”(Kotler & Lee, 2005).
• “Social responsibility of business is to encompass the economic, legal, ethical and
discretionary expectations that society has of organizations at a given point in time”
(Carroll, 1979).

5
 Corporate Social Responsibility
• Corporate social responsibility is a broad concept that can
take many forms depending on the company and industry.
Through CSR programs, philanthropy, and volunteer
efforts, businesses can benefit society.
• Businesses that practice corporate social responsibility aim
to improve their communities, the economy or the
environment.
• Corporate social responsibility, or CSR, is a form of
self-regulation that reflects a business's accountability and
commitment to contributing to the well-being of
communities and society through various environmental
and social measures.
• CSR plays a crucial role in a company's brand perception;
attractiveness to customers, employees, and investors;
talent retention; and overall business success.
• A company can implement four types of CSR efforts:
environmental initiatives, charity work, ethical labor
practices and volunteer projects.
Why Should a Company Implement CSR?
• India became the first country in the world to make CSR compulsory. In India, Corporate
Social Responsibility has been made mandatory through provisions under Section 135 of
the Companies Act, 2013. According to the law, a company needs to spend at least 2% of
their average net profit made during the 3 immediately preceding financial years for CSR
activities.
• The CSR law or more popularly known as the CSR mandate, which came into effect from
April 2014, applies to every company registered under the Companies Act, 2013, and any
other previous companies law qualifying following conditions.
• – Having a net worth of rupees five hundred crores or more, or
• – Having a turnover of rupees one thousand crores or more, or
• – Having a net profit of rupees five crores or more, during a financial year

• CSR has become an integral part of the company’s brand image, believing that customers
will be more likely to do business with brands that they perceive to be more ethical.
• CSR activities can be an important component of corporate public relations.
• improves customers' perception of your brand.
• attracts and retains employees
• Increases your appeal to investors.

Types corporate social responsibility Activities

1. Donations and sponsorships
2. Operational initiatives- Social, environmental, workplace
3. Strategic transformation- Embedded impact or purpose into their business model (Social
Enterprise)
What are the types of CSR activities in India?
According to the 8th schedule of the Companies Act 2013, the types of CSR activities that are qualified
under the act for the companies to contribute to are:
1. Eradicating Hunger, Poverty and Malnutrition
2. Promoting Education
3. Promoting Gender Equality
4. CSR initiatives related to the environment
5. Protection of national heritage, art and culture
6. Measures can be taken for the benefit and support of armed forces veterans, war widows and families
7. Contributions to the Prime Minister’s National Relief Fund or any other fund set up by the central
government, for welfare, development and relief of the scheduled caste, tribes, other backward classes,
women and minorities.
8. Contributions or funds provided to the development of technology located within the central
government approved academic institutions.
9. Contributions can be made towards rural development projects and slum area development.
How does CSR work in
India?
• The eligible companies are required to formulate a CSR Committee, in order to carry out the programs or
activities as approved by the Committee.
• The programs or activities under CSR in India are carried out through a registered trust, society or company.
As per the law, the CSR activities that only benefit employees of the companies and their families do not qualify
as CSR expenditure.
• In case a company fails to spend the said amount within a year, it will have to transfer the unutilized CSR funds
has to be utilized within three years. If a company fails to do even that, it will have to transfer the balance amount
to the National CSR Fund.

What Is the Impact of CSR?

• The movement toward CSR has had an impact in several domains. For example, many companies have taken
steps to improve the environmental sustainability of their operations, through measures such as installing
renewable energy sources or purchasing carbon offsets. In managing supply chains, efforts have also been
taken to eliminate reliance on unethical labor practices, such as child labor and slavery.
• Although CSR programs have generally been most common among large corporations, small businesses also
participate in CSR through smaller-scale programs, such as donating to local charities and sponsoring local
events.
True meaning of CSR
Sharma, A. Key drivers endorsing CSR: a transition from economic to holistic approach. Asian J Bus
Ethics 5, 165–184 (2016). https://doi.org/10.1007/s13520-016-0062-6
Key drivers for firms
becoming more socially
responsible are:
• government legislation.
• customers expectations of
firms.
• consumer lobby groups.
• the extent of costs involved.
• the type of industry in which
they operate.
• the potential for competitive
advantage.
• top-level corporate culture.
https://www.pagecentertraining.psu.edu/public-relations-ethics/corporate-social-responsibility/lesso
n-2-introduction-to-conscious-capitalism/conscious-capitalism-vs.-corporate-social-responsibility/
 Conscious capitalism is more holistic approach that provides not
only financial wealth to stakeholders, but also intellectual, ecological,
cultural, emotional and social wealth.
Conscious capitalists consider their impact on the planet and their
local neighborhood. Conscious capitalism is rooted in a company's
philosophy, whereas CSR programs are often attached to traditional
business models as separate entities.
More than conducting business in an ethical manner, conscious
capitalism works to create new values for its internal and external
stakeholders.

Why do conscious businesses consistently outperform their peers?

Conscious business have;
•A positive impact on the environment and good civil society
relationships
•A strong reputation that attracts customers, employees, and investors
•Greater employee engagement, innovation, passion, and commitment
•Improved employee retention and loyalty
•Lower spend on recruiting
•Delighted and loyal customers who are advocates for the company
Case Study: •Loyal and innovative suppliers
https://www.pagecentertraining.psu.edu/public-relations-eth •Improved stock market performance
ics/corporate-social-responsibility/lesson-2-introduction-to-c •Increased revenue
onscious-capitalism/case-study-a-conscious-capitalist-approa
ch-to-people-planet-and-profit/
 What Are the Benefits of Conscious Capitalism?
• There are some major benefits to practicing conscious capitalism. Leaders who commit their passion to their purpose find that
employees are more satisfied in their jobs. Employees who believe that the company is motivated by more than just money
are more likely to commit to the mission. They then become strong voices for the brand. In addition, employees who are more
engaged are more creative. They are able to innovate more often and help business grow.
• In addition, the advantages of practicing conscious capitalism may include:
• Better relationships between customers and employees
• Brand-loyal customers who are attracted to a strong mission
• More intentional community engagement by a business

What Are Some Examples of Conscious Capitalism?

Many popular brands have evolved from leaders who follow conscious capitalism business philosophies. In fact, there is a
designation for these types of organizations—Certified B Corporations or B Corps. There are over 3,500 of these Certified
B-Corps around the world. All of them have committed to balance purpose and profit. Some well-known conscious
capitalism businesses include:

Whole Foods Market

Starbucks
Patagonia
Southwest Airlines
Costco
Google https://www.linkedin.com/pulse/responsible-gamechangers-5-examples-companies-mark-a-grainger
Ben and Jerry’s
 Corporate Social Performance (CSP)
• Corporate social performance (CSP) refers to the principles, practices, and outcomes of businesses’ relationships with
people, organizations, institutions, communities, societies, and the earth, in terms of the deliberate actions of
businesses toward these stakeholders as well as the unintended externalities of business activity.
• The development of the CSP concept, beginning in the 1950s and 1960s, is important for understanding how CSP is
related to other core topics and concepts in business and society/business ethics.
• Organizations should make short-term and long-term goals to generate benchmarks for success and key performance
indicators (KPIs). The KPIs an organization sets should be considered stepping stones that will eventually lead to
achieving the overall desired goal
• The CSP concept was refined, an earlier term, corporate social responsibility (CSR), was incorporated as one element of
CSP, in particular, the ethical and/or structural principles of social responsibility, or business engagement with others.
Research attention was also eventually given to business processes for implementing (or avoiding) social responsibility
and responding to stakeholder issues and then to the impacts and outcomes of CSP-related behaviors. Thus, over time,
researchers included the
“why (principles), what and how (processes), and what happened (outcomes)” of CSP.
The corporate social performance model consists of three elements (social responsibility
categories, mode of social responsiveness, and social issues of stakeholders), which are
drawn into a three dimensional model for easy interpretation by managers.
(Wood. D., 2010) Measuring Corporate Social Performance: A Review, International Journal of Management Reviews volume 12, issue 1, P50-84 2010 DOI:
10.1111/j.1468-2370.2009.00274.x
Fauzi, Hasan & Goran, Svensson & Rahman, Azhar. (2010). “Triple Bottom Line” as “Sustainable Corporate Performance”:
A Proposition for the Future. Sustainability. 2. 10.3390/su2051345.
Strategic CSR
• Strategic CSR is the incorporation of a holistic CSR perspective within
a firm's strategic planning and core operations so that the firm is
managed in the interest of a broad set of stakeholders to achieve
maximum economic and social value over the medium to long term.
• Responsive CSR involves acting as a good corporate citizen,
satisfying the evolving needs of stakeholders, and mitigating existing
or potential adverse effects of organisational activities WHEREAS
Strategic CSR moves beyond Responsive CSR and directs
organisational resources and managerial attention to initiate and
operationalize CSR agendas that are consistent with firms’ strategies
and are able to differentiate themselves from their competitors,
resulting in strengthened strategic positions.
Strategic CSR VS CSR Strategy
 CSR strategy is the comprehensive plan companies
and funders use to design, execute, and analyze their
corporate social responsibility initiatives. It includes
specific focus areas, program design, promotion and
communication approaches, and evaluation procedures.

Packer H, Swartz W, Ota Y, Bailey M. Corporate Social Responsibility (CSR) Practices of the Largest Seafood Suppliers in the Wild Capture Fisheries Sector: From Vision to
Action. Sustainability. 2019; 11(8):2254. https://doi.org/10.3390/su11082254
Netflix is one of the world’s most well-known streaming services offering a wide
variety of award-winning TV shows, movies, documentaries, and more.

What do you like about

Netflix’s? WHY??
CSR , Employer Branding & Millennial
Employer branding is a communication
strategy focused on a company's
employees and potential employees. It
brings together all the branding and
communication elements intended to enhance
the value of belonging to a company, with the
ultimate goal of retaining and attracting talent.
In India, millennials are 34% (at 440 million) of the country's total
population. The last few years have seen India become the world's
largest millennial market, drawing attention from across the world to
Indian millennials.
How is
employer
branding
done?
Tony’s Chocolonely is a Dutch company producing and selling fair trade chocolate.
What we like about Tony’s employer branding?

Answer the following

• What is the purpose of the company? What do they
support?
• Given an offer would like to work for this company? WHY?
• What is the Employee Value Proposition (EVP)?

One example being the way in which they present Team Tony’s (see below).
 Does CSR Enhance Employer Attractiveness? "The Use of Corporate Social
Lindholm, L. (2018),

The Role of Millennial Job Seekers' Attitudes Responsibility in Employer Branding", Koporcic,
N., Ivanova-Gongne, M., Nyström, A.-G. and Törnroos, J.-Å. (Ed.) Developing Insights
Katarzyna Klimkiewicz,Victor Oltra First on Branding in the B2B Context, Emerald Publishing Limited, Bingley, pp.
published: 22 February 73-93. https://doi.org/10.1108/978-1-78756-275-220181005

2017https://doi.org/10.1002/csr.1419
Abstract Abstract

Corporate social responsibility (CSR) has become an essential part of business, and
• Corporate social responsibility (CSR) has become increasingly important in labor
companies should genuinely incorporate social responsibilities toward internal and
market communication. To express organizational identity, reinforcing external stakeholders in their operations. The most important stakeholder group is
commitment to sustainable development and stakeholder engagement, the personnel, which is why employers should pay attention to strengthening the
employer–employee relationship. The purpose of this text is to demonstrate the
organizations report their CSR activities. The impact of a company's employer
connections between employer branding and CSR.
branding (EB) strategy depends on how information recipients interpret
Theory on employer branding and CSR indicates that there are both strategic and
corporate messages. Therefore, we assume that job seekers may show diverse
operational connections. Strategically, employer branding can be considered the
attitudes toward CSR. The extant literature has hardly explored the interplay outcome of the co-operation among branding, CSR, and human resource
between CSR, EB, and job seekers' attitudes, so we identify a relevant research management (HRM). At an operational level, there are several CSR activities that can
be of use when developing and implementing economic, functional, and psychological
gap to be tackled. The aim of this paper is to examine how millennial job employer-branding elements.
seekers' attitudes toward CSR influence perceived CSR-based employer
In order to establish how CSR is used in employer branding in practice, a qualitative
attractiveness (EA). We conducted an empirical study in Poland,collecting data content analysis of the website communication of three multinational IT companies
from a sample of Millennials – highly sensitive toward CSR issues. Our results was made. All of the companies have been acknowledged for their strong internal
employer brands, and the analysis focused on what types of CSR activities they
generally confirm that individual attitudes toward CSR play a key role in
communicate externally as part of their employer branding efforts.
understanding how job seekers perceive CSR signals and eventually impact
The study concludes that CSR can be relevant to employer branding and presents a
CSR-based EA.
categorization model for facilitating a concrete integration of CSR and
employer-branding elements.
 Social identity is a person’s sense of who they are based on their group membership(s). The central
hypothesis of social identity theory is that group members of an in-group will seek to find negative
aspects of an out-group, thus enhancing their self-image.

THEY
&
US
Tajfel, H., Turner, J. C., Austin, W. G., & Worchel, S. (1979). An integrative theory of intergroup conflict. Organizational identity: A reader, 56-65. https://www.simplypsychology.org/social-identity-theory.html
Social Identity Theory
1) How has CoCa
Cola used Social
Identity theory to
create a corporate
identity?
Use the three
component to
elaborate.
Signaling Theory
• Signaling theory is useful The Signaling Effect of Corporate Social Responsibility in
for describing behavior when two Emerging Economies Weichieh Su • Mike W. Peng • Weiqiang Tan
• Yan-Leung Cheung Received: 24 December 2013 / Accepted: 13
parties (individuals or organizations) September 2014. J Bus Ethics DOI 10.1007/s10551-014-2404-4
have access to different information.
Typically, one party, the sender, must Abstract
choose whether and how to
What signals do firms in emerging economies send to
communicate (or signal) that stakeholders when they adopt corporate social responsibility
information, and the other party, the (CSR) practices? We argue that in emerging economies, firms
receiver, must choose how to that adopt CSR practices positively signal investors that their
interpret the signal. firms have superior capabilities for filling institutional voids.
From an institution-based view, we hypothesize that the
• Signalling theory (ST) tackles a institutional environment moderates the signaling effect of CSR
fundamental problem of on a firm’s financial performance. Based on a sample of firms
communication: how can an agent, from ten Asian emerging economies, we find a positive
relationship between CSR practices and financial
the receiver, establish whether performance. This positive relationship is stronger in the less
another agent, the signaller, is telling developed capital market than in the more developed one.
or otherwise conveying the truth The financial benefits of CSR practices are also more salient in
about a state of affairs or event which the low information diffusion market than in the high one. We
the signaller might have an interest to emphasize that signaling theory and the institution based view
can jointly contribute to the CSR literature.
misrepresent.
Hindustan Unilever Limited’s CSR initiative – Start A Little Good.

Read more at:

https://brandequity.economictimes.indiatimes.com/news/marketing/watch-huls-csr-campaign-start-a-little-good-conceptualized-by-ogilvy/67498361
HUL launches public awareness campaign -
The Bin Boy
Nissan India launches new CSR campaign
#HaveYouClickedToday- NUDGE
Ali Uyar, Abdullah S. Karaman, Merve Kilic,

Is corporate social responsibility reporting a tool of signaling or

greenwashing? Evidence from the worldwide logistics sector,
Journal of Cleaner Production,
Volume 253, 2020, 119997, ISSN 0959-6526,
https://doi.org/10.1016/j.jclepro.2020.119997.
(https://www.sciencedirect.com/science/article/pii/S0959652620300445)

• Abstract
• Drawing on signaling and greenwashing theories, the objective
of this study is to investigate the association between corporate
social responsibility (CSR) performance and CSR reporting in the
logistics sector. The CSR performance was proxied by the
composite ESG (environmental, social, and governance)
indicator as well as its three pillars. For this purpose, the data
was derived from the Thomson Reuters Eikon database for the
years between 2012 and 2018. According to the results,
companies with greater CSR performance are more likely to
publish a CSR report and companies with greater CSR
performance are more likely to publish a higher number of
CSR reports. Thus, the results confirm the validity of the
signaling theory and reject greenwashing tendency in the
logistics sector. Upon findings, we suggest several implications
for the logistics sector, academics, firms, and shareholders as
well as stakeholders. The proven link between CSR
performance-reporting sends very important signals to
shareholders and other stakeholders such that the
information embedded in the reports reflect the actual
realization of CSR practices.
Rama Seth, Sakthi Mahenthiran,
Impact of dividend payouts and corporate social responsibility on firm value –
Evidence from India,
Journal of Business Research,
Volume 146, 2022, Pages 571-581, ISSN 0148-2963, https://doi.org/10.1016/j.jbusres.2022.03.053.
(https://www.sciencedirect.com/science/article/pii/S0148296322002909)
• Abstract

• We study 115 Indian listed companies (ILCs) over the period

2009–2012. The study explicitly connects the Indian way of
doing business with a broader mission of serving the
community by arguing that dividend payout policy and
signaling via voluntary CSR disclosures are strategic decisions
made by the board of directors of ILCs to balance the
interests of multiple stakeholders. The study finds that
signaling via CSR disclosures and dividends are
complementary means of managing this broader mission of
stakeholder relations. The findings in the Indian context are
similar to the study of European firms by De Villiers et al.
(2020) in showing that managers use both CSR disclosure
and dividends to signal sustainable future performance.
Additionally, the results suggest that this complementary
relation between dividends and CSR disclosures is
particularly valued by institutional investors.
P&G Shiksha #DontLetDreamsWait campaign
 Do CSR Messages Resonate? Examining Public The relationship between CSR disclosure and competitive
Reactions to Firms’ CSR Efforts on Social advantage Hui-Cheng Yu, Lopin Kuo, Mao-Feng Kao
Media
Gregory D. Saxton, Lina Gomez, Zed Ngoh, Yi-Pin Lin & Sarah Dietrich Journal Sustainability Accounting, Management and Policy Journal
of Business Ethics volume 155, pages359–377 (2019)
ISSN: 2040-8021 Article publication date: 6 November 2017
• Abstract Abstract
Purpose
We posit a key goal of firms’ corporate social responsibility (CSR)
This study aims to apply signaling theory to examine whether corporate social
efforts is to influence reputation through carefully crafted responsibility (CSR) disclosure can deliver effective signals to stakeholders to
communicative practices. This trend has accelerated with the increase a firm’s competitive advantage in China. Whether ownership patterns
rise of social media such as Twitter and Facebook, which are or environmental sensitivity causes a significant difference in the relationship
essentially public message networks that organizations are between a firm’s CSR disclosure and competitive advantage is also examined.
Design/methodology/approach
leveraging to engage with concerned audiences. Given the large
Data analysis is based on a regression model. Content analysis is performed to
number of messages sent on these sites, only some will be convert qualitative CSR information of Chinese firms into quantitative data,
effective and achieve broad public resonance. Building on while intellectual capital (IC) is used as a proxy variable for competitive
signaling theory, this paper asks whether and how messages advantage.
Findings
conveying CSR-related topics resonate with the public and, if so,
The difference in competitive advantage impairment between environmentally
which CSR topics and signal qualities are most effective. We test sensitive industries (ESIs) and non-environmentally sensitive industries (NESIs) is
our hypotheses using data on public reactions to Fortune significant. Further comparisons on the relationship between overall CSR
500 companies’ CSR-focused Twitter feeds, using the disclosure and competitive advantage among state-owned enterprises, privately
retweeting (sharing) of firms’ messages as a proxy for public owned enterprises, ESIs and NESIs suggest that the relationship is negative. This
resonance. We find resonance is positively associated with paper provides evidence related to stakeholders’ reaction to
messages that convey CSR topics such as the environment or managers’ various CSR strategies in China. The contribution of this
education, those that make the topic explicit through use of study is that it confirms that different CSR initiatives have different
hashtags, and those that tap into existing social movement
effects on the competitiveness of enterprises in China.
discussions.
• Which social cause is
endorsed by NIKE?

• Why do you think did

NIKE extent the
contract after
backlash erupts over
new ad campaign
featuring Colin
Kaepernick ?
How Nike Turns Controversy Into Dollars
https://www.cnbc.com/2018/09/04/nike-shares-tumble-after-compan
y-reveals-new-ad-campaign-featuring-colin-kaepernick.html

• Nike shares fall as

backlash erupts over new
ad campaign featuring
Colin Kaepernick
•Social exchange theory is a model for interpreting
society as a series of interactions between
people that are based on estimates of rewards According to this theory, the formula for predicting
and punishments. the behavior of any individual in any situation is:
•According to this view, our interactions are Behavior (profits) = Rewards of interaction
determined by the rewards or punishments that we – costs of interaction.
expect to receive from others, which we evaluate
using a cost-benefit analysis model (whether
consciously or subconsciously).
•Central to the social exchange theory is Rewards can come in many forms: social recognition, money,
the idea that an interaction that elicits gifts, and even subtle everyday gestures like a smile, nod, or pat
approval from another person is more likely on the back.
to be repeated than an interaction that elicits Punishments also come in many forms, from extremes like public
disapproval. humiliation, beating, or execution, to subtle gestures like a raised
eyebrow or a frown.
•We can thus predict whether a particular interaction While social exchange theory is found in economics and
will be repeated by calculating the degree of reward psychology, it was first developed by the sociologist George
(approval) or punishment (disapproval) resulting Homans, who wrote about it in a 1958 essay titled "Social
from the interaction. If the reward for an interaction Behavior as Exchange." Later, sociologists Peter Blau and Richard
exceeds the punishment, then the interaction is likely Emerson further developed the theory.
to occur or continue.
What is social exchange Exploring employee engagement with (corporate) social
responsibility : a social exchange perspective on organisational
participation.

theory in CSR? Slack, R. and Corlett, S. and Morris, R. (2015) 'Exploring employee
engagement with (corporate) social responsibility : a social exchange
perspective on organisational participation.', Journal of business ethics.,
127 (3). pp. 537-548.
Abstract
• Social exchange theory is applied to help Corporate social responsibility (CSR) is a recognized and common part of
explore the decision that individual business activity. Some of the regularly cited motives behind CSR are
employees have towards their engagement employee morale, recruitment and retention, with employees
with CSR activities, and to consider the acknowledged as a key organizational stakeholder. Despite the
significance of employees in relation to CSR, relatively few studies have
implications of an implicit social, rather than examined their engagement with CSR and the impediments relevant to this
explicit economic, contract between an engagement. This exploratory case study-based research addresses this
organisation and its employees in their paucity of attention, drawing on one to one interviews and observation in a
engagement with CSR. large UK energy company. A diversity of engagement was found, ranging
from employees who exhibited detachment from the CSR activities within
the company, to those who were fully engaged with the CSR activities, and
to others who were content with their own personal, but not organizational,
engagement with CSR. A number of organizational context impediments,
including poor communication, a perceived weak and low visibility of CSR
culture, and lack of strategic alignment of CSR to business and personal
objectives, served to explain this diversity of employee engagement. Social
exchange theory is applied to help explore the volition that individual
employees have towards their engagement with CSR activities, and to
consider the implications of an implicit social, rather than explicit economic,
contract between an organization and its employees in their engagement
with CSR.
How Do Employees Respond to the CSR Initiatives of their Organizations: Empirical
Evidence from Developing Countries
Citation: APA -Farooq M, Farooq O, Cheffi W. How Do Employees Respond to the CSR Initiatives of their
Organizations: Empirical Evidence from Developing Countries. Sustainability. 2019; 11(9):2646.
https://doi.org/10.3390/su11092646
• This research presents a new perspective of social exchange to explain the
employee responses to corporate social responsibility (CSR) activities of their
organizations. In particular, the current study aims to explore the social exchange
based mediation mechanism between CSR actions and employee turnover
intentions. Considering this theory, we propose that organizational trust is the
primary outcome of CSR, which in turn influences the affective organizational
commitment (AOC) and reduces the turnover intentions (TOI) of employees.
Moreover, we posit that different types of CSR actions have different effects on
employees due to their relative importance. To test the suggested research
model, we analyzed the data collected on 304 employees working in the Star
hotel in South Asia. Results of the study demonstrate the organizational trust to
be a mediator between CSR and AOC and that CSR negatively impacts the
turnover intentions of employees through the mediation of trust and AOC.
Moreover, the results show the relevance of examining the disaggregated effects
of different types of CSR actions on employees’ turnover intention. The study
concludes with implications for future research and for policy-makers.
Examples
Tata CSR program https://www.tatamotors.com/corporate-social-responsibility/
 https://thecsrjournal.in/the-complete-report-on-csr-activities-o
f-nestle/
Nestle CSR Program
 https://www.itcportal.com/sustainability/corporate-
social-responsibility.aspx
https://www.itcportal.com/sustainability/echoupal-e
ITC eChopal-CSR Program- cosystem.aspx
ITC's Contribution
In a pioneering move, ITC set up village internet kiosks - e-Choupals -
which made real-time, up-to-date, relevant information on weather, price
discovery, agri knowhow and best practices, etc readily available. The
kiosks are managed by trained local farmers who help the local agricultural
community to access the information in their local language.
With appropriate knowledge and services available virtually at the farm
gate, farmers have been able to raise productivity, improve quality, manage
risk and earn better prices. By creating a more efficient marketing channel,
e-Choupal reduces transaction costs and helps farmers to adjust/fine-tune
crops types and qualities to changing trends.
The largest internet-based intervention in rural India, e-Choupal has grown
into an ecosystem of services that addresses diverse rural needs, from
agri-extension and other farm-related offerings to retail avenues to
insurance and healthcare.
DHL CSR Analysis
(CSR Journal, 2021) Top CSR performing Companies

Godrej Consumer Products Limited

Godrej Consumer Products Ltd. (GCPL) spent Rs. 34.08 crore on CSR initiatives in FY 2020-21. The
company’s CSR initiatives reached over 2.77 lakh people from the most vulnerable communities.
During the last financial year, GCPL diverted 63 per cent of its CSR budget to initiate medium to long-term
livelihood recovery programmes to support over 9000 nano entrepreneurs.
In addition to this, GCPL achieved zero waste-to-landfill and water positivity in the last financial year. The
company is 100 per cent Extended Producer Responsibility compliant. It takes back the post-consumer plastic
packaging waste equivalent to the plastic packaging it sends out.
The company made it among the top 15 in India in the leadership index of the Climate Disclosure Project. It
scored an ‘A’ rating in climate disclosure, securing a place among top 25 per cent of all global companies.

Other Indian Example of Corporate Social

Responsibility
Whole Foods
• Considering one of the minds’ behind the philosophy is Mackey, it shouldn’t come as a
surprise that the company embodies all the values of conscious capitalism. For
instance, Whole Foods holds “community giving days”, once every quarter, where 5% of
net sales are given to a local nonprofit. This strategy considers all stakeholders, creating
loyalty among customers, keeping employees motivated, and caring for the surrounding
community.
• Another decision that embodies conscious capitalism was co-CEO Walter Robb’s idea to
open a store in Detroit, where many live below the poverty line. Traditionally, this
decision would be a risk for many, with no guarantee of positive returns. But for Robb,
who was concerned about Whole Foods’ burgeoning reputation as an elitist company, it
made sense to look beyond just profits. According to him, Whole Foods “was meant to
be healthy food for the world, not just for a few people.” With a higher purpose at the
core, the Detroit store turned profitable in less than a year.
 Southwest Airlines
• Southwest Airlines is another example of a conscious company. The company follows the
triple bottom line approach, which goes beyond simply accounting for financial profits
and losses. It also takes social and environmental costs into the equation.
• In an interview on Conscious Company, Bill Tiffany, Vice President of Supply Chain
Management, and Casey Dunn, Southwest Airlines spokesperson talk about some of
Southwest’s conscious capitalism efforts: “Our fuel efficiency initiatives reduce costs
while also minimizing our environmental impact. Similarly, our investments in the
communities where Southwest flies contribute to making them great places to live, work,
and visit.”
• Additionally, through its “Evolve” program, Southwest replaced leather seat covers and
interior materials with environmentally friendly products. As a result, the weight of each
aircraft was reduced by more than 600 pounds. Perhaps even more impressive is the fact
the leather from seat covers were donated to social enterprises to create soccer balls and
used to spread HIV/AIDS awareness through sports. Unlike recent developments in the
coach travel industry, the airline industry has historically been notorious for disregarding
environmental and social concerns — Southwest Airlines, however, is a proven exception
 • Starbucks has long been known for its keen sense of corporate social responsibility and commitment to
sustainability and community welfare. According to the company, Starbucks has achieved many of its CSR
milestones since it opened its doors. According to its 2020 Global Social Impact Report, these milestones
include reaching 100% of ethically sourced coffee, creating a global network of farmers and providing them
with 100 million trees by 2025, pioneering green building throughout its stores, contributing millions of
hours of community service, and creating a groundbreaking college program for its employees. Starbucks. 2020
Global Environmental & Social Impact Report, Pages 10 and 20
.
• LEGO: The toy company has invested millions of dollars into addressing climate change and reducing waste.
LEGO's environmentally conscious efforts include reduced packaging, sustainable materials,
Other and investments in alternative energy.

International • TOMS: TOMS donates one-third of its net profits to charities that support physical and mental health as well
as educational opportunities. During the pandemic, the brand directed all charitable donations to the TOMS
Companies COVID-19 Global Giving Fund.

doing CSR • Johnson & Johnson: The brand Johnson & Johnson focuses on reducing its environmental impact by
investing in alternative energy sources. Globally, Johnson & Johnson also works to provide clean, safe water
to communities.

• Google: Google has demonstrated its commitment to the environment by investing in renewable energy
sources and sustainable offices. CEO Sundar Pichai is also known to take stands on certain social issues.

• Pfizer: The pharmaceutical company's focus on corporate citizenship is reflected in its healthcare initiatives,
which include spreading awareness about non-infectious diseases and providing accessible health services
to women and children in need.
Sum Up…
Other resources
• https://csrcfe.org/about-csr-in-india-public-policy/#:~:text=CSR%20w
as%20influenced%20by%20family,the%20Companies%20Act%20of%
201956.
• Conscious Capitalism : https://youtu.be/ZLcIziUvw5Q
• https://www.cimaglobal.com/Documents/Thought_leadership_docs/
Research%20Funding/Corporate-social-responsibility-innovation-man
agement-accounting.pdf
• Six CSR Strategies That Are Good For Business
• The rise of the Indian millennial