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ISBN: 978-81-909047-9-7, p-ISSN: 2249-2569, e-ISSN: 2320-2955

INTERNATIONAL RESEARCH JOURNAL OF HUMANITIES, ENGINEERING & PHARMACEUTICAL SCIENCES (An International Registered Research Journal)

Paper Code- Int./JUNE16/H1209

Volume-02

Issue-12

Year-06,

June, 2016

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“THINK BEYOND TO CREATE MIRACLES” Promoted By: Association for Innovation (Under the Society Registration Act, 1860, a government registered organization with registration no. 2241)

Year-6/Vol-2/Issue-12

ISBN: 978-81-909047-9-7, p-ISSN: 2249-2569, e-ISSN: 2320-2955

International Research Journal of Humanities, Engineering & Pharmaceutical Sciences Promoted By: Association for Innovation

A PARADIGM SHIFT IN THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY TO INDIVIDUAL SOCIAL RESPONSIBILITY- THE CHANGING TRENDS

Shanti Dahal & Saloni Sinha Senior Placement officer, Public Health Foundation of India, Gurugram, INDIA Assistant Professor, Birla Institute of Management Technology, Greater Noida, INDIA Abstract: With the impact of the concept of socially responsible behavior in business, Corporate Social Responsibility (CSR) is gaining momentum in the recent times. The magnitude of CSR is such that educationists, social activists as well as CSR practitioners worldwide are contributing towards its effectiveness. The present paper reviews the literature on CSR to understand the changing phenomenon and trends in CSR, thereby explaining the concept of individual social responsibility (ISR). Secondary data used to understand the CSR reporting trends in India were reports published by research organization- KPMG, as well as a study done by a major University in India to understand the CSR practices of 300 firms in India. Case studies by FICCI and CII have also been used to map the CSR activities prevailing in India. Further qualitative research methods in terms of case studies were used to analyze the trends in CSR. This paper identifies three important concepts in CSR- Shift from Charity to Responsibility, Changing role of CSR from Human Resources to SelfDriven Function and Shift from CSR to the concept of Individual Social Responsibility. The concept of ISR explains the phenomenon, whereby more and more employees are willfully contributing their efforts to a social cause towards building a sustainable community and nation. Employee engagement in ISR also helps build employee self- esteem and motivation, thereby increasing the employee retention, productivity and profitability of an organization. ISR scenario also enhances prospects of co-creation of creative digital knowledge sharing platforms and capacity building tools for meaningful volunteerism.

Introduction: A robust and thriving community development sector is central to India’s quest for equitable, inclusive and sustainable growth. India has evolved substantially over the last few decades and is now witnessing unprecedented interest and investments across the value chain [1]. To align with the policies, as well as, to support the economic development, many corporate firms have taken a positive lead on the Corporate Social Responsibility (CSR) initiatives. Over the years, CSR has become a critical and contributing factor for development of community and nation, and thus, a proactive involvement of management as well as employees in its effective implementation has become critical in today’s context. The impact of CSR has been of such magnitude that many organizations have started dedicating a separate section in their websites and/or annual reports on the CSR implementation and impact it has been creating. In India, the past few years have seen a dramatic change in number of organizations initiating CSR practices. Traditionally, in India, CSR was seen as a philanthropic activity, but with recent changes owing to the implementation of CSR law, it has moved from institutional building to community development through various interventions and projects. In fact, CSR has become an integral part of business practice over the last decade or so [2]. In India, with the passage of the Companies Act, 2013, CSR has received a positive response from the industry leaders, and a host of public and private sector organizations are welcoming the inclusion of CSR practices in their policies. With the recent introduction of a mandatory clause for the Boards of Indian companies by Companies Act 2013 (India), which has made 2% CSR contribution a mandatory clause for the corporate in India, CSR is seen to have gained tremendous momentum in India. The Companies Act 2013 clearly states that, every company having net worth of rupees five hundred crores or more, or turnover of rupees one thousand crores or more or a net profit of rupees five crores or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director [3]. The concept of CSR is not only making a positive impact in the corporate sector but is also magnetizing the entrepreneurs, social activists and organizations from varied sectors and into its circumference. Now CSR is being looked upon as much more than an act of philanthropy, and organizations are looking beyond the concept of community in its inclusion. The magnitude of CSR is such that more organizations are demonstrating their commitment towards it in many forms. For example, a more comprehensive method of development is adopted by some corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India Limited, and Hindustan Unilever Limited. Provision of improved medical and sanitation facilities, building schools and houses, and empowering the villagers and in process making them more selfreliant by providing vocational training and a knowledge of business operations are the facilities that these corporations focus on [4]. Thus, these organizations are helping the community to develop a better standard of living. On the other hand, the CSR programs of corporations like GlaxoSmithKline Pharmaceuticals’ focus on the health aspect of the community. They set up health camps in tribal villages which offer medical check-ups and treatment and undertake health awareness programs IJHEPS™/January-2016/This Paper has been Downloaded From: http://www.ijheps.org/

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[4]. The above examples showcase the importance the organizations are giving to the concept of CSR. Many a times, such massive participation by organizations is also linked with an attempt to enhance their corporate status. Research Methodology This paper has focused on reviewing the existing literature available on CSR and identifying and linking the changing trends in CSR to individual social responsibility (ISR). The literature has been reviewed in terms of CSR practices, CSR theory and definitions, trends in CSR from pre-industrialization to post-industrialization and also various case studies as published by Federation of Indian Chamber of Commerce and Industry (FICCI) on good practices in CSR. Towards the end, the study focuses on establishing a link of CSR with ISR, and explores how effective engagement in CSR activities can advance ISR thereby boosting employee morale and enhancing their contribution to long term objectives of an organization. Studies done by a premier educational institute- Jawaharlal Nehru University (Delhi, India) were also used as a benchmark to map the CSR activities in India. A total of 300 CSR firms in India were studied on the basis of their CSR activities to understand their functioning and prime focus areas [5]. Further, the report published by KPMG on India Corporate Responsibility Reporting Survey 2013 was used to understand the CSR reporting trends in India among the top 100 companies [6].Case studies by KPMG and ASSOCHAM were used to understand some of the trends in CSR [7]

Findings and Observations Changing Trends in CSR The recent few years have seen a change in the philosophy of CSR. While in early 19 th century, CSR was regarded as a philanthropic activity, 21st century has seen the emergence of CSR on a more responsible and sustainable note. The table 2, mentions the changing philosophy of CSR from pre-industrialization to post industrialization. The 21st century is witnessing CSR as a collaborative engagement of multi stakeholders who strategize to work together for the development of the community as a whole. Trends in CSR: From Charity to Responsibility The shift in trends in CSR was studied at three levels- Literature review on the available material in CSR, Quantitative study conducted by Jawaharlal Nehru University (Delhi, India), Desk research on Case studies conducted by ASSOCHAM. CORPORATE SOCIAL RESPONSIBILITY Defining and Understanding CSR CSR as a concept can be defined as the ethical and responsible behavior of business towards its stakeholders and the communities it practices in. It can also be termed as the contribution in terms of value addition to society, by a business entity. The totality of CSR can be best understood by three words: ‘corporate,’ ‘social,’ and ‘responsibility.’ In broad terms, CSR relates to responsibilities corporations have towards society within which they are based and operate, not denying the fact that the purview of CSR goes much beyond this [8]. World Business Council for Sustainable Development (WBCSD 2004) argued that “CSR is the commitment of a business to contribute to sustainable economic development working with employees, their families, the local community and society at large to improve their quality of life [2]. Thus, we can say that in its broad spectrum, CSR encompasses community, the environment, human rights, and the behavior with employees. The European Commission 2001 defines CSR as “the responsibility of enterprises for their impacts on society”. To completely meet their social responsibility, enterprises “should have in place a process to integrate social, environmental, ethical human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders” [9]. Corporate Social Responsibility (CSR) is a concept whereby companies integrate social, environmental and health concerns in their business strategy (policy) and operations and in their interactions with stakeholders on a voluntary basis [10].The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time (Carroll, 1979) [11]. A firm that is committed to employee development and empowerment is, already practicing some components of CSR. A firm that openly shares information with employees about a move toward downsizing, and then helps displaced employees find new jobs, is actively practicing CSR. Moreover, a firm that is committed to the production of safe, reliable, and innovative products or services in line with customer needs is strategically involved in CSR. CSR is, therefore, a management approach that takes into consideration an integrated set of indicators that map the firm's impact and reciprocal effects within the realm of its economic, societal and environmental existence [12]. The above definitions give a very wide perspective about the concept of CSR. In fact, to have an understanding of the CSR, one must have a holistic approach. In today’s’ context, CSR is being regarded as a management function, which is related to the development of the local community an organization has its operations, and also development of the employees and their sensitivity towards various issues prevalent. Thus, many times, the implementation of the CSR activities also require a IJHEPS™/January-2016/This Paper has been Downloaded From: http://www.ijheps.org/

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well-planned effort from the organization which needs to engage the key stakeholders in the entire functioning of the CSR activity. Effective implementation of CSR activities also requires capacity building of the employees for the appropriate execution of the program. The table 1,can be used to identify the differentiating statements in the above definitions of CSR The Genesis of CSR An insight into the history of CSR reveals that till 1950s it was solely dominated by the idea of philanthropy. Considering CSR as an act of philanthropy, businesses often restricted themselves to one time financial grant and did not commit their resources for such projects. Moreover, businesses never kept the stakeholder in mind while planning for such initiatives, thereby reducing the efficacy and efficiency of CSR initiatives [8]. Mid 1950’s till 1980’s saw CSR taking a dramatic change in its concept and philosophy in India. This era of industrialization witnessed CSR activities being undertaken in the form of responsible behavior with a progressive approach [15]. Whereas, post 1980’s till date, which is an era of post-industrialization, CSR activities are being performed in various forms by keeping in view multi-stakeholders benefit [15] Nowadays, organizations are focusing on allocating a separate department and funds for their CSR activities and hiring teams who have demonstrated experience and passion for managing CSR programs. In fact, in the modern era, the new generation of corporate leaders considers optimization of profits as the key, rather than the maximization of profit [15]. Organizations are ready to invest in CSR programs of diverse profile ranging from health, disability, education, sanitation, livelihood to name a few, thereby showing a responsible behavior towards the society they are operating. The beginning of 2013 has seen a further change in this concept with the focus of CSR shifting to need based CSR initiatives. Now, CSR activities are more aligned with the national goals such as health and education. Most of these goals are also related to the achievement of Millennium Development Goals set by the United Nations. Now, Expenditure on CSR Initiatives is made mandatory for all companies. Companies are now compelled to look beyond the ‘charity’ aspect and develop specific strategies [14].

a. Quantitative Study (Source: Rai & Bansal (JNU) 2014) [5] A study conducted by JNU on 300 CSR organizations India gave the facts. A major percentage (to the tune of approximately 34%) of the firms in India, implement the CSR activities through their own foundations and/or trusts. Most of the firms, approximately 30% of them collaborate with NGO’s to implement their CSR activities. This is followed by 19% firms which contribute in terms of a one-time educational grant or medical camps for the community. Approximately 12% of the firms donate money as a part of their CSR activity, while a small mass of 5% firms focus on environment and sustainable development issues as a part of their CSR activity. Further most of the organizations have prioritized community development as an important agenda for their CSR activities. b. Case Study (Source: KPMG) This quantitative research was also followed by a desk research of 24 case studies conducted by ASSOCHAM to understand the CSR trends in India. The case studies focused on analyzing the thematic areas of CSR activities. It was found that approximately 67% of the corporate focused on 3-5 thematic areas, whereas approximately 17% of the corporate focused on 1-3 thematic areas. It also reflected that 16% of the corporate focused on 6 or more thematic areas. c.

Focus Areas: As a focus area, environment has generated maximum interest, whereas issues like poverty reduction and women empowerment were with minimal focus areas. In terms of the area focus, environment garnered the maximum attention from corporate while women empowerment and poverty alleviation were neglected areas with minimal corporate focusing on the same.

d. CSR Management: 37% corporate who responded to the case study stated that they have a well-structured separate foundation to implement the CSR activities. 58% corporate have their own CSR departments to implement the activities. e. Partnerships and Collaboration are Important: There is a growing realization amongst the corporate to partner with government as well as non-governmental organizations (NGOs) for their project implementation. It has been observed that 58% of the corporate during the study have partnered with government departments, whereas about 67% of the samples have also collaborated with NGOs for their project implementation. It was found that 21% of the organizations mentioned that they were working in collaborations with multi-lateral and bi-lateral organizations. f.

Stakeholder Benefit- an important aspect of CSR: CSR implementation also involves benefitting the community, employees and general public through the activities. Almost all the organizations contacted emphasized on the importance of stakeholder benefit. However the definition of stakeholder varied. Out of the corporate who responded to the study, 21% mentioned that stakeholder benefit is important to them, and thus they work towards the benefit of stakeholders- employees, neighboring community and general public; 8% mentioned that they consider employees and general public as their stakeholders; 21% mentioned that for them stakeholders comprise of general public and neighboring community; while 8% considered employees and community as their major stakeholders. It projected that only 4% consider that stakeholders are only the neighboring community.

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g. CSR Reporting: Effective reporting of the CSR activity is integral to showcase the CSR engagement and performance. Further, it also a value addition tool to showcase your responsibility towards the activities. Out of the organizations contacted, 25% mentioned that they are reporting as per the GRI guidelines, while 21% were the signatories of the UN Global Compact. Approximately 21% of the corporate also come up with a separate CSR report, while 8% mentioned that the CSR activities are reported in their annual reports. A study by KPMG on top 100 Indian companies revealed the following facts on CSR reporting (Source: India Corporate Responsibility Reporting Survey 2013, KPMG) [6]. As many as 73% of India’s N100 companies have some amount of CR disclosure; about 45% use standard frameworks for CR disclosure; another 31% of India’s N100 comprehensively reports on CR through separate reports. There is higher rate (70%) of N100 companies disclosing CR information in annual reports but Integrated Reporting will take a few years to gain prominence. Almost 81%of N100 companies producing separate CR reports have demonstrated enhanced credibility and reliability of reports through external assurance and half of all assurance statements are issued by major accountancy firms.

Changing Role of CSR- From Human Resources to Self- Driven Function The shift in trends in CSR was studied at two levels- A review of the available material on the background of CSR, and Desk research on Case studies conducted by ASSOCHAM. The changing trends have also introduced a change in the concepts and mindsets of those working in CSR. Unlike the times when CSR was considered solely as a responsibility of the Human Resources Department and was driven by the annual agenda set by the top management, it is now an individual driven self-motivated process. Employees nowadays voluntarily wish to contribute towards the CSR activities and be a part of this initiative. Further many employees also make value additions to social causes voluntarily. In the year 2012-2013, FICCI published the document on FICCI Corporate Social Responsibility Awards 2012-2013. The document is a case study on the CSR activities of leading organizations in India and the good practices in CSR followed by them. The document enlists the CSR activities of Indian companies, multi-national organizations and small and medium sector enterprises. Some major organizations listed are Standard Chartered Bank, Royal Bank of Scotland (India), GMR Hyderabad International Airport, Elin Appliances Pvt Limited, KPIT Technologies Limited, Ambuja Cements Limited, IndusInd Bank, Larsen and Toubro Limited etc. Some of these organizations have been also awarded Innovative Approach towards Corporate Social Responsibility Award by FICCI. A look at the CSR activities of these organizations reflects the organizations commitment towards employee engagement and its acknowledgement in the CSR activities. In fact, some of these organizations also allow paid voluntary leave to the employees for contributing to the CSR activities [15]. By investing employee engagement in CSR activities, these organizations are demonstrating their commitment towards the communities. Thus, it is evident from the fact that many organizations nowadays encourage their employees to voluntarily contribute towards the CSR activities. Further, employee engagement in CSR activities also gives an organization the power to identify the competency of its employees which are usually un-noticed and thus, thereby successfully implementing the defined activities in a planned manner. Further, the younger generation of new employees often is inclined towards participation in grassroots level program and thereby making a change. Such employees go a long way towards CSR engagement, as for them volunteering in such activities also gives them an opportunity to learn the issues arising at community level. This in turn sensitizes them towards various issues and inculcates a habit of patience to solve these. Case Study (Source KPMG and FICCI) In all 27 case studies prepared by ASSOCHAM and 24 case studies prepared by FICCI on CSR in India were studied. Based on the interviews of CSR leaders as well as CSR experiences and CSR approach shared in these case studies, the major findings were: Findings Organizations Believe 1. CSR activities are an expression of love of the corporate towards their country and the citizens. 2. If you want the world around you to change, be the change yourself. 3. CSR activities are a unique combination of "doing" oneself and also "enabling" others to work towards contributing to the society which results in a larger and a deeper impact. 4. Employee volunteering programs brings positive outcome. Employee Volunteer Engagement Programs Some examples from leading organizations. 1. RBS Foundation India- Through its flagship volunteering program - Magic Hands At Work (MHAW), employees volunteer at RBS Foundation India's supporting enterprise projects, where they get a firsthand experience of the positive outcomes of including more people into the mainstream economy. As a result, this program has warranted its need within the bank and in the areas where it is carrying out its work. 2. ACL Ltd - Employee engagement is an essential part at ACL. One of the methods through which this is ensured is training and development. The learning culture in the Company is a direct consequence of ACL's philosophy of "I CAN". Thus its people enjoy the opportunity provided for different kinds of functional, technical and soft skills trainings. Employee volunteer programs at ACL have made it possible for the employees to be a part of the development journey of the communities along with ACF.


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3. Cargill Ltd. - In Cargill, employees volunteer in all activities. Cargill has clocked more than 12000 employee volunteering hours for community service in India since 2010 across its plant locations and regional and corporate offices. Through its dedicated efforts in CSR, Cargill is not just a good corporate citizen of India, but also a good neighbor in the communities where its facilities are located. It engages in a wide variety of activities including helping local schools, organizing blood donation camps, or conducting road safety workshops and other community education workshops. 4. L&T - The CSR policy of Larsen &Toubro (L&T) reflects the commitment and vision of the organization. By nurturing volunteers amongst its employees, it taps a larger pool of resources, essential for the ongoing growth of communities. L&T’s CSR demonstrates that business growth can go hand in hand with underlying commitment to the environment and society. Corporate Social Initiatives (CSI) setup at L&T works closely with the community as well as with the internal stakeholders to articulate the vision of the organization for Social development. Since inception, L&T has been making a significant impact on the lives of community surrounding its operations and offices. Its engagement with communities to help the underprivileged is multi-pronged through L&T Units, Ladies Clubs, Employee Volunteers(L&Teers) and L&T Public Charitable Trust. 5. YES Bank- 'YES I CARE' is YES BANK's Employee Volunteering Program which enables employees to contribute their time towards social causes such as education, youth empowerment and affordable housing. YES BANK has a long established employee payroll giving program through which its employees contribute in the social development of India. Through its payroll giving partner, the bank connects with over 150 NGOs working in the social development sector. 6. Standard Chartered Bank- By investing in communities, Standard Chartered Bank demonstrates its commitments to the local communities through both our employees' time contribution and the group's strategic investment efforts. Staff is empowered to share their time, skills and experiences with the local communities wherever we operate. Three days of paid voluntary leave is granted to each of its 18,000 staff. In 2012, globally it contributed to 86,300 employee volunteering days, an equivalent of USD 25million in employee time. In India, its staff invested nearly 13,300 employee volunteering days, an increase of 35% from 2011. CSR and Employee Engagement – A Contributing Factor towards Need for Identity To understand the impact of CSR engagement on employees and their self-esteem, the study was conducted at two levelsLiterature review on the available material and case studies published by various organizations on the perception of their employees. Case Study (Source: Forbes) [16] In the year 2013, Forbes conducted a study on 59 companies to understand the impact of CSR on employees. It was found that out of 59 companies, 51 responded that CSR programs have resulted in happier employees, while 45 out of 59 believed that CSR activities have helped them develop better employees and also attract better talent for hiring. [16] Further, some organizations mentioned that the deep commitment of organization for CSR initiatives has resulted in a positive and noticeable impact in terms of strengthening relationships with clients as well as improving employee morale, and deepening the firm’s ties to the many communities in which it operates. [16] Individual Social Responsibility (ISR) From CSR to ISR In 1943, Abraham H Maslow introduced his theory of Need Hierarchy, where he talks about the need for Self Esteem- which clarifies the hidden desire in oneself to be identified and respected by ones potential and optimizing ones competence for accomplishments [17].It states that people often engage in a profession or hobby which helps them gain recognition and a sense of value and contribution. Esteem needs would mean the need to be respected and recognized. It reflects the individual aspiration to be acknowledged and valued by others. It brings together a sum of activities that give the person a sense of contribution, to feel self-respected. It is often done because, our social conducts deﬁne what kind of person we are, in the eyes of others and, no less importantly, in our own eyes. Research has established that most people wish to engage in socially responsible activities to satisfy their need of selfesteem. Engagement in socially responsible activities helps boost the morale and also plays an important role in changing the pattern of behavior and attitude. This is evident from a study by Bartel (2001), who examined Pilsbury employees’ experiences in several arms of the company’s community outreach (i.e., volunteerism) program. She found that participation in the program provided employees’ with opportunities to make favorable social comparisons, which enhanced collective selfesteem and strength of identity with the organization [18]. Effective engagement in CSR activities can further satisfy the employee’s needs for security, self-esteem, belongingness, and a meaningful existence [19]. This growing need for self-esteem has given rise to the concept of Individual Social Responsibility [ISR], which is often considered a way [10] to achieve the need for self-esteem. We often witness people voluntarily engaged in a socially responsible activity, such pro-social behaviors obey a complex mix of interdependent motivations. First, they are driven by genuine, intrinsic altruism: to varying degrees, we all aspire to do good deeds and extend help. Second, material incentives may come into play: we are more likely to give to charities if contributions are tax-deductible. Third, we are also driven by social and self-esteem concerns [20].The trend of ISR is also seen in people, working in an environment where there is no IJHEPS™/January-2016/This Paper has been Downloaded From: http://www.ijheps.org/

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scope for recognition, where people work their deliverables and have limited opportunities to demonstrate their competency. Since ISR requires a willful engagement of an individual in a socially responsible activity, it is often considered a voluntary contribution of earned skills. Recognizing the importance of the same, many corporate in India have also incorporated ISR practices into their HR mandates, wherein an individual employee’s contribution towards charity is counted at the times for his annual performance appraisal [21]. Thus, ISR is being treated as an added competency and achievement for an employee. This in turn it motivates the employee by extending their roles beyond the spectrum of their professional profiles, and thus supports the larger social responsibilities voluntarily. Understanding Individual Social Responsibility ISR in simple words can be defined as the act of an individual becoming responsible in his actions with a positive influence on the community he lives in. An act of ISR, thus, would mean the act of an individual of being socially and ethically responsible and being sensitive towards economic, social and environmental issues of the community. Through a value system focusing on ISR, an individual can also contribute effectively towards solving some of the issues arising in the context of local problems. A recent example of ISR in India can be the Prime Ministers’ Clean India Campaign, wherein every Indian is urged to contribute towards cleanliness. This campaign has resulted in active involvement of celebrities as well as common people in value addition by taking initiative to clean their surroundings, local community as well as rivers and Ghats (river banks in India developed to perform specific activities). An individual with the values for ISR contributes in the long term towards the development of a healthy community and nation. Workshop for Civic Initiatives Foundation (WCIF), Bulgaria, describes ISR in its position statement on Social Responsibility as, "The individual social responsibility includes the engagement of each person towards the community where he lives, which can be expressed as an interest towards what’s happening in the community, as well as in the active participation in the solving of some of the local problems. Under community we understand the village, the small town or the residential complex in the big city, where lives every one of us. Each community lives its own life that undergoes a process of development all the time. And every one of us could take part in that development in different ways, for example by taking part in cleaning of the street on which he lives, by taking part in organization of an event, connected with the history of the town or the village or by rendering social services to children without parents or elderly people. The individual social responsibility also could be expressed in making donations for significant for the society causes – social, cultural or ecological. There are many ways of donating, as for example donating of goods or donating money through a bank account or online" [22]. Thus, by satisfying their need for a significant cause, an individual or an employee enjoys a greater life-satisfaction and increased emotional well-being. In addition, participation in socially responsible activities also helps them strengthen their relationship with the organization further, and adds the component of self-esteem in their work roles. It is said that individual values drive an organization and it holds true even for CSR activities. Many times the internal communication strategies of the organization also play an important role to engage the employee in CSR activities, and thereby add to his internal desire for ISR. The organizations’ brand building, its positive image and impact on the world, indeed has a significant effect on the employees. For, to be fully engaged in the organizations activities, an employee needs to believe that his individual contribution towards social responsibility will be considered positive [23]. Evidences of ISR from the industry best practices a. IBM's 'Celebration of Service'- an internal brand building A good example of how organizational internal brand building and internal communication helps the employees to contribute would be IBM's 'Celebration of Service'. This was launched when IBM completed its 100 years. On the occasion, the tech giant held a global Service Jam to solicit the best ideas from people both within and outside the company to transform the volunteer sector for the better. Following this period, it built consensus and brought some of those ideas to life, encouraging the global community of employees, retirees, families and friends by providing the resources to help put their commitment into practice during its year-long “Celebration of Service”. One such scheme born from this process was developed by IBM Ireland. It invited a number of charities and non-profit organizations to Dublin for a volunteer marketplace, where IBMers pledged their support on the day to ongoing volunteering projects. This strategy helped IBM to engage more than 300,000 employees in the CSR activities [23]. b.Unilever’s “The Heroes”- a digitally enabled recognition program Another example of internal communication acting as an agent of CSR engagement in the organization would be Unilever’s digitally enabled recognition program- Unilever 'Heroes”. This digital platform showcased the success stories of employees. Unilever’s “The Heroes” program is directly linked to business values and values in the global initiative, whereby any employee can nominate a colleague who goes above and beyond. The most inspiring success story is invited to Unilever’s annual leader event held in UK. This success story telling platform- The Heroes is linked to country-specific intranets on SharePoint and demonstrates the most recent, highest rated and most commented employee stories. Anyone can comment, rate or share a story, and the Heroes platform interacts directly with an employees’ My Site – pulling the employee’s photo through. Thus, this strategy of Unilever is a great example of how an organization can use its digital capability to share reward and recognition success both across the organization and externally [23]. Individual comments and ratings on the employees contribution towards ISR is of course a great morale booster to the employee as it also means that his fellow colleagues in his organization, irrespective of geographical distance are recognizing his efforts, which indeed counts as an achievement for him. IJHEPS™/January-2016/This Paper has been Downloaded From: http://www.ijheps.org/

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Unless the employees of an organization adopt the ISR, the CSR activity can seldom be a success. Discussion As Mahatma Gandhi rightly said “Be the change you want to see in the world!” ISR aims at bringing the same by shifting the social responsibility from corporate to individuals. The changing management trends call for a change in the corporate social responsibility strategies as well. Unlike the times when CSR was linked to philanthropic activities, today it has been recognized as an outcome of individual social responsibility (ISR) towards the society. Many organizations are also recognizing the employee contribution towards ISR as an added competency in their profile. Further, ISR is also considered as an important tool to contribute towards the esteem needs of an employee and thereby, in many cases promoting the employee retention in the organization. While the contribution of CSR towards an organization in undoubtedly immeasurable, an individuals’ contribution towards making it a success should also not be neglected. An individual who is engaged whole-heartedly in CSR activities, many times, is doing so because of his instinct of ISR, which gives him a sense of achievement. On the one hand, while CSR creates an impact by building a positive brand name and confident image amongst the employees and stakeholders, effective participation in CSR activities also help in employee motivation, retention and satisfaction. It is very important that an organization in its HR mandate gives due recognition to the contribution of employees towards CSR activities. Research demonstrates that employees engaged in ISR positively impact work and business productivity, including profitability of the business. According to early findings of the Conference Board of Canada’s second Canadian Corporate Community Investment Benchmarking report, employees are the drivers of reputation. Happy employees usually equal profitable companies. For these reasons, most companies are putting increased resources into improving their employee engagement metrics [24]. However, employee engagement in CSR activities should be a voluntary action and not enforced upon them by any means. Voluntary action also supports the concept of ISR, whereby the employee is consciously engaged in the CSR activities, due to his personal interest. This also ensures that significant contributions are measured effectively. The crux of ISR lies in the willful engagement of employees in CSR activities. Realizing the importance of ISR, in India, some organizations have started acknowledging this contribution. Studies have shown that employee engagement may lead to a number of positive business outcomes, including, among others, decreased absenteeism and turnover, increased customer satisfaction and loyalty, increased productivity and increased revenue growth [25]. The concept of ISR has also seen in developing an employee to a productive employee. A social audit carried out at Cognizant in 2011 showed 57% of Outreach volunteers reported improved work performance due to volunteering, while 82.4% spoke of greater awareness of social issues and the desire to help society [26]. Limitations of the study One of the limitations of this paper has been that limited literature has been reviewed on the concept of individual social responsibility. The concept of ISR is comparatively new and undefined in the context of CSR and thus limited literature has been available on the topic. Further, most of the examples stated are in the Indian context and thus a global perspective on the subject may not be present in the paper. Future Scope of the study: The way forward This paper indeed gives a way forward for further in-depth study in the field of CSR and ISR. A further study on the topic would definitely throw the light on a wider and global perception about the changing trends in CSR. This would further encourage the researchers to examine the effect that CSR practices have on their employees and thus develop ISR strategies. Further scope of research could also be on the encouraging trends on involving employee’s personal volunteering experiences to co-create innovative strategies in training and development in the domain of CSR/ISR communication of the organization leading to capacity building of volunteers. Conclusion The ISR helps employees enhance their skills in terms of adaptability, political awareness, and volunteerism as well as technical skills like stakeholder engagement, research, financial management, understanding of various social issues faced by the community etc. thereby helping them in their own capacity building. Thus, CSR engagement plays an important role in influencing employees’ engagement, leading to the positive business outcomes that go along with an engaged workforce and also employee retention. References 1.

2. 3. 4.

“Handbook on Corporate Social Responsibility in India”, Retrieved from (https://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-responsibility-in-india.pdf), last accessed on 9 November 2015 Servaes, H.,and Tamayo, A., “The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness”, Management Science, Vol. 59, No. 5, May 2013, pp. 1045–1061 “Corporate Social Responsibility”,Retrieved from (http://www.mca.gov.in/SearchableActs/Section135.htm ), last accessed on 9 November 2015 “Evolution of Corporate Social Responsibility in India”, Retrieved from (http://en.wikipedia.org/wiki/Evolution_of_corporate_social_responsibility_in_India), last accessed on 9November 2015 IJHEPS™/January-2016/This Paper has been Downloaded From: http://www.ijheps.org/

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“UPDATED: Mapping India’s CSR baseline”,Retrieved from (http://sharingvalue.asia/mapping-indias-csr-baseline/ ) last accessed on 9 November 2015 “India Corporate Responsibility Reporting Survey 2013”, Retrieved from (http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/India-Corporate-Responsibility-ReportingSurvey-2013.pdf ) last accessed on 9 November 2015 “Corporate Social Responsibility – Towards a Sustainable Future A White Paper”, Retrieved from (http://www.in.kpmg.com/pdf/csr_whitepaper.pdf) last accessed on 9 November 2015 “Corporate Social Responsibility – Towards a Sustainable Future A White Paper”, Retrieved from( http://www.in.kpmg.com/pdf/csr_whitepaper.pdf )last accessed on 9 November 2015 “Corporate Social Responsibility”, Retrieved from (http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-socialresponsibility/index_en.htm ), last accessed on 10 December 2014 Sharma ,A., and Kiran, R (2013), “Corporate Social Responsibility: Driving Forces and Challenges “ ,International Journal of Business Research and Development, Vol. 2 No. 1, pp. 18‐27 Carroll, A. B., (1999), “Corporate social responsibility: evolution of definitional construct”, Business and Society, Vol. 38 No.3, pp. 268–295. Waldman, D., Kenett, R.S., & Zilberg, T. (2007). Corporate social responsibility: What it really is, why it’s so important, and how it should be managed. Status Magazine, 193, 10-14 Sharma, S. , Sharma, R., and Kishor, J. (2013), “Emerging Trends In Corporate Social Responsibility In India- A Descriptive Study”, Global Journal of Commerce and Management Perspective Vol. 2(2) 2013:58-62 “Role of HR in driving sustainable business practices”, Ernst & Young LLP, Retrieved online from (http://www.ey.com/Publication/vwLUAssets/EY-role-of-hr-in-driving-sustainable-business-practices/$FILE/EY-Role-of-HR-indriving-sustainable-business-practices.pdf), last accessed on 9 November 2015 “FICCI Corporate Social Responsibility Awards 2012-2013“, Retrieved from (http://www.ficci.com/spdocument/20387/bookcsr.pdf), last accessed on 9 November 2015 “Why CSR? The Benefits of Corporate Social Responsibility Will Move You To Act”, Retrieved from (http://www.forbes.com/sites/devinthorpe/2013/05/18/why-csr-the-benefits-of-corporate-social-responsibility-will-move-you-toact/)last accessed on 9 November 2015 Maslow, A.H, (1943), “Hierarchy of Needs: A Theory of Human Motivation” , Psychological Review Bartel, C. A. (2001),“Social comparisons in boundary-spanning work: Effects of community outreach on members’ organizational identity and identiﬁcation" Administrative Science Quarterly, 46, 379–413 Baumana, W.C, Skitka, J.L, “Corporate social responsibility as a source of employee satisfaction”, Research in Organizational Behavior 32 (2012) 63–86 Be’nabouw, R., and Tirolez, J., “Individual and Corporate Social Responsibility”, Economica (2010) 77, 1–19 “After CSR India Inc Starts Individual Social Responsibility”, Retrieved from http://articles.economictimes.indiatimes.com/201403-03/news/47859399_1_csr-employees-apeejay-surrendra-group, last accessed on 9 November 2015 Jain. P., “Corporate Social Responsibility: Micro and Macro level”,Global Research Analysis Volume : 1, Issue : 2 “5 outstanding CSR strategies and how to communicate yours”, Retrieved from (https://www.melcrum.com/5-outstanding-csrstrategies-and-how-communicate-yours ), last accessed on 5th October 2015 “Canadian Corporate Community Investment Benchmarking Report”, The Conference Board of Canada, April 2, 2013 Gross, R. “Corporate Social Responsibility and Employee Engagement: Making the Connection” Retrieved from (http://www.mandrake.ca/bill/images/corporate_responsibility_white_paper.pdf ), last accessed on 9 November 2015 “Companies give employees a nudge for corporate social responsibility”, Retrieved from (http://articles.economictimes.indiatimes.com/2013-01-11/news/36279786_1_csr-initiatives-archana-raghuram-outreachvolunteers ), last accessed on 9 November 2015


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Table 1: Summarizing CSR What is it?

1. Ethical and responsible behavior of business towards its stakeholders and the communities it practices in 2. Value addition to society by a business entity 3. Responsibilities corporations have towards society 4. Commitment of a business to contribute to sustainable economic development in a holistic manner 5. It Encompasses community, the environment, human rights, and the behavior with employees

What it involves? How is it done?

Process to integrate social, environmental, ethical human rights and consumer concerns into business operations and core strategy in close collaboration with their stakeholders Integrating social, environmental and health concerns in business strategy, operations and interactions with stakeholders on a voluntary basis

Table 2: Phases of CSR from Pre-industrialization to Post-industrialization Phases First

Period Pre-industrialization

Year 1800

Second

Pre-industrialization

1800-1914

Third

Industrialization

1950-1980

Fourth

Post industrialization

1980-2000

Fifth

Post industrialization

2000-till Date

Nature of CSR CSR activities were undertaken in the form of philanthropy with religious belief CSR activities were undertaken in the form of donations with social welfare objectives CSR activities were undertaken in the form of responsible behavior with progressive approach CSR activities are being performed in various forms by keeping in view multi-stakeholders benefit Focus shifted to need based CSR initiatives and was aligned with national priorities such as health and education


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