Debate continues to wage on the Foreign Direct Investment limit in various product categories in India. Post 1992, substantial number of multinational companies have acquired stake or established ownership in India, anticipating a rewarding economic environment. In the last two decades, many have become part of daily lives as food, shelter and clothing. The mixed economy with leanings towards socialism shed its convention to open up the markets and embrace a liberal, growth pushing consumer driven economy. Businesses grew bringing in capitalism to India in a definitive way. While growth economics rejoice their entry into the Indian market, academia is critiquing their political, social, economic and technological impact on the population.

Policymakers aim to create a friendly environment for them but have they responded the favor is oft posited. Benefit need not mean imminent economic gains, it includes gains intended at the society in the long run. Community must acquire greater inclusion in corporate planning and profits. In essence, corporate social responsibility is not new but is indeed a subset of business ethics, not just legally binding but balancing the corporate goals and communities betterment. Community programmes that improve the quality of community life and promote the companies long term business strategies and goals are vital to building mutual trust and understanding between a foreign owned establishment and the native people (Googins, 1997). For long, the native businessmen resorted to philanthropy to project a humane face. In fact post- independence, charity or donations became the face of social responsibility paradigm in India. However, change in policy on foreign capital and investments present us what an opportunity to move beyond. While "CSR" has gained popularity in the 21st century, it was coined by two academicians A.A. Berle and C.G. Means at Harvard University in the 1930’s (Klempner, 2006). Its form and functionalities have become the core of communication constructs and models in a rapidly developing economy. This paper examines the core issues associated with community relations and social responsibility and their manifestations in real scenarios post 2000.

In July 2011, the ministry of Corporate Affairs formulated guidelines w.r.t economic, social and environmental responsibility of the corporate organizations in India, which now requires the listed companies to submit their business responsibility report along with their annual reports. The Business Responsibility report outlines business house’s commitment to internal and external stakeholders in a tangible and transparent manner. In order to streamline the philanthropic activities and ensure more accountability and transparency, the government of India made it mandatory for companies to undertake CSR activities under the Companies Act, 2013. The concept of CSR is defined in clause 135 of the Act, and it is applicable to companies which have an annual turnover of Rs 1,000 crore or more, or a net worth of Rs 500 crore or more, or a net profit of Rs 5 crore or more (Rai and Bansal, 2014).

LITERATURE REVIEW:

India is ideal to communicate on defining the dictum of social responsibility in enterprise or administration because of its historical idiom. Kautiliya in Arthshastra outlined the importance of people, welfare and benefit." in the happiness of his subject lies the happiness of the king ; in their welfare his welfare ;the king shall not consider as good only that which pleases him but treat as beneficial to him whatever pleases his subjects , the welfare of many and the happiness of many" posits Guru Chanakya to king Maurya. As forms of governance changed in India, the shape and structure of social responsibility too saw some transformations. Indian companies were micro community centric vis-a-vis CSR. primary health care, primary and higher school facility and recreation were the key investment areas in post independent India. Tata Steel has been ranked sixth in the 'industry metals category according to a survey conducted by Fortune and Hay group in 2010. HUL through its surf excel launched a campaign to educate the poor to build reputation for the product line.

The Indian government, through the Prime Minister’s “Social Charter” and the voluntary CSR guidelines published in 2009 has been keen to keep the spotlight on business ethics, sustainability and corporate citizenship.

Srinivasan (2007) pointed out that corporate social responsibility is more than philanthropy and must not mean merely “giving and receiving". A survey conducted in India reveals that companies should be held responsibility for roles over which they have direct control including quality and price control, environment responsibility, employee welfare and espousing social causes.

Price water Cooper Report(2013) finds that the average spend on CSR by companies in India is below 2%, indicating the need to invest more in public good especially after the new company law.

In a recent study on CSR expenditure , Rai and Bansal (2014) found out that the average CSR expenditure has increased from merely 5% to 25% after the passage of the act in 2013. It was also found that there exists positive correlation between expenditure on CSR and profits of the firms. Even though the mandatory clause has prompted all the business organizations with annual turnover of Rs 1,000 crore or more, or a net worth of Rs 500 crore or more, or a net profit of Rs 5 crore or more to visibly increase their CSR expenditure, the 2% norm is not being met by many. In comparison, Public sector firms have increased their expenditure the most, followed by a significant augmentation in CSR spends by the domestic Indian firms.

Chart 1: Nature of CSR practices followed by various organizations in India (2011-12)

Source : Rai and Bansal , EPW,2014

Research Questions

RQ1: Whether CSR is majorly targeted at traditional social schemes for community around the companies or is there an attempt to think innovatively?

RQ2: Are companies attempting still relying on philanthropy or making headway into creating a clique of collective responsibility?

RESEARCH DESIGN AND METHODS:

A qualitative study of CSR communication practices by companies in India was best suited to answer the stated questions. The required data was collected through semi structured interviews with corporate professionals in business organizations operating in India. Data provided by their respective organizations was analyzed based on specific codes and themes (Priest, 2010, pp-34). Even though the sample studied is a microcosm of the large superset, the insights gained will help corporate communication and public relations professionals in developing initiative based innovative communication programs.

A convenient sample of nine business organizations form the sample of the study. Their corporate/ programme representative have been interviewed for a duration between 25-45 minutes to arrive at significant results. Recurring themes and ideas were isolated to tabulate and discuss the results .The nine firms interviewed were: GMR, Ernst and Young, DDA, Indian Oil, Essar, Lanco, Nestle, Adventis and Marks and Spenser’s.

RESULTS AND DISCUSSION:

Corporate organizations have come long way from making charitable donations to developing innovative programmes and projects for social, economic, ecological and technological development of its publics [Table 1(a/b/c)]. Public private partnerships, solo oureach programmes and tie up’s with media organizations and civil society (NGO’s) in project ideation and implementation is evident.

Donations/Tie Up with NGO's, Trusts and societies

Essar is actively involved in voluntary relief work for Orissa Flood Victims. Secondly, it is collaborating with the NGO named Akanksha for 'Joy of giving week' across the cities. Besides collaborating with Children Film Society of India in Hararika. Adventz supports angaanwadis as part of its community outreach programme. GMR also undertakes cooperative village based programmes for participatory rural development and strgthening the village communities and their institutions. Other organizations have their own CSR units/ cells to carry out independent programmes/ campaigns.

'Ernst and Young's project Prerna is managed by full time CSR employees in each city, supported by EY employee Volunteers' (Interview 7, Suamyadeep Ganguly, Ernst and Young India).

DDA is the only organization that neither has its solo CSR programme or is working in collaboration or even funding any other agency in the social sector.

Novel CSR ideas and inventives

1) Adventis has launched the Jai Kisan Sangam to provide knowhow and assistance in agri-input marketing, crop husbandry services, veterinary health. Adventis carries outreach support prognrames to boost rural sports as well.

2) Indian Oil Sports Scholarship Scheme awards 150 young sports persons representing the state for 10 games (Cricket, Table Tennis, Lawn Tennis, Chess, Hockey, Golf, Billiards/ Snooker, Carom and Athletics). It is evident that the Maharatan Public Sector enterprise recognizes the value of sports and promotes diverse sporting events both as the team level and at the individual level.

3) Essar is the only corporate organization to participate in the UN Round Table 2011 for communication of adolescent girl child health.

4) Nestle started a large scale initiative to implement rearing of high quality dairy animals to increase the output of milk performer.

5) Marks and Spensor's India have launched Project A to organize special programmes for children via NGO's.

Infrastructure development and livelihood creation

Organizations are feeling the need to care for creating physical and technical capital in the core regions of its manufacturing, operations and marketing.

'GMR is running several institutes of " entrepreneurship development , three in partnership with Andhra Bank and other are being run independently to train the young unemployed in two wheeler repair to specialized skills like videography/photography etc. Hand holding support to trainees for two years later the training. The foundation closes the loop by facilitating bank loans for those who want to set up micro enterprise.'(Interview 8, Anwar Ahasan, AGM, GMR, Group).

Artificial Limb Fitting Centre have been developed by Lanco to aid the disabled population under their CSR programme.

2) CSR budget

Companies were reluctant in giving the numeric value or even the proportion of budget allocated for CSR in one fiscal. However, a few were candid to share their financial status w.r.t. corporate citizenship:

"Currently each of the 20 division of the 20 companies in the Lanco group provides1% of the profits to CSR initiatives . That makes our budget for around Rs 15 crores per annum". (Interview 1, Programme Manager, Lanco)

"Though we cannot reveal the consolidated figures ...however, recently , GMR group Chairman, Mr. GMR Rao pledged Rs 15,40 crore to create an endowment fund for philanthropic activities"( Interview8, AGM, GMR).

Companies’ reluctance to divulge budgetary data on CSR can be attributed either to lack of systematic financial planning on social responsibility in various organizations or adoption share of profit method to decide the CSR spend. Therefore we note that CSR is not an essential and inclusive aspect of planning and implementation in organization, but remains a function of profit and philanthropy.

Specialized training to the workforce

Only Nestle and GMR take initiative in creating a CSR skillforce to carry out the community outreach programmes successfully, while the two public sector companies; DDA and Indian Oil in the sample are conspicuous by the absence of any training or extension programmes .

“….a few weeks back we organized a baggage screening course at the Himachal Pradesh site , out of which 18 trainees were inducted into our core CSR team.”(interview 8, AGM, GMR)

Looking beyond Philanthropy

All the interviewees agreed that CSR initiatives have helped their organization boost its identity, image and reputation and develop a positive environment for the business in the society. However DDA alluded that CSR does not provide any real-time benefits for the organization.

“…it also adds glamour to the organization, as large firms doing nothing for the society are considered unethical” (Interview 2, Corp. Comm Manager, Marks and Spencers India)

“Yes, these initiatives have aided Nestle stay true to its image as a wellness brand” (Interview 3, Nestle India)

Corporate citizenship and shared value

All the respondents believed that there exists a direct relationship between social responsibility and creation of a favourable business environment for long term growth. Sustainability and CSR are interlinked with mutually responsive effects.

… In the typical case of Lanco, at times of public hearings it is CSR that helps get positive attitude towards the company (Interview 1, Prog. Mgr, Lanco)

“I’ds say it is divided into two segments , while working on larger issues like health and education CSR should be voluntary without any expectation of return ( ROI) , however providing technical training etc. would undoubtedly augment the talent pool of the company( Interview8, AGM, GMR)”

CSR as a legal obligation and not just a Samaritan act

Diverse opinion prevailed on making social responsibility mandatory binding the companies by law. While some resisted governmental control over organizations through this legal provision, others supported the existence of regulatory mechanism through judicial act. Lanco expressed fear of the middlemen; Nestle expressed reservations on the procedural modalities of such an obligation, Ernst and Young points out at the need for motivational environment to catalyze active participation in corporate responsibility. Indian Oil favoured the inherent principle of self-regulation and organizational consciousness in this regard:

“CSR has been voluntary in its nature since the idea itself, and that idea should be maintained even now”( Interview:9, Officer, Corporate Communication , IOC).

“…the seriousness towards CSR cannot be enforced on companies, if you do that, it is not CSR anymore…it becomes a formality…. reduced to give grants to NGO’s and nothing concrete in community outreach” (Interview 1, AGM, Lanco)

Salience and selection of CSR issues

3 E’s and IH find most mention vis-à-vis corporate agendas on core areas of focus. Inclusive and holistic growth is the new CSR dictum. Education, Empowerment and Environment along with Health are the key areas of on ground activation, community relations, advocacy communications, public affairs and sustainable business practices by the sampled enterprises. Education of both internal and external publics (vicinity areas) is vital; community health and holistic development of all the stakeholders was emphasized. Special mention was made of sports promotion to improve quality of physical, mental and moral beings.

‘…corporates should respond to the needs of the communities they cohabit… The Essar Foundation focuses on three pillars for its CSR initiatives: - education, entrepreneurship and environment. Some of the issues we work on include: child education, health and livelihood, infrastructure, women empowerment and environment.’ (Interview 4, Group President, Corporate Branding and Strategic Affairs, Essar )

Medium or the Message

Most corporates emphasize more on the code, content and persona of the message than the media mix. Communicating CSR is a strategic arm that requires market, message and media tools and tactics, opine private sector organizations whereas, use and functions of interpersonal communication and word of mouth was stressed upon by the two public sector organizations in the study. A well-defined CSR plan is a preferred over a crisis simulation plan in the age of convergence i.e. proactive strategy supersedes reactive issue management. ‘Advertising for a good cause’ continues to dominate the communication idiom. Many public awareness and advocacy campaigns through print, radio and television are carried out to cater to both intended and actual receivers. Use of brand personas and spokespersons through celebrity endorsements or expert testimonials is practiced. Use of new media as a corporate communication mix is on the rise.

Prerana. A group newsletter of GMR energy caters to the internal CSR needs of the company. GMR homepage communicates “delivering sustainable development through public private partnerships .Corporate brand website of Essar has buttons on “sustainability” and Essar Foundation outlining all the projects undertaken with regular updates. Similarly website of Nestle India showcases its commitment to ‘shared value creation”

Indian Oil Corporation selected Bipasha Basu as its celebrity endorser to co-sponsor Airtel Half Marathon in Delhi.

CONCLUSION:

While the concept of social responsibility is fast becoming embedded in business plans and corporate vision in the era of growthonomics, lack of sensitive corporate culture within the units needs attention. The opacity and the shroud of secrecy around both the CSR expenditure and the current status of the initiative declared or started underline the vitality of the mandatory clause in the new Law. Independent wings of CSR are coming up, but they require fully functional human capital to carry out the activities. Social sector has gotten a look in, but the concept of social enterprise is yet to take shape in India. Marketing communication campaigns ought to thematically weave in CSR innovations and events to set the media agenda followed by policy agendas of the respective government. Both transparency and accountability must become an extra rib of production, distribution and exchange in order to create a sustainable and stable economy. Redistribution has to be prioritized by both public and the private sector in order to reduce the knowledge gap and the digital divide. A CSR audit of all organizations can create a database of ideas, institutional interface and ideological propositions all over the country. Importantly CSR should not only be limited to outbound initiatives but also must factor in deception, malpractices and puffery in businesses. In all a paradigm shift is needed from the ‘wealth of nations’ to the ‘idea of justice’ reflecting planet, people and profit (Corneilson, 2010) in the unique perceptual space of business organizations.

Finally, for the corporate organizations, it will be prudent to develop a relationship between woman leadership and the profitability of CSR by the companies. Social sector sensitivity approach will create a pro- people identity for the organization, helping them convert transient corporate image to a more affixed reputation. Now that expenditure on CSR has been legislated in the Indian Companies Act, let it be a facilitator in bridging the gap between the communities, interest groups, intermediaries and the corporate goals. Extending the spectrum of business ethics from transparency in their production and promotion to creating opportunity for a cohesive social and psychological mobility via CSR is the new way forward to occupy a unique perceptual space in the organizational space. The academia and the public policy needs to push the corporate organizations for more disclosures on CSR plugging in the gap between claims and reality.

To conclude, communication through mass media and new media needs to given due importance in strategic CSR. Media reportage and agendas will push the CSR ideas towards on the ground implementation.

FURTHER RESEARCH:

Exploratory research on how media agendas can play a vital role in actualizing the proposition of social responsibility within the maxim of profit and competition can create a roadmap for communicating corporate responsibility more effectively.

NOTES:

1. The interviews with the sample respondents were taken during 2011-2012. The interviews were done keeping in mind that the guidelines for voluntary disclosure were already formulated and the provisions to insert it in the companies bill was being mulled by the government.

2. Philanthropy is the practice of performing charitable or benevolent acts, http://dictionary.reference. com/browse/philanthropist.

3. Gordon Brown points out: CSR goes beyond the philosophy of old philanthropy of the past -- and is instead an all year round responsibility that companies accept for the environment around them, for the best working practices, for their engagement in their local communities and for their recognition that brand names depend not only on quality, price and uniqueness but on how, cumulatively, they interact with companies' workforce, community and environment.

4. Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. http://www.investopedia. com/terms/c/corp-social-responsibility.asp

5. Evolution of Corporate Social Responsibility in India , ref: http://en.wikipedia.org/wiki/Evolution _of_corporate_social_responsibility_in_India

6. Leading Indian firms like Bajaj Auto's , SAIL, Wipro, Escorts, ITC have adopted villages , family planning clinics , training unemployed youth , education at the primary level, developing sports and consumer education . for more see : Dr. G. Muruganantham , Case study on corporate social responsibility of MNC’s in India, 2010.

7. Fortune and Hay Group a global consulting firm identifies annually companies that enjoy strong reputations with and across the industry segments.

8. Boston College Center for corporate citizenship defines it as the business strategy that shapes the values underpinning a company’s mission and the choices made each day by its executives , managers and employees as they engage with society, pg-3, 2008.

9. The survey was conducted by ORG-MARG for TERI-Europe in several cities of India in 2001

REFERENCES:

(2014) Report on Corporate Social Responsibility https://www.iocl.com/AboutUs/AnnualReports/14A_Report_on_CSR_Activities_2014.pdf

Arora, B and R, Puranik (2004), Indian Corporate Social Responsibility: An ExploratoryReview. Nottingham: International Centre for CSR

Corneilson , J. (2010) Corporate Communication: Concepts and practices , Sage Publishers :London

Davis , J. (2012), Advertising Research : Theory and Practice , Prentice Hall: USA

http://csrinternational.blogspot.in/2011/02/brad-googins-on-age-of-responsibility.html

Kelley, Larry D. and Donald W. Jugenheimer (2004). Advertising and Public Relations Research. New Dehli : Prentice Hall of India

Klempner, G. (2006) Philosophy of CSR , Philosphy of Business, Issue 27.

Kordant Report Series, http://www.kordant.com/assets/2-Percent-India-CSR-Report.pdf accessed on 1^st Jan, 2014.

Muniapan, B (2004). The Duty and Action for CSR from the perspective of Vedanta

Priest, S. H. (2010). Doing Media Research. An Introduction ( 2^nd ed.). New Delhi: Sage Publications.

Rai, S. and Bansal, S. (2014) An Analysis of Corporate Social Responsibility Analysis in India, Economic and Politi0cal Weekly , XLIX, Vol 50 .

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Trehan, K. (2010) Communication and Corporate Responsibility in the Global Era: context, content and channels, Advertising Express, ICFAI, Hyderabad

ANNEXURE:

Annexure I

Table 1 : Corporate Social Responsibility initiatives taken by nine leading business organisations in India**

a) Education and Health

Lanco	M &S India	Nestle India	Essar India	Adventz*ZIL	DDA	Ernst and Young	GMR	Indian Oil Corp.
Scholarship to meritorious students	X	X	Association with Booaroo Children Literature Festival in Delhi	Scholarships to farmers' children for professional courses	---	Ernst and Young Foundation to educate a child	GMR Varalakshmi foundation for education to the community poor	Indian Oil Educational Scholarship Schemes; over 2600 scholarships to students in fulltime ITI, Medical ,engineering or Business Administration courses
Grants to the school to improve their infrastructure	X	X	Katha reading Workshops at lonavala	Prerna centre to educate and impart vocational training to slum locality		Collaboration with the government to improve to attract and retain children	Collaboration with the government. Vocational Training for the unemployed youth Entreprenuership programmes for community women in mushroom growing, hair grooming
Rural Medi care through mobile health services	X	X	Association with UN round table 2011 for communicationm of adolescent girl child health	Family Heath camps under the *Jai Kisan Sangam Programme*			GMRVF in collaboration with Helpage India is running 3 Mobile Medical Units catering to 90 villages per week for medical care at the doorstep to the aged.	Health camps on Family planning, immunisation, AIDS Awareness, Pulse Polio, eye and blood donation camps,
Special health camps	X	X		114 health camps combined with vaccination camps in its marketing territory				Medicines to primary health centers, ambulances to medical centers/hospitals. Hearing Aids, wheel chairs to physically challenged
Adoting 10 villages around each plant	X	X

b) Corporate Environment Responsibility

Lanco	M&S India	Nestle India	Essar India	Adventz*ZIL	DDA	Ernst and Young	GMR	Indian Oil Corp.
Protect the green cover Project in its Production Zone	Sustainable stores under Project A	Nestle's clean drinking water initiative to provide clean drinking water to 27,000 living near Nestle factories	Providing drinking water to the community	Watershed development	----	Green Offices, paper shredders, encouraging carpool, reduce usage of non-biodegradable waste		Projects on clean drinking water : Installation of hand pumps , bore well tube wells, submersible pumps, construction of elevated water tanks, providing water tap connection, aquaguard water purifiers, water coolers to schools, community centers
		Save water programmes						Rain water harvesting projects/Kits

c) Hygiene and sanitation

Lanco

M&S India

Nestle India

Essar India

Adventz*ZIL

DDA

Ernst and Young

GMR

Indian Oil Corp.

"Sanitation to communities in which we operate"

PPL activity for sanitation

PPP with Municipal Commision of Hydrabad, GMRVF is building and operating Pay and Use toilets in the city.

8 public toilets in villages na slums ata a nominal charge of Rs10 per family per month

---

**Culled by authors of the paper from the interviews on CSR practices with the senior executives of the organisations

Received on 02.09.2015 Modified on 17.09.2015

Asian J. Management; 6(4): Oct. -Dec., 2015 page 307-313

DOI: 10.5958/2321-5763.2015.00045.1