A_Report_on_Building_Csr_an_Hr_Perspective

A report on BUILDING CSR AN HR PERSPECTIVE BY SUSHRUTHA.M 09251 1 A REPORT ON BUILDING CSR AN HR PERSPECTIVE SUSHRUTHA.M ROLL NO – 09251 BATCH XVII, 2009-2011 Report submitted in partial fulfillment for the award of Post Graduate Diploma in Management VIGNANA JYOTHI INSTITUTE OF MANAGEMENT (APPROVED BY AICTE, MINISTRY OF HRD, GOVT OF INDIA) BACHUPALLY, HYDERABAD 2 Table of Contents EXECUTIVE SUMMARY: ............................................................................................ 5 INTRODUCTION:.......................................................................................................... 6 OBJECTIVES OF THE STUDY: .................................................................................... 7 SCOPE OF THE STUDY................................................................................................ 8 METHODOLOGY: ......................................................................................................... 8 LIMITATIONS OF THE STUDY: .................................................................................. 8 FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A CSR STRATEGY.................................................................................................................... 8 CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO INDIAN CORPORATES ............................................................................................................ 10 HR‘S ROLE IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY ............... 13 HR STRATEGIC FOCUS: ............................................................................................ 19 CHALLENGES IN HR INVOLVEMENT WITH CSR .............................................. 21 CSR AS A KEY TO RETAIN ....................................................................................... 22 CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE .............................................................. 23 PERFORMANCE MANAGEMENT SYSTEMS .......................................................... 24 CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION: ....................................... 24 CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA .............................................. 25 ANALYSIS:.................................................................................................................. 27 RECOMMENDATIONS:.............................................................................................. 28 CONCLUSION: ............................................................................................................ 30 BIBILOGRAPHY ......................................................................................................... 31 3 ACKNOWLEDGEMENT I hereby convey my deep acknowledgement to all those who made it possible for me to complete this project, by extending their support and continuous co-operation. I would like to acknowledge the consistent encouragement extended by Dr. Kamal Ghosh Ray, Director and Dr. Ch. S. Durga Prasad, Dean-Academic Planning of Vignana Jyothi Institute of Management. My sincere gratitude to Col (Retd.) Saeed Ahmad, Associate Professor whose constant guidance, efforts, heartfelt support, suggestions and consideration helped me in the successful completion of this project. Finally, I would like to thank all my friends, batch mates and staff members without whom this dissertation work would not have been successfully completed 4 EXECUTIVE SUMMARY: Business organizations have waked up to the need for being committed towards Corporate Social Responsibility. But still majority have just been taking up some form of philanthropic activities for its stakeholders. Nurturing a strong corporate culture which emphasizes Corporate Social Responsibility (CSR) values and competencies is required to achieve the synergistic benefits. The employees of an organization occupy a central place in developing such a culture which underlines CSR values and competencies. The present study, therefore, is an attempt to explore the engagement of human resource management professionals in undertaking Corporate Social Responsibility. It also suggests Human Resource Management to take a leading role in encouraging CSR activities at all levels. The combined impact of CSR and human resource activities, which reinforce desirable behavior, can make a major contribution in creating long term success in organizations. Successful programmes on social responsibility rely heavily on enlightened people management practices. In this context HR department is assumed to be the coordinator of CSR activities in getting the employment relationship right which is a precondition for establishing effective relationships with external stakeholders and thus can orient the employees and the organization towards a socially responsible character.. Armed with a strong and committed organizational culture reinforced by responsible Human Resource Management practices, the organizations can achieve heights of success by improved profitability, employee morale, customer satisfaction, legal compliance and societal approval for its existence. It is high time for all other organizations which have been paying only lip service to CSR that they must capitalize upon the existing Human Resource Department in framing such practices, procedures and policies that ensure the internalization of quality, ethics and excellence in the whole system. 5 INTRODUCTION Corporate social responsibility is a powerful way of making sustainable competitive profit and achieving lasting value for the share holder as well as for stake holders. CSR and the reporting there of is a win-win opportunity ,not just for companies and for financial investors but for society at large. Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance,[1] is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its support to law, ethical standards, and international norms. Consequently, business would embrace responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: people, planet, profit. CSR is about how companies manage the business process to produce an over all positive impact on society. Increasingly, corporations are motivated to become more socially responsible because their most important stakeholders expect them to understand and address the social and community issues that are relevant to them. Understanding what causes are important to employees is usually the first priority because of the many interrelated business benefits that can be derived from increased employee engagement (i.e. more loyalty, improved recruitment, increased retention, higher productivity, and so on). Key external stakeholders include customers, consumers, investors (particularly institutional investors), communities in the areas where the corporation operates its facilities, regulators, academics, and the media CSR is a concept where by companies decide voluntarily to contribute to a better society and a cleaner environment. Corporate social responsibility involves a commitment by a 6 company to manage its role I the society – as producer, employer, marketer, customer and citizen-in a responsible and sustainable manner Corporate responsibility integrates these activities in to a single concept that can generate additional value by supporting business objectives, promoting dialogue with key stake holders and responding to customer needs. Now a days company‘s are paying more attention on CSR activities . Reason can be , because now they start realizing that with out firm policies on CSR they cannot survive in this competitive environment. Every organization is trying to work on different aspects so that they can differentiate themselves CSR activities with the other companies. CSR has now become another publicity tool for various organization especially for the ones which works with international clients. CSR implies that it is the duty of the corporate to ensure the safety of all the share holders. CSR is closely linked with the concept of sustainable development where by not only financial concerns should drive the decisions of a firm but also concerns of the society , environment etc. OBJECTIVES OF THE STUDY:   To understand HR Department role in promoting CSR. To understand the role of CSR in gaining competitive advantage to the Organization.  To understand different CSR activities in Indian corporates 7 SCOPE OF THE STUDY Scope of the study is limited to study the role of HR department in building CSR and mostly focusing on the different CSR activities carried out by Indian corporates. METHODOLOGY: The study was conducted using both primary and secondary data. Secondary data It was collected from various books, articles, journals and blogs on CSR . LIMITATIONS OF THE STUDY: • The study does not consider each and every company i.e. only few company‘s are taken as examples. • The study deals more in terms of Indian corporates i.e. more focus is laid on how CSR acitivities are carried out in Indian corporates. FACTORS THAT ARE TO BE CONSIDERED WHEN STARTING A CSR STRATEGY CSR is defined as operating a business that needs or exceeds the ethical legal commercial and public expectations that society has of business. Clarify organization core values and principles. Company should be aware of who their internal and external stake holders are and which issues affect comapnys relation ship with them. Get the top 8 team on board and know how to sell benefits of CSR to different stake holders. Under stand how CSR strategy is aligned to your business and HR practices. Building strategic relationship with customers, suppliers, employees, stake holders and particularly the community at large, has become central to the sustainability of an organization. Organization must realize that government alone will not be able to get success in its endeavour to uplift the down trodden of society. Following principles play an active role in spreading the CSR movement:     Motivating companies to contribute to society by organizing seminars and conferences on subjects of social concern and the role of corporate sector. Intergrating and synergizing the work done by various organizations , NGOs, corporate sector , government and international agencies. Participating in the developmental programmes by conceiving, implementing or monitoring various projects and programmes. Encouraging individuals and institutions to participate in social developments by bestowing awards and recognizing their contribution.  Empowering regional chapters of CSR to take up similar activities at the regional level  A CSR strategy provides the opportunity to demonstrate the human face of business. Such a strategy requires engagement in open dialogue and constructive partnership with the government at various levels , IGOs, NGOs, other elements of civil society and in particular local communities.  In implementing their CSR strategies ,companies should recognize and respect local and cultural differences ,whilst maintaining high and consistent global standards and policies. 9  Finally,being responsive to local differences means taking specific initiatives. CORPORATE SOCIAL RESPONSIBILITY IN RELATION TO INDIAN CORPORATES Indian companies are now expected to discharge their stakeholder responsibilities and societal obligations, along with their shareholder-wealth maximisation goal. Nearly all leading corporates in India are involved in corporate social responsibility (CSR) programmes in areas like education, health, livelihood creation, skill development, and empowerment of weaker sections of the society. Notable efforts have come from the Tata Group, Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil Corporation among others. The 2010 list of Forbes Asia‘s ‗48 Heroes of Philanthropy‘ contains four Indians. The 2009 list also featured four Indians. India has been named among the top ten Asian countries paying increasing importance towards corporate social responsibility (CSR) disclosure norms. India was ranked fourth in the list, according to social enterprise CSR Asia's Asian Sustainability Ranking (ASR), released in October 2009. According to a study undertaken by an industry body in June 2009, which studied the CSR activities of 300 corporate houses, corporate India has spread its CSR activities across 20 states and Union territories, with Maharashtra gaining the most from them. About 36 per cent of the CSR activities are concentrated in the state, followed by about 12 per cent in Gujarat, 10 per cent in Delhi and 9 per cent in Tamil Nadu. The companies have on an aggregate, identified 26 different themes for their CSR initiatives. Of these 26 schemes, community welfare tops the list, followed by education, the environment, health, as well as rural development. Further, according to a study by financial paper, The Economic Times, donations by listed companies grew 8 per cent during the fiscal ended March 2009. The study of 10 disclosures made by companies showed that 760 companies donated US$ 170 million in FY09, up from US$ 156 million in the year-ago period. As many as 108 companies donated over US$ 216,199, up 20 per cent over the previous year. Although corporate India is involved in CSR activities, the central government is working on a framework for quantifying the CSR initiatives of companies to promote them further. According to Minister for Corporate Affairs, Mr Salman Khurshid, one of the ways to attract companies towards CSR work is to develop a system of CSR credits, similar to the system of carbon credits which are given to companies for green initiatives. Moreover, in 2009, the government made it mandatory for all public sector oil companies to spend 2 per cent of their net profits on corporate social responsibility. Besides the private sector, the government is also ensuring that the public sector companies participate actively in CSR initiatives. The Department of Public Enterprises (DPE) has prepared guidelines for central public sector enterprises to take up important corporate social responsibility projects to be funded by 2-5 per cent of the company's net profits. As per the guidelines, companies with net profit of less than US$ 22.5 million will earmark 3-5 per cent of profit for CSR, companies with net profit of between US$ 22.5 million - US$ 112.5 million, will utilise 2-3 per cent for CSR activities and companies with net profit of over US$ 112.5 million will spend 0.5-2 per cent of net profits for CSR.  India Inc has joined hands to fine-tune all its activities falling under CSR. For this, it has set up a global platform to showcase all the work done by Indian firms. Confederation of Indian Industry (CII) and the TVS Group collaborated to form the CII-TVS Centre of Excellence for Responsive Corporate Citizenship in 2007. It provides consultancy services and technical assistance on social development and CSR.  According to a National Geographic survey which studied 17,000 consumers in 17 countries, Indians are the most eco-friendly consumers in the world. India topped the Consumer Greendex, where consumers were asked about energy use 11 and conservation, transportation choices, food sources, the relative use of green products versus traditional products, attitudes towards the environment and sustainability and knowledge of environmental issues.  Reliance Industries and two Tata Group firms—Tata Motors and Tata Steel—are the country's most admired companies for their corporate social responsibility initiatives, according to a Nielsen survey released in May 2009.  As part of its Corporate Service Corps (CSC) programme, IBM has joined hands with the Tribal Development Department of Gujarat for a development project aimed at of tribals in the Sasan area of Gir forest.  As part of CSR Wipro, for example, inculcates CSR values amongst its workforce right at the beginning during the induction process  Corporate presentations, keeping employees updated through mails, regular newsletters are the instruments used to keep employees energized about the organization‘s socially responsible initiatives.  The training of employees through ―CSR Living Our Values Learning Tool‖ at Cadbury Schweppes (Young, 2006), the major global beverage and confectionary organization, has been a good example of partnership between HR and CSR. The company has also included social responsibility in the latest management development initiatives like the global ―Passion for People‖ management skills programme.  Best Buy, a fortune 100 company and the largest specialty retailer of consumer electronics in the United States and Canada, has initiated ethics training for its employees. Electronic Data Systems (EDS) has a global CSR strategy which is well supported by HR function and the employees (Redington, 2005). The HR department of the company has also developed an e-learning course for its employees built around the Department of Trade and Industry, CSR Competency framework. 12  The financial services sector is going green in a steady manner. With an eye on preserving energy, companies have started easing the carbon footprint in their offices. The year 2009 witnessed initiatives including application of renewable energy technologies, moving to paperless operations and recognition of environmental standards. Efforts by companies such as HSBC India, Max New York Life and Standard Chartered Bank have ensured that the green movement has kept its momentum by asking their customers to shift to e-statements and ereceipts.  State-owned Navratna company, Coal India Ltd (CIL) will invest US$ 67.5 million in 2010-11 on social and environmental causes.  Companies like Wipro, Infosys, Dabur, and ICICI have even framed whistle blowing policy, providing protection to the employees who come to know about any unethical practice going on within the organization, covering a whole gamut of subjects and showing their positive approach towards unethical practices  Public sector aluminium company NALCO has contributed US$ 3.23 million for development work in Orissa's Koraput district as part of its Corporate Social Responsibility (CSR). HR’S ROLE IN PROMOTING CORPORATE SOCIAL RESPONSIBILITY With the growing importance of CSR in companies , HR professionals play a key role in initiating,developing and sustaining CSR activities in the organization. While some companies have separate CSR executives who are responsible for coordinating and managing events ,most companies expect HR personnel and other employees to invest their time and participate in such activities. In todays corporate scenario ,employees typically work for more than 8-10 hours a day and are expected to multitask in their sphere of work. Given this hectic pace of work,it‘s a challenge for any organization to sustain CSR initiatives. Therefore , HR professionals have an indispensable role to play 13 in the areas of creating strong organizational culture aligning with core company values ,fostering relation ship that is sensitive to the community culture,engaging every employee in active community activities,and assessing the environment inorder to identify threats to the community. The world is a smaller place thanks to the Internet, global trading and new communication and technology advances. More U.S. companies are expanding overseas, and now manage a global workforce that has unique benefits, rules/laws, and different languages and currencies. With this global expansion comes a ―responsibility.‖ When companies are global, an important challenge in garnering success is to respect other cultures and workforce environments and start forming a global profile or social consciousness. Recognize these differences with a sound Corporate Social Responsibility (CSR) plan that can simultaneously increase shareholder value, boost employee engagement and increase employer brand recognition. Hr professionals need to co-ordinate the CSR activities and demonstrate company‘s commitment to CSR. Effective CSR depends on being seen as important through out an organization. HR professional need to include CSR in an organizational culture to make a change to actions and attitudes and ensure the support of the top team which is critical factor to success. HR should communicate ,implement ideas, policies, cultural and behavioural change across organization. HR is also responsible for the key systems and processes underpinning effective delivery . The way a company treats its employees contributes contributes directly to the company being seen as willing to accept organizations wider responsibilities. Building credibility and trusting their employer are being increasingly seen as important by employees when they choose who they want to work for. HR manager should should instill individual social responsibility in every employee in the organization . He should make employees aware that every single person in the society have responsibility to the society they belong irrespective of the job ,class ,caste or gender. HR should make employees think that only when one fulfills or at least do the sincere attempts to do so, one can lead a 14 complacent life in the society. HR team can motivate the employees to contribute a certain amount or few hours in a period of time to any organization worth. Even one can start with helping the needy in their neighbourhood. Human Resource Departments play a critical role in ensuring that the company adopts Corporate Social Responsibility programs. Furthermore, HR can manage the CSR plan implementation and monitor its adoption proactively, while documenting (and celebrating) its success throughout the company. Human Resources technology can help with a Corporate Social Responsibility program, including reducing the company‘s carbon footprint to benefit the planet. Start with these areas:     Implement and encourage green practices. Foster a culture of social responsibility. Celebrate successes. Share and communicate the value of corporate social responsibility to employees and the community. Implement and Encourage Green Practices for Corporate Social Responsibility Implement green practices to assist in environmental waste reduction, while promoting and encouraging stewardship growth, better corporate ethics and long-lasting practices that promote both personal and corporate accountability. The value inherent in embracing green aspects of corporate responsibility is clearly understood, given the direct impact that rising energy and utility costs has on employees‘ pocketbooks. Conservation has become an accepted means of making our planet healthier. Reducing each employee‘s carbon footprint is a great way of getting energy conservation and recycling waste initiatives off the ground. Here are suggestions to start:   Recycle paper, cans and bottles in the office; recognize departmental efforts. Collect food and donations for victims of floods, hurricanes and other natural disasters around the globe. 15  Encourage reduced energy consumption; subsidize transit passes, make it easy for employees to car pool, encourage staggered staffing to allow after rush hour transit, and permit telecommuting to the degree possible.     Encourage shutting off lights, computers and printers after work hours and on weekends for further energy reductions. Work with IT to switch to laptops over desktop computers. (Laptops consume up to 90% less power.) Increase the use of teleconferencing, rather than on-site meetings and trips. Promote brown-bagging in the office to help employees reduce fat and calories to live healthier lives and reduce packaging waste, too. Foster a Culture of Corporate Social Responsibility Creating a culture of change and responsibility starts with HR. Getting the younger employees, who are already environmentally conscious, excited about fresh Corporate Social Responsibility initiatives is a great way to begin. A committed set of employees who infuse enthusiasm for such programs would enable friendly competition and recognition programs. Over the past few years, major news organizations have reported on large, trusted companies that have failed employees, shareholders and the public (i.e. Enron, Lehman, WaMu). These failures created a culture of mistrust in the corporate world. All too often, employees and employers at all levels, who competed for advancement and recognition in harsh workplaces, were forced to accept corporate misconduct and waste as ―business as usual.‖ Employer brands are being eroded and the once sacred trust that employees had with stable pensions, defined benefits and lifelong jobs, are being replaced with pay for performance and adjustment to new learning goals. In this environment, Corporate Social Responsibility can go a long way in rehabilitating the employer brand with potential new 16 hires and society at large. It can help defeat the image that corporate objectives are rooted in single minded profit at the expense of society and the environment. Social and community connections that are encouraged by employers give employees permission to involve their companies in meaningful ways with the community. Employers can connect with their employees and the community through:     Company matches to employee charitable contributions; Community programs and volunteer days; Corporate sponsorship of community events; and Encouraging employees to participate in walkathons, food banks, and so forth. Celebrate Corporate Social Responsibility Successes Celebrating success is important to sustain the momentum of any CSR program. Involving company leaders, and praising the success of these initiatives, gives the program real meaning. In the rapidly expanding global workplace, the celebration of these successes not only drives the implementation of Corporate Social Responsibility initiatives, but also allows sound corporate HR practices to enable them. Additionally the publicity about these successes creates a mutual understanding of the cultures within each region that the company serves. The local population knows that, in addition to providing jobs, the company takes an active interest in, and participates in, local issues. Three Key Areas of Corporate Social Responsibility Focusing on three key areas for Corporate Social Responsibility can help create a cohesive map for the present and future:    Community Relations, Training and Development, and A Cohesive Global Corporate Social Responsibility Platform 17 Encouraging Community Relations through your HR team includes implementing reward programs, charitable contributions and encouraging community involvement and practices. Examples of these programs include sending emails and company newsletters to staff members that highlight employees and managers involved in community relations or creating monthly reward programs to recognize efforts by individuals within the company. Training and Development programs that explain the connection between the company‘s core products or services and the society at large, their value to the local community and ways in which employees can get involved in appropriate CSR projects would sustain and direct these initiatives. Global Corporate Social Responsibility policy, centrally managed, is important to acknowledge successes and measurements according to accepted standards. Central to measuring and communicating these results is the use of a Web-based Human Resources Information System (HRIS) that is available globally to employees and managers with any Web browser. In order to encourage and maintain a clear and cohesive global workplace, it is critical for the entire global workforce of a company to be on a single, multi-functioning HR platform, which allows for distributing a sound corporate responsibility plan. Having a global HR solution that offers companies flexibility, ease of use and the right mix of tools is essential to the success of both employees and employers alike, as they manage and maintain work-life balance and thrive in a changing environment that includes taking on social responsibility. The success of your Corporate Social Responsibility plan is possible with an HRIS that provides the capability to effectively plan, control and manage your goals, achieve efficiency and quality, and improve employee and manager communications. The flexibility of your HRIS system is critical to tracking and pursuing a sound Corporate Social Responsibility plan and a Web-based system provides an unparalleled level of both scalability and accessibility to implement your Corporate Social Responsibility plan 18 at a global level. This is an increasingly important endeavor, as companies, societies and people coexist productively and in harmony, across the planet we all inhabit. HR STRATEGIC FOCUS:  As a HR professional , the most important responsibility is to make the employees aware of the companys commitment to CSR and the array of activities that they could involve themselves in. The employee has to be clearly informed about their roles and whether they are expected to involve in the activities during the work hours or spend their personal time towards this.. such clarity and direction is the first step towards institutionalizing and integrating CSR in the fabric of organization.  To motivate the employees to participate in such activities ,HR professionals could publish success stories of employees who have made a difference through their participation and come up with a periodic CSR newsletter. This would create visibility and nudge others towards constructive action.  The management should constantly be committed to promote and motivate employees towards CSR by ‗ walking the talk‘. The top management needs to model this behaviour for other employees to emulate.  HR professionals can identify high impact projects ,orient employees and act as a mediator between the organization and the NGO partner and hand hold the relation ship until they mature to handle them on their own.  CSR initiatives can be integrated in the philosophy of the organization and assimilating it in the core values and mission statement of the company . 19  HR practices should include CSR as one of the strategic imperative of the company‘s annual goals and therefore make CSR every body‘s business and not relegate it to any specific group of employees.  HR professionals need to play a more proactive role in defining, implementing ,adding value to and monitoring CSR policies and practices, if they are to involve and meet the expectations of the key stake holders is that employees.  Organizations need to create structure and policies to provide assistance ,financial and in kind, as well as contribution of time and expertise ,emphasizing on engaging employees in community program.  The performance appraisal process can also measure the contribution of an employee towards the community development and adequate weightage can be given for providing rewards and promotions.  HR can help provide the needs and flavor of the local society to make CSR initiatives relevant and meaningful.  A part from employees ,CSR activities should also involve business partners ,stake holders and customers to amalgamate their involvement and make it inclusive and far reaching.  COMPANIES NEED to have better corporate social responsibility (CSR) programs in place if they want to attract and engage quality staff, a global report has found.  In addition to demonstrated high levels of corporate social responsibility, Australian companies must also offer employees good career and development opportunities to retain and engage staff. 20  ―Employee retention is most strongly influenced by the behaviour of the organisation and its senior leaders as well as the learning and career development opportunities available for .  ―This includes concern for employees‘ wellbeing as well as a concern for the environment.‖ CHALLENGES IN HR INVOLVEMENT WITH CSR  HR has to understand how CSR strategy is aligned to business and HR practices . HR has to get endorsement for the CSR strategy from inside and outside the organization and communicate consistently.  Hr needs to ensure that their organization CSR can stand up to the inevitable scrutiny by stake holders and that training and communication mean its embedded through out the culture of an organization  HR needs to be an active business partner working with other functions like finance, public relations, marketing etc.  Hr has to implement CSR as a strategic opportunity which should be market-led and I should be restrained by bureaucracy. Because trust build through successful CSR is hard to regain if lost.  HR has to get the Top team on board and know how to sell benefits of CSR to different stakeholders.  HR has to develop CSR code based laws and regulations of the country and also ensure that reporting systems are accountable and transparent. 21  HR has to look for ways to leverage social responsibility initiatives internally. Communicate the contributions company is making in the community and get employees involved.  The separation of employees during mergers, acquisitions, downsizing etc. should be strategically aligned with the business strategy as well as Corporate Social responsibility. Retraining, retention, redeployment of people can be worked out with aggressive communication, information campaigns and outplacement services in place to assist the transition of people from the organization.  The Human Resource department should effectively measure and evaluate CSR activities. The value added by CSR in the form of direct results, such as, economic savings and indirect results like increase in employee satisfaction, less employee turnover, measured by staff attitude surveys, shall indicate contribution to improved business performance. There is also a need to conduct periodic review of the CSR activities CSR AS A KEY TO RETAIN Corporate social responsibility programs are linked to how committed an employee is to an employer. This finding holds true across all ages and job levels and is particularly strong among women workers. The higher an employee rates an organization on its commitment to good corporate citizenship, the more committed the employee is likely to be to the organization COMPANIES NEED to have better corporate social responsibility (CSR) programs in place if they want to attract and engage quality staff. Employee perceptions about corporate social responsibility remained constant during the depth of the economic decline. Despite budget reductions and layoffs becoming commonplace, employees were bullish about at least one thing. They believed their employers were committed to acting responsibly in the community. Though a good social responsibility program won‘t reduce 22 turnover, it can impact how employees view your organization and the kind of ambassadors they will be when they come in contact with your customers, shareholders and community members. There are definitely positive benefits to be had In addition to demonstrated high levels of corporate social responsibility, companies must also offer employees good career and development opportunities to retain and engage staff. ―Employee retention is most strongly influenced by the behaviour of the organization and its senior leaders as well as the learning and career development opportunities available for employees,‖.―This includes concern for employees‘ wellbeing as well as a concern for the environment.‖ CORPORATE SOCIAL PERFORMANCE AS A COMPETITIVE ADVANTAGE IN ATTRACTING A QUALITY WORKFORCE Several researchers have suggested that a talented, quality workforce will become a more important source of competitive advantage for firms in the future. Drawing on social identity theory and signaling theory, the authors hypothesize that firms can use their corporate social performance (CSP) activities to attract job applicants. Specifically, signaling theory suggests that a firm‘s CSP sends signals to prospective job applicants about what it would be like to work for a firm. Social identity theory suggests that job applicants have higher self-images when working for socially responsive firms over their less responsive counterparts. It is found that prospective job applicants are more likely to pursue jobs from socially responsible firms than from firms with poor social performance reputations. A CSR programme can be an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage. CSR can also help improve the perception of a company among its staff, 23 particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. See also Corporate Social Entrepreneurship, whereby CSR can also be driven by employees' personal values, in addition to the more obvious economic and governmental drivers. PERFORMANCE MANAGEMENT SYSTEMS The designing of Performance • Management System should be done in such a manner that it measures the socially responsible initiatives taken by employees. This becomes important as the internalization of CSR in an organizational culture requires that appropriate behaviors get appraised, appreciated as well as rewarded. Otherwise, the organization might fail to inculcate it amongst all employees due to lack of positive reinforcement. The Human Resource department should effectively measure and evaluate CSR activities. The value added by CSR in the form of direct results, such as, economic savings and indirect results like increase in employee satisfaction, less employee turnover, measured by staff attitude surveys, shall indicate contribution to improved business performance. There is also a need to conduct periodic review of the CSR activities CSR CAN SURVIVE GLOBAL ECONOMIC RECESSION: In the present era of globalization ,the economy is changing because of recent economic downturn, credit crisis and collapse of big financial institutions. Business confidence around the world has diluted and pressures on company budgets are rising rapidly. In these tough times ,business enterprises are most probably thinking about how to survive, rather than how to concentrate and invest on CSR activities. More closely a social issue is tied to a company‘s business , the greater the opportunity to leverage the firms resources and benefit the society. Social and environmental benefits are seen as exciting opportunities for business rather than as responsibilities. Further irrespective of the nature of the organization ,CSR is considered to be widen the market and narrow the competition . 24 CSR ACTIVITIES UNDERTAKEN AT AVIVA INDIA AVIVA India has rolled out its CSR programme focused on supporting the Asharan Hope Foundation, a children orphanage and St Josephs old age home. In February 2003, It hosted a fund raising event for the Asharan Hope Foundation, the theme was ― where there is a life there is a hope‖ and the evening supported an orphanage that houses 15 children, including one family of five girls. Aviva staff and business partners took an active part in raising funds. Donations and raffle ticket sales added to the total of $2382 raised during the evening . More than 20 raffle prizes were donated by Aviva business partners. Donations were also received in the form of clothes and toys for children. The last quarter of 2003 saw several innovative community initiatives being undertaken at Aviva India . ‗ Diwali‘, the festival of lights , is one of the biggest festival in India and is marker by celebrations across the country. Aviva teams spent time with young children at an orphanage. A special Diwali Mela was organized at the corporate head quarters where each department had a minimum of one stall: the activities included food items,decorations, gifts and games. The employees of the designate function contributed all necessary items required for the activity at their stall. What started off as a small idea snow balled into a delightful , participative activity that had the entire office involved. The money collected by selling the products , along with an equal contribution from the company was donated to Asaran hope Foundation. Employees were encouraged to actively participate in various activities for social cause at several locations across the country: each of these activities is assigned a team leader. Majority of the CSR activity at Aviva Life Insurance, head office at Gurgoan is run on Voluntary basis by the employees, who normally visit slums on Sundays. They meet children from underprivileged back grounds living in the near by slum and talk to then about the need to go and study in a school and educate them about basic hygiene. The level of involvement was from all levels . every one brought some thing or the other for 25 the children, whether it was clothes , first aid boxes , sweets, food, books, pencils, pens, erasers. The children were informed about the importance of first aid and advantages of living in a hygienic environment. The most critical part of course was on talking to them about the need for education and how they had to start looking beyond earning only a daily living. At Asansol Aviva India has tied up with Cheshire Home of Burnpur, amissionary organization working for spastic and mentally challenged girls. The Home has been facing financial difficulties and is unable to sustain itself . The Aviva India team decided to help them by working out on a model which would ensure that they would be able to sustain themselves over a longer period of time, with out any outside help.The first step was initiated by providing them with a sewing machine from the contribution of employees. The machine will help the inmates generate income from the sale of handicraft items manufactured by them with the help of the machine. At Vadodara ,Aviva Life Insurance associated with two NGOs- senior citizen Association and Baroda citizen council. Senior Citizen association ,which works with nearly one-third of the people living in the slums of vadodara and Baroda Citizen Council has 300 members registered under charity commissioners office . Aviva team has started spending time with the elderly on a weekly basis. The team is also planning to associate with All India Development(AID), a non-profit organization established in 1996having the specific aim of promoting safe environmental practices and sustainable development. AID promotes economical, efficient environmentally friendly practices and sustainable development . AID promotes economical , efficient environmentally friendly practices, through research ,seminars, publications and awareness drives. At Banglore, aviva Life Insurance associated with NGOs like New Horizan Trust for disabled which works with disabled children and Old age Home, Banglore which is patronized by the Red Cross Society. The Aviva Life Insurance team then contacted the Rotary Club also for providing day meals to underprivileged school children. Moreover attempts to raise funds clothes and toys for children have also been activated with in branch. 26 At Patna , The Aviva Life Insurance CSR team decided to start a night school for working children, so that they can work during the day and study at night. Each sales manager would work for one week in a month and his team will teach on a rotation basis during that week. This way, each employee would be spending just a couple of hours in a month , with members giving more time as per their inclination , willingness and ability. At Kolkata, Aviva Life Insurance is working for the benefit of te elderly ladies, homeless children and in association with an NGO called as CINI-―Child In Need Institute‖. At several other places, the Aviva Life Insurance CSR team has donated books and clothes to families and children. They are also planning on giving them groceries, medicines and stationery. The team would also be coaching and tutoring them on their basic education. ANALYSIS: CSR is about how companies manage the business process to produce an over all positive impact on society. CSR is a concept where by companies decide voluntarily to contribute to a better society and a cleaner environment. It is also an obligation of a company or an organization to fulfill their responsibilities towards society and conducting their activities with in the scope of ethical standards. CSR speaking purely in technical terms, is still in its infancy in India, but the concept as such and its core thinking is not new to the country. Companies like Tata and Birla for the last many decades , have been promoting similar causes at their own initiative . They have made approaches of CSR an integral part of their business model. Long before the concept of CSR gained prominence in corporate circles, these companies have been intensely involved in social development activities and movement in places where they have their presence. CSR started to become an important part of the universal strategy of the Indian Corporates wanting to take their business to new heights at global level. HR professionals have an indispensable role to play in the areas of creating strong organizational culture aligning with core company values, fostering relationship that is sensitive to the community 27 culture,engaging every employee in active community and assessing the environment in order to identify threats to the community. In HR perspective CSR acts a key factor for the company to retain employees, attract quality work force which directly influences organizational development and also motivation levels of the employees. All these factors indirectly increases the efficiency of the organization by producing Quality work. RECOMMENDATIONS:  The HR department should take the responsibility to develop a formal policy on sustainable practices involving employees.  The orientation programme of newly recruited candidates should be designed in a manner that corporate philosophy about CSR gets highlighted. The commitment of top management towards CSR is very important which should be expressed in tangible terms to reinforce the right kind of behavior in the organization.  The Training facilities may also be • made available to instill the CSR culture among employees. This becomes necessary to make employees learn and practice CSR activities.  Responsible Human Resource • Management practices on equal opportunities, diversity management, whistle blowing, redundancy, human rights, harrasment shall give credibility to the CSR initiatives of the organization. It is beyond doubt that protecting human rights such as denial or prevention of legal or social rights of workers is a very important issue under CSR 28  The separation of employees during • mergers, acquisitions, downsizing etc. should be strategically aligned with the business strategy as well as Corporate Social responsibility. Retraining, retention, redeployment of people can be worked out with aggressive communication, information campaigns and outplacement services in place to assist the transition of people from the organization.  The Human Resource department should • effectively measure and evaluate CSR activities. The value added by CSR in the form of direct results, such as, economic savings and indirect results like increase in employee satisfaction, less employee turnover, measured by staff attitude surveys, shall indicate contribution to improved business performance. There is also a need to conduct periodic review of the CSR activities.  CSR activities are generally designed by top management . The HR role is only the execution of those plans .It is known that HR role in every organization is vital,so HR role cannot be isolated from any other in organization. So HR should take the job of CSR activities. Through HR CSR can be given credibility and aligned with how business run.  CSR can be integrated in to processes such as employer brand, recruitment, appraisal, retention, motivation, rewards, internal communication ,diversity ,coaching and training.  CSR is a strategic opportunity which is market –led and is restrained by bureaucracy. It needs dynamism ,creativity, imagination and even oppurtunitism.  Indian companies has to be sensitized to CSR in the right perpective inorder to facilitate and create an enabling environment for equitable partnership between civil society and business. 29  HR should make employees aware that every single person in the society have responsibility to the society they belong irrespective of the job ,class ,caste or gender.  A part from individual efforts , companies as part of the strategy are coordinating with social organizations to take up projects like specialized medical care , blood banks,labs,slum development programs,education endeavors, environment friendly projects etc. CONCLUSION: CSR activities undoubtedly enhance the reputation , respect and the brand image of the company in the place they operate. This would inevitably improve their profitability , attract, and retain talent , increase savings, institute diversity and establish their strong foothold in their sphere of operation. In a larger sense , they ensure a better world for the generations to come. Moreover , an individual can significantly grow and learn by participating and connecting with the society. Individuals gain self- confidence and selfesteem by helping others. The insights , knowledge and tremendous satisfaction one derives can be more enriching than monetary awards . It is the HR Professionals who can instill, nourish and stress the importance of CSR activities to the employees and management of the organization and make it a reality. Other wise, like in most companies, CSR, unfortunately would only remain in the annals of discussions and presentations. 30 BIBILOGRAPHY      HR‘s Role in Promoting Corporate Social Responsibility BY,Shafiq Lokhandwala Buiding CSR By S Riasudeen CSR An Elixir for Business or a compulsive concept By Nidhi Sharma CORPORATE SOCIAL RESPONSIBILITY: THE KEY ROLE OF HUMAN RESOURCE MANAGEMENT    Suparn Sharma (PhD),Joity Sharma (PhD), Arti Devi http://www.chrmglobal.com/Topics/46/1/Corporate-Social-Responsibility.html http://www.ibef.org/india/CSR.aspx 31