Business ethics

By:Mekuanint Abera Punjabi University

Table of content page

Business Ethics & Corporate social Responsibility .............................................................................2

Introduction................................................................................................................................2

Objectives of Business Ethics........................................................................................................3

Social Responsibility as a Refl ection of Strong Business Ethics .......................................................3

Characteristics of Business Ethics .................................................................................................4

Role of Social Responsibility in Indian companies: .............................................................................6

Corporate Social Responsibility (CSR) and Ethics in Marketing: ..........................................................7

Ethical Conflict faced by the Marketers:........................................................................................8

Marketing and the Natural Environment.......................................................................................8

Relationship Marketing and Ethics................................................................................................9

Green Marketing and Ethical Issues ..............................................................................................9

SOCIAL RESPONSIBILITY OF BUSINESS BY MULTINATIONAL COMPANIES IN INDIA ............................. 10

Coca – Cola ............................................................................................................................... 11

CORPORTE SOCIAL RESPONSIBILITY INITITIVES ............................................................................ 12

Pepsi Co.................................................................................................................................... 14

CSR Motto .................................................................................................................................. 14

Pepsico-Corporate Social Responsibility ............................................................................................ 14

About Pepsico India ...................................................................................................................... 14

CSR Motto .................................................................................................................................... 15

CSR Politicies ................................................................................................................................ 15

Core CSR activities ........................................................................................................................ 17

Tata Group & CSR ...................................................................................................................... 22

Conclusion: ............................................................................................................................... 28

Works Cited.................................................................................................................................. 29


Business Ethics & Corporate social Responsibility

Introduction

Corporate social responsibility means social responsibility of corporate sector, which also means

response of the corporate sector towards society. Profit making organizations must realize that

government alone will not be able to get success in its endeavor to uplift the downtrodden of

society. Government needs helping hand of profit making organization. Corporate Social

Responsibility means commitments towards society and includes social welfare measures

including its policies and practices with respect to such key elements as; health and safety,

environmental protection, human rights, human resource management practices, corporate

governance, community development, and consumer protection, labor welfare, supplier relations,

business ethics, and stakeholder rights. (Pushpa, 2010)

Ethics in philosophy is the study and evaluation of human conduct in the light of moral

principles or it is the inner-guiding moral principles, values, and beliefs that people use to

analyze or interpret a situation and then decide what is the “right” or appropriate way to behave

Business Ethics” can be defined as the critical, structured examination of how people&

institutions should behave in the world of commerce. In particular, it involves examining

appropriate constraints on the pursuit of self- interest, or (for firms) profits, when the actions of

individuals or firms affects others or it is a specialized study of moral right and wrong. It

concentrates on moral standards as they apply particularly to business polices,

behavior.”Business Ethics is the moral standards which guide the running and transactions of

businesses".- Malcolm Evans

The broad rationale for a new set of ethics for corporate decision making, which clearly

constructs and upholds a organization’s social responsibility, arises from the fact that a business

enterprise derives several benefits from society, which must, therefore, require the enterprise to

provide returns to society as well. This, therefore, clearly establishes the stake of a business

organization in the good health and well being of a society of which it is a part. More

importantly, in this age of widespread communication and growing emphasis on transparency,

the managers should help their company in development o f a CSR management and reporting

framework (Richa Gautam and Anju Singh, 2010).


Objectives of Business Ethics Honest and transparent dealing with customers

Protect client and customers from being exploited or cheated

Level playing field among all participants.

Healthy competition for the benefit of all customers

Corporate social responsibility is 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”. Here society meaning

customers and people at large. It is an expression used to describe what some see as a company’s

obligation to be sensitive to the needs of all the stakeholders in its business operations. A

company’s stakeholders are all those who are influenced by, or can be influenced by, or can

influence, a company’s decisions and actions. These can include (but are not limited to):

employees, customers, suppliers, community organizations, subsidiaries and affiliates, joint

venture partners, local neighborhoods, investors and shareholders (or a sole owner), Government

and Media (Labbai, 2007). A variety of terms are used – sometimes interchangeably – to talk

about corporate social responsibility (CSR): business ethics, corporate citizenship, corporate

accountability, sustainability. In its simplest terms it is: “what you do, how you do it, and when

and what you say. Social responsibility and ethics are blended together and applied in various

discipline of management such as HR, Finance, computer etc. Here the author is concentrating

on CSR and marketing ethics and its impact on the society.

Social Responsibility as a Refl ection of Strong Business Ethics

Social responsibility is one of the most visible demonstrations of corporate ethics and, according

to Ken Chenault, Chairman and Chief Executive Offi cer of American Express Company, it has

become an important business imperative.

“A socially responsible company strives to meet a standard that’s higher than the bottom line,”

Chenault says.

“We must remember that corporations exist because society says they can — and society

assumes that we’ll contribute to the common good. Th at’s the bargain we strike. Th e social

compact.”


Corporate social responsibility goes beyond charitable contributions and employee volunteerism.

According to Chenault, a socially responsible global corporation: Subscribes to a set of values

and lives by them;

• Recognizes people who do the right thing and rewards them;

• Aspires not only to be successful, but to be respected;

• Creates a culture of integrity and accountability;

• And acts to fulfi ll its enlightened self- interest—seeing that its own objectives are enhanced by

serving and strengthening the communities where it operates. At American Express, this is put

into practice by an unbending commitment to delivering outstanding service to customers; by

fostering a work environment in which all employees can succeed and grow; by providing

superior returns to shareholders; and by contributing in meaningful, measurable ways to the

communities where it operates (Joshua Margolish,James Walsh.Dean Krehmeyer, 2006).

Chenault believes that without a history of strong social responsibility, a company can collapse

under the harsh glare of today’s public spotlight.

“Reputations that were built over a lifetime can be lost in a moment,” he says. “Conversely, a

company that is truly a member of the community will earn public goodwill that endures, and

will have the credibility to function when others are failing.”

Characteristics of Business Ethics

Some business ethics are imposed by law. Business ethics is the behavior that a business adheres

to in its daily dealings with the world. The ethics of a particular business can be diverse. They

apply not only to how the business interacts with the world at large, but also to their one-on-one

dealings with a single customer. Good business ethics should be a part of every business. The

important characteristics of business ethics are:-

As a guide: -

Business ethics constitutes the guiding principles of business functions with the help of this,

businessmen can lean about the progress, situation, environment and conditions of the business.

Goals and means: -

Business ethics is that branch of the business environment in which can study about the goals

and means for the rational selection of sacred objects and their fulfillment.


Art and Science: -

Business ethics is concerned with the principles of business behavior, standards, moral values

etc. With the study of business ethics, we can show the difference between good and evil, proper

and improve actions of business. For these activities in business, business ethics is known as an

ideal science. It is an art because it emphasizes practical use of behavioral standards, techniques

and principles (Aggarwal).

Study Human Aspects: -

Business ethics all those which are concerned with human aspect . It provides information to

customers, government, society etc, on good or bad, right or wrong conducts of business.

Difference from Social Responsibility: -

Social responsibility is concerned with functions, programmers and policies of an enterprise,

whereas business ethics is related with the conduct and behavior of businessmen. But social

responsibility of business and its policies are influenced by ethics.

Technology based: -

The development of business ethics is possible on the basis of theological principles, such as

service, human welfare, sincerity, good behavior etc.

Development Personal Dignity: -

Personal dignity can develop with the principles of ethics.

Unrelated to Emotions: -

Business ethics is not concerned with emotions but is based on reality and social customs. As a

matter of fact, business ethics is developed after testing the requirements of business

environment, social customs and traditions.

Universal Philosophy: -

Business ethics is a universal philosophy. Ethical principles have relevance in every business.


Role of Social Responsibility in Indian companies:

In a global CSR study undertaken in 7 countries (viz. India, South Korea, Thailand, Singapore,

Malaysia, The Philippines and Indonesia) by the U.K. based International Centre for CSR in

2003, India has been ranked second in the list. This ideally shows the value that is important to

customers in India. Bharat Petroleum and Maruthi Udyog have been ranked as the best

companies in the country. The next comes in the list are Tata Motors and Hero Honda. Canara

Bank, Indal, Gujarat Ambuja and Wipro are involved in community development work of

building roads, running schools and hospitals. ACC has been rendering social service for over

Five decades. They are setting up schools, health centers, agro-based industries and improving

the quality of rural life. BHEL is actively involved in the Welfare of the surrounding

communities is helping the organization to earn good will of the local people BHEL is also

providing drinking water facilities, construction of roads and culverts, provision of health

facilities, educational facilities, and so on companies like ONGCs are encouraging sports by

placing good players on their pay rolls. TISCO, TELCO and HINDALCO won the award for

excelling in CSR, jointly given by FICCI and Business world for the 2003.

ONGC has also committed resources by adopting a few villages to implement president Dr.

Abdul Kalam’s idea of PURA (Provision of Urban Amenities in Rural Areas). NTPC has

established a trust to work for the cause of the physically challenged people. Similarly in the

private sectors like Infosys, Wipro and Reliance are believed to be most socially responsible

corporations.

In 1999 Kofi Annan of the United Nations invited corporate leaders for a Global Compact to

promote nine principles covering three areas: human rights, labor rights, and sustainable

development. Today, India can be legitimately proud to have had the second largest number of

companies from any country subscribing to the Global Compact. Several public sector

companies have joined together to form the Global Compact Society of India.


Corporate Social Responsibility (CSR) and Ethics in Marketing:

Kotler and Levy, in their book, Corporate Social Responsibility define corporate social

responsibility as “a commitment to improve community well-being through discretionary

business practices and contributions of corporate resources”.

Some of the benefits of being socially responsible include

(a) enhanced company and brand image

(b) easier to attract and retain employees

(c) increased market share (d) lower operating costs and

(e) easier to attract investors.

A socially – responsible firm will care about customers, employees, suppliers, the local

community, society, and the environment. CSR can be described as an approach by which a

company

(a) recognizes that its activities have a wide impact on the society and that development in

society, in turn supports the company to pursue its business successfully and

(b) Actively manages the economic, social, environmental and human rights. This approach is

derived from the principles of sustainable development and good corporate governance.

Marketing managers within different firms will see some social issues as more relevant than

others. The relevance of a given social issue is determined by the company’s products,

promotional efforts, and pricing and distribution policies but also by its philosophy of social

responsibility (Labbai, Social Responsiblity and Ethics in Marketing , 8-10 April,2007).

� Focus entirely in profits (and profitable firms typically serve society well)

� Explicitly incorporate social responsibility into its day-today marketing decisions to minimize

negative effects on society and enhance positive effects

� Go even further and engage in social projects that are unrelated to the corporate mission and

even detrimental to profits ( which could net out to be socially undesirable)

� The Success strategies of a Business formed out of abundance and grounded in ethics and

cooperation are powerful and long-lasting and they help you feel good about yourself even while

bringing in profits. Management must decide which of these three levels of social responsibility

to adopt and which social issues are relevant to its business.


Ethical Conflict faced by the Marketers:

Marketers must be aware of ethical standards and acceptable behavior. This awareness means

that marketers must recognize the viewpoints of three key players: the company, the industry,

and society. Since these three groups almost always have different needs and wants, ethical

conflicts are likely to arise. Ethical conflicts in marketing arise in two contexts : difference

between the needs of the three aforementioned groups ( the company, the industry, and society) a

conflict may arise. Second and ethical conflict may arise when one’s personal values conflict

with the organization. In either case, a conflict of interest is a possible outcome.

An example of the first type of conflict is the tobacco industry. Cigarettes have for many decades

been a lucrative business. So, cigarette and tobacco marketing have been for companies and good

for the tobacco industry. Many thousands of people around the world are employed in the

tobacco industry. So, the world economy has been somewhat dependent on cigarettes and

tobacco. However, cigarettes are harmful to society. There is documented proof that cigarette

smoking is harmful to health. This is an ethical conflict for cigarette marketers.

An example of the second type of conflict, when one’s personal values conflict with the

organizations occurs when a leader in the company seeks personal gain (usually financial profit)

from false advertising. “Cures” for fatal diseases are one type of product that falls into this

category of ethical conflict: In their greed to make a profit, a marketer convinces those who may

be dying from an incurable disease to buy a product that may not be a cure, but which a

desperately ill person (or members of his or her family) may choose to purchase in an effort to

save the dying family member suffering. Promoting and marketing such products violates rules

of marketing ethics.

Ethical dilemmas facing marketing professionals today fall into one of three categories: tobacco

and alcohol promoting, consumer privacy, and green marketing. Standards for ethical

marketing guide business in efforts to do the right thing. Such standards have four functions: to

help identify acceptable practices, foster internal control, avoid confusion, and facilitate a basis

for discussion.

Marketing and the Natural Environment

Another significant area of social concern is the environment. Marketing is ultimately dependent

on the use of scarce resources to fulfill human needs, without harming or unnecessarily using

scare resources.


Marketing managers should help to determine which products are produced, and which products

are indirectly affecting the environment:

The natural resources and materials used

The amount of energy required in the production process

The residuals (e.g., waste water) that result from production

The consumption of resources and energy that is required to use products ( cars, air

conditioners)

The generation of pollutants (e.g., exhaust fumes) in using products

The amount of packaging material that may have to be discarded. (packaging comprises

less than 14 percent of collectible solid waste, but consumers often estimate its share of

that waste at 40 to 80 percent)

Relationship Marketing and Ethics

Nowadays, most ethicists believe that Relationship Marketing is a reasonable practice leading to

positive relationships between buyers and sellers. Relationship marketing requires that rules are

not necessarily contractual..

Relationship marketing allows buyers and sellers to work together. However, there are

disadvantages to this approach- relationship marketing requires time to develop a list of expected

conduct or “rules of behavior.” According to a recently published book on this subject, a shift in

emphasis in marketing ethics – towards buyers interests and away from seller’s interests –

characterizes the new country.

If this is true, new challenges are presented for marketing ethics and professionals in the field of

marketing who want to conduct business in an ethical way.

Green Marketing and Ethical Issues

The next important area the marketer need to know about what is the relevance of Social

Marketing in order to protect the environment and to improve the quality of life and are

concerned with issues that include conservation of natural resources, reducing environmental

pollution, protecting endangered species, and control of land use. The three Rs of

environmentalism are Reduce, Reuse, and Recycle. Many companies are finding that consumers

are willing to pay more for a green product. Toyota has become quite successful with their

hybrid cars.

Green marketing refers to the development and distribution of ecologically-safe products.


It refers to products and packages that have one or more of the following characteristics: (1) are

less toxic, (2) are more durable, (3) contain reusable materials, or (4) are made of recyclable

material. In short, these are products considered “environmentally responsible”.

To sight an example One Canadian Executive stated that “ Any marketing executive who does

not put a ‘green’ filter on their strategies is looking at losing market share. The whole idea of

disposal is going to become unacceptable”. In West Germany and Canada, Procter & Gamble has

found high consumer acceptance of pouches of liquid detergents and fabric softeners so

consumers can refill rather than discard large plastic bottles.

SOCIAL RESPONSIBILITY OF BUSINESS BY MULTINATIONAL COMPANIES IN INDIA

In the last twenty years, MNCs have played a key role in defining markets and influencing the

behaviour of a large number of consumers. Globalization and liberalization have provided a great

opportunity for corporations to be globally competitive by expanding their production base and

market share.

Recent years have seen many progressive organizations in our country keenly playing a social

role. In some of these organizations the approach has been to take up only business-centric

activities, i.e., Which are directly relevant to their business. The guiding philosophy in these

organizations is that social reasonability is good only if it pays.

This approach benefits both the organization and the stake-holder. Thus, ITC has been

afforesting private degraded land to augment the supply of raw material for its paper factory.

Similarly, Hindustan Lever which requires good quality water for the manufacture of its food

products has been improving the quality of water in many communities. Companies like Cadbury

India, Glaxo and Richardson Hindustan are helping farmers to grow crops which serve as raw

materials for them. Lipton in Eath district of Uttar Pradesh has started veterinary hospitals in the

region from where it buys milk. British Gas (which sells compressed natural gas to India) has

recently started teaching unemployed youngsters how to become mechanics for gas-based auto

rick shaws in Delhi. In some other organizations the approach has been to take up such

philanthropic activities in which they can make a difference.


Coca – Cola As one of the largest and most global companies in the world, Coca – Cola took seriously its

ability and responsibility to positively affect the communities in which it operated.

The company’s mission statement, called the Coca-Cola Promise, stated: “The Coca-Cola

Company exists to benefit and refresh everyone who is touched by our business.” The Company

has made efforts towards good citizenship in the areas of community, by improving the quality

of life in the communities in which they operate, and the environment, by addressing water,

climate change and waste management initiatives. Their activities also included The Coca – Cola

Africa Foundation created to combat the spread of HIV / AIDS through partnership with

governments, UNAIDS, and other NGOs, and The Coca – Cola Foundation, focused on higher

education as a

vehicle to build strong communities and enhance individual opportunity Coca – Cola’s footprint

in India was significant as well. The Company employed 7000 citizens and believed that for

every direct job, 30 – 40 more were created in the supply chain. Like its parent, Coke India’s

Corporate Social Responsibility (CSR) initiatives were both community and environment –

focused. Priorities included education, where primary education projects had been set up to

benefit children in slums and villages, water conservation, where the Company

supported community – based rainwater harvesting projects to restore water levels and promote

conservation education, and health.

COCA-COLA CRS MODEL

PEOPLE : To commit to the fair and dignified treatment of all people who work for the Coca-

Cola Company about 90 percent of more production by local people with local resources.

PARTNERS: The Company strives to engage effectively and cooperatively with partners and

stakeholders.

PORTFOLIO: Offer the highest quality beverages starting with, Coca cola and more than 2,600

beverage products.

PROFIT: Seek to maximize value for shareowners while being mindful of our overall

responsibilities.


PLANET: Working to be leaders in responsible water use, growing business but not our

carbon footprint.

CORPORTE SOCIAL RESPONSIBILITY INITITIVES

WATER:

• Conserve Water

• Watershed protection, rainwater harvesting projects

• 110 recharge shafts that collected rainwater. Reverse filter system.

• The company initiated drinking water projects in Maharashtra and Gujarat to provide

potable water to the local communities

ENERGY:

• Reducing energy consumption and emission of GHGs by such as refrigeration

• eKOfreshment cooler that used technologies devoid of hydrofluorocarbons

• GHG emission reduced by three-fourths

• increase the energy efficiency of its equipment by 40 to 50%

PACKAGING AND RECYCLING:

• Packaging framework that aimed at recycling

• A PET recycling project in Mumbai in partnership wit Brihan Mumbai Municipal

Corporation

• Collected the company’s packaging material consisting of glass bottles, cans, etc. after

they were disposed

HEALTH:

• Provided health checkups, medicine, and education to rural communities on health-

related topics

• Also funded polio eradication camps

• Company conducted blood donation camps and supported a 24-hour emergency service

for children


• In a few districts of Andhra Pradesh, conducted camps for Hepatitis B vaccinations, eye

checkups, and malaria eradication

ECONOMIC RESPONSIBILITIES:

• Played an active role in providing employment and giving the community opportunities

to expand and grow

• For every job in the Coca-Cola system, 10 more jobs were created indirectly

• In 2007, launched an initiative called Parivartan (Change) for training small retailers in

India.

COMMUNITIES:

• A commitment to the community was part of Coca-Cola India’s CSR

• In 2003,launched Jagriti Learning Centers to provide education to more than 1,800

children residing near its bottling facilities in Pune

• The initiative aimed to curb waterborne diseases

• It set up around 2,000 schools for children

OBSTACLES

• The groundwater levels had dropped in the firsts seven years of the company’s

operations, from 1999 to 2006

• Even in 2008, the company continued to face mass demonstrations from local

communities who demanded that the company shut down its bottling operations

• There were also allegations that the company had seized land from farmers and that it had

discharged hazardous material

• A few critics came down heavily on Coca-Cola’s much acclaimed TCCC standards for

waste management

RESPONSE

• Coca-Cola opened an exclusive website, www.cokefacts.org, which addressed the

allegations related to India and other countries


• The National Geophysical ResearchInstitute78 (NGRI), which had concluded that there

was no field evidence of overexploitation of the groundwater reserves in the area

surrounding the plant

• Coca-Cola stated that the technology used for waste water treatment at the plant was

among the most advanced in the world.

• Coca-Cola India had carried out its CSR activities across 45 bottling plants at an annual

spend of Rs. 70 to 80 million (Pandey, 2010)

Pepsi Co

Pepsi Cola is also helping in rural areas in their economic development. It further offered to

transfer food-processing, packaging, and water-treatment technology to India. Pepsi’s bundle of

benefits won four Ps for entering a market, Pepsi added two additional Ps, namely, politics and

public opinion.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy

as well as nutrition and always, good taste. PepsiCo India's expansive portfolio includes iconic

refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie

options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks -

Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation

Nimbooz by 7Up. Local brands - Lehar Evervess Soda, Dukes Lemonade and Mangola add to

the diverse range of brands.

CSR Motto

Performance With Purpose articulates PepsiCo India's belief that its businesses are intrinsically

connected to the community and world that surrounds it.

At PepsiCo, we're committed to 'Performance with Purpose' - achieving business and financial

success while leaving a positive imprint on society

Pepsico-Corporate Social Responsibility

By - Pankaj Kulkarni

About Pepsico India


PepsiCo entered India in 1989 and has grown to become the country's largest selling food and

Beverage Company. One of the largest multinational investors in the country, PepsiCo has

established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy

as well as nutrition and always, good taste. PepsiCo India's expansive portfolio includes iconic

refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie

options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks -

Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation

Nimbooz by 7Up. Local brands - Lehar Evervess Soda, Dukes Lemonade and Mangola add to

the diverse range of brands (Kulkarni, 2010).

CSR Motto

Performance With Purpose articulates PepsiCo India's belief that its businesses are intrinsically

connected to the community and world that surrounds it.

At PepsiCo, we're committed to 'Performance with Purpose' - achieving business and financial

success while leaving a positive imprint on society

CSR Politicies

1. Human Sustainability Policies

o Quality & Food Safety Programs

PepsiCo is dedicated to producing the safest, highest-quality and best-tasting

beverages and foods in every part of the world. Developing and maintaining

robust food safety programs is how we assure safety for every package, every day

in every market. PepsiCo has detailed internal programs and procedures for food

safety.

o Responsible Marketing

Teaching children sensible eating habits at an early age is a critical part of their

up-bringing. As a major advertiser, we need to do our part to help parents succeed


in this task. Our approach has been to join a leading set of other food and

beverage companies in agreeing to change what younger children are seeing

advertised on TV and in other media, such as magazines and the internet.

Importantly, we are doing this in countries around the world where we do

business today. Naturally, we cannot prevent children from seeing our

advertising, but we can ensure that media channels that are most targeted at

children carry advertisements only for certain products. From PepsiCo's

perspective, these are products that meet specific nutrition criteria intended to

encourage the consumption of healthier foods and beverages. The policy covers

our entire product portfolio and is subject to independent compliance monitoring

by Accenture.

o Healthcare Reform

PepsiCo values the health and well-being of our associates, partners, customers

and consumers. PepsiCo offers a wide range of benefits that encourages wellness,

promotes healthy living and gives associates and their families tools and

information to make educated healthcare decisions.

2. Environmental Sustainability Policies

PepsiCo is committed to being an environmentally responsible corporate citizen. We

express that commitment in our Environmental Policy and other policies related to

Environmental Compliance and Sustainability, a few of which are described in more

detail below.

o PepsiCo's Environmental Policy

PepsiCo's Environmental Policy applies to all our operations. PepsiCo monitors

company-owned operations and joint ventures where we hold a majority share.

We encourage our suppliers, service providers, bottlers and other partners to

adhere to the policy.

o Sustainable Agriculture Policy

We have developed and published our Global Sustainable Agriculture Policy,

which demonstrates our approach to sustainable development across our entire

agriculture supply chain, including water savings, waste reuse, soil protection and

chemical use.


o Sustainable Packaging Policy

We have launched a global sustainable packaging policy and formed a

Sustainable Packaging Council (SPC). This multidisciplinary team includes

leaders from our R&D, Innovation, Procurement, Sales & Marketing and Public

Policy groups. The council's objectives are to develop sustainable packaging

strategies, goals, targets and alternative material technologies and to support

responsible disposal practices

Core CSR activities

Activities are divided in 4 parts

1. Replenishing Water

Conserving the world's most precious asset : Water

PepsiCo India has pioneered several major initiatives to Replenish water in communit ies. Our

goal is to conserve, replenish and thus offset the water used in our manufacturing process

through community water recharge projects and water conservation projects in agriculture.

2009 was a year of immense joy & pride for PepsiCo India. We were able to give back more

water than we consumed, through our various initiatives of recharging, replenishing & reusing

water.

2. PepsiCo Solid Waste Management Programme

PepsiCo India continues to strengthen its Solid Waste Management initiatives in partnership with

Exnora, an environmental NGO. This award winning, income generating partnership provides a

clean environment to more than 450000 people across Pammal, Chennai, Nagapattinam, Tenkasi

and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and Panipat, Haryana.

Unique income generating partnership with leading environmental NGO, Exnora, a

pioneer in waste management.

Community members enjoy the benefits of a clean environment and are educated on how

to recycle waste, not just relocate it.


Households segregate their bio-degradable waste from their recyclable waste. Bio-

degradable waste is then converted into organic manure through the process of vermi-

culture.

Programme recycles 97% of household garbage; this project provides livelihood to more

than 500 community members. Bio-degradable waste is converted into high quality

organic manure through vermi-culture.

Recyclable waste such as PET and plastics, waste paper and tetra packs are recycled.

Community awareness programme includes door-to-door campaigns and street plays to

motivate people to segregate organic and inorganic garbage at source to enable recycling.

Every aspect of programme built around Community and Government participation to

help programme evolve into a self sustaining model.

Awards

The unique PepsiCo-Exnora initiative in Pammal was awarded the environmental Golden

Peacock Award for Innovation in 2006.

Zero Solid Waste Centre in Pammal was recognized as a model project by UNICEF in

2007.

PepsiCo- Exnora Waste to Wealth program won the BSE NASSCOM Social and

Corporate Governance Award 2008.

3. Partnership With Farmers

PepsiCo India continues to strengthen its partnerships with farmers across the country to

boost their productivity and income. The plan is to strengthen farmer connect from

21,000 in 2009 to 50,000 by 2012.

Helping farmers improve yield and income

The company's vision is to create a cost-effective, localized agri supply chain for its business by :

Strengthening farmer connect from 21,000 in 2009 to 50,000 by 2012.

Building PepsiCo's stature as a development partner by helping farmer grow more and

earn more.

Introduction of new high yielding varieties of Potato, Oats, Citrus and others.


Introduction of sustainable farming methods and contract farming.

Making world class agricultural practices available to farmers.

Working closely with farmers and state governments to improve agri sustainability, crop

diversification and enhance farmer incomes.

Helping farmers refine their farming techniques and raise farm productivity.

Customized solutions to suit specific geographies and locations.

Facilitate financial and insurance services so as to de-risk farming.

High Quality Seed Program

In order to provide its farmers "The best quality potato seeds", PepsiCo collaborated with the

Thapar Institute of Technology to develop quality potato mini-tubers.

PepsiCo has also made an investment in a world class potato mini-tuber facility at Zahura in

Punjab which helps getting robust and disease-free seeds to its contract farmers.

Contract Farming

Partner In Progress Model

PepsiCo has pioneered the concept of contract farming under which the company transfers

agricultural best practices and technology and procures the produce at a pre-agreed price.

A 27-acre research and demonstration farm was set up in Punjab to support the initiative

to conduct farm trials of new varieties of potato, chilli, corn, peanut and other crops.

PepsiCo India's technical team implemented a high quality seed programme to deliver

early generation and disease-free seeds to farmers.

Potato Farming

The Impact

World class, top quality, high-yielding potato varieties introduced.

High yielding potato seeds have enabled farmers to produce world class potatoes and

procure higher returns.


PepsiCo India has partnered with more than 11,000 farmers working across Punjab, U.P.,

Karnataka, Bihar, West Bengal, Gujarat and Maharashtra for the supply of world class

chip-grade potatoes.

Partnered with State Bank of India to get soft loans to all its contract farmers to reduce

their cost of cultivation and save them from the clutches of money lenders (higher interest

rates).

PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie-up

with the United Breweries Group.

PepsiCo Citrus Project

The PepsiCo and PAGREXCO (Punjab Agri Export Corporation) partnered to start a Citrus

Development initiative in 2002, marked a step forward in PepsiCo's commitment to

diversification of agriculture and improvement in quality of life for farmers.

The Impact

Initiative has emerged as one of the most successful models of public-private partnerships

in Indian agri-business and would create a localized supply base for citrus juice for

Tropicana business.

Project played a significant role in introducing a less water intensive alternative to crops

such as paddy.

Today, farmers can choose from 16 varieties of rootstock and 34 varieties of citrus,

largest collection at a commercial nursery.

Technical support and expertise were extended to the Punjab Government to set up two

fruit processing plants in Hoshiarpur and Abohar - prime citrus growing areas in Punjab.

Each plant is capable of processing multiple fruits and capable of acting as a catalyst for

farmers to adopt horticulture.

3. Healthy Kids

PepsiCo's Get Active & a Good Nutrition and Active Lifestyle Program for Children -has

seen robust growth and implementation.


Designed and supported by the PepsiCo Health & Wellness team, the programs have

been implemented in schools in collaboration with prominent NGOs & Hriday, Swashrit

and the Indian Medical Association.

Starting with a Breakfast Makes Me Smart module in 2008 that emphasized the

importance of healthy breakfast to the My Pyramid module launched in April 2009, Get

Active school programs promote learning nutrition through active engagement.

Get Active programs have a central objective: to raise awareness on the importance of

balanced nutrition and regular physical activity for a healthy lifestyle among school

children.

2008

Get Active reached 250,000 children across 6 metros and 240 schools in 2008 - a

significant 150% rise over 100,000 children across 2 metros in 2007

Partnerships with key NGOs and organizations & Swashrit, Hriday Shan and the Indian

Medical Association

Participation in School/Institutions' Fests and Events

Prestigious schools like Modern School, Delhi organized a program to enhance nutrition

awareness and the importance of 'Power Breakfast' among children - a first for the school.

Scottish High School and Rotary Club also organized similar events

The Healthy Lifestyle Exhibition gave visibility to 1000 children from Delhi

2009

Get Active reached 300,000 children across 10 cities and 350 schools in 2009


Tata Group & CSR

Corporate Social Responsibility has always been taken care of by the Tata group. The founder

Mr. Jamshedji Tata used to grant scholarships for further studies abroad in 1892 . He also

supported Gandhiji‘s campaign for racial equality in South Africa . Tata group has given country

its first science center and atomic research center . "The wealth gathered by Jamsetji Tata and his

sons in half a century of industrial pioneering formed but a minute fraction of the amount by

which they enriched the nation. Jamshed Irani, Director, Tata Sons Ltd, says, "The Tata credo is

that 'give back to the people what you have earned from them'. So from the very inception,

Jamshetji Tata and his family have been following this principle." (a statement on the Tata

group's website www.tata.com) . In July 2004, B. Muthuraman, Managing Director, Tata Steel

Limited (TISCO) announced that in future TISCO would not deal with companies, which do not

conform to the company's Corporate Social Responsibility (CSR) standards. Speaking at the

annual general meeting of the Madras Chamber of Commerce and Industry (Amit Kumar

Srivastava, Gayatri Negi, Vipul Mishra, Shraddha Pandey, 2012)

CSR Activities of Tata Companies & Societies Through the following companies and societies

Tata group keeps on heading towards the fulfillment of corporate social responsibility.

Tata Steel Tata Steel has adopted the Corporate Citizenship Index, Tata Business Excellence

Model and the Tata Index for Sustainable Development. Tata Steel spends 5-7 per cent of its

profit after tax on several CSR initiatives.

(a) Self-Help Groups (SHG’s)

Over 500 self-help groups are currently operating under various poverty alleviation programs;

out of which over 200 are engaged in activities of income generation thorough micro enterprises.

Women empowerment programs through Self-Help Groups have been extended to 700 villages.

From the year 2003 to 2006, the maternal and infant survival project had a coverage area of 42

villages in Gamharia block in Seraikela Kharsawa and a replication project was taken up in

Rajnagar block. For providing portable water to rural communities 2,600 tube wells have been

installed for the benefit of over four Lakh people.


(b) Supports Social Welfare Organizations

Tata Steel supports various social welfare organizations. They include;

ata Steel Rural Development Society

Singhbhum

(c) Healthcare Projects In its 100th year, the Tata Steel Centenary Project has just been

announced. The healthcare projects of Tata Steel include facilitation of child education,

immunization and childcare, plantation activities, creation of awareness of AIDS and other

healthcare projects.

(d) Economic Empowerment A program aiming at economic empowerment through

improvised agriculture has been taken up in three backward tribal blocks in Jharkhand, Orissa

and Chhattisgarh. An expenditure of Rs 100 crore has been estimated for the purpose and this

program is expected to benefit 40,000 tribal living in over 400 villages in these three States.

(e)Assistance to government Tata Steel has hosted 12 Lifeline Expresses in association with the

Ministry of Railways, Impact India Foundation and the Government of Jharkhand. It has served

over 50,000 people. Five thousand people have got surgical facilities and over 1,000 people

received aids and appliances. Over seven lac rural and another seven Lac urban pop ulation have

been benefited by the CSR activities of Tata Steel. The National Horticulture Mission program

that has been taken up in collaboration with the Government of Jharkhand has benefited more

than a thousand households. In collaboration with the Ministry of Non Conventional Energy and

the Confederation of Indian Industry, focus is laid on renewable energy aiming at enhancing

rural livelihood.


Tata Motors

(a) Pollution Control

Tata Motors is the first Indian Company to introduce vehicles with Euro norms. Tata Motors'

joint venture with Cummins Engine Company, USA, in 1992, was a major effort to introduce

emission control technology in India. To make environment friendly engines it has taken the help

of world-renowned engine consultants like Ricardo and AVL. It has manufactured CNG version

of buses and also launched a CNG version of its passenger car, the Indica. Over the years, Tata

Motors has also made investments in the establishment of an advanced emission-testing

laboratory.

(b) Restoring Ecological Balance

Tata Motors has planted 80,000 trees in the works and the township and more than 2.4 million

trees have been planted in Jamshedpur region. Over half a million trees have been planted in the

Poona region. The company has directed all its suppliers to package their products in alternate

material instead of wood. In Pune, the treated water is conserved in lakes attracting various

species of birds from around the world.

(c) Employment Generation

Relatives the employees at Pune have been encouraged to make various industrial co-operatives

engaged in productive activities like re-cycling of scrap wood into furniture, welding, steel scrap

baling, battery cable assembly etc. The Tata Motors Grihini Social Welfare Society assists

employees' women dependents; they make a variety of products, ranging from pickles to

electrical cable harnesses etc ; thereby making them financially secure.

(d) Economic Capital

In Lucknow, two Societies - Samaj Vikas Kendra & Jan Parivar Kalyan Santhan have been

formed for rural development & for providing healthcare to the rural areas. These societies have

made great efforts for health, education and women empowerment in rural areas.

(e) Human Capital

Tata motors has introduced many scholarship programs for the higher education of the children.

Through a scholarship program Vidyadhanam, the company supports 211 students. Out of these

students 132 students are from the marginalized sections of the society. These students get

books, copies and other study materials. They also undergo different kinds of workshops,


creative & outdoor sessions and residential camps as well. The company has entered into Public-

Private Partnership (PPP) for upgrading 10 Industrial Technical Institutes (ITI) across the

country.

(f) Natural Capital

On the World Environment Day, Tata Motors has launched a tree plantation drive across India

and countries in the SAARC region, Middle East Russia and Africa. As many as 25,000 trees

were planted on the day. Apart from this more than 100,000 saplings were planted throughout

the monsoon.

Tata Tea

Tata Tea has been working hard since the 1980s to fulfill the needs of specially-abled people. It

has set up the Srishti Welfare Centre at Munnar, Kerala; its various programs provide

education, training and rehabilitation of children and young adults with special needs.

Srishti has four projects:

a. The DARE School

b. The DARE strawberry preserve unit

c. Athulya

d. Aranya.

Tata Tea‘s welfare officers help identify and encourage relatives or children of employees who

are handicapped to join the Welfare Centre for special education and rehabilitation.

A. The DARE It provides the students with training in basic academics, self-help skills and

skills like gardening, cooking, weaving etc. Children are taught to paint and some of the

paintings are printed and sold as greeting cards. The sales proceeds of which are used back into

the units.

B. The DARE strawberry It preserves unit trains youngsters to make natural strawberry

preserve. The trainees are paid for the work; they receive social cover, free medical aid and other

benefits.

C.Athulya It has two units –

(i) A vocational training center that imparts training in stationery-making

(ii) A handmade paper-making unit which trains physically challenged persons in the art of

making recycled paper


D. Aranya

This project was started to nurture the lives of the disabled and also to revive the ancient art of

natural dye. Individuals are given training in various natural dyeing techniques including block

printing, tie and dye, batik work, etc. Their products are sold in and outside the country.

Tata Tea’s Jaago Re! Campaign exemplifies the Social-Cause Marketing Initiatives .

Dedications to the Nation at a Glance

Tata Health Infrastructure

- the hospital on wheels

Tata Educational Infrastructure

Institute of mathematics

Sukinda college

Joda college centenary Learning centre at XIMB

J N Tata Technical Education centre

School of hope

Shishu Niketan

Tata Sports Infrastructure

steel adventure foundation


Preservation of culture & Heritage


Conclusion:

CSR is social and humane attitude of the corporate sector toward the society. A theoretical

analysis and study reflects CSR is the mechanism through which companies and industries

intend to disburse their profit to downtrodden society. Their aims is to operate on socialist

principles and its implementation shows that they have some features of socialism. CSR broadly

represents the relationship between company and the principles expected by the wider society

within which it operates .An ethical behavior of the corporate sector does have impact not only

over the mind of their customers but creates a positive impression in social milieu in which it

works thus thereby deriving reputation and earning goodwill which in turn generate profit. CSR

programs more effective and efficient, the need for which is recognized by corporation who see

multiple benefits like increased sales and customer loyalty, enhanced brand value and reputation,

increased ability to attract and retain quality employees, investors & business partners, better

productivity of workforce, cooperation with local communities, efficient operations resulting in

improved financial performance, increased stock value, reduced litigation & environmental

costs, better and faster governmental approvals, rewards, tax benefits that come from good CSR

practices. Government alone will not be able to get success in its endeavor to uplift the

downtrodden of society.CSR is social welfare train and bogies of empowerment of women,

upliftment of common man, helping poor, participation in rural development programme,

spreading education, making health care system available to masses, etc.. Many of the leading

corporations in India has realized the importance of being associated with socially relevant

causes as a means of promoting their brands also. It stems from the desire to do well and get self

satisfaction in return. CSR is concerned with treating the society in responsible manner. For

implementing CSR, corporate sector incurs heavy cost but benefit is likely to far outweigh the

cost. CSR word itself shows the response of corporate sector toward society. It is socialization of

private profit by corporate sector. It is releasing benefits from classes to masses. It is more

concerned with human ideas and behavior. CSR of business begins and ends with increasing

profit. A theoretical analysis and study reflects ethical behavior of the corporate sector does have

impact over the mind of not only the customer but creates a positive impression in social milieu

in which it works thus thereby deriving reputation and earning goodwill which in turn generate

profit.


Works Cited

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Business ethics

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