Dissertation | Work Progress | Draft 1 Topic: A study of implementation of CSR through digital and social media marketing.

Evolution of CSR in India

The history of CSR in India has its four phases which run parallel to India's historical development and has resulted in different approaches towards CSR. However the phases are not static and the features of each phase may overlap other phases. The First Phase Charity and philanthropy were the main drivers of CSR. Culture, religion, family values and tradition and industrialization had an influential effect on CSR. In the pre-industrialization period, which lasted till 1850, wealthy merchants shared a part of their wealth with the wider society by way of setting up temples for a religious cause. Moreover, these merchants helped the society in getting over phases of famine and epidemics by providing food from their godowns and money and thus securing an integral position in the society. With the arrival of colonial rule in India from 1850s onwards, the approach towards CSR changed. The industrial families of the 19th century such as Tata, Godrej, Bajaj, Modi, Birla, Singhania were strongly inclined towards economic as well as social considerations. However it has been observed that their efforts towards social as well as industrial development were not only driven by selfless and religious motives but also influenced by caste groups and political objectives. The Second Phase In the second phase, during the independence movement, there was increased stress on Indian Industrialists to demonstrate their dedication towards the progress of the society. This was when Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders had to manage their wealth so as to benefit the common man. "I desire to end capitalism almost, if not quite, as much as the most advanced socialist. But our methods differ. My theory of trusteeship is no make-shift, certainly no camouflage. I am confident that it will survive all other theories." This was Gandhi's words which highlights his argument towards his concept of "trusteeship". Gandhi's influence put pressure on various Industrialists to act towards building the nation and its socio-economic development. According to Gandhi, Indian companies were supposed to be the "temples of modern India". Under his influence businesses established trusts for schools and colleges and also helped in setting up training and scientific institutions. The operations of the trusts were largely in line with Gandhi's reforms which sought to abolish untouchability, encourage empowerment of women and rural development. The Third Phase The third phase of CSR (196080) had its relation to the element of "mixed economy", emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental standards. During this period the private sector was forced to take a backseat The public sector was seen as the prime mover of development Because of the stringent legal rules and regulations surrounding the activities of the private sector, the period was described as an "era of command and control". The policy of industrial licensing, high taxes and restrictions on the private sector

led to corporate malpractices. This led to enactment of legislation regarding corporate governance, labour and environmental issues. PSUs were set up by the state to ensure suitable distribution of resources (wealth, food etc.) to the needy. However the public sector was effective only to a certain limited extent. This led to shift of expectation from the public to the private sector and their active involvement in the socio-economic development of the country became absolutely necessary. In 1965 Indian academicians, politicians and businessmen set up a national workshop on CSR aimed at reconciliation. They emphasized upon transparency, social accountability and regular stakeholder dialogues. In spite of such attempts the CSR failed to catch steam. The Fourth Phase In the fourth phase (1980 until the present) Indian companies started abandoning their traditional engagement with CSR and integrated it into a sustainable business strategy. In 1990s the first initiation towards globalization and economic liberalization were undertaken. Controls and licensing system were partly done away with which gave a boost to the economy the signs of which are very evident today. Increased growth momentum of the economy helped Indian companies grow rapidly and this made them more willing and able to contribute towards social cause. Globalization has transformed India into an important destination in terms of production and manufacturing bases of TNCs are concerned. As Western markets are becoming more and more concerned about and labour and environmental standards in the developing countries, Indian companies who export and produce goods for the developed world need to pay a close attention to compliance with the international standards.

New Companies Bill 2013

The Companies Bill, 2009 (the Bill), as passed by the Rajya Sabha on 8 August 2013 will introduce the concept of Corporate Social Responsibility (CSR) into Indian company law. The World Business Council for Sustainable Development defines the concept of CSR as a 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. Senior lawyers Joyjyoti Misra and Arjun Rajgopal of Khaitan & CO answer few frequently asked questions by Indian companies on the changes made by the government on the CSR provisions. Applicable to companies with: A net worth of Rs. 500 crore or more; a turnover of Rs 1,000 crore or more; and a net profit of Rs 5 crore or more during any financial year. Companies qualifying are required to form a CSR Committee with at least one independent director. The CSR spend of a company which meets the aforementioned threshold is required to be 2% of the average net profits for the preceding three financial years. The concept of independent directors gets extended even to private limited companies if they meet the requisite financial thresholds. Formulate and recommend a CSR Policy to the Board which indicates the activities to be undertaken by the company; Recommend the amount of expenditure to be incurred in relation to the CSR policy; and Monitor the progress of the CSR policy from time to time. The CSR policy is required to be disclosed on the companys website.

CSR activities recognized under the Bill include: Eradicating extreme hunger and poverty; Promotion of education; Promoting gender equality and empowering women; reducing child mortality and improving maternal health; Combating HIV, AIDS, Malaria and other diseases; Ensuring environmental sustainability; Imparting employment enhancing vocational skills; Social business projects; and Contribution to certain funds. The company is to give preference to local areas when formulating its CSR policy. The Bill provides for rules to be prescribed in relation to CSR provisions. The rules are currently in the process of being drafted. The draft CSR Rules presently requires a company to report their CSR spend in a form provided therein and it is likely that such reporting requirements will be included in the final rules as well. The Bill only provides that sufficient reasons need to be provided for not making the requisite CSR spend. While no specific penalties are contemplated in the Bill with respect to CSR, Chapter XXIX of the Bill (Sections 450 and 451) provide for general penalties for contravention and repeat offences.

Carrols CSR Pyramid

Most Effective digital CSR campaigns in INDIA

1. The Bloodline Club, A Tata Docomo Initiative Needing blood urgently is a very common phenomenon and despite having a large number of donors around us, sometimes we do not connect at the right time and a life is lost. The Bloodline club, an initiative by Tata Docomo is a website that takes your mobile number and blood group. You can request as well as donate blood quickly through this existing network that also uses Facebook and Twitter in an innovative and fun manner. Besides, having nearly

8 million fans, the Tata Docomo Facebook community is the largest online community in India, thus making the bloodline club work wonders for its brand image. http://www.tatadocomo.com/blood-line-club.aspx

2. Ford India I Pledge To Drive Safe Facebook Campaign Driving is fun but it can be dangerous when you are driving irresponsibly. In a move to bring about change, Ford India, the global automotive industry leader had initiated the I pledge to drive safe safe driving campaign on Facebook. The Facebook app had multiple pledges which can be chosen by fans with badges to be earned. In addition, it also had a leaderboard displaying Top Pledgers and Most popular pledges. The idea of safe driving was brought out through fun and sharing on Facebook. 3. Surf Excel Indias Back To School Campaign On Facebook This is a noble initiative by Surf Excel in partnership with GuideStar India, a place where you can search and connect with NGOs in India. More than 160 NGOs from across India are a part of this campaign that works on the idea that parents can donate old notebooks, textbooks, etc. to support the education of kids who cannot afford it. The campaign makes use of an app through which you can locate the nearest NGO and get in touch with them. In addition, Surf Excel will donate 50p for every like on its Facebook page. 4. Godfrey Phillips Bravery Awards Godfrey Phillips came out with a campaign of recognizing courageous people who have risked their lives for the society. They came out with a website, facebook page, twitter handles, etc. to encourage people to come forward and share such stories. It encouraged people to participate (share your own story), nominate (share someone elses story) or appreciate (read others stories) acts of bravery. They also ran TV commercials for a brief period. Their facebook page currently has 1.4 million likes. Awards The Physical Bravery category recognizes individuals who have saved lives by endangering their own or prevented extensive damage to property by their timely actions, despite being at great personal risk. The Awardees in this category are presented with a medal accompanied by a cash reward. The Social Acts of Courage category has been created to acknowledge the role of individuals who have adopted a strong stance and stood up against social evils such as dowry, child marriage, illiteracy and environmental concerns, etc. The Awardees in this category are presented with a medal accompanied by a cash reward. The Mind of Steel Award category is for those individuals who have pushed their limits and delivered extraordinary results by overcoming their limitations, physical, psychological, economical or otherwise. This category also acknowledges people who show true strength of character by standing by their personal convictions in a social situation, challenging all odds. The Awardees in this category are presented with medals accompanied by a cash reward.

The Amodini Award has been instituted to honor exceptional women who have made significant contributions towards empowering economically and socially backward Indian women along with extensively working towards making them financially independent. The Amodini Award is a special recognition for women and carries a cash award. The award is an extension of the initiatives carried under the same namethe Amodini- Womens Empowerment Projects. http://www.bebrave.in/ https://www.facebook.com/BeBrave.In 5. Aircel | Save Our Tigers Initiative 'Save Our Tigers' campaign was aimed at creating mass awareness about the diminishing tiger population and engaging the youth to spread the message, especially in the digital space. It also came from a deep felt understanding that today's youth in India give far more weightage to a brand which wasn't just transactional but has a deeper connection to society. The campaign had various digital components like facebook, twitter, youtube, SMS, etc. It garnered a lot of attention and was able to increase general awareness. http://www.saveourtigers.com/

Looking Forward
1. 2. 3. 4. Look for some primary data Analysis of public data like Facebook page likes, YouTube hits, Twitter RTs, etc. In depth study of CSR bill More research on impacts of CSR through digital and social media marketing.