Corporate Social Responsibility in India: A Case Study of Public and Private Sector
Corporate Social Responsibility in India: A Case Study of Public and Private Sector
Corporate Social Responsibility in India: A Case Study of Public and Private Sector
net/publication/317852406
CITATIONS READS
0 2,222
2 authors:
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Swati Jain on 23 November 2017.
Abstract : This paper attempts to understand the work done by a public sector and private sector organization
in the field of corporate social responsibility(CSR). This study is based on the primary data of Oriental
Insurance Company Ltd. (OICL) and secondary data of Reliance Life Insurance Company Ltd. (RLIC). The
primary data for Oriental Insurance Company Ltd. was collected through a semi-structured interview and the
secondary data for Reliance Life Insurance Company Ltd. was collected through their web portal. The findings
suggest that though the corporate social responsibility activities revolve around similar areas for both the
sectors, focusing on community, health, education, and infrastructure, yet the policies and procedures regarding
corporate social responsibility were structured and systematic for Reliance Life Insurance Company Ltd. in
comparison to that of Oriental Insurance Company Ltd. Both public (OICL) and private (RLIC) sector
enterprises work with a special set of constraints and challenges, due to which they strategize their operations
differently. The focus of organizations should not only be conduction of CSR, but creating sustainable practices
should be the focus.
Keywords : corporate social responsibility, Oriental Insurance Company Ltd., private sector, public sector,
Reliance Life Insurance Company Ltd.
I. Introduction
The success of any organization depends on its ability to cater to the needs of people in some way.
While the organization uses resources available to it such as human resources, energy and land, it also has the
responsibility to give something back to the community it serves. It is this interdependent relationship that
guarantees success to both the organization and the community. While the primary goal of an organization is to
effectively cater to the needs of the people, it also needs to go beyond and help in the betterment of the
community. These practices taken by the organizations are termed as Corporate Social Responsibility (CSR).
Corporate Social Responsibility (CSR) is exercised by organizations when they conduct their business in an
ethical way, taking account of the social, environmental and economic impact of how they operate, and going
beyond compliance. It covers the relationship between corporations and the societies with which they interact.
CSR defines society in the widest sense, and on many levels, to include all stakeholder and constituent groups
that maintain an ongoing interest in the organization’s operations. It is defined by McWilliams et al (2006) in
Armstrong1 (1996) as actions taken by businesses that further some social good beyond the interests of the firm
and that which is required by law. It has also been described as “the impact of business on behavior”. Corporate
social responsibility is also referred to as “pro-social corporate endeavors and has been traditionally
conceptualized as the obligation of the managerial authority to take action to protect and improve both the
welfare and the interest of the organizations”2 (Davis & Blomstrom, 1975). CSR includes consideration of such
issues as workplace and employee issues, human rights, including occupational health and safety, organizational
governance, environmental aspects, community involvement, and social development.
Strategic CSR is about deciding the extent to which an organization should be involved in a corporate
social agenda—considering what social issues to focus on and to what extent. Strategy is always about choice 3
(Porter & Kramer, 2006). Baron (2001) points out that CSR is what an organization does when it provides
services along with its business and marketing strategy that has the potential to make the greatest social impact
and reap the greatest business strategy [4]. CSR strategy determines how socially responsible behavior is
exercised both outside and within the organization. Organizations should seek social/environmental strategies
for which they own part of the solution.
A bank’s CSR activities might be strategic if it uses some of its CSR budget to help educate young
adults in ‘financial literacy’ [5]. Because adults who are financially literate will usually go into unplanned debt
less frequently and will realize their need for a range of financial products, many of which will be provided by
the bank. So by supporting initiatives to increase financial literacy, the bank might be indirectly reducing bad
debts and also increasing demand for its own products, gaining popularity and a competitive edge in the market.
Hillman and Keim (2001) state that the rationale for CSR is based on two propositions (cited in
Armstrong, 2009). First, there is a moral obligation for businesses firms to do what is right without considering
DOI: 10.9790/487X-1906046774 www.iosrjournals.org 67 | Page
Corporate Social Responsibility in India: A Case Study of Public and Private Sector
how such decisions affect firm performance and second, is that the firms can achieve a competitive advantage
by trying CSR activities to primary stakeholders. CSR is about building a sustainable business which needs
healthy economies, markets and communities. Globalization, international legal instruments and guidelines,
changing public expectations of business, and business brand are some of the reasons organizations have begun
to embrace CSR.
It is believed that the U.K companies are becoming ethical in the content of social responsibility
because companies have to disclose their CSR with a view of public benefits and government request. Further,
they have to issue this information to the stakeholders12 (Idowu and Loanna, 2007).
Holcomb, Upchurch & Okumus13 (2007) identified and described social responsibility (SR) patterns in
web sites, annual reports and corporate social responsibility (CSR) reports for the top ten hotel companies as
listed in Hotels magazine. The findings reveal that 80 percent of the hotel companies analyzed reported socially
responsible activities relating to some form of charitable donations. A diversity policy was reported by 60
percent of the hotel companies, while 40 percent provided some mention of SR in their vision or mission
statements. Some companies were highly focused on providing a balanced approach to SR while other hotel
companies were less focused in their efforts.
Another study (Mishra and Suar, 2010) examined whether corporate social responsibility (CSR)
towards primary stakeholders influences the financial and the non-financial performance (NFP) of Indian firms.
Data on CSR and NFP was collected from 150 senior-level Indian managers including CEOs through
questionnaire survey. Controlling confounding effects of stock-listing, ownership, and firm size, a favorable
perception of managers towards CSR is found to be associated with increase in FP and NFP of firms. Such
findings hold well when CSR is assessed for the six stakeholder groups in aggregate and for each stakeholder
group in segregate. Findings suggest that responsible business practices towards primary stakeholders can be
profitable and beneficial to Indian firms.
In a study by Kumar (2013) CSR activities carried out by Indian private (RIL) and public sector
companies (ONGC) and the Indian government policies and programmes of CSR were examined 14. The data
revealed that though the Indian public and private firms are making efforts in the CSR areas but still there is a
requirement of more emphasis on CSR.
Singh and Singh (2015) analyzed the corporate social responsibility (CSR) activities carried out by
public and private sector banks in India15. The analysis revealed that the work of CSR done by the Indian
banking industry is a good initiative but there is a still room for development in this area. Some banks are
lagging in the regulatory norms of CSR. It seems that banks are giving more emphasis on the social issues and
financial issues to fulfill their social responsibility but environmental issues are touched little. Moreover, the
public sector banks has overall higher spending than the private sector banks.
From the above literature it is evident that there is now a growing body of research that sheds important
light on the growing importance of CSR in the organizations. India is a developing economy, here Corporate
Social Responsibility (CSR) plays important role in organizations. In Indian industry one can easily notice a
paradigm shift from corporate philanthropist to being socially responsible. The importance of CSR is increasing
in Indian corporate scenario because organizations have realized that the ultimate goal is not profit making,
beside this trust building is viable and assert able with societal relationship. The concept of CSR is based on the
notion that the success of an organization and the welfare of the society are interdependent and both function
inter-connectedly. The basic idea is that an organization cannot be successful if the society in which it operates
functions ineffectively. CSR builds on the view that the organization and the society in which it functions are
linked in that the changes in one affect and influences the other. If a society or community in which an
organization functions is failing in terms of its environmental conditions, land degradation, poor health of the
inhabitants and lack of literacy the chances of successful functioning of the organization is non-existent, if not
bleak. Likewise, the success rate of a community is negligible if the organization that operates therein does not
provide the services required by its inhabitants. Basing on this, the present study aims to understand and explore
the types of CSR activities organizations engage in and how have these organizations attempted to make their
mark as socially responsible members of the community.
1.2 Objective
To analyze the Corporate Social Responsibility (CSR) activities carried out by an Indian public (Oriental
Insurance Company Ltd.) and private sector (Reliance Life Insurance Company Ltd.) organization.
II. Method
The Case Study method was employed as a method of collecting data. A case study is a description or
history of an event or a sequence of events in a real life setting. Case studies are used extensively in the HRM
research as a means of collecting empirical evidence in the real life context. Information is gathered about an
event or a set of events that establishes what has happened, how it happened and why it happened. They usually
take the form of narrative that illuminates a decision or a set of decisions, why they were taken, how they were
implemented and with what result. The methodology within the case study approach involves the use of multiple
sources of evidence (triangulation) as far as possible such as observations, interviews, documents and records.
Case studies are useful ways of collecting information about the reality of organizations but there is a
danger of the studies not being generalizable and not being able to contribute to greater knowledge or
understanding. Case study requires the investigator to take an unbiased view and requires a lot of skill and
persistence in gaining support, ensuring and revealing information is obtained and presented in a convincing
manner from which valid and interesting conclusions can be drawn.
2.1 Procedure
The study was conducted on two insurance organizations, the Oriental Insurance Company Ltd and
Reliance Life Insurance Company Ltd. Prior to the conduction of the interview, researchers identified the public
and private sector organizations and approached them. It was ensured that the organizations chosen for the
purpose of the study belonged to the same level i.e. ensuring that both the organizations were established around
the same time. While for Oriental Insurance Company Ltd primary data was collected, for Reliance Life
Insurance Company Ltd. secondary data obtained through the organization’s CSR reports, documents, records
and website. The supervisor was approached and was communicated the general nature and purpose of the
study. A proposal letter was presented and permission was sought through a representation. After being duly
accepted the research proceeded. Before the data collection began a probe list was formed and an interview
schedule was formulated that covered the domains the researchers wished to explore. The HR executive of the
organization was identified and an appointment was sought. Once a particular date and time was fixed with the
participant, the study was carried forward. Before the conduction, the participant was asked to sign the informed
consent and was informed about the nature and purpose of the study. The participant was also presented with a
demographic sheet and was asked to fill in the sheet. Permission to record the interview was sought. The
participant was assured of the confidentiality of his/her responses, identity and results and was promised a quick
and effective feedback. A semi-structured interview was conducted. The questions were later rephrased in a way
that would best elicit the desired response from the participants.
Special attention and focus was paid on the formation of rapport with the participant, as the interview
required the participant to disclose professional information. The purpose was to make the participant
comfortable and to avoid any socially desirable or fake responses and achieve genuine results. It also aimed to
reduce any sort of anxiety and apprehensions that he/she might be experiencing or having.
During the interview the process notes were taken and the non-verbal cues of the participant were
observed and noted. The researcher attempted to remain as neutral and detached as possible at the same time
being tolerant, sensitive and patient to provocative and unconventional opinions. A smooth transition was
ensured between major topics. The researcher’s attempt was not to lose control of the interview and control the
course of the interview to avoid digression from the topic. Once the interview was over, the participants were
once again promised of confidentiality and anonymity.
Secondary data sources were referred to gather data about Reliance Life Insurance Company Ltd.
Later, the data obtained from the participant of the private insurance company and the data obtained from the
secondary sources about the CSR activities were organized and analyzed. Thematic analysis was used which is a
method for identifying, analyzing, and reporting patterns (themes) within data. A theme is described as that
which captures something important about the data in relation to the research question, and represents some
level of patterned response or meaning within the data set16 (Braun & Clarke, 2006). It is a way through which
the embedded ideas in the text, document or interviews surface and help us understand the essence data. The
data obtained from both the organizations, Oriental Insurance Company Ltd. and Reliance Life Insurance
Company Ltd were analyzed and have been represented in tabular form.
III. Results
Thematic analysis was used to analyse the primary and secondary data. The categories under which CSR
activities are being done by Oriental Insurance Company Ltd. are given in Table 1.
The categories under which CSR activities are being done by Reliance Life Insurance Company Ltd. are given
in Table 2.
Table 2. CSR Activities adopted by Reliance Life Insurance Company Ltd. (Private)
Activities done by the organization Codes Categories
Rural transformation Rural Development Community
Promoting gender equality Gender Issues
Monument and heritage protection Heritage Conservations
Educating farmers about water conservation Work empowerment Empowerment
Educating farmers about water management
Using technology towards delivering need based information Increasing quality of life
for improving quality for improving quality of life.
Tree plantation Greening Activities Environment
conservation of flora and fauna
Maintaining quality of air, soil and water. Environment and Climate
Protection
Ethical treatment and fair business practices that promote Employee Welfare Marketplace
Awareness programmes on health and hygiene Health awareness Health
Recognizing the rural-urban divide with regard to health care Health care facilities
facilities
Execution of medical programmes in hospitals
Vaccination programmes in inaccessible areas
IV. Discussion
A corporate takes birth and grows in response to the needs and labors of various stakeholders-
entrepreneurs, managers, workers, local community, larger society, buyers, suppliers and the state. The
relationship between that of the community and organization can be understood as involving a reciprocal
relationship wherein the activities of the organization influences the community and vice versa. It is in the best
interest, therefore of both the community and organization to act in ways that promote each other’s development
and promotion. Corporate Social Responsibility is one such way that ensures development and promotion of the
best interest of both the parties. Therefore, in order to explore the concept further the purpose of the present
study was to study and understand the corporate social responsibility (CSR) strategy in an Indian public and
private sector organization and to analyze the CSR strategies carried by the organization in these two sectors.
The organizations chosen for the purpose of the study was the public sector, Oriental Insurance
Company Ltd (OICL) and the private sector, Reliance Life Insurance Company Ltd. (RLIC). The researcher
gathered primary data by visiting the Public sector organization and secondary data was used to explore the CSR
activities and strategies of the private sector organization. The Case Study method was employed as a method of
collecting data. The data obtained from both the organizations, Oriental Insurance Company Ltd. and Reliance
Insurance Ltd were analyzed using thematic analysis.
business in a manner that is economically, sustainably and environmentally sustainable manner and enhance the
quality of life of the community and people for whom the CSR programs are designed.
The interview with the branch head of OICL revealed that the organization was involved in a number
of CSR activities and followed a systematic procedure of planning, budget allocation, implementation,
evaluation and feedback. The interview revealed that the company viewed the CSR activities and strategies as a
means to reach out to people with the intention of improving their welfare and wellbeing. They had an
established committee that reviewed various proposals for CSR activities before they were actually
implemented. As table 1 shows the organization was involved in community activities such as village
development and collaboration with NGO’s for cancer prevention, old age and children’s education.
The participant stated that they organized several workshops and outdoor activities. A variety of
activities in the community domain were undertaken by the organization. On its founder’s day an educational
trip was organized for orphan children where they were educated about India’s history and heritage. In addition
they also provide infrastructure facilities to old age homes and work with NGO’s like HelpAge India and
Janseva Foundation.
The organization is also actively involved in activities that pertain to the environment such as regular
plantation drive and ensuring the use of recycling products and minimizing paper usage. Paper saving drive and
paper recycling was also practiced within the work premises indicating that organization’s thrust areas of
sustainable environment development was not only practiced outside but also within the organization at the
workplace.
The organization participates extensively in the dimension of health by creating awareness and
promoting cancer prevention programmes by organizing independent workshops as well as by working in
collaboration with several non-profit organizations such as Cancer Patient Aid Association, . Physical &
Veterinary camps are held in rural areas, Health awareness, check-up and blood donations camps held at 68
locations across the Country on a single day i.e. 28, January every year. In addition to various children welfare
activities such as organizing educational trips and hygiene and health awareness programmes, the organization
has tie-ups with government programmes for the protection of monuments and heritage buildings. All these
activities reflect the wide areas and domains the organization attempts to cover.
When the participant was asked as to why she thought organizations engaged in CSR activities, the
participant promptly replied saying that engaging in CSR activities came not only with the added advantage of
helping people but also “then by doing so (CSR), we are increasing our repertoire of activities which is helping
us gain a positive image. It has benefits for all. But yes, the aim is to help people.” A global survey of 1,122
corporate executives proposes that CEOs believed that “businesses benefit from CSR because it increases
attractiveness to potential and existing employees”17 (Economist. 2008: 13).Perhaps the challenge experienced
by the organization is in terms of the allocation of budget which determines how to operate and carry out CSR
activities.
Although they had their structured guidelines and a subcommittee a challenge that the researchers
believe the organization faces in addition to the issue of allocation of budget is the Lack of Consensus on
Implementing CSR Issues as all the decision are taken by the subcommittee which leads to a lack of consensus
amongst local agencies regarding CSR projects. This lack of consensus often results in duplication of activities
by corporate houses in areas of their intervention. This factor limits company’s abilities to undertake impact
assessment of their initiatives from time to time.
With regard to environment, the company has undertaken a number of plantation and greening
activities and remains steady in its vision of creating a sustainable environment. As Taylor (2015) state
companies also demonstrate their corporate social responsibility by treating employees fairly and ethically20.
The RLIC too demonstrates its CSR by claiming to practice workplace ethics and ensuring fair treatment and
safety of their employees. Under the health domain the organization recognizes the rural-urban differences that
exist in India in terms of health care facilities. While in the urban setup the organization has collaborated with
the broader Reliance Industries in contributing and execution of medical programmes in hospitals in the urban
areas, the organization conducts awareness programmes on health care facilities and vaccination campaigns in
the inaccessible rural areas. With regard to education the organization provides monetary assistance to schools
contributes to infrastructure development. A noteworthy mention is the organizations contribution to the
organizations’ self-initiated project for dyslexic students called ‘Project Jagruti’. The project initiated in 2011-
12 aims to tackle dyslexia and also aims to break the social dogma of the mentally underprivileged children.
Volunteers from the organization help in making the programme successful and create awareness and
opportunities for these children.
4.3 Comparison of Oriental Insurance Company Ltd. & Reliance Life Insurance Company Ltd.
While both the organizations are engaged in CSR activities that cover a variety of domains and areas, it
is observed that the CSR activities in the private sector company (RLIC) were more varied and diverse as
compared to the public sector company (OICL). OICL, although had numerous undertaking and CSR proposals,
it appeared that the tasks undertaken by OICL were less as compared to RLIC. In addition, another difference
that emerged was that while RLIC had several programmes that were self-initiated, OICL had very few
programmes that were self-initiated and these activities and programs did not appear to be on a large scale as
compared to the programmes of RLIC. For instance, while RLIC initiated Project Jagruti that aims to help
dyslexic students with RLIC volunteers and well-developed programs, OICL had self-initiated programs that are
basically short term, one-day programs such as organizing an educational trip for orphans which includes
lectures, workshops and refreshments for children and volunteers. Another point of difference that was observed
was that the programs undertaken by RLIC seemed to be more structured21 and definite while it did not appear
to be so in the case of OICL, although OICL had a systematic procedure laid that was involved in the planning
and execution of CSR proposals and programs, the programs under OICL did not appear to have as much
structure when they were compared with the programs undertaken by RLIC.
V. Conclusion
India is a developing economy where Corporate Social Responsibility (CSR) plays important role in
organizations. Overall, there appears to be a difference in the CSR strategies adopted by private and public
sector organizations. The study has the potential to contribute to the understanding of how CSR activities are
carried out and the nature of these activities in different organizations. The more the concepts of CSR are
fostered and integrated into the business process, the easier it will be to benefit from alternative thinking. The
study also highlights the differences that might exist in different sectors. There were several limitations inherent
in the study, such as the use of primary data sources for one organization and the secondary data sources for
another organization which did not provide a complete and fulfilling understanding of the CSR endeavors in
both the organizations. The use of a single interview of only the HR/ branch head did not yield as much detail
regarding the CSR activities, and other employees of the organization could also be interviewed in order to gain
a more comprehensive understanding. In addition a cost analysis and allocation of funds could be analyzed.
Future studies can take into account the above mentioned consideration that would provide a more holistic
understanding of this influential yet unexplored area. There exists a paucity of research in the Indian context
regarding the CSR activities undertaken by different organizations. Future research can use a more holistic
manner of analyzing the various CSR activities such as using primary and secondary data together in addition to
interviews with the HR’s and the employees of the companies. Future studies could also undertake an analysis
of the budgets allotted by organizations in order to further aid in assessing the varied activities undertaken by
the organization.
References
[1] M. Armstrong, Armstrong’s handbook of human resource management practices (11th Ed.). (United Kingdom, London: Kogan
Page, 2009).
[2] K. Davis &R.L. Blomstrom, Business and society: Environment and responsibility. (New York: McGraw-Hill, 1975).
[3] Porter, M. E., & Kramer, M. (2006). Strategy and society: the link between competitive advantage and corporate social
responsibility. Harvard Business Review, 78-92.
[4] Baron, David. (2001). Private politics, corporate social responsibility and integrated strategy. Journal of Economics and
Management Strategy, 10, 7-45.
[5] ACCA Global. (2016). CSR strategy and strategic CSR. Retrieved 9 April 2016, from
http://www.accaglobal.com/za/en/student/exam-support-resources/professional-exams-study-resources/p1/technical-
articles/csr.html