A Study on Corporate Social Responsibility (CSR) for Industrial Image at ACC Cement Kymore, Madhya Pradesh, India

Dr. Usha Tiwari

Faculty, Study Center for MBA (HRD), A.P.S. University, Rewa (M.P.) India-486003

*Corresponding Author E-mail: ushatiwari1967@yahoo.in

ABSTRACT:

Corporate social responsibility is the commitment of business to contribute to sustainable economic development working with employees and their families, the local community and society at large to improve their quality of life in ways that are good for business and good for development.

In the present study an attempts has been make to study the corporate social responsibilities for industrial image at ACC Cement plant Kymore, (Katni) Madhya Pradesh, India.

The study showed the corporate social responsibilities for industrial image at ACC cement Kymore. to be average .The average mean and percentage scores of the overall 17 items have been computed at 3.1688. (54.22%) Study concluded that the CSR activities of the factory is not properly. So the image of ACC Cement factory Kymore is not satisfactory.

KEY WORDS: Corporate Social Responsibility (CSR), Industrial Image, ACC Cement Kymore, Commitment

INTRODUCTION:

CSR is a concept that an enterprise is accountable for their impact on all relevant stakeholders to behave fairly and responsibly, contribute to economic development. Corporate social responsibility is what an organisation does to positively influence the society in which it exists. It could take the form of community relationship. Volunteer assistance programmes, heath care initiatives, special education running programmes and scholarships, preservation of cultural heritage and beatification of the area.

The philosophy is, basically to give back to the society, what's (Business) has taken from it in the course of its quest for creation of wealth.

In the present study an attempts has been make to study the corporate social responsibilities for industrial image at ACC Cement plant Kymore, (Katni) Madhya Pradesh, India.

OBJECTIVES:

i). To know the CSR activities of ACC Kymore.

ii). To study the educational facilities and related infrastructure.

iii). To analyse the health and hygienic programmes of ACC Kymore.

iv). To measure the existing condition of neighboring villages.

v). To evaluate the image of ACC factory.

HYPOTHESIS:

i). CSR activities at ACC Kymore is satisfactory.

ii). Health and educational programme are working properly.

iii). Existing condition of neighboring villages is good.

iv). The image of ACC factory is good.

METHODOLOGY:

With a view to analyse the corporate social responsibility (CSR) of ACC Cement factory Kymore, 17 items close ended structured questionnaires were distributed among various cadres of employees and peoples of neighboring villages. Interview and discussion with some employees and villageres was another tool for study. Secondary data collected from past literature, annual reports, data maintained by the ACC Kymore factory was also incorporated. The study was conducted in ACC Kymore factory and neighboring Khalwara, Amraga, Salaiya, Badari, Kalhara, Rajarwara, Mehgaon, Dewari villages. The scoring was analysed on five point scale and score was simplified in percentage as per the formula of Rao (1991). i.e.

Percentage Score = Mean Score - 1 x 25

Five categories of gradations consisted of very good, Fairly good, good, average and poor.

REVIEW OF LITERATURE:

Arora and Puranik (2004) applied a development oriented framework to contextualize CSR to structural adjustments related macro socioeconomic issues relevant to the developing countries with a focus on CSR in India. They concluded that a though the corporate sector in India benefited immensely from liberalization and privatization processes, its transition from philanthropic mindsets to CSR have been lagging behind its impressive financial growth.

Marne (2005) proposed a transnational model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adoptability demanded by international research. The end result is a multi dimensional typology that permits the organisation and development of empirical CSR research in an internal setting.

Chappel and Moon (2005) concludes that CSR does considerably among Asian countries. They also reported that multinational companies are more likely to adopt CSR than those operating solely in their home/ country but that the profile of their CSR trends to reflect the profile of the country of operation rather than the county of origin.

Fronk et.al. (2005): analysed three views of CSR and CSP one view is that development occurred from conceptual vagueness, through clarification of central constructs and their relationships. other view that hardly any progress is to be expected because of the in herently normative character of the literature. Final view is that progress in the literature on the social responsibilities of business is observed or even hampered by the continuing introduction of new construct this survey explores which of these three views better describes.

Doh and Guay (2006) assessed the role that US and European non-governmental organisations (NGOS) have played in influencing CSR policies in three are as : the trade and regulation of genetically-modified organism (GMOS), pharmaceutical pricing and distribution policies, and inter national environmental agreements

Barammer et.al. (2007) examined the potential contribution of institutional theory to understanding CSR mode of governance. They suggested that institutional theory seems to be a promising avenue to explore how the boundaries between business and society are constructed in different ways, and improve our understanding of the effectiveness of CSR within the wider institutional field of economic governance.

Blasco and Zeiner (2008) : concluded that despite similar institutional conditions in Mexico and France, the interplay of those institutions combined with the historical role of business and its relationship with society product quite different articulations of CSR in each country.

Mittal el.al. (2008) reported that there is title evidence that companies with a code of ethics would generate significantly more economic value added (EVA) and market added value (MVA) than these without code.

Kariabrahimoglu (2010) was found that there is significant drop in numbers and extent of CSR projects in times of financial crisis. The study contributes to the literature by initiating discussions on CSR and the ways they are affected by financial crisis.

Mishra and Suar (2010) Indicated that stock- listed firms show responsible business practices and better FP than the non-stock listed firms. controlling confounding effects of stock- listing ownership, and firm size, a favorable perception of mangers towards CSR is found to be associated with increase in FP and NFP of firms. Such finding hold good CSR is assessed fro the Six stakeholder group in segregate. Findings suggested that responsible business practices towards. Primary stakeholders can be profitable and beneficial to Indian firms.

Silti and Michael (2011) stated that both community related and environmental related CSR are positively related to organisational commitment these result imply that companies should communicate their CSP to all employees because it has the potential to increase their employees organisational commitment, which may result in positive organisational outcomes.

Table 1- Item wise mean score, percentage scores and categories of CSR for industrial image at ACC Cement Kymore, Madhya Pradesh.

S.N.	Item	Mean Score	% Score	Category
1.	Company have a formalized CSR policy.	4.30	82.50	Very Good
2.	Company include CSR policies on its business ethics	4.15	78.75	Fairly Good
3.	Company produce an annual sustainable CSR Report	3.75	68.75	Good
4.	Company have separate CSR department./cell	4.45	86.25	Very Good
5.	ACC give compensation to pollution affected people	2.45	36.25	Poor
6.	Health checkup and medical facilities is going routinely and in proper manner	2.70	42.50	Poor
7.	Malaria control operation is going properly	2.60	40.00	Poor
8.	There is available necessary machine and equipotent in ACC hospital	3.70	67.50	Good
9.	There is given concession in fees to student those belong from poor class.	3.50	51.25	Average
10.	There is proper setting arrangement and furniture in schools those run by ACC	3.95	73.75	Fairly Good
11.	ACC provide educational loan facility to poor class students, for their further study	2.50	37.50	Poor
12.	Roads are repair after certain period.	3.25	56.25	Average
13.	There are no problems in drinking water	2.50	37.50	Poor
14.	Hand pumps are repaired regularly	2.55	38.25	Poor
15.	Cleanliness of sulabh toilets is done in neighboring villages	2.45	36.25	Poor
16.	Drinking water is supplied during the summer through water tanker	3.10	52.50	Average
17.	ACC Pays attention towards making neighboring village hygienic	2.42	35.5	Poor
	Overall	3.1688	54.22	Average

Table - 2 Categories wise items of CSR for industrial image at ACC Cement Kymore (M.P.)

S.N.	Categories	% Range	Item No.	Total
1.	Very Good	80-100%	1,4	02
2.	Fairly Good	70-80%	2,10	02
3.	Good	60-70%	3,8	02
4.	Average	50-60%	9,12,16	03
5.	Poor	0-50%	5,6,7,11,13,14,15,17	08

RESULTS / FINDINGS:

The table 1, 2 and fig 1 as appended show the item wise mean score, percentage score and category of 17 items obtained in the study on CSR for industrial image at ACC cement Kymore (Katni) M.P. Some of trends noticed are given below-

The CSR for industrial image at ACC cement appear to be average. The average mean score and percentage score of the overall of 17 item have been computed at 3.1688 (54.22%).

The most important factors contributing very good score are (i) company have a formulized CSR policy (item-1), (ii) company have separate CSR depatt/cell (item-4). Other important factors resulting fairly good score/are (i) company include CSR policies on its business ethics (item-2), (ii) there is proper setting arrangement and furniture in school those run by ACC (item-10).

The items on which ACC score good are (i) company produce an annual sustainable CSR report. (item 3), (ii) there is available necessary medicine and equipments in ACC hospital (item-8). The factors on which ACC have scored average are (i) road are repair after certian period (item-12), (ii) drinking water is supplied during the summer through water tankers. (iii) given concession in fees to students those belong from poor class (item 9).

The items which ACC scored poor are (i) ACC give compensation to pollution affected people (item 5), (ii) health checkup and medical facilities is going routinely and in proper manner (item 6), (iii) malaria control operation is going properly (item 7), (iv) ACC provide educational loan facility to poor class students for their further study (item-11), (v) there are no problems in drinking water (item -13), (vi) hand pumps are repaired regularly (item 14), (vii) cleanliness of sulabh toilets is done neighboring village (item-15), (viii) ACC pays attention towards making neighboring villages hygienic. (item-17).

CONCLUSION:

There are many problems of the executing of CSR policies which is made by ACC Cement Plant Kymore-

i. Much problems of drinking water in neighboring village hand pumps are not repaired regularly and drinking water is not supplied regularly even summer season.

ii. The neighboring villages are suffered from the pollution of ACC Cement factory, which causes various respiratory diseases, tuberculosis, skin diseases etc. Factory does not give proper compensation to pollution affected peoples.

iii. There are no proper health checkup is made by factory even malaria control operations does not going properly.

iv. Factory does not given proper concession in fees and any educational loan facility to poor class students for their study.

v. Neighboring villages has much problems of sanitation and hygiene. Factory does not pay proper attention towards making neighboring villages hygienic, sulabh toilet are dirty.

So the above analysis concluded the execution of the CSR policies and image of ACC factory is not satisfactory.

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Received on 01.08.2013 Modified on 30.08.2013

Asian J. Management 4(4): October –December, 2013 page 308-311